Huron — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues before reimbursable expenses (RBR) increased 11.6% year-over-year to $482.5 million in Q3 2026 from $432.4 million in Q3 2025.
• Year-to-date RBR increased 13.1% to $1.39 billion for the first nine months of 2026 from $1.23 billion in the same prior period.
• Net income was $28.4 million (5.8% of total revenues) in Q3 2026, compared to $30.4 million (6.9%) in Q3 2025; results included a $5.9 million non-cash credit loss on a convertible debt investment.
• Year-to-date net income increased 11.4% to $82.9 million (5.8% of total revenues) in 2026 from $74.4 million (5.9%) in 2025.
• Adjusted EBITDA increased 14.7% to $77.3 million (16.0% of RBR) in Q3 2026 from $67.4 million (15.6% of RBR) in Q3 2025.
• Year-to-date Adjusted EBITDA increased 18.3% to $200.6 million (14.4% of RBR) in 2026 from $169.5 million (13.8% of RBR) in 2025.
• Diluted EPS increased 2.3% to $1.75 in Q3 2026 from $1.71 in Q3 2025; Adjusted diluted EPS increased 24.8% to $2.62 in Q3 2026 from $2.10 in Q3 2025.
• Year-to-date Diluted EPS increased 20.1% to $4.96 in 2026 from $4.13 in 2025; Adjusted diluted EPS increased 19.2% to $6.76 in 2026 from $5.67 in 2025.
• EBITDA was $65.6 million in Q3 2026, up 4.7% from $62.6 million in Q3 2025; Year-to-date EBITDA was $176.7 million, up 25.2% from $141.2 million in 2025.
• Operating income was $58.8 million in Q3 2026, up 17.7% from $50.0 million in Q3 2025; Year-to-date operating income was $145.7 million, up 13.5% from $128.4 million in 2025.
• Cash and cash equivalents were $25.6 million as of September 30, 2026, compared to $24.5 million as of December 31, 2025.
• Long-term debt increased to $793.9 million as of September 30, 2026, from $489.7 million as of December 31, 2025.
• Deferred revenues increased to $38.3 million as of September 30, 2026, from $31.7 million as of December 31, 2025.

Guidance and Future Outlook:

• Raised the midpoint of full-year 2026 Adjusted Diluted EPS guidance to $9.30 (previously $9.20–$9.40 range).
• Narrowed full-year 2026 RBR guidance to a range of $1.855 billion to $1.885 billion.
• Anticipates full-year 2026 Adjusted EBITDA as a percentage of RBR to be between 14.5% and 15.0%.
• Management cited strong backlog and pipeline as drivers for confidence in continued growth in 2027.

Business Segments and Product Lines:

• Healthcare segment RBR grew 16.5% in Q3 2026 to $255.8 million; Year-to-date growth was 15.8% to $713.3 million.
• Education segment RBR grew 6.6% in Q3 2026 to $138.0 million; Year-to-date growth was 6.1% to $404.8 million.
• Commercial segment RBR grew 6.4% in Q3 2026 to $88.8 million; Year-to-date growth was 17.4% to $273.8 million.
• Consulting and Managed Services capabilities RBR grew 12.2% in Q3 2026 to $287.5 million; Year-to-date growth was 17.7% to $835.1 million.
• Digital capability RBR grew 10.8% in Q3 2026 to $195.0 million; Year-to-date growth was 6.8% to $556.8 million.
• Managed Services professionals increased 103.7% to 4,216 as of September 30, 2026, from 2,070 in 2025, driven by the acquisition of RelateCare which added approximately 1,100 professionals.
• Revenue-generating professionals (excluding Managed Services) increased 1.1% to 5,324 as of September 30, 2026.
• Consulting utilization rate increased to 76.2% in Q3 2026 from 73.7% in Q3 2025; Year-to-date rate was 77.3% from 74.9%.
• Digital utilization rate increased to 81.2% in Q3 2026 from 77.1% in Q3 2025; Year-to-date rate was 79.3% from 77.7%.

Market and Competitive Landscape:

• RBR growth was driven by organic growth across all operating segments and double-digit percentage growth in Consulting, Managed Services, and Digital capabilities.
• Incremental RBR from acquisitions completed since June 30, 2025, contributed $21.1 million in Q3 2026; Year-to-date incremental RBR from acquisitions since December 31, 2024, was $59.8 million.
• Excluding acquisition impact, organic RBR growth was 6.7% in Q3 2026 and 8.2% year-to-date.
• Recognized by Consulting Magazine as a Best Firm to Work For for the 16th consecutive year.
• Recognized by Fortune as one of its 2026 Best Workplaces in Consulting & Professional Services.

Risks and Challenges:

• Forward-looking statements note risks including failure to achieve expected utilization rates, billing rates, and necessary headcount levels.
• Risks include the ability to realize benefits of artificial intelligence (AI), inability to expand service offerings, and dependence on client renewals and new business retention.
• Potential risks involve difficulties in integrating acquired businesses, privacy and information security laws, and general market volatility or trade tensions.
• Q3 2026 results included a $5.9 million non-cash credit loss related to a third-party convertible debt investment.

Management Commentary and Tone:

• CEO Mark Hussey stated the company achieved record RBR reflecting 12% growth over Q3 2025, driven by organic growth and strong demand.
• Management expressed confidence in narrowing the RBR guidance range and raising earnings guidance, citing consistent execution and differentiation of proprietary offerings.
• Management noted that strong backlog and pipeline establish a solid base for continued growth in 2027.

Other Key Points:

• Returned $26.3 million to shareholders in Q3 2026 via repurchase of 172,865 shares.
• Returned $234.9 million to shareholders year-to-date 2026 via repurchase of 1,726,127 shares, representing 10.0% of common stock outstanding as of December 31, 2025.
• Board authorized an increase to the share repurchase program from $900 million to $1.1 billion and an extension through December 31, 2028.
• Acquired RelateCare in Q2 2026, adding approximately 1,100 Managed Services professionals.
• Webcast and conference call held on November 3, 2026, at 5:00 p.m. Eastern Time.
• Net cash provided by operating activities was $15.3 million for the nine months ended September 30, 2026, compared to $67.0 million in 2025.
• Net cash used in investing activities was $55.7 million for the nine months ended September 30, 2026, primarily due to $27.8 million in business acquisitions.
• Net cash provided by financing activities was $41.7 million for the nine months ended September 30, 2026.