Huron Consulting (HUR) Q2 2026 Earnings Report

The call conveyed strong positive operational and financial momentum: record RBR, robust organic growth, significant adjusted EPS growth (+30% adjusted EPS YoY), margin expansion, strong free cash flow, raised guidance, and accelerating AI-driven digital bookings and managed services. Areas of caution include higher unallocated corporate expenses, a less favorable effective tax rate, leverage that remains above the target range (though improving), and near-term capacity/hiring needs driven by elevated utilization. On balance the positives materially outweigh the challenges.

Huron raised and narrowed full-year RBR guidance to $1.85B–$1.89B (≈+12% at the midpoint vs. 2025), maintained adjusted EBITDA margin guidance of 14.5%–15.0% of RBR (≈+50 bps vs. 2025 midpoint) and increased adjusted non‑GAAP EPS to $9.00–$9.40 (≈+17% at the midpoint vs. 2025); free cash flow is expected to be $180M–$220M (net of cash taxes and interest, excl. noncash stock comp) with free cash flow per share at about $12 at the midpoint (≈10% yield at a $120 share price). Management expects RelateCare to add ~$30M of 2026 RBR and be ~+$0.10 accretive to 2026 adjusted EPS, and reiterated segment targets of Healthcare RBR mid‑teen growth with ~30%–32% operating margins, Education RBR mid‑ to upper‑single‑digit growth with 24%–26% margins, and Commercial RBR low‑teen growth with 19%–21% margins; unallocated corporate expenses (ex. restructuring and deferred comp) are expected to rise low‑double‑digits vs. 2025, full‑year diluted shares are guided to ~16.6–16.8M, and the company reiterated its leverage target of 2.0x–2.5x by year‑end (vs. 2.8x adj. EBITDA as of 6/30/26).