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Fti Consulting (FCN)
NYSE:FCN
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FTI Consulting (FCN) AI Stock Analysis

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FCN

FTI Consulting

(NYSE:FCN)

Rating:75Outperform
Price Target:
$190.00
▲(12.60% Upside)
FTI Consulting's strong financial performance and positive technical indicators are the primary strengths, supporting a stable outlook. However, valuation concerns and challenges highlighted in the earnings call, particularly in the Technology and Economic Consulting segments, temper the overall score.
Positive Factors
Earnings
Second-quarter results came in solidly above expectations, and management’s modest guidance revisions were better than feared, both supporting a positive reaction in shares.
Financial Performance
Adjusted EBITDA was significantly higher than estimated, indicating strong profitability.
Share Repurchase
The company's share repurchase activity was substantial, repurchasing over 6% of the outstanding share count.
Negative Factors
Economic Consulting
Risk of consultant attrition persists, with substantial producer losses in the Economic Consulting segment.
Guidance
Despite the strong quarter, management lowered the top end of its full-year revenue and adjusted EPS guidance ranges.
Talent Management
Ongoing risk to estimates from consultant attrition in Economic Consulting.

FTI Consulting (FCN) vs. SPDR S&P 500 ETF (SPY)

FTI Consulting Business Overview & Revenue Model

Company DescriptionFTI Consulting, Inc. (FCN) is a global business advisory firm headquartered in Washington, D.C. The company specializes in providing services in the areas of corporate finance and restructuring, forensic and litigation consulting, economic consulting, strategic communications, and technology. FTI Consulting operates across various sectors, including legal, financial services, healthcare, and energy, offering solutions that help clients manage complex challenges and enhance their operational performance.
How the Company Makes MoneyFTI Consulting generates revenue primarily through its consulting services, which are billed on a fee-for-service basis. The company's revenue model is built around several key streams: advisory fees from corporate finance and restructuring projects, retainer fees for ongoing strategic communications services, and success-based fees related to litigation consulting and forensic services. Additionally, FTI benefits from strategic partnerships with law firms and corporations, positioning itself as a preferred advisor in complex legal and financial matters. The company's ability to attract high-profile clients and engage in high-stakes projects, particularly during economic downturns or periods of crisis, further enhances its revenue potential.

FTI Consulting Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid performance in certain segments such as Corporate Finance & Restructuring, Strategic Communications, and FLC, which have shown resilience and growth. However, significant challenges are present in the Technology and Economic Consulting segments, which have experienced substantial revenue declines and operational pressures. Despite these challenges, the company remains optimistic about its strategic investments and long-term potential.
Q2-2025 Updates
Positive Updates
Record Revenue in Corporate Finance & Restructuring
Corporate Finance & Restructuring achieved record revenue of $379.2 million, an increase of 9% year-over-year, driven by increased demand for restructuring and transaction services.
Strong Performance in Strategic Communications
Strategic Communications reported record revenues of $102.7 million, increasing by 20.8% year-over-year, with a significant contribution from corporate reputation and financial communication services.
Growth in Forensic and Litigation Consulting (FLC)
FLC revenues increased by 10% year-over-year, driven by higher realized bill rates and strong growth in financial services and cybersecurity practices.
Negative Updates
Weakness in Technology Segment
Technology revenues decreased by 27.9% year-over-year, primarily due to lower demand for M&A-related second request services, resulting in a significant drop in adjusted segment EBITDA.
Challenges in Economic Consulting
Economic Consulting revenues decreased by 17% year-over-year, impacted by lower demand for M&A-related antitrust and non-M&A-related antitrust services, and increased forgivable loan amortization.
Decreased Billable Headcount
Billable headcount decreased by 2% year-over-year, with notable declines in the Economic Consulting and Strategic Communications segments.
Company Guidance
During the FTI Consulting second quarter 2025 earnings call, management provided guidance for the full year with a modest reduction in the upper end of their revenue and adjusted EPS ranges. Revenue is now expected to range between $3.66 billion and $3.76 billion, down from the previous upper limit of $3.81 billion. Adjusted EPS guidance has been narrowed to between $7.80 and $8.40, compared to the prior range of $7.80 to $8.60. The company faced significant headwinds in its Technology and Economic Consulting segments, but reported a slight increase in sequential revenue, reaching $943.7 million for Q2. The Corporate Finance & Restructuring and Strategic Communications segments set new records for both revenue and adjusted EBITDA, despite challenges in other areas. The effective tax rate for the full year is expected to be between 22% and 24%. Despite these challenges, the company remains optimistic about its resilience and future growth potential.

FTI Consulting Financial Statement Overview

Summary
FTI Consulting shows strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust with a high equity ratio, although there are some fluctuations in cash flow metrics and a slight decline in equity.
Income Statement
85
Very Positive
FTI Consulting exhibits strong revenue growth over the years, with a notable increase from $2.77 billion in 2021 to $3.66 billion in the TTM (Trailing-Twelve-Months) of 2025, indicating a solid upward trajectory. The gross profit margin remains robust, consistently above 30%, and the net profit margin is stable, reflecting efficient cost management. However, EBIT and EBITDA margins show slight fluctuations, suggesting some variability in operational efficiency.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio that has improved over the years, indicating a strong equity position relative to debt. The equity ratio is consistently high, over 50%, showing strong shareholder backing. Return on equity remains favorable, although a slight decline in stockholders' equity from 2024 to 2025 may warrant attention.
Cash Flow
78
Positive
Operating cash flow is positive, with strong free cash flow generation, although there is notable volatility in free cash flow growth. The operating cash flow to net income ratio indicates efficient cash generation relative to profits, yet the decline in free cash flow from 2024 to the TTM of 2025 highlights potential areas for improvement in cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.66B3.70B3.49B3.03B2.78B2.46B
Gross Profit1.16B1.18B1.14B962.93M860.72M788.56M
EBITDA378.52M405.81M419.93M353.34M363.36M338.41M
Net Income249.70M280.09M274.89M235.51M234.97M210.68M
Balance Sheet
Total Assets3.49B3.60B3.33B3.24B3.10B2.78B
Cash, Cash Equivalents and Short-Term Investments152.83M660.49M328.68M491.69M494.49M294.95M
Total Debt686.75M242.15M257.64M568.70M564.01M490.52M
Total Liabilities1.59B1.34B1.34B1.56B1.52B1.38B
Stockholders Equity1.90B2.26B1.98B1.68B1.58B1.40B
Cash Flow
Free Cash Flow107.49M397.72M174.98M135.47M286.82M292.20M
Operating Cash Flow125.17M395.10M224.46M188.79M355.48M327.07M
Investing Cash Flow-55.94M-10.16M-73.83M-60.06M-79.09M-60.12M
Financing Cash Flow-157.89M-15.38M-354.66M-106.01M-61.67M-360.05M

FTI Consulting Technical Analysis

Technical Analysis Sentiment
Positive
Last Price168.74
Price Trends
50DMA
166.92
Positive
100DMA
165.46
Positive
200DMA
174.56
Negative
Market Momentum
MACD
0.40
Positive
RSI
52.82
Neutral
STOCH
52.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Positive. The current price of 168.74 is above the 20-day moving average (MA) of 167.92, above the 50-day MA of 166.92, and below the 200-day MA of 174.56, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCN.

FTI Consulting Risk Analysis

FTI Consulting disclosed 38 risk factors in its most recent earnings report. FTI Consulting reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FTI Consulting Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.29B23.8329.05%1.01%9.28%44.19%
76
Outperform
$12.72B12.6796.28%2.11%9.25%75.69%
75
Outperform
$5.45B23.7212.33%-0.89%-23.72%
72
Outperform
$2.51B24.6721.55%8.99%35.56%
71
Outperform
$3.69B36.6225.05%1.62%3.47%-2.16%
69
Neutral
$1.74B16.4011.09%0.59%-0.47%10.03%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCN
FTI Consulting
168.74
-49.17
-22.56%
BAH
Booz Allen
102.45
-46.74
-31.33%
CRAI
Cra International
194.24
35.87
22.65%
EXPO
Exponent
71.42
-30.85
-30.17%
HURN
Huron Consulting
141.27
35.70
33.82%
ICFI
Icf International
95.21
-65.64
-40.81%

FTI Consulting Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
FTI Consulting CFO Resignation Announced
Neutral
Aug 12, 2025

On August 12, 2025, FTI Consulting announced the voluntary resignation of its Chief Financial Officer, Ajay Sabherwal, effective September 12, 2025. This change in leadership may impact the company’s financial strategy and operations, potentially affecting stakeholders and the company’s positioning in the professional services industry.

The most recent analyst rating on (FCN) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
FTI Consulting Updates 2025 Revenue Guidance Amid Challenges
Neutral
Jul 25, 2025

FTI Consulting reported a slight decrease in second quarter 2025 revenues to $943.7 million, down from $949.2 million in the prior year, primarily due to lower revenues in the Economic Consulting and Technology segments. Despite these challenges, the company showed resilience with increased revenues in other segments and adjusted EBITDA of $111.6 million. The company repurchased shares worth $354.9 million and updated its full-year 2025 guidance, projecting revenues between $3.660 billion and $3.760 billion.

The most recent analyst rating on (FCN) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
FTI Consulting Stockholders Approve Incentive Plan Amendment
Neutral
Jun 5, 2025

At the recent Annual Meeting, FTI Consulting‘s stockholders approved an amendment to the 2017 Omnibus Incentive Compensation Plan, which includes an increase of 676,000 shares of common stock and an extension of the plan’s expiration date to June 4, 2035. Additionally, stockholders voted on several proposals, including the election of directors, the ratification of KPMG LLP as the independent auditor for 2025, and an advisory vote on executive compensation, reflecting the company’s commitment to aligning with shareholder interests and strategic growth.

The most recent analyst rating on (FCN) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025