FTI Consulting Q2 2026: Revenue Climbs 5%, but Profit Slips 19% on Higher Costs and Litigation Expenses
FCN sits 18% above its 52-week low of $137.65.
Summary
FTI Consulting's Q2 2026 revenue rose 5.3% to $993.5M, but net income dropped 19.4% to $57.8M. Debt surged to $1.02B after a revolver upsizing and term loan, while aggressive buybacks continued.
Key Events · Earnings and Guidance · FCN
-
Revenue Up, Profit Down
Q2 revenue grew 5.3% to $993.5M, but net income fell 19.4% to $57.8M. Diluted EPS was $1.99 vs $2.13 a year ago. Adjusted EBITDA declined 6.4% to $104.5M.
-
Debt Load Surges
Total debt increased to $1.02B from $365M at year-end 2025. The company upsized its revolving credit facility to $1.5B and added a $300M term loan, while cash fell to $163.7M.
-
Aggressive Buybacks Continue
FTI repurchased $390.9M in shares during Q2 at an average price of $150.84. Shares outstanding dropped to 27.7M from 30.9M at year-end 2025. $344M remains under the repurchase authorization.
-
Litigation Costs Emerge
The company recorded $6.6M in extraordinary litigation-related expenses tied to the FTI vs. Orszag case, which management now deems non-recurring and outside ordinary course.
Analysis · FCN · Trade & Services
FTI Consulting's second quarter painted a mixed picture. While revenue advanced 5.3% to $993.5 million, powered by Corporate Finance and Technology, net income contracted 19.4% to $57.8 million as rising direct costs, SG&A, and interest expense compressed margins. Adjusted EBITDA fell 6.4% to $104.5 million, partly reflecting $6.6 million in extraordinary litigation costs. The balance sheet underwent a dramatic transformation: total debt surged to $1.02 billion after the company upsized its revolver to $1.5 billion and secured a $300 million term loan, while cash dwindled to $163.7 million. Aggressive buybacks persisted—$390.9 million in shares were repurchased during the quarter, shrinking the share count by over 8% year-over-year. A $42.1 million tax equity investment also generated $7.1 million in net tax benefits. With leverage climbing and profitability under strain, the market will watch whether revenue growth can offset cost headwinds and whether litigation expenses remain contained.
At the time of this filing, FCN was trading at $163.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $137.65 to $189.30. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.