FTI Consulting (FCN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues rose 9.5% year-over-year to $983.3 million, driven by growth in Corporate Finance, Strategic Communications, and Technology, partially offset by a decline in Economic Consulting; revenues were down 0.7% sequentially from Q4 2025.

• Net income was $57.6 million, down 6.8% year-over-year due to higher direct costs, SG&A, increased interest expense, and a higher effective tax rate, but up 5.7% sequentially.

• EPS increased to $1.90 from $1.74 year-over-year, primarily due to a lower share count; adjusted EPS dropped to $1.90 from $2.29, reflecting the absence of special charges in the current period.

• Adjusted EBITDA was $96.8 million (9.8% margin), down 15.9% year-over-year and 8.9% sequentially, mainly due to higher costs and the absence of prior-year legal settlement gains.

• Maintained momentum from a record 2025, with continued investment in talent, expansion into new geographies and service lines, and organizational confidence in long-term growth.

Financial highlights

• Revenue: $983.3 million (+9.5% YoY); Net income: $57.6 million (–6.8% YoY); Adjusted EBITDA: $96.8 million (–15.9% YoY, 9.8% margin); FX-neutral revenue growth was 6.8%.

• EPS was $1.90 vs. $1.74 GAAP in Q1 2025; adjusted EPS in Q1 2025 was $2.29 excluding a $0.55 special charge.

• SG&A rose to $222.3 million (22.6% of revenue), up from $184.3 million (20.5%).

• Effective tax rate increased to 26.6% from 23.3%.

• Free cash flow outflow improved to $320.6 million from $483.0 million YoY; DSO improved to 98 days from 100 days.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $3.94–$4.10 billion; EPS guidance at $8.90–$9.60.

• Expect full-year tax rate of 22–24%.

• SG&A for 2026 expected to be ~$60 million higher than 2025, with Q2 as the peak quarter.

• Capital expenditures for the remainder of 2026 projected at $34–$42 million.

• Management expects adequate liquidity for at least the next 12 months, supported by cash flows and available credit.