FTI Consulting reported a mixed performance for the second quarter of 2025, with overall revenues seeing a marginal decrease to $943.7 million, down 0.6% from the same period last year. Net income also declined to $71.7 million from $83.9 million in the prior-year quarter
The financial results reveal a diverse landscape within the firm's service lines, reflecting broader market trends. Segments geared toward corporate distress and risk performed well, while those reliant on merger and acquisition activity faced significant headwinds.
The Corporate Finance & Restructuring segment was a standout performer, with revenues increasing 9.0% to $379.2 million. The company attributed this growth primarily to higher demand for its restructuring and transaction services. Similarly, the Forensic and Litigation Consulting segment grew 10.0% to $186.5 million, boosted by higher realized bill rates across its services. The Strategic Communications segment also posted strong results, with revenue climbing 20.8% to $102.7 million.
In contrast, segments tied to the M&A market experienced significant declines. The Economic Consulting segment saw its revenue fall 17.0% to $191.7 million, a drop the company linked to lower demand for both M&A related and non M&A related antitrust services. This segment also saw a 7.9% decline in billable headcount. The Technology segment was hit hardest, with revenues plummeting 27.9% to $83.6 million due to what the company specified as lower demand for M&A related “second request” services.
Steven H. Gunby, CEO and Chairman of FTI Consulting, acknowledged the challenging environment in the company's announcement. “The strength we have shown this quarter, notwithstanding some of the major headwinds that we have been facing this year, demonstrates, once again, the underlying power of this institution and of our people,” he commented.
On the capital front, FTI Consulting was active in the market, repurchasing over 2.1 million shares for a total of $354.9 million during the quarter. This activity, combined with forgivable loan issuances, contributed to an increase in the company's total debt, net of cash.
Looking ahead, FTI has updated its full-year 2025 guidance. The company now projects annual revenues to be between $3.660 billion and $3.760 billion, with an adjusted EPS forecast to range from $7.80 to $8.40.
FTI’s full Q2 earnings report may be viewed here.
SOURCE: FTI Consulting
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