HURN

Huron Consulting Group Inc.

Next est. report 2026-11-03 · AMC

Business Services '24: Professional Services ConsultingSoftware '26: Legal Tech

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Overview

Huron Consulting Group Inc. is a global professional services firm assisting clients in Healthcare (50% of Q2 2026 revenue), Education (30%), and Commercial (20

Huron Consulting Group Inc. is a global professional services firm assisting clients in Healthcare (50% of Q2 2026 revenue), Education (30%), and Commercial (20%) sectors. They provide financial, operational, digital, and AI consulting, managed services, and software. Huron helps healthcare providers, universities, and various commercial industries improve performance, accelerate transformation, and navigate complex markets, increasingly leveraging AI-enabled solutions.

What They Do (Plain English & Analogies): Huron Consulting Group acts like a team of expert coaches for large organizations, helping them improve how they operate, grow their business, and adapt to new challenges, especially those involving technology like Artificial Intelligence (AI). They work with a variety of clients, including hospitals, universities, and other big companies. For instance, they might help a hospital streamline its patient billing process, assist a university in upgrading its digital learning platforms, or advise a commercial business on how to use AI to make its operations more efficient. They provide a range of services, including strategic advice (consulting), managing ongoing tasks (managed services), and implementing technology solutions (digital services). Their approach often involves outcomes-based models, meaning their fees can be tied to the financial benefits or improvements they deliver to their clients, similar to a personal trainer whose payment is linked to a client's fitness results.
Very Brief History: Huron Consulting Group Inc. was founded in May 2002 in Chicago, Illinois, by a group of former employees of Arthur Andersen following that firm's dissolution. The company became publicly traded on the NASDAQ Global Select Market exchange under the ticker 'HURN' in October 2004. Since its inception, Huron has expanded its service offerings and market presence through both organic growth and strategic acquisitions.
"Street Stereotype": Huron is generally perceived as a global professional services firm that assists large organizations, particularly in the healthcare and education sectors, in navigating complex business challenges and transforming their operations. Within the 'Software '26: Legal Tech' investment theme, Huron's 'Legal Consulting' arm is recognized as a key partner for corporate legal departments aiming to modernize their technology infrastructure and transition towards more data-driven operations.
Subsidiaries On Linked In*: Eclipse Insights — Acquired June 2025, integrated into Huron's Healthcare segment to bolster revenue cycle solutions.
Treliant — Acquired August 2025, integrated into Huron's Commercial segment to expand financial services consulting and managed services.
Wilson Perumal & Company — Acquired September 2025, integrated into Huron's Commercial segment, with its team joining Huron's Innosight team, to strengthen strategy and operations consulting.
RelateCare — Acquired June 2026, integrated to strengthen Huron's healthcare managed services by expanding AI-enabled patient access and care coordination solutions.
AXIOM Systems' payor consulting services division — Acquired November 2025, integrated to add payor consulting expertise and technology/data & analytics capabilities to Huron's digital-focused payor offerings.
AXIA Consulting — Acquired December 2024, integrated to deepen supply chain and technology capabilities, including Oracle SCM and Microsoft offerings.
Innosight — Acquired in 2017, mentioned in relation to the Wilson Perumal & Company acquisition as part of Huron's strategy and innovation capabilities.
Customer Sectors & Example Clients: Huron Consulting Group serves a diverse range of customer sectors, including healthcare, education, financial services, industrials and manufacturing, energy and utilities, public sector, and other commercial industries. Specific example clients for Huron Research Suite include Cummins, Penn State University, and the University of Texas at Austin. In healthcare, they serve financially challenged health systems and hospitals. In education, they work with universities and colleges. For commercial clients, they serve various organizations navigating complex operating environments.
New Customers / Segments They'Re Targeting: Huron is actively expanding its addressable market by offering new innovative AI services and solutions to its existing client base, both proprietary solutions and those delivered with technology partners like Anthropic, Microsoft, and AWS. They are also seeing strong growth and continued opportunities in their managed services offerings, particularly in healthcare and education (focused on research functions), as clients increasingly turn to them for differentiated expertise and outcome-based models. The acquisition of RelateCare further strengthens their patient access and clinical managed services in healthcare.
Supply Chain And Sourcing Geographies: As a professional services firm, Huron does not have a traditional physical supply chain for products. Its 'supply chain' primarily involves sourcing human capital. The company maintains a global team, particularly for its Managed Services business, with significant talent additions in global teams for Healthcare Managed Services. Huron's employee base spans numerous geographies, including North America (United States, Canada, Mexico, Costa Rica, Honduras), Asia (India, Singapore, Jordan, United Arab Emirates, Iran, Japan, Vietnam, Bangladesh, Saudi Arabia, Iraq, Israel), Europe (United Kingdom, France, Ireland, Germany, Poland, Slovakia, Greece, Austria, Sweden, Spain, Netherlands), South America (Colombia, Brazil, Paraguay, Argentina), and Oceania (New Zealand, Australia), indicating a broad geographic sourcing of its professional talent.
Sales Geographies And Expansion Plans: Huron currently sells its professional services in the United States and internationally, with 25 global locations across North America, Europe, and Asia Pacific. Recent acquisitions, such as Treliant, have specifically expanded Huron's capabilities to serve clients in key European markets. While the company emphasizes serving a 'global client base' and expanding offerings to meet their needs, the transcript does not explicitly detail plans to expand sales into new specific geographic regions beyond its existing international presence.
How Key Themes May Help/Hurt: Huron's 'Legal Consulting' wing, a pure-play on modernizing corporate legal departments, stands to significantly benefit from the 'Software '26: Legal Tech' theme. The accelerated AI integration and monetization within legal tech, as well as increasing regulatory complexity, will drive demand for Huron's expertise in helping legal departments adopt AI strategies, governance, and data modernization. Their ability to deliver 'fiduciary-grade AI' solutions, ensuring accuracy and compliance, will be crucial. However, the theme's 'AI anxiety' among legal firms and the need for significant change management could lead to slower-than-anticipated adoption for some clients, potentially extending sales cycles for Huron's more transformative AI-driven projects. Intense competition from generic LLMs and AI startups, while less direct for consulting, could also influence client expectations and budget allocations for technology solutions.

3 Main Long-Term Bull Details

Accelerated AI Integration and Expanding Addressable Market: Huron is strategically leveraging AI to drive growth, with over 60% of digital bookings in the first half of 2026 having direct AI scope or being significantly enabled by AI tools. This integration of AI into their proprietary solutions and partnerships with technology providers like Anthropic, Microsoft, and AWS is expanding their addressable market and creating new revenue opportunities across all segments.
Strong Demand for Outcomes-Based Managed Services: The company is experiencing robust growth in its managed services, particularly in healthcare (64% growth in Q2 2026, with 43% organic growth), driven by clients seeking tangible financial benefits and higher margins from Huron's outcomes-based models. This recurring revenue stream, combined with high client retention, provides a durable growth engine.
Consistent Growth and Margin Expansion Across Diversified Segments: Huron has a strong track record of consistent RBR growth and margin expansion since 2021, with record revenues in Q2 2026 across all three operating segments. The diversified portfolio in Healthcare, Education, and Commercial, coupled with disciplined capital allocation and strategic acquisitions like RelateCare, positions the company for continued strong performance and shareholder value creation.

3 Main Long-Term Bear Details

Client Financial Strain and Budget Constraints: Clients in Huron's core segments, particularly healthcare providers, continue to face significant financial challenges due to rising costs, reimbursement pressures, and new regulations (like the OBBBA legislation). This financial strain could lead to cautious spending on consulting services, extended sales cycles, and potential pressure on Huron's pricing, despite the appeal of outcomes-based models.
Intense Competition and Need for Continuous Innovation: The professional services industry is highly competitive, with other large providers in managed services and consulting. Huron must continuously invest in innovation, particularly in AI and digital capabilities, to maintain its differentiated expertise and competitive edge against both established firms and emerging technology players.
Integration Risks from Acquisitions: While strategic acquisitions are a key growth driver, the successful integration of newly acquired companies (e.g., RelateCare, Eclipse Insights, Treliant, Wilson Perumal) is critical. Challenges in effectively integrating new teams, technologies, and corporate cultures could lead to operational disruptions, higher integration costs, and a failure to realize the anticipated synergies and financial benefits.

Competitors And Differentiation: In the healthcare managed services space, Huron competes with larger providers like R1 and Ensembles. Huron differentiates itself through its deep consulting knowledge, often starting with a holistic view of clients' revenue cycles, and expanding with point solutions. Their managed services business is built upon delivering increased net revenue, higher cash flow yield, greater patient throughput, and improved patient collections. A key differentiator is their outcomes-based pricing models, which resonate with clients facing financial strain and provide tangible ROI. Furthermore, Huron's continued investments in AI and automation are embedded into their solutions, strengthening their differentiation and enhancing outcomes. They also leverage their well-established reputation, long history of proven results, and deep client relationships, particularly in the education sector, to stand out as a trusted advisor.
Recent Performance & What The Market'S Focused On: Huron Consulting Group delivered a strong performance in the second quarter of 2026, achieving record revenues before reimbursable expenses (RBR) of $465.6 million, a 15.7% increase over the prior year, driven by organic growth across all three operating segments. The company saw robust client bookings, up across all segments in the first half of the year, with an acceleration in Q2. Adjusted EBITDA increased to $72.6 million, or 15.6% of RBR, reflecting continued margin expansion. Free cash flow from operations was strong at $120.5 million, and the company reduced its net debt and leverage ratio. Management increased and narrowed its full-year 2026 RBR guidance to $1.85 billion to $1.89 billion and raised adjusted non-GAAP EPS guidance to $9 to $9.40. The market is focused on Huron's ability to continue leveraging AI as a significant growth driver, particularly in its digital and managed services capabilities, and its progress towards achieving its medium-term financial goals, including double-digit revenue growth and expanding adjusted EBITDA margins to 15% to 17% by 2029. The high utilization rate and plans for continued hiring are also being watched as indicators of sustained demand.

Revenue Segments And Estimated Mix: Healthcare — Mix: 50%; Source: Q2 2026 transcript; Trend: RBR grew 17.4% over Q2 2025, including 12% organic growth, and included $10.1 million from acquisitions. Full-year 2026 RBR growth expected in mid-teen percentage range.
Education — Mix: 30%; Source: Q2 2026 transcript; Trend: RBR grew 7.8% over Q2 2025. Full-year 2026 RBR growth expected in mid- to upper single-digit percentage range.
Commercial — Mix: 20%; Source: Q2 2026 transcript; Trend: RBR grew 24.6% over Q2 2025, including 12.2% organic growth, and included $9.2 million from acquisitions. Full-year 2026 RBR growth expected in low-teen percentage range.
Product Brands: Huron Research Suite
Dimensions Research Security
RADIUS Benchmarking Survey
Huron Mission Advance
clinical intelligent automation solution

Bull / Bear Details

Huron Consulting Group (HURN) is poised for sustained growth, evidenced by record Q2 2026 revenues, 16% RBR growth, and increased full-year guidance. Strong org

Thesis

Huron Consulting Group (HURN) is poised for sustained growth, evidenced by record Q2 2026 revenues, 16% RBR growth, and increased full-year guidance. Strong organic growth across all segments, particularly AI-driven digital and managed services, underpins its strategy. Despite ongoing client financial pressures in key markets, HURN's consistent execution, margin expansion, and strategic capital allocation make the bull case compelling as of July 30, 2026.

Bull case

HURN demonstrated robust financial momentum in Q2 2026, achieving record RBR of $465.6 million, up 15.7% year-over-year, with 10.8% organic growth. This strong performance, coupled with accelerated bookings across all segments and increased full-year RBR and EPS guidance, signals sustained revenue generation and management's confidence in future growth.
AI is a significant growth driver, with digital capability bookings increasing over 20% in H1 2026, and more than 60% having direct AI scope. Huron is embedding AI into proprietary solutions like clinical intelligent automation, expanding its addressable market, and enhancing client outcomes, positioning it for continued double-digit growth in healthcare digital in H2 2026.
The company's managed services capability, especially in Healthcare, is experiencing exceptional growth, with 43% organic RBR growth in Q2 2026. This is driven by outcomes-based models, differentiated expertise, and AI investments, leading to strong client retention, recurring revenue, and higher margins than traditional managed services. The RelateCare acquisition further strengthens this offering.

Bear case

Clients in the Healthcare and Education segments continue to face significant financial challenges. The OBBBA legislation is projected to reduce federal healthcare spending by over $1 trillion, while universities grapple with declining enrollments and rising costs. These pressures could lead to cautious client spending, extended sales cycles, and potential pricing pressure on Huron's services.
The professional services industry remains highly competitive. While Huron emphasizes its differentiation, the rapid evolution of AI and the emergence of new solutions could intensify competition, potentially commoditizing certain digital or managed services. This necessitates continuous investment in innovation and differentiation to maintain competitive advantage and pricing power.
Huron faces risks from project wind-downs and integration challenges. Specifically, distressed financial advisory projects in the Commercial segment are expected to wind down in H2 2026, potentially impacting segment growth. While acquisitions like RelateCare are strategic, successful integration of new teams and technologies is crucial to realize anticipated synergies and avoid operational disruptions.

Bull / Bear Case

Bear Case: Huron's core Healthcare and Education clients continue to face significant financial challenges, including federal spending reductions and rising operating costs, potentially leading to cautious client spending, extended sales cycles, and pricing pressure. The professional services industry is highly competitive, necessitating continuous investment in innovation to maintain differentiation against evolving AI solutions and other large providers. Furthermore, Huron faces risks from project wind-downs in the Commercial segment expected in H2 2026 and potential integration challenges from strategic acquisitions like RelateCare, which could disrupt operations or fail to realize anticipated synergies. High utilization rates also suggest increased hiring needs, which could temporarily impact margins.
Bull Case: Huron Consulting Group demonstrates robust financial momentum, achieving record Q2 2026 revenues with 15.7% year-over-year RBR growth and 10.8% organic growth. This performance, coupled with accelerated bookings across all segments and increased full-year guidance, signals sustained revenue generation and management's confidence. AI is a significant growth driver, with digital capability bookings increasing over 20% in H1 2026 and over 60% having direct AI scope, expanding the addressable market and enhancing client outcomes. The managed services capability, particularly in Healthcare, is experiencing exceptional 43% organic RBR growth, driven by outcomes-based models, AI investments, and strong client retention, providing a durable, higher-margin revenue stream. The company's consistent margin expansion and disciplined capital allocation further strengthen the bullish outlook.
More Compelling & Why: Bull. Huron's forward P/E ratio of 11.62x is significantly below the Business Services sector average of 28.32x, suggesting the market is undervaluing its strong organic growth (10.8% in Q2 2026), AI-driven digital services momentum (bookings up >20% in H1 2026 with >60% AI scope), and robust managed services expansion (43% organic growth in Healthcare). The company's increased full-year guidance and consistent margin expansion further support this. A sustained decline in organic RBR growth below mid-single digits, particularly in the digital and managed services segments, coupled with an inability to achieve the targeted leverage ratio of 2x-2.5x by year-end 2026, would flip my view to the Bear Case.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Paid Alt Data
AI-driven Bookings and Revenue Contribution	Successful monetization of AI investments, evidenced by strong AI-driven bookings and revenue, validates Huron's strategic focus on AI. This expands the addressable market, drives future growth, and enhances competitive differentiation, confirming the long-term potential of its AI strategy.	Management commentary on the percentage of digital bookings with direct AI scope (e.g., maintaining or increasing above 60%), specific revenue contributions from AI-enabled solutions, and the successful integration and RBR contribution from the RelateCare acquisition (expected $30M in 2026).	Bullish: Digital bookings with AI scope remaining above 60%, clear increase in AI-driven revenue, or successful integration and growth from AI-focused acquisitions meeting or exceeding expectations.	Company earnings calls and press releases for Q3 and Q4 2026.	Thinknum: Job postings for 'AI Consultant' or 'AI Engineer' at Huron.
Reduction in Days Sales Outstanding (DSO)	Improved DSO indicates more efficient cash collection, stronger working capital management, and better cash flow from operations, which is crucial for funding growth and capital deployment, enhancing financial flexibility and investor confidence.	DSO reported in Q3 and Q4 2026 earnings, specifically a continued decline from Q2 2026's 79 days, trending towards or below Q4 2025 levels (73 days).	Bullish: DSO trending downwards in H2 2026, approaching or falling below Q4 2025 levels (73 days).	Company earnings releases and 10-Q filings for Q3 and Q4 2026.
Achievement of Targeted Leverage Ratio	Reducing the leverage ratio demonstrates financial discipline and strengthens the balance sheet, providing greater flexibility for future strategic investments, acquisitions, and capital returns to shareholders. It signals improved financial health and reduced risk for investors.	Leverage ratio (Net Debt / Adjusted EBITDA) reported in Q3 and Q4 2026 earnings, specifically trending towards and achieving the 2x-2.5x target by year-end 2026.	Bullish: Leverage ratio trending towards or achieving the 2x-2.5x target by year-end 2026.	Company earnings releases and 10-Q filings for Q3 and Q4 2026.
Trailing 6-month Bookings Growth and Backlog Coverage Ratios	Strong bookings and high backlog indicate robust client demand and provide clear visibility into future revenue generation. This underpins the company's growth trajectory and validates its market position, signaling sustained business momentum and investor confidence in future performance.	Management commentary on trailing 6-month bookings growth across all segments in Q3 and Q4 earnings, specifically if it remains above 20% for digital capabilities and strong overall. Continued 'historically high' backlog coverage ratios.	Bullish: Bookings growth consistently above 20% for digital and strong across all segments, with stable or increasing backlog coverage.	Company earnings calls and press releases for Q3 and Q4 2026.
Digital Capability RBR Growth (especially Healthcare Digital)	Strong RBR growth in the Digital capability, particularly in Healthcare Digital, validates Huron's strategic investments in technology and AI. It indicates sustained client demand for modern transformation solutions, reinforcing the company's ability to drive innovation and capture market share.	Overall Digital capability RBR growth rate in Q3 and Q4 2026, specifically if it maintains double-digit growth in Healthcare Digital as projected for the back half of the year.	Bullish: Overall Digital RBR growth maintaining strong positive momentum, and Healthcare Digital achieving or exceeding double-digit percentage growth in H2 2026.	Company earnings releases and calls for Q3 and Q4 2026.

Key Reported Metrics, Reratings Triggers & Results3 rows

AI is a significant growth driver for Huron, directly impacting its digital services. Strong growth in this segment validates the company's AI investments and a

Upcoming print · 2026-11-03

Key reported metrics
Metric	Last period	Why it matters
Digital Capability RBR Growth	9%	AI is a significant growth driver for Huron, directly impacting its digital services. Strong growth in this segment validates the company's AI investments and ability to capitalize on evolving client needs, crucial for future revenue expansion.
Adjusted EBITDA	19.8%	Adjusted EBITDA is a key profitability metric, demonstrating operational efficiency and the company's ability to expand margins. Its growth is vital for achieving financial goals, driving shareholder value, and indicating effective cost management.
RBR (Revenue before reimbursable expenses)	15.7%	RBR is the primary top-line metric, reflecting the company's overall growth strategy execution. Strong RBR growth indicates healthy demand across segments and successful client engagement, crucial for investor confidence and future performance.

Key Questions

Can Huron sustain the accelerated double-digit RBR growth in its Digital capability, particularly in Healthcare Digital, and continue to effectively monetize it

Can Huron sustain the accelerated double-digit RBR growth in its Digital capability, particularly in Healthcare Digital, and continue to effectively monetize its AI investments to drive overall revenue expansion in the second half of 2026?

Question 2: Will Huron achieve its targeted leverage ratio of 2x-2.5x adjusted EBITDA by year-end 2026, while continuing its disciplined capital allocation strategy, including further share repurchases and strategic tuck-in M&A?
Question 3: Can Huron maintain the strong improvement in cash flow from operations and further reduce its Days Sales Outstanding (DSO) in the second half of 2026 to meet its full-year free cash flow guidance and continue to optimize working capital?

Earnings Transcript Summary2 rows

2026-07-28 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Sustaining strong organic growth and increasing financial guidance: Management highlighted record revenues, 16% overall RBR growth, and strong organic growth across all segments, leading to increased full-year RBR and earnings guidance. 2. Leveraging AI as a significant growth opportunity and operational enabler: Management is bullish on AI, noting it drives demand for digital services (over 20% increase in digital bookings with >60% having AI scope), enhances proprietary solutions, and expands the addressable market, contributing to future revenue growth and margin expansion. 3. Continued margin expansion and disciplined capital allocation: The company is focused on expanding adjusted EBITDA margins, achieving leverage targets, and strategically deploying capital through share repurchases and programmatic M&A to drive shareholder value.	Call Takeaway & ToneThe call conveyed a highly positive and confident tone. The key takeaway was Huron's strong operational and financial performance in Q2 2026, marked by record revenues and robust organic growth across all segments, particularly driven by managed services and digital capabilities. Management expressed significant optimism regarding AI's role in future growth and margin expansion, evidenced by increased bookings and strategic acquisitions like RelateCare. The company also highlighted its disciplined capital allocation and commitment to achieving medium-term financial goals, reinforcing a bullish outlook.	Prior Quarter'S Y/Y Growth By SegmentFor the first quarter of 2026, Healthcare segment RBR grew 14% (10% organically). Education segment RBR grew 4% (3.8% in detailed discussion). Commercial segment RBR grew 22% (8% organically).	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Hiring plans and capacity utilization: Andrew Nicholas inquired about high utilization and plans to ramp hiring. Management (John Kelly) responded that they are actively hiring, especially in high-demand areas, to bring utilization back to the upper 70% range, expecting high single-digit headcount growth in consulting. 2. AI impact and go-to-market strategy for digital services: Andrew Nicholas asked about how AI is driving digital services demand and the go-to-market approach. Management (Mark Hussey) explained that the strategy is client-centric, with business units understanding unique market needs, leading to both stand-alone AI projects and AI embedded within larger digital initiatives. 3. Drivers of managed services growth and differentiation: Tobey Sommer asked for more detail on managed services growth and what differentiates Huron. Management (Mark Hussey and John Kelly) attributed the strong growth (43% organic in Healthcare managed services) to their outcomes-based model, deep consulting expertise, consistent delivery of financial benefits, and investments in AI and automation, leading to strong client retention and recurring revenue.	Revenue SegmentsHealthcare segment RBR grew 17% over the prior year quarter (12% organically). Education segment RBR grew 8% compared to the second quarter of 2025. Commercial segment RBR grew 25% over the prior year quarter (12% organically).

2026-05-05 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Executing Growth Strategy and Achieving Financial Goals: Management emphasized consistent execution of their growth strategy to deliver performance aligned with 2025 Investor Day financial goals, including low double-digit revenue growth, margin expansion, and disciplined deployment of strong free cash flow. They affirmed their annual RBR and margin guidance. 2. Leveraging AI Capabilities: Management is bullish on AI's potential to contribute significantly to future growth, margin expansion, and shareholder value. They are focused on substantially increasing investment in AI capabilities and deploying them across their offerings and operations, building on deep industry and functional knowledge. 3. Strengthening Competitive Position and Serving as Trusted Advisor: Management aims to further strengthen Huron's competitive position to best serve clients as they evolve their business models in challenging markets and an AI-enabled world. They highlighted their ability to help clients address enduring and new challenges through distinctive operational and technology expertise.	Call Takeaway & ToneThe overall takeaway of the call was positive and confident. Management affirmed their 2026 guidance for RBR, adjusted EBITDA margin, and adjusted diluted EPS, citing strong first-quarter results and a robust pipeline and backlog. The tone was optimistic, particularly regarding the company's ability to execute its growth strategy, leverage AI opportunities, and maintain a strong competitive position in challenging markets. Key themes included disciplined capital allocation, continued margin expansion, and the strategic importance of AI in driving future growth and client solutions.	Prior Quarter'S Y/Y Growth By SegmentFor the fourth quarter of 2025 (prior quarter), segment revenue year-over-year growth was: Healthcare segment RBR grew 9.6%. Commercial segment RBR grew 36.6% (9.1% organically). The specific year-over-year growth for the Education segment in Q4 2025 was not explicitly detailed in the provided search results for the prior quarter; however, full-year 2025 Education segment RBR grew 5.5% year-over-year.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Pipeline Development, Bookings, and Backlog: Andrew Nicholas inquired about pipeline development, bookings, and backlog. Management (John Kelly) responded that bookings for the trailing 6-month period ending March 31, 2026, were up greater than 20% across all three segments. Backlog remained at historically high coverage ratios, and pipeline levels were near record highs, up as of April compared to December 31. 2. Segment-Level Growth by Capability (especially Digital): Andrew Nicholas asked for segment-level color on growth by capability, particularly Digital in Healthcare and Commercial. Management (John Kelly) stated that in Healthcare, Consulting was up 13%, Managed Services up 42%, and Digital was down 7% due to demand attached to performance improvement and Managed Services. In Education, Consulting was down slightly, Digital was up 10%, and Managed Services was up mid-single digits. In Commercial, Consulting was up approximately 50% (organically, corrected later), and Digital was down mid-single digits, with an expectation for Digital to return to mid-to-upper single-digit growth next quarter. 3. Leverage Perspective and Capital Deployment Mix: Tobey Sommer asked for an update on the year-end leverage perspective and the expected mix of capital deployment after a large repurchase quarter. Management (John Kelly) reiterated commitment to a low 2s leverage ratio by year-end. They accelerated buybacks in Q1 due to stock price decline but expect a slower pace for the remainder of the year, while remaining active in strategic tuck-in M&A, albeit at a slower pace than last year due to valuation scrutiny.	Revenue SegmentsIn the first quarter of 2026, Huron Consulting Group reported the following year-over-year revenue growth in its segments: Healthcare segment RBR grew 14% (10% organically); Education segment RBR grew 4% (3.8% in detailed discussion); Commercial segment RBR grew 22% (8% organically).

Transcript Tidbits2 rows

2026-07-28

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketAI is expanding Huron's addressable market by enabling new innovative AI services and solutions, both proprietary and through technology partners such as Anthropic, Microsoft, and AWS. These engagements span AI strategy, governance, data modernization, AI pilots, scaling implementation, and managed services. The acquisition of RelateCare further strengthens services around the patient journey by improving access and throughput. Additionally, the balanced portfolio of offerings in the commercial segment has enhanced growth durability while expanding the addressable market through new capabilities.	About CompetitionIn managed services, Huron differentiates itself from larger providers like R1s and Ensembles by leveraging deep consulting knowledge to offer holistic revenue cycle solutions and specialized point solutions. In certain commercial markets, Huron positions itself as a 'challenger brand' that brings innovation.	About The Broader IndustryThe healthcare provider market continues to face significant financial challenges, including the OBBBA legislation's estimated reduction of over $1 trillion in federal healthcare spending over the next decade, and rising labor, supply, and pharmaceutical costs outpacing reimbursements. Universities and colleges are experiencing substantial market pressures from declining enrollments, reduced research revenue, tuition pressure, increasing operating costs, and a challenging regulatory environment, driving demand for enterprise transformation. Commercial organizations are navigating increasing complexity, which fuels global demand for transformational solutions that integrate strategy, performance improvement, and technology execution.	Where Things Are HeadedHuron is increasing and narrowing its full-year 2026 RBR guidance to a range of $1.85 billion to $1.89 billion, representing a 12% increase at the midpoint compared to 2025. The company is also increasing its adjusted non-GAAP EPS guidance to $9 to $9.40, a 17% increase at the midpoint over 2025, while maintaining its adjusted EBITDA margin guidance of 14.5% to 15%. Management expects continued double-digit growth in healthcare digital in the second half of the year. Huron remains confident in achieving its medium-term financial goals of annual double-digit percentage revenue growth, adjusted EBITDA margins of 15% to 17% by 2029, and doubling adjusted EPS between 2024 and 2029. The company is committed to achieving a leverage ratio between 2x and 2.5x by the end of 2026.	Updates On ThemeHuron	Broader Themes EmergingThe rapid adoption and integration of AI across various industries, digital transformation, modernization of operating models, and an increasing focus on cost optimization and financial sustainability in challenging market environments are broader themes emerging.	Bullish-Leaning Quotes (Short)Led by strong organic growth across all 3 operating segments, we achieved record revenues before reimbursable expenses or RBR in the second quarter of 2026, increasing 16% compared to the second quarter of 2025. Our views on AI and its potential impact on Huron remain bullish, as we believe AI will prove to be a significant contributor to our future growth. We're confident that our collective strategic, financial, operational and digital offerings, all enabled by AI will continue to yield positive revenue growth and margin expansion as evidenced by our continued strong backlog and pipeline. We're pleased with this meaningful step-up in our RBR growth trajectory, our continued margin expansion and robust cash flow from operations delivered in the quarter. client bookings were up across all 3 segments during the first half of the year with an acceleration during the second quarter.	Bearish-Leaning Quotes (Short)Significant portion of the health care provider market continues to be financially challenged. The OBBBA legislation is estimated to reduce federal health care spending by over $1 trillion over the next 10 years. Universities and colleges continue to face significant market pressures stemming from multiple factors, including declining enrollments, reduced research revenue, pressure on net tuition, increasing operating costs, and a challenging regulatory environment. from a distressed financial advisory perspective, we do have a couple of projects in that part of the business that we expect to wind down in the back half of the year as well.	HiringUtilization in the quarter was 'as high as it's ever been,' exceeding the target 'upper 70% range.' Huron is 'definitely still in market hiring right now,' particularly in 'hotter' business areas, with a goal to get utilization back down to the high 70% range. Headcount growth for the full year is expected to be 'high single-digit percentage headcount growth in consulting,' which is less than the revenue growth. There was an 'actual downtick in quarter-on-quarter for education headcount' as the business utilized existing capacity on the bench.

2026-05-05

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketHuron Consulting Group is well positioned to serve clients as they evolve business models in challenging markets and an increasingly complex AI-enabled world. The company sees significant opportunities for evaluating and integrating a broad and growing number of applications and use cases for AI and digital tools across clinical, administrative, and financial workflows. The AI services market is forecast to grow in double digits over the next several years, and Huron believes it is well positioned to help clients with their AI strategies and capitalize on this market opportunity. Beyond AI, fundamental market tailwinds continue to create opportunities across all three operating segments.	About CompetitionHuron is focused on strengthening its competitive position to better serve clients and achieve financial goals. The company's distinctive operational and technology expertise, innovative solutions, and partnerships position it well for continued growth, especially as it expands and integrates AI capabilities across Healthcare offerings. Huron aims to deepen industry expertise and expand its ability to deliver differentiated end-to-end solutions to enhance competitive advantage. The company believes its strong competitive positions in Healthcare and Education allow it to leverage its expertise and a powerful portfolio of Consulting, Managed Services, and Digital capabilities. In commercial markets, Huron's size and scale enable it to be nimble and aggressive with an integrated operating model. The company believes there is significant value to be unlocked by its strategy, leveraging its collaborative entrepreneurial culture to compete and win in the evolving technological and competitive landscape.	About The Broader IndustryHealthcare providers are facing a convergence of competitive and regulatory pressures, impacting financial performance and driving the need to redesign care delivery models. Reimbursement challenges, rising operational costs, and labor shortages are intensifying the need for stronger cash flow, cost optimization, and greater operational flexibility in healthcare. Health systems are undergoing rapid transformation due to technological advancements, with developing and executing an AI strategy becoming increasingly important. Higher education institutions are experiencing uneven demand from domestic students and a significant decline in international students, alongside rising operating costs, funding declines, heightened regulatory scrutiny, and erosion of public confidence in traditional four-year degrees. Commercial industries are navigating heightened complexity from persistent cost inflation, global supply chain realignment, geopolitical and regulatory uncertainty, and evolving customer and employee expectations. Across industries, companies are accelerating the adoption of AI-enabled data-driven operating models to improve agility, productivity, and decision-making.	Where Things Are HeadedHuron's growth strategy continues to deliver performance consistent with the financial goals outlined at its 2025 Investor Day. The company is affirming its annual RBR and margin guidance for 2026, encouraged by a strong start to the year and robust pipeline and backlog. Management remains focused on executing against market tailwinds and strengthening its competitive position. Huron's views on AI and its potential impact remain bullish, expecting it to be a significant contributor to future growth, margin expansion, and shareholder value. The company is committed to driving long-term shareholder value through continued execution of its growth strategy, which has delivered consistent RBR growth and margin expansion since 2022. Huron expects full-year free cash flow to be in the range of positive $180 million to $220 million. The company is committed to achieving a leverage ratio between 2x and 2.5x by the end of 2026.	Updates On ThemeHuron's	Broader Themes EmergingThe rapid adoption and integration of AI across various industries, digital transformation, modernization of operating models, and the increasing focus on cost optimization and financial sustainability in challenging market environments are broader themes emerging.	Bullish-Leaning Quotes (Short)“execution of our growth strategy continues to deliver performance consistent with the financial goals outlined at our 2025 Investor Day.” “Encouraged by the strong start to the year and strength of our pipeline and backlog, we're affirming our annual RBR and margin guidance.” “our views on AI and its potential impact on Huron remain bullish as we believe it will be a significant contributor to future growth, margin expansion and shareholder value.” “bookings were up greater than 20% across all 3 of the segments.” “backlog... remains at historically high coverage ratios across all 3 segments.” “pipeline perspective, all 3 segments are up as of April versus where they were as of December 31, and they remain at near record levels.”	Bearish-Leaning Quotes (Short)“Digital was down 7% during the quarter, and that really reflects just some of the dynamics that we talked about throughout the year last year where a lot of the demand we're seeing right now is attached to performance improvement engagements as well as our Managed Services offerings.” “Higher education institutions are experiencing uneven demand among domestic students and a significant decline in international students.” “Digital part of the business was down in the mid-single-digit percent range.” “Our effective income tax rate in the first quarter of 2026 was 14.1%, which is more favorable than the statutory rate... Our effective income tax rate in the first quarter of 2025 was negative 14.4%” “Cash flow used in operations in the first quarter of 2026 was $162.2 million” “negative free cash flow of $174 million.” “DSO came in at 82 days for the first quarter of 2026 compared to 79 days for the first quarter of 2025 and 73 days for the fourth quarter of 2025.”	HiringHuron's margin expansion reflects disciplined execution by its highly talented team. There was a larger year-over-year percentage increase in headcount in the Healthcare business, excluding Managed Services, due to significant hiring in the second half of the previous year to support growth. Education segment headcount is relatively steady or slightly down, reflecting lower utilization last year and an expectation of increased utilization driving growth this year. Commercial segment headcount reflects the impact of acquisitions, with organic headcount growth largely steady with revenue growth. The majority of global headcount additions have been in the Managed Services part of the business, primarily from the global team for Healthcare Managed Services. The company did significant hiring in Healthcare in Q3 and Q4 of the prior year to catch up with high utilization and position for future growth. Huron has a Chief AI Officer and has been successful in organically investing in AI capabilities, hiring the right people, and attracting talent without problems. The company has a significant amount of talent with digital skills within its employee base, which is beneficial as AI is infused into platforms, though it acknowledges the need to add additional talent with new AI skill sets.