Huron Consulting Group ((HURN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Huron Consulting Group’s recent earnings call painted a picture of robust growth and optimism, despite some challenges. The company reported strong revenue growth across all segments, with particularly impressive performances in healthcare and education. While there were some hurdles in margin performance for the commercial segment and increased corporate expenses, the overall sentiment was positive, supported by upward adjustments in annual guidance.
Company-Wide Revenue Growth
Huron Consulting Group experienced a notable 17% growth in revenues before reimbursable expenses during the third quarter. This growth included a 10% organic increase, highlighting the strong demand for the company’s services and its effective execution strategy.
Record Healthcare Segment Revenue
The healthcare segment of Huron Consulting Group achieved record revenue, growing 20% over the same quarter in the previous year. This impressive performance included a 19% organic growth, excluding the effects of recent acquisitions and divestitures.
Commercial Segment Growth
The commercial segment saw a 27% increase in revenue before reimbursable expenses compared to the prior year quarter. This growth was fueled by acquisitions and continued organic expansion in the digital business.
Education Segment Performance
Huron’s education segment reported a 7% growth in revenue before reimbursable expenses. This was driven by strong demand for strategy, operations, research, and digital offerings.
Strong Adjusted EBITDA Growth
The company reported an adjusted EBITDA of $67.4 million in Q3 2025, which represents 15.6% of revenue before reimbursable expenses. This marks an increase from $54.9 million or 14.8% of RBR in the same quarter of the previous year.
Decreased Commercial Segment Operating Margin
Despite the growth in revenue, the commercial segment’s operating income margin decreased to 15.4% in Q3 2025 from 24.5% in Q3 2024. This decline was attributed to increased salaries and contractor expenses.
Higher Effective Tax Rate
The effective income tax rate for Huron Consulting Group in Q3 2025 was 28.7%, which is higher than the statutory rate. This increase was due to nondeductible expense items.
Increased Corporate Expenses
The company experienced a rise in unallocated corporate expenses by $9.3 million in Q3 2025. This increase was driven by higher salaries, software expenses, and legal and professional expenses.
Increased Annual Guidance
Huron Consulting Group updated its annual guidance, narrowing the revenue before reimbursable expenses range to $1.65 billion to $1.67 billion. The adjusted non-GAAP EPS guidance was also increased to a range of $7.50 to $7.70. The company emphasized its strong pipeline and the integration of AI and automation as key drivers for future growth.
In conclusion, Huron Consulting Group’s earnings call highlighted a strong performance across its segments, with record revenues and increased guidance. While there are challenges in the commercial segment’s margins and increased corporate expenses, the overall sentiment remains positive, with a focus on continued growth and innovation.