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Huron Consulting (HURN)
NASDAQ:HURN
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Huron Consulting (HURN) AI Stock Analysis

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HURN

Huron Consulting

(NASDAQ:HURN)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$173.00
▲(13.02% Upside)
Huron Consulting's strong financial performance and positive earnings call outlook are the most significant factors driving the score. The stock's bullish technical indicators further support a positive view. However, the high valuation and potential risks from increased leverage and declining free cash flow slightly temper the overall score.
Positive Factors
Strategic Acquisitions
The acquisition of Wilson Perumal & Company enhances Huron's service offerings with proprietary methodologies and frameworks, strengthening its competitive edge across multiple sectors, including industrials and energy. This strategic move is expected to drive long-term growth and diversification.
Revenue Growth
Huron's consistent revenue growth, highlighted by an 8% increase in Q2 2025, underscores its strong market position and effective client engagement strategies, particularly in the healthcare and commercial segments, ensuring sustained business expansion.
Increased Revenue Guidance
The upward revision of 2025 revenue guidance reflects confidence in Huron's strategic initiatives and market demand, indicating robust future performance and the potential for enhanced shareholder value.
Negative Factors
Increased Leverage
Huron's increased leverage, indicated by a high debt-to-equity ratio, could pose financial risks if not managed effectively, potentially impacting its ability to invest in growth opportunities and maintain financial stability.
Decline in Free Cash Flow
The decline in free cash flow could constrain Huron's capacity to fund new projects or reduce debt, potentially affecting its long-term growth and financial health if not addressed.
Healthcare Digital Offering Slowdown
The slowdown in healthcare digital offerings reflects shifting client priorities, which may impact Huron's growth in this segment. Adapting to these changes is crucial for sustaining its competitive advantage in the healthcare industry.

Huron Consulting (HURN) vs. SPDR S&P 500 ETF (SPY)

Huron Consulting Business Overview & Revenue Model

Company DescriptionHuron Consulting Group Inc. (HURN) is a leading consulting firm that specializes in providing services across various sectors including healthcare, higher education, and commercial industries. The company offers a range of solutions such as strategy consulting, technology implementation, and operational optimization to help organizations improve their performance and achieve their strategic goals. Huron's core products and services encompass advisory services, digital transformation, and analytics, aimed at driving efficiency and innovation for its clients.
How the Company Makes MoneyHuron Consulting generates revenue primarily through consulting fees charged for its professional services. The company typically bills clients on a time-and-materials basis, which includes hourly rates for consultants and project staff based on their expertise and the nature of the engagement. Key revenue streams include consulting engagements across its various sectors, particularly in healthcare and higher education, where it assists organizations with strategic planning, operational improvements, and technology implementation. Additionally, Huron may engage in long-term contracts and retainers that provide a more stable revenue base. The company also benefits from strategic partnerships with technology firms, which can enhance its service offerings and create additional revenue opportunities through collaborative projects.

Huron Consulting Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with record revenues and strategic acquisitions driving growth across segments, particularly in the Commercial and Healthcare segments. However, challenges such as the slowdown in healthcare digital transformations and the impact of Medicaid funding cuts were noted. Despite these challenges, the overall outlook remains positive with increased guidance for 2025.
Q2-2025 Updates
Positive Updates
Record Revenue Achievement
Revenues before reimbursable expenses grew 8% over the second quarter of 2024, reaching a record high for the business.
Healthcare Segment Growth
Healthcare segment revenue grew 4% over the prior year, with a 6% increase when excluding divested business, driven by strong demand for performance improvement and financial advisory services.
Strong Commercial Segment Performance
Commercial segment revenue grew 28% year-over-year, driven by the acquisition of AXIA and strong demand for digital offerings. Excluding AXIA, revenue grew 23%.
Acquisitions and Strategic Expansion
Acquired Eclipse Insights to enhance performance improvement offerings in healthcare and Treliant to strengthen capabilities in financial services, contributing to strategic growth.
Increased 2025 Revenue Guidance
Revenue guidance for 2025 was increased to a range of $1.64 billion to $1.68 billion, representing a 12% increase at the midpoint compared to full year 2024 results.
Negative Updates
Healthcare Digital Offering Slowdown
Slower sales conversion in certain digital transformation areas within healthcare, attributed to clients focusing on immediate financial priorities.
Impact of Medicaid Funding Cuts
Passage of the One Big Beautiful Bill Act projected to reduce federal spending on healthcare by over $1 trillion, potentially increasing uninsured patients by up to 10 million.
Decline in Net Income
Net income for Q2 2025 was $19.4 million, a decline from $37.5 million in Q2 2024, impacted by a non-cash impairment charge related to convertible debt investment.
Company Guidance
In the second quarter of 2025, Huron Consulting Group achieved record revenues before reimbursable expenses (RBR) of $402.5 million, reflecting an 8% increase over the same period in 2024. This growth was driven by strong performance across all three operating segments. The Healthcare segment saw a 4% increase in RBR, or 6% excluding the divested student education business, with demand for performance improvement and strategy services remaining robust despite a slowdown in digital offerings. The Education segment achieved a 5% increase in RBR, driven by demand for strategy and operations services, while the Commercial segment experienced a significant 28% growth, bolstered by the acquisition of AXIA and strong digital offerings. Looking ahead, Huron raised its annual RBR guidance to a range of $1.64 billion to $1.68 billion and adjusted non-GAAP EPS guidance to $7.30 to $7.70, reflecting a positive outlook for continued growth in 2025.

Huron Consulting Financial Statement Overview

Summary
Huron Consulting demonstrates strong financial health with robust revenue and profit growth, efficient operating margins, and prudent financial management. The balance sheet reflects a significant reduction in leverage, enhancing financial stability. Strong cash flow generation supports the company's ability to fund operations and invest in growth.
Income Statement
78
Positive
Huron Consulting has demonstrated strong revenue growth with a consistent upward trajectory, particularly noteworthy with a TTM revenue of $1.56 billion, up from $1.52 billion annually. Gross profit margins have improved significantly to 49.37% from 31.28% last year, alongside a solid net profit margin of 7.88% in TTM, indicating effective cost management. The EBIT margin is stable at 10.74%, and EBITDA margin at 12.54% shows strong operating efficiency.
Balance Sheet
65
Positive
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.11 in TTM, significantly reduced from 0.71 in the previous year, indicating improved leverage management. However, the equity ratio has slightly decreased to 36.25% from 41.77%, which suggests a need to increase equity levels relative to assets. Return on Equity (ROE) is robust at 24.91%, reflecting effective capital utilization.
Cash Flow
72
Positive
Cash flow analysis shows a strong operating cash flow to net income ratio of 1.83, indicating good cash generation relative to earnings. Free cash flow has grown to $199.58 million, with a free cash flow to net income ratio of 1.62, highlighting strong cash conversion. The free cash flow growth rate is commendable compared to prior periods, despite capital expenditure increases.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.59B1.52B1.40B1.16B926.96M871.01M
Gross Profit501.66M476.01M419.29M346.41M268.81M251.67M
EBITDA202.66M204.66M161.84M154.19M120.64M12.82M
Net Income105.10M116.63M62.48M75.55M62.99M-23.72M
Balance Sheet
Total Assets1.48B1.34B1.26B1.20B1.12B1.06B
Cash, Cash Equivalents and Short-Term Investments61.01M21.91M12.15M11.83M20.78M67.18M
Total Debt693.89M398.61M373.88M346.09M297.24M273.88M
Total Liabilities1.01B782.29M729.25M647.00M547.45M505.53M
Stockholders Equity475.00M561.33M532.89M552.04M571.90M551.94M
Cash Flow
Free Cash Flow179.37M192.67M100.08M61.10M2.23M120.34M
Operating Cash Flow198.04M201.32M135.26M85.40M17.99M136.74M
Investing Cash Flow-110.15M-79.75M-36.65M-20.13M-20.14M-42.03M
Financing Cash Flow-44.56M-111.64M-98.33M-74.11M-44.41M-39.62M

Huron Consulting Technical Analysis

Technical Analysis Sentiment
Positive
Last Price153.07
Price Trends
50DMA
143.45
Positive
100DMA
138.87
Positive
200DMA
139.06
Positive
Market Momentum
MACD
2.63
Negative
RSI
61.71
Neutral
STOCH
86.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HURN, the sentiment is Positive. The current price of 153.07 is above the 20-day moving average (MA) of 149.44, above the 50-day MA of 143.45, and above the 200-day MA of 139.06, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 86.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HURN.

Huron Consulting Risk Analysis

Huron Consulting disclosed 34 risk factors in its most recent earnings report. Huron 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

Huron Consulting Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.24B22.8129.05%1.04%9.28%44.19%
75
Outperform
$2.65B26.7321.55%8.99%35.56%
71
Outperform
$3.50B34.7825.05%1.70%3.47%-2.16%
71
Outperform
$4.87B20.0713.30%-0.95%-10.54%
71
Outperform
$1.66B15.6611.09%0.62%-0.47%10.03%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
51
Neutral
$151.59M-0.79-61.44%9.25%-10.83%-1669.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HURN
Huron Consulting
153.07
48.93
46.98%
CRAI
Cra International
188.26
-2.09
-1.10%
EXPO
Exponent
69.31
-27.08
-28.09%
FCN
FTI Consulting
157.83
-40.46
-20.40%
ICFI
Icf International
90.11
-81.82
-47.59%
RGP
Resources Connection
4.54
-3.28
-41.94%

Huron Consulting Corporate Events

Huron Consulting Group Reports Record Q2 2025 Earnings
Aug 2, 2025

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.

Huron Consulting Group Reports Q2 2025 Financial Results
Aug 1, 2025

Huron Consulting Group is a global professional services firm that specializes in creating strategies, optimizing operations, and accelerating digital transformation across various sectors, including healthcare, education, and commercial industries.

Business Operations and StrategyPrivate Placements and Financing
Huron Consulting Expands Credit Facility to $1.1 Billion
Positive
Jul 31, 2025

On July 30, 2025, Huron Consulting Group Inc. announced the successful refinancing and expansion of its senior secured credit facility. The amended agreement extends the maturity date to July 2030, increases borrowing capacity to $1.1 billion, and improves pricing and flexibility to support Huron’s capital deployment strategy. This move strengthens Huron’s balance sheet, enabling the company to return capital to shareholders, maintain its target leverage ratio, and pursue acquisitions. The support from major banks reflects confidence in Huron’s financial strength and strategic direction.

The most recent analyst rating on (HURN) stock is a Buy with a $173.00 price target. To see the full list of analyst forecasts on Huron Consulting stock, see the HURN 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: Oct 22, 2025