FTI Consulting Reports 3.3% Revenue Decline in Q1 2025

FTI Consulting, Inc. reported a decrease in revenue for the first quarter of 2025, with total revenues of $898.3 million, down 3.3% from $928.6 million in the same period last year. The decline was primarily attributed to reduced revenues in the Economic Consulting and Corporate Finance segments, which were partially offset by increases in the Forensic and Litigation Consulting (FLC) and Strategic Communications segments. Net income for the quarter was $61.8 million, a decrease of 22.7% from $80.0 million in the prior year, while earnings per share (EPS) fell to $1.74 from $2.23.

The company recorded special charges of $25.3 million related to targeted headcount reductions across its segments, which were aimed at aligning its workforce with current business demands. This restructuring effort concluded as of March 31, 2025. Despite the drop in net income, adjusted EBITDA increased by 3.7% to $115.2 million, driven by lower selling, general, and administrative expenses, as well as a decrease in direct costs of revenues.

Operationally, FTI Consulting's total headcount decreased to 8,105 employees from 8,374 at the end of 2024, reflecting a net reduction of 269 employees. The number of billable professionals increased slightly to 6,395, with utilization rates for the Corporate Finance segment dropping to 57% from 62% year-over-year. The company also reported a decrease in average billable rates in the Corporate Finance segment, which fell to $493 per hour from $515.

Looking ahead, FTI Consulting anticipates continued challenges in revenue generation due to fluctuating demand for its services. The company has $151.1 million in cash and cash equivalents and an available borrowing capacity of $740 million under its revolving credit facility, which it plans to utilize for operational needs and potential acquisitions. The firm remains focused on managing its costs and optimizing its service offerings to navigate the current market conditions effectively.