FTI Consulting Q3 Revenue Tops $1 Billion as Adjusted Profit Rises

FTI Consulting, Inc. (NYSE: FCN) reported third-quarter 2026 revenue above $1 billion and stronger adjusted profitability, even as special charges and litigation-related expenses weighed on its GAAP results. Revenue increased 5.9% year over year to $1.01 billion, while adjusted EBITDA rose 17.7% to $153.7 million and adjusted earnings per diluted share increased 47.7% to $3.84.

GAAP net income fell 23.4% to $63.4 million, and diluted EPS declined 9.6% to $2.35. The quarter included $46.0 million of special charges and $4.5 million of expenses related to litigation that FTI classifies as extraordinary. Excluding those items and their tax effects, adjusted net income was $103.7 million, compared with $82.8 million a year earlier.

Adjusted EBITDA margin expanded to 15.2% from 13.7% in the prior-year quarter. Revenue growth excluding the estimated impact of foreign-currency translation was 5.8%, broadly matching the reported increase.

Economic Consulting returns to adjusted profitability

Corporate Finance remained FTI’s largest segment, with revenue rising 4.8% to $424.4 million. Adjusted segment EBITDA increased 6.7% to $102.8 million, and the adjusted margin reached 24.2%, compared with 23.8% a year earlier. Segment operating income, which includes relevant special charges, declined 10.3% to $83.4 million.

Economic Consulting recorded the most pronounced earnings change. Revenue grew 9.3% to $189.3 million, while adjusted segment EBITDA reached $14.0 million, reversing an adjusted loss of $4.6 million in the third quarter of 2025. Its adjusted margin was 7.4%, compared with negative 2.6% a year earlier.

Technology revenue increased 9.7% to $103.2 million. Adjusted segment EBITDA rose 17.4% to $16.0 million, lifting the adjusted margin to 15.5% from 14.5%.

Strategic Communications delivered the fastest reported revenue growth among FTI’s segments, increasing 12.5% to $100.6 million. Adjusted segment EBITDA advanced 20.8% to $20.4 million, and the adjusted margin widened to 20.3% from 18.9%.

Forensic and Litigation Consulting was comparatively flat. Revenue edged up 0.2% to $195.1 million, while adjusted segment EBITDA declined 10.7% to $38.0 million. Its adjusted margin contracted to 19.5% from 21.9%, and segment operating income fell 50.2% to $20.2 million.

Asia-Pacific posts strongest regional growth

North America, which accounted for 64.2% of consolidated revenue, generated $651.1 million, up 5.3% year over year. EMEA revenue increased 4.5% to $286.4 million.

Asia-Pacific revenue rose 20.9% to $64.3 million, or 16.8% excluding the estimated impact of currency translation, making it FTI’s fastest-growing region in the quarter. Latin America revenue was nearly unchanged on a reported basis at $10.7 million but decreased 7.2% excluding currency effects.

Cash generation remains strong as debt stays above last year

FTI generated $190.4 million of net cash from operating activities during the quarter, down from $201.9 million a year earlier. Free cash flow, a non-GAAP measure, was $182.0 million versus $187.0 million in the prior-year period.

The company spent $85.2 million on purchases and retirements of common stock, including excise tax. Cash and cash equivalents stood at $88.1 million at September 30, down from $163.7 million at the end of June and $146.0 million a year earlier.

Total debt was $852.0 million, compared with $1.02 billion at June 30 and $510.0 million at September 30, 2025. FTI entered into a $300 million incremental term loan in March 2026. Days sales outstanding were 101, versus 99 at the end of the previous quarter and 102 a year earlier.

The presentation did not provide a numerical financial outlook. FTI cautioned that its forward-looking statements remain subject to competitive conditions, rapidly changing business circumstances and other risks described in its regulatory filings. It also noted uncertainty related to its litigation against former employee Jonathan Orszag and other defendants, which involves claims including alleged theft of trade secrets and conspiracy to compete unlawfully. The company began treating related expenses as extraordinary and outside the ordinary course of business in the second quarter of 2026.