- Revenue Resilience - Total revenue was $943.7 million, down 0.6% year-over-year despite significant headwinds.
- Segment Performance - Corporate Finance & Restructuring and Strategic Communications delivered record results, with revenue up 9% and 20.8% respectively.
- Economic Consulting Challenges - Economic Consulting revenue fell 17% year-over-year, with adjusted EBITDA margin dropping to 7.4%.
- Cash Flow Decline - Net cash from operations decreased to $55.7 million, down from $135.2 million in the prior year quarter.
- Full-Year Guidance - The company narrowed its 2025 revenue guidance to $3.66-$3.76 billion and adjusted EPS to $7.80-$8.40.
Segment-wise Performance
The company's segments showed varying performances. Corporate Finance & Restructuring (Corp Fin) continued to perform well, with revenue up 9% to $379.2 million and adjusted segment EBITDA of $81.7 million or 21.5% of segment revenue. Forensic and Litigation Consulting (FLC) also reported a 10% increase in revenue to $186.5 million, with adjusted segment EBITDA of $31.2 million or 16.7% of segment revenues. However, Economic Consulting revenues declined 17% to $191.7 million, with adjusted segment EBITDA of $14.2 million or 7.4% of segment revenues. Technology revenues were down 27.9% to $83.6 million, while Strategic Communications revenues rose 20.8% to $102.7 million.
Cash Flow and Leverage
Net cash provided by operating activities was $55.7 million, down from $135.2 million in the prior year quarter. Free cash flow was $38.3 million, down from $125.2 million in Q2 2024. The company's total debt, net of cash, was $317.2 million on June 30, 2025. The gross debt-to-EBITDA ratio was 1.2x, indicating a manageable leverage position. As Ajay Sabherwal, CFO, noted, "leverage is an outcome, not a target."
Valuation Metrics
FTI Consulting's current valuation metrics indicate a mixed picture. The P/E Ratio stands at 24.55, while the P/S Ratio is 1.54. The EV/EBITDA ratio is 16.76, and the Free Cash Flow Yield is 1.91%. The Net Debt / EBITDA ratio is 1.45. These metrics suggest that the company's valuation is influenced by its growth prospects and profitability.
Guidance and Outlook
FTI Consulting has revised its guidance for 2025, estimating revenue between $3.66 billion and $3.76 billion and adjusted EPS between $7.80 and $8.40. The company's management expects a gradual improvement in demand for M&A-related services in Technology and good momentum in Corporate Finance, Financial Services, and cybersecurity in FLC. As Steven H. Gunby, CEO, noted, "the company is having a solid year despite facing significant headwinds."