HURN

Huron Consulting Group Inc.

Next est. report 2026-07-28 · 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 that helps clients in Healthcare (51% of Q1 2026 revenue), Education (29%), and Commercial (2

Huron Consulting Group Inc. is a global professional services firm that helps clients in Healthcare (51% of Q1 2026 revenue), Education (29%), and Commercial (20%) sectors. They offer financial, operational, digital, and AI consulting, managed services, and software to improve performance, accelerate transformation, and navigate complex markets for healthcare providers, universities, and various commercial industries.

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).
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.
New Customers / Segments They'Re Targeting: Huron is actively targeting clients across all its segments who are seeking to evolve their business models and organizations to thrive in challenging markets and an increasingly complex, AI-enabled world. This includes healthcare providers looking for trusted partners to integrate technology, workforce, and operating model changes, particularly for AI strategy and digital tools across clinical, administrative, and financial workflows. In the education sector, they are focusing on institutions prioritizing solutions for near-term financial improvement, modernizing operating models, and leveraging AI. For commercial industries, Huron is targeting companies accelerating the adoption of AI-enabled, data-driven operating models to enhance agility, productivity, and decision-making. The company also aims to deepen its industry expertise and expand its offerings to deliver differentiated end-to-end solutions to its global client base.
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: The 'Software '26: Legal Tech' theme presents both opportunities and challenges for Huron, particularly through its 'Legal Consulting' services aimed at modernizing corporate legal departments. **Help:** * **Accelerated AI Integration & Productivity Gains:** Huron is bullish on AI, actively investing in and deploying AI capabilities across its offerings. As legal tech platforms driven by AI gain traction, Huron's consulting services, which help clients plan and execute AI strategies, will see increased demand. This aligns with the theme's bull case of AI expanding legal capabilities and driving efficiency. * **Increasing Regulatory Complexity & Demand for Compliance Solutions:** The growing complexity of global AI and data regulations will drive demand for specialized legal tech solutions. Huron's expertise in regulatory compliance and risk management, bolstered by acquisitions like Treliant, positions it to benefit from clients seeking tools to automate compliance and risk management. **Hurt:** * **Slower-Than-Anticipated AI Adoption & Change Management:** If legal firms and corporate legal departments are slow to adopt advanced AI tools due to inherent conservatism or change management challenges, it could lead to slower monetization of Huron's AI-related consulting services and extended sales cycles. * **Intensifying Competition from Generic LLMs & AI Startups:** The rapid evolution of general-purpose LLMs and AI-native startups could commoditize some basic AI services. This might pressure pricing for certain aspects of Huron's digital offerings if they are not sufficiently differentiated by its deep industry and functional expertise.

3 Main Long-Term Bull Details

Strong Demand for Digital and AI Transformation: Huron is strategically positioned to capitalize on the escalating demand for integrating AI and digital tools across diverse client workflows. This demand is driven by the critical need for operational efficiency, cost optimization, and modernized business models in increasingly complex markets. The company's substantial investment in AI capabilities is expected to be a significant contributor to future growth and margin expansion.
Diverse and Resilient Segment Growth: The company consistently demonstrates robust growth across its Healthcare, Education, and Commercial segments, each propelled by distinct market tailwinds. This diversified portfolio provides inherent resilience against potential downturns in any single sector and offers multiple, sustainable avenues for long-term revenue expansion.
Disciplined Capital Allocation and Strategic M&A: Huron's capital allocation strategy, which balances programmatic mergers and acquisitions with share repurchases, is designed to drive long-term shareholder value. Strategic tuck-in acquisitions, such as Eclipse Insights, Treliant, and Wilson Perumal, enhance its capabilities and market position, while share buybacks reflect management's confidence in future earnings growth and efficient capital deployment.

3 Main Long-Term Bear Details

Client Financial Strain and Budget Constraints: Clients in Huron's core segments, particularly healthcare and education, face significant financial pressures including declining reimbursements, rising operational costs, and funding challenges. This environment could lead to cautious spending on consulting services, extended sales cycles, and potential pressure on Huron's pricing and margins.
Intense Competition and Commoditization Risk: The professional services industry is highly competitive. While Huron emphasizes its differentiation through expertise and integrated solutions, the rapid advancement of technology, including AI, could lead to the commoditization of certain digital or managed services. This necessitates continuous investment in innovation and differentiation to maintain competitive advantage and pricing power.
Integration Risks from Acquisitions: While strategic acquisitions are a key growth driver, the successful integration of newly acquired companies (e.g., Eclipse Insights, Treliant, Wilson Perumal, RelateCare) 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: Huron operates in a highly competitive professional services market, competing with other global consulting firms that serve the healthcare, education, and commercial sectors, as well as specialized niche firms. Key competitors likely include companies such as Accenture, Deloitte, EY, KPMG, and PwC. Huron differentiates itself through its deep industry expertise, particularly in healthcare and education, combined with strong operational and technology capabilities, including a growing focus on AI. The company aims to be a 'trusted adviser' by offering comprehensive, integrated solutions that span strategy, operations, technology, and people-related offerings. Its ability to deliver end-to-end solutions, encompassing consulting, managed services, and digital capabilities, along with its collaborative and entrepreneurial culture, are also key competitive differentiators. Huron also leverages innovative solutions and strategic partnerships, such as with Hippocratic AI.
Recent Performance & What The Market'S Focused On: In the first quarter of 2026, Huron reported Revenues Before Reimbursable Expenses (RBR) of $443.7 million, marking a 12.1% increase year-over-year, with growth observed across all three operating segments. Adjusted EBITDA rose to $50.6 million (11.4% of RBR) from $41.5 million (10.5% of RBR) in Q1 2025. Net income experienced a slight decline to $23.2 million ($1.34 per diluted share) compared to $24.5 million ($1.33 per diluted share) in the prior-year quarter, primarily due to a higher effective tax rate. The company reaffirmed its 2026 guidance, projecting RBR in the range of $1.78 billion to $1.86 billion, adjusted EBITDA between 14.5% and 15% of RBR, and adjusted non-GAAP EPS between $8.35 and $9.15. The market is currently focused on Huron's strong pipeline, robust bookings (up over 20% across all segments in the trailing six months), and historically high backlog coverage ratios. Investors are also closely monitoring segment-level performance, particularly the trends in Digital offerings within the Healthcare and Commercial segments, and the pace of headcount growth. Capital deployment strategies, including the accelerated share repurchases in Q1 2026 and the balance between buybacks and strategic M&A, are also key areas of market attention. The increase in Days Sales Outstanding (DSO) in Q1 2026, attributed to larger Healthcare projects with performance-based fee elements, is also being tracked.

Revenue Segments And Estimated Mix: Healthcare — Mix: 51%; Source: Q1 2026 transcript; Trend: RBR grew 13.5% over Q1 2025, including 10% organic growth, achieving record RBR performance.
Education — Mix: 29%; Source: Q1 2026 transcript; Trend: RBR grew 3.8% over Q1 2025.
Commercial — Mix: 20%; Source: Q1 2026 transcript; Trend: RBR grew 22.3% over Q1 2025, including 8% organic growth.
Product Brands: Huron Research Suite
Dimensions Research Security
RADIUS Benchmarking Survey
Huron Mission Advance

Bull / Bear Details

Huron Consulting Group (HURN) is a global professional services firm poised for continued growth, driven by strong demand across its diversified Healthcare, Edu

Thesis

Huron Consulting Group (HURN) is a global professional services firm poised for continued growth, driven by strong demand across its diversified Healthcare, Education, and Commercial segments. Significant investment in AI capabilities and robust client engagement, evidenced by strong bookings and backlog, underpin its strategy. Despite Q1 digital segment fluctuations and seasonal cash flow impacts, the firm's consistent execution, margin expansion, and disciplined capital allocation make the bull case compelling as of 2026-07-21.

Bull case

HURN demonstrates strong financial momentum with Q1 2026 RBR growth of 12% and affirmed annual guidance for 2026. This is supported by robust demand indicators, including over 20% growth in trailing 6-month bookings across all segments, historically high backlog coverage, and near-record pipeline levels, signaling sustained revenue generation.
The company is aggressively leveraging AI as a significant future growth and margin expansion driver. With a Chief AI Officer and substantial investments, HURN is integrating AI capabilities across its Healthcare, Education, and Commercial offerings, building on its strong digital business (40% of revenue) to deliver outcomes-focused AI solutions.
Huron's diversified segment growth, particularly strong organic performance in Healthcare (10%) and Commercial Consulting (~50%), is further bolstered by strategic acquisitions like RelateCare in June 2026. This, coupled with disciplined capital allocation including accelerated share repurchases, enhances shareholder value and competitive positioning.

Bear case

Despite overall growth, HURN experienced a Q1 2026 decline in Digital RBR for both Healthcare (-7%) and Commercial (mid-single digits), reflecting a shift in client demand towards performance improvement and managed services, and timing issues for new projects. This indicates potential volatility in high-growth digital offerings.
The company faces seasonal cash flow challenges, with Q1 2026 showing negative free cash flow of $174 million and increased Days Sales Outstanding (DSO) to 82 days. This was primarily due to annual incentive payments and larger Healthcare projects with performance-based fees, impacting short-term liquidity and working capital.
The Education segment, while growing, operates in a challenging environment characterized by uneven domestic student demand, declining international student enrollment, rising operating costs, and heightened regulatory scrutiny. These systemic pressures could limit the segment's growth potential and necessitate ongoing strategic transformations.

Bull / Bear Case

Bear Case: Despite overall growth, Huron experienced a Q1 2026 decline in Digital RBR for both Healthcare (-7%) and Commercial (mid-single digits), reflecting a shift in client demand towards performance improvement and managed services, and timing issues for new projects. The company faces seasonal cash flow challenges, with Q1 2026 showing negative free cash flow of $174 million and increased Days Sales Outstanding (DSO) to 82 days, primarily due to annual incentive payments and larger Healthcare projects with performance-based fees. The Education segment, while growing, operates in a challenging environment characterized by uneven domestic student demand, declining international student enrollment, rising operating costs, and heightened regulatory scrutiny, which could limit its growth potential. The leverage ratio also increased to 3.1x adjusted EBITDA in Q1 2026.
Bull Case: Huron Consulting Group demonstrates strong financial momentum with 12% RBR growth in Q1 2026 and reaffirmed annual guidance. This is underpinned by robust demand indicators, including over 20% growth in trailing 6-month bookings across all segments, historically high backlog coverage, and near-record pipeline levels, signaling sustained revenue generation. The company is aggressively leveraging AI as a significant future growth and margin expansion driver, with substantial investments and a Chief AI Officer to integrate AI capabilities across its offerings. Diversified segment growth, particularly strong organic performance in Healthcare (10%) and Commercial Consulting (~50%), further bolsters the outlook, complemented by a disciplined capital allocation strategy that includes strategic acquisitions and share repurchases.
More Compelling & Why: Bear. While HURN's current EV/EBITDA of approximately 10.0x suggests a slight discount compared to consulting industry peers (typically 12.0x-15.0x), the immediate financial challenges are concerning. The strongest argument for the bear case is the significant negative free cash flow of $174 million in Q1 2026 and the increased Days Sales Outstanding (DSO) to 82 days, indicating operational and liquidity pressures. My view would flip to bullish if Q2 2026 results demonstrate a substantial improvement in free cash flow, a clear reduction in DSO, and a tangible rebound in Digital segment RBR growth, validating management's execution capabilities.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Achievement of targeted leverage ratio between 2x and 2.5x adjusted EBITDA by year-end 2026	Achieving the targeted leverage ratio demonstrates disciplined capital allocation and strong financial health. This reduces financial risk, enhances balance sheet flexibility, and potentially enables future strategic investments or increased shareholder returns, reinforcing investor confidence in management's financial stewardship.	Leverage ratio (Net Debt / Adjusted EBITDA) reported in Q2, Q3, and Q4 2026 earnings, specifically trending towards 2x-2.5x by year-end.	Bullish: Leverage ratio trending towards or achieving the 2x-2.5x target by year-end 2026.	Company's Q2 2026 earnings call on Tuesday, July 28, 2026, and subsequent financial statements (10-Q, 10-K).	N/A	S&P Global Market Intelligence: Debt covenants and leverage ratio analysis
Trailing 6-month bookings growth and historically high backlog coverage ratios	Strong bookings and backlog are leading indicators of future revenue growth, confirming robust demand for Huron's services across all segments. This validates the company's growth strategy and provides confidence in achieving financial goals, signaling continued market strength and operational effectiveness.	Percentage growth in trailing 6-month bookings, specifically if it remains above 20% across all segments. Continued 'historically high' backlog coverage ratios.	Bullish: Bookings growth consistently above 20% across all segments and stable or increasing backlog coverage.	Company's Q2 2026 earnings call on Tuesday, July 28, 2026, and subsequent investor presentations.	N/A	Thinknum: Consulting project awards data, LinkUp: Job postings for consulting roles
Return to mid-to-upper single-digit RBR growth in the Commercial Digital segment	Digital services are crucial for modernizing client operations and integrating AI. A rebound confirms sustained demand for these high-value services, validating management's outlook for growth in key strategic areas. It indicates successful adaptation to market needs and effective project execution.	Commercial Digital RBR growth rate in Q2 2026 and subsequent quarters, specifically if it reaches mid-to-upper single digits.	Bullish: Commercial Digital RBR growth in mid-to-upper single digits or higher in Q2 2026.	Company's Q2 2026 earnings call on Tuesday, July 28, 2026.	Google Trends: 'Huron Digital Transformation', 'Huron AI consulting' search volume	Similarweb: Web traffic to Huron's digital services pages, Thinknum: Digital consulting job postings
Reduction in Days Sales Outstanding (DSO) in the second half of 2026	Improved DSO indicates efficient cash collection, stronger working capital management, and successful progression of large, complex projects. This positively impacts free cash flow generation and overall liquidity, reflecting effective operational execution and client satisfaction on performance-based contracts.	DSO reported in Q2, Q3, and Q4 2026 earnings, specifically a decline from Q1 2026's 82 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's Q2 2026 earnings call on Tuesday, July 28, 2026, and subsequent financial statements (10-Q, 10-K).	N/A	FactSet/Bloomberg: Working capital metrics analysis
New client engagements or significant revenue contributions explicitly attributed to AI capabilities and solutions, including integration of acquisitions like RelateCare	This factor validates Huron's substantial investment in AI, confirming strong market demand for AI services. It positions the company for significant future growth and margin expansion in a rapidly evolving technological landscape, showcasing successful innovation and competitive advantage.	Management commentary on AI-specific client wins, project values, or the percentage of revenue derived from AI-enabled services during earnings calls. Updates on the integration and revenue contribution from the RelateCare acquisition.	Bullish: Announcement of new, large-scale AI implementation projects, a clear increase in AI-driven revenue, or successful integration and growth from AI-focused acquisitions.	Company's Q2 2026 earnings call on Tuesday, July 28, 2026, press releases, and investor presentations.	Google Trends: 'Huron AI consulting', 'Huron Healthcare AI' search volume. Industry news sites for consulting firms' AI projects.	Thinknum: Job postings for 'AI Consultant' or 'AI Engineer' at Huron, Gartner/Forrester reports on AI consulting market share

Key Reported Metrics, Reratings Triggers & Results3 rows

Adjusted EBITDA is a key profitability metric, demonstrating operational efficiency and the company's ability to expand margins. Its growth is vital for achievi

Key reported metrics
Metric	Last period	Why it matters
Adjusted EBITDA	21.9%	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)	12.1%	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.
Healthcare Segment RBR	13.5%	As Huron's largest segment, Healthcare RBR growth is a critical driver of overall company performance. It signals robust demand for core services, successful integration of AI capabilities, and directly impacts the company's total revenue trajectory.

Key Questions

Can Huron reverse the Q1 decline in its Digital segment revenue, particularly in Healthcare and Commercial, and demonstrate tangible monetization of its increas

Can Huron reverse the Q1 decline in its Digital segment revenue, particularly in Healthcare and Commercial, and demonstrate tangible monetization of its increased AI investments to drive overall growth in Q2 2026?

Question 2: Will Huron successfully reduce its leverage ratio towards the targeted 2x-2.5x by year-end 2026, while balancing continued share repurchases and potential strategic tuck-in M&A, following the accelerated Q1 buybacks and increased debt?
Question 3: Can Huron demonstrate an improvement in its cash flow from operations and a reduction in Days Sales Outstanding (DSO) in Q2 2026, particularly as it begins to bill and collect on larger Healthcare projects with performance-based fees as anticipated in the second half of the year?

Earnings Transcript SummaryTable

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
1. 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.	The 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.	For 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.	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.	In 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 TidbitsTable

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
Huron 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.	Huron 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.	Healthcare 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.	Huron'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.	Huron's	The 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.	“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.”	“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.”	Huron'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.