Huron Consulting Group Reports Record Q2 2025 Earnings

Huron Consulting Group ((HURN)) has held its Q2 earnings call. Read on for the main highlights of the call.

Huron Consulting Group’s recent earnings call conveyed a generally positive sentiment, as the company reported record-breaking revenues before reimbursable expenses (RBR) in the second quarter of 2025. This growth was primarily driven by significant gains in the Commercial and Education segments. Despite facing challenges in the Healthcare segment due to legislative impacts and slower digital sales conversions, Huron’s decision to raise its annual guidance underscores its confidence in continued growth. However, a decline in net income due to impairment charges presents a downside, although the overall highlights slightly outweigh the lowlights.

Record-Breaking RBR

In Q2 2025, Huron Consulting Group achieved a record RBR of $402.5 million, marking an 8.3% increase from the same quarter in 2024. This milestone reflects the company’s robust performance across its various segments, showcasing its ability to drive growth even in a challenging economic environment.

Commercial Segment Growth

The Commercial segment was a standout performer, achieving a record RBR of $75.4 million, representing a 28.2% increase from Q2 2024. This growth was fueled by the acquisition of AXIA and a strong demand for digital offerings, highlighting the segment’s strategic importance in Huron’s portfolio.

Education Segment Achievements

Huron’s Education segment also reported impressive results, with RBR growing by 5.3% year-over-year. The segment reached a record level due to strong demand for strategy and operations offerings and research software products, underscoring the value of Huron’s educational services.

Increased Annual Guidance

Reflecting its confidence in continued growth, Huron raised its annual RBR guidance to a range of $1.64 billion to $1.68 billion, which represents a 12% increase at the midpoint compared to 2024. This upward revision signals the company’s optimistic outlook despite broader economic challenges.

Healthcare Segment Challenges

The Healthcare segment experienced slower RBR growth at 4.1%, impacted by slower sales conversions in digital transformation projects and the divestiture of Studer Education. These challenges highlight the segment’s vulnerability to external factors and the need for strategic adjustments.

Legislative Impact on Healthcare

The passage of the One Big Beautiful Bill Act is anticipated to reduce federal spending on healthcare by over $1 trillion over the next decade. This legislative change is expected to increase the uninsured population by up to 10 million, posing potential challenges for Huron’s healthcare segment.

Net Income Decline

Huron reported a decline in net income for Q2 2025, with figures dropping to $19.4 million from $37.5 million in Q2 2024. This decrease was partly attributed to an $8.2 million noncash impairment charge, highlighting financial pressures despite overall revenue growth.

Forward-Looking Guidance

During the earnings call, Huron provided updated annual guidance, reflecting its confidence in continued growth despite challenging macroeconomic conditions. The company increased its RBR guidance to a range of $1.64 billion to $1.68 billion, representing a 12% increase at the midpoint compared to 2024. Adjusted EBITDA margin guidance was maintained between 14.0% and 14.5%, while adjusted non-GAAP EPS guidance was raised to $7.30 to $7.70, marking a 16% increase at the midpoint. This optimism is supported by strong demand across all segments, recent strategic acquisitions, and effective responses to market disruptions.

In conclusion, Huron Consulting Group’s earnings call highlighted a generally positive outlook, with record-breaking revenues and increased annual guidance underscoring the company’s growth trajectory. While challenges remain, particularly in the healthcare segment, Huron’s strategic initiatives and market responsiveness position it well for future success.