Huron Consulting Group (HURN) Small-Cap Virtual Conference summary

Market positioning and client focus

• Specializes in healthcare (50% of revenue), education (30%), and commercial (20%) sectors, with a focus on large not-for-profit healthcare providers and top research universities.

• Demand is driven by clients' financial and regulatory pressures, especially in healthcare and education, leading to performance improvement and outcomes-based projects.

• Commercial segment targets mid-sized clients underserved by larger consulting firms, focusing on financial services, energy, utilities, and manufacturing.

• Managed services in healthcare have grown rapidly, now representing about 20% of the healthcare segment and contributing positively to margins.

• Maintains deep client relationships and industry expertise, differentiating from competitors who only partially serve these sectors.

Financial performance and outlook

• Achieved 12% revenue growth and 80 basis point margin expansion in 2025, with adjusted EPS up 21%.

• 2026 guidance projects another 12% revenue increase, 50 basis point margin expansion, and 17.5% EPS growth to $9.20.

• Targets low double-digit annual revenue growth through 2029, with 2%-4% from acquisitions and 6%-8% organic.

• Aims for 15%-17% adjusted EBITDA margin by 2029, with strong free cash flow conversion (75% of adjusted EBITDA).

• Plans to double adjusted EPS from 2024 to 2029, after tripling EPS from 2021 to 2025.

Strategic initiatives and growth drivers

• Expanding leadership in healthcare and education by helping clients address financial strain, regulatory complexity, and technology modernization.

• Commercial segment growth leverages expertise from core sectors and targets clients overlooked by larger firms.

• AI is a key opportunity: leveraging proprietary data, accelerating project benefits, and offering new advisory services.

• Internal AI deployment improves efficiency and supports outcomes-based project delivery, with 67% of revenue already outcomes-based.

• Maintains a strong talent pipeline, low turnover, and a culture recognized by industry awards.