FTI Consulting (FCN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenues of $993.5 million, up 5.3% year-over-year, led by Corporate Finance, Technology, and Forensic and Litigation Consulting segments.

• Net income declined 19.4% year-over-year to $57.8 million, mainly due to higher direct costs, SG&A, interest expense, and extraordinary litigation expenses.

• Adjusted EBITDA was $104.5 million (10.5% margin), down from $111.6 million (11.8%) year-over-year, reflecting higher costs.

• Adjusted EPS rose to $2.16 from $2.13, while reported EPS fell to $1.99 from $2.13, reflecting the impact of $6.6 million in extraordinary litigation expenses.

• Net cash from operating activities was $152.3 million, up from $55.7 million year-over-year, with free cash flow at $141.0 million.

Financial highlights

• Q2 2026 revenues: $993.5 million (+5.3% YoY); net income: $57.8 million (-19.4% YoY); Adjusted EBITDA: $104.5 million (-6.4% YoY); Adjusted EBITDA margin: 10.5% (down from 11.8%).

• Q2 2026 EPS: $1.99 (down from $2.13 YoY); Adjusted EPS: $2.16 (up from $2.13 YoY).

• Free cash flow for Q2 2026 was $141.0 million, a significant increase from $38.3 million in Q2 2025.

• Cash and cash equivalents stood at $163.7 million as of June 30, 2026.

• Share repurchases totaled $390.9 million in Q2 2026; $344 million remains authorized.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $3.94–$4.10 billion.

• GAAP EPS guidance lowered to $8.70–$9.30 (from $8.90–$9.60); Adjusted EPS expected at $9.10–$9.70, excluding $0.40 of extraordinary litigation expenses.

• SG&A for 2026 expected to be $70 million higher than 2025, mainly due to legal expenses.

• Effective tax rate for 2026 now expected at 21–23%.

• Management expects sequential improvement in EBITDA and earnings in the second half, driven by lower SG&A and stronger segment performance.