Huron Consulting Group’s second quarter results for 2025 were met with a negative market reaction, as revenue fell slightly below Wall Street expectations, despite year-over-year growth across all segments. Management attributed the quarter’s performance to ongoing demand in healthcare, education, and commercial consulting services, while highlighting softness in digital project conversions within healthcare. CEO Mark Hussey acknowledged the impact of recent regulatory legislation on client behavior, noting that the One Big Beautiful Bill Act has driven health systems to prioritize immediate financial stability over longer-term digital transformation initiatives.
Is now the time to buy HURN? Find out in our full research report (it’s free).
Huron (HURN) Q2 CY2025 Highlights:
- Revenue: $411.8 million vs analyst estimates of $414.2 million (8.1% year-on-year growth, 0.6% miss)
- Adjusted EPS: $1.89 vs analyst estimates of $1.79 (5.4% beat)
- Adjusted EBITDA: $60.58 million vs analyst estimates of $61.53 million (14.7% margin, 1.5% miss)
- The company lifted its revenue guidance for the full year to $1.66 billion at the midpoint from $1.62 billion, a 2.5% increase
- Management raised its full-year Adjusted EPS guidance to $7.50 at the midpoint, a 4.2% increase
- Operating Margin: 11.1%, down from 15.6% in the same quarter last year
- Market Capitalization: $2.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Huron’s Q2 Earnings Call
- Andrew Owen Nicholas (William Blair) asked about improved visibility following recent legislation and whether guidance reflects increased conservatism. CEO Mark Hussey said the new regulatory environment brings clarity but maintains ongoing financial pressure, while CFO John Kelly noted stronger pipeline visibility versus earlier in the year.
- Nicholas (William Blair) followed up on healthcare digital sales delays, asking why management believes the slowdown is temporary. Kelly clarified that guidance does not depend on digital acceleration, and demand for consulting is driving confidence; digital projects are expected to resume as client priorities shift.
- Tobey O'Brien Sommer (Truist Securities) questioned whether pipeline conversion delays are fleeting or structural. Hussey emphasized that digital pause is just one of several factors, driven by clients’ urgent financial stabilization needs, and expects long-term demand to return.
- Sommer (Truist Securities) asked about headcount growth and the impact of acquisitions. Kelly explained that managed services hiring and the Eclipse acquisition drove most headcount growth, with ongoing recruitment in high-demand consulting areas.
- William Sutherland (Benchmark Company) inquired about sustainability of high utilization rates. Kelly responded that current rates are near the top of the desired range, with hiring expected to ease pressure as growth continues.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts will track (1) the pace at which delayed healthcare digital transformation projects resume, (2) successful integration and margin impact of the Eclipse Insights and Treliant acquisitions, and (3) continued record sales conversion in the education segment despite regulatory uncertainty. The sustainability of improved pipeline visibility and margin recovery will be key themes.
Huron currently trades at $132.20, in line with $132.38 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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