Record FY2025 results: FTI reported record full‑year revenue of $3.79 billion and adjusted EBITDA of $463.6 million with adjusted EPS of $8.83 — its 11th consecutive year of adjusted EPS growth — achieved despite roughly $100 million of adjusted EBITDA headwinds from Technology and Economic Consulting, offset by $135 million of growth across Corporate Finance, FLC and StratCom.
Economic Consulting remains a drag: Q4 revenue in the segment fell 14.5% and adjusted segment EBITDA dropped to $1.0 million; management expects the segment to trough in Q1 2026 and to stop being a year‑over‑year drag by the second half of 2026.
2026 guidance and priorities: FTI guided revenue of $3.94–$4.10 billion and GAAP EPS $8.90–$9.60, citing AI‑driven demand and continued senior hiring, while flagging about $45 million higher SG&A in 2026 and a lower expected tax rate of 22–24%; the firm also repurchased 5.3 million shares ($858.6 million) in 2025 with $491.8 million remaining under authorization.
FTI Consulting (NYSE:FCN) reported record fourth-quarter revenue and record results for full-year 2025, with management emphasizing the firm’s ability to grow adjusted earnings per share despite multiple headwinds across parts of the portfolio. On the company’s fourth-quarter and full-year 2025 earnings call, CEO and Chairman Steve Gunby said the performance marked the company’s 11th consecutive year of adjusted EPS growth, a result he framed as particularly notable given what he described as unusually significant challenges entering the year.
Interim CFO Paul Linton said full-year 2025 revenue rose 2.4% year over year to a record $3.79 billion, driven by double-digit organic growth in Corporate Finance & Restructuring, Forensic and Litigation Consulting (FLC), and Strategic Communications (StratCom). Those gains more than offset declines in Economic Consulting and Technology, which management said faced market and business-specific pressures.
Linton said adjusted EBITDA rose to a record $463.6 million, while GAAP EPS and adjusted EPS were $8.24 and $8.83, respectively, both records. Gunby said the combination of Technology and Economic Consulting created “almost $100 million of adjusted EBITDA headwinds” in 2025, which were partially offset by one-time benefits such as positive litigation settlements. He said the larger driver of outperformance was $135 million of adjusted EBITDA growth across Corporate Finance, FLC, and StratCom.
For the fourth quarter, FTI posted revenue of $990.7 million, up 10.7% from the prior-year quarter. Linton noted the company had expected a seasonal slowdown, but revenue increased 3.6% sequentially, with sequential growth in every segment except FLC.
Net income rose 9.7% year over year to $54.5 million, though Linton said results were partially offset by an $11.8 million valuation allowance expense against certain prior-year foreign deferred tax assets. GAAP EPS was $1.78, up 29% year over year, and adjusted EPS was also $1.78, up 14.1%. Both GAAP and adjusted EPS included the valuation allowance expense, which Linton said reduced EPS by $0.38. He also noted fourth-quarter 2024 adjusted EPS excluded a $0.18 special charge related to severance.
Adjusted EBITDA for the quarter was $106.2 million, or 10.7% of revenue, compared with $73.7 million, or 8.2% of revenue, a year earlier. The effective tax rate was 37.1% versus 16.9% in the prior-year quarter; excluding the valuation allowance expense, Linton said the tax rate would have been 23.6%.
Corporate Finance posted record fourth-quarter revenue of $423.2 million, a 26.1% increase year over year. Linton attributed the growth to higher demand and realized bill rates in turnaround and restructuring (up 25%), transactions (up 46%), and transformation (up 13%), along with higher success fees. He said turnaround and restructuring benefited from roles in large bankruptcies, citing Spirit Airlines in the U.S., Prax Oil Refinery in the U.K., and Azul Airlines in Brazil. Adjusted segment EBITDA was $80.1 million, or 18.9% of revenue, up from $44.7 million, or 13.3%.
FLC revenue increased 9.7% to $192.9 million, driven by higher realized bill rates in risk and investigations. Linton highlighted financial services as a key growth driver in 2025, including work evaluating whether clients’ use of AI models complies with regulatory standards. Adjusted segment EBITDA rose to $23.8 million (12.3% margin) from $18.0 million (10.2% margin). FLC was the only segment with a sequential revenue decline, which Linton said was down 1% from an “extraordinary” third quarter that set a record.
Economic Consulting revenue fell 14.5% to $176.2 million, primarily due to lower demand for non-M&A and M&A-related antitrust services, partially offset by higher demand for financial economics and higher realized bill rates for international arbitration. Adjusted segment EBITDA declined to $1.0 million (0.6% margin) from $15.8 million (7.7% margin), driven by lower revenue and higher forgivable loan amortization. Technology revenue rose 9.3% to $99.0 million on higher demand for litigation and M&A-related Second Request services, and adjusted segment EBITDA increased to $14.8 million (14.9% margin) from $6.6 million (7.2% margin).
StratCom revenue increased 14.8% to $99.4 million due to higher corporate reputation demand and higher pass-through revenue. Adjusted segment EBITDA rose to $19.0 million (19.2% margin) from $13.8 million (15.9% margin).
Gunby and Linton both pointed to Compass Lexecon as a key remaining headwind entering 2026. Gunby said the firm has the full cost impact from retention and hiring in its P&L but has not yet seen “anywhere near the full benefit” of added talent. Linton said Economic Consulting adjusted segment EBITDA is expected to reach its lowest point in the first quarter of 2026, and management expects the segment to no longer be a drag on year-over-year EBITDA growth in the second half of 2026.
In the Q&A session, Gunby described differing conditions within the Economic Consulting portfolio, including stronger performance in U.S. finance (where he said revenue was up in 2025), expectations for improvement in Europe by the second half of the year, and slower progress in U.S. antitrust as the firm works to improve business development around recent hires.
FTI guided for 2026 revenue of $3.94 billion to $4.10 billion and GAAP EPS of $8.90 to $9.60. Linton said the company does not expect a variance between GAAP and adjusted EPS in 2026. He said the midpoint implies 6.1% year-over-year revenue growth, with aggregate growth across Corporate Finance, FLC, Technology, and StratCom expected to exceed the midpoint as Economic Consulting undergoes a multi-year rebuild.
Management also outlined several factors embedded in the outlook:
AI as a demand driver: Linton said AI adoption has been and will continue to be a “significant positive” for FTI, citing new categories of disputes and advisory work involving AI-related content ownership, misinformation, bias, data use, and privacy concerns.
Ongoing talent investment: Linton said FTI announced 85 senior hires in 2025 and plans to build teams around those leaders in 2026, while also increasing junior hiring in areas where hiring lagged in 2025.
Higher SG&A: Linton said SG&A is expected to be about $45 million higher in 2026 than 2025, including a roughly $30 million year-over-year increase in first-quarter SG&A due largely to non-recurring legal settlement gains in the first quarter of 2025, and additional event-related expenses tied to an all-Senior Managing Directors meeting in April 2026.
Lower expected tax rate: The company expects an effective tax rate of 22% to 24% in 2026, compared with 27% in 2025.
On capital allocation, Linton highlighted significant share repurchases during 2025. The company repurchased 519,944 shares in the fourth quarter for $83.5 million and repurchased 5.3 million shares for $858.6 million for the full year, representing about 15% of shares outstanding, with $491.8 million remaining under authorization at year-end. Operating cash flow was $152.1 million in 2025 versus $395.1 million in 2024, which Linton attributed primarily to higher forgivable loan issuances totaling $255 million in 2025.
Gunby closed by reiterating confidence in the firm’s resilience and expert-driven model, arguing that disruption in markets—whether driven by regulation, litigation, restructuring activity, or emerging technologies—tends to expand the need for the types of services FTI provides.
FTI Consulting, Inc is a global business advisory firm providing multidisciplinary solutions designed to address complex challenges and strategic opportunities. The company’s primary service offerings encompass corporate finance & restructuring, economic consulting, forensic & litigation consulting, strategic communications, and technology. These capabilities enable clients to manage financial distress, navigate regulatory environments, resolve disputes, build trust with stakeholders, and leverage data-driven insights.
In its corporate finance & restructuring practice, FTI delivers restructuring, interim management, and transaction advisory services to companies facing operational or financial pressures.
