Huron’s first quarter was marked by double-digit revenue growth across all three operating segments, with management highlighting robust demand in healthcare, education, and commercial services. CEO Mark Hussey attributed the results to “continued strong demand for our performance improvement and financial advisory offerings,” especially as clients in healthcare and education face ongoing financial pressures and regulatory change. The integration of recent acquisitions, particularly AXIA in the commercial segment, contributed to growth, while enhanced utilization rates helped expand margins. Segment-specific challenges, such as rising expenses in education and margin pressure in commercial, were noted but did not materially disrupt overall performance.
Is now the time to buy HURN? Find out in our full research report (it’s free).
Huron (HURN) Q1 CY2025 Highlights:
- Revenue: $404.1 million vs analyst estimates of $401 million (11.2% year-on-year growth, 0.8% beat)
- Adjusted EPS: $1.68 vs analyst estimates of $1.16 (45.3% beat)
- Adjusted EBITDA: $41.49 million vs analyst estimates of $41.47 million (10.3% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $1.62 billion at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $7.20 at the midpoint
- Operating Margin: 8.1%, up from 5.5% in the same quarter last year
- Market Capitalization: $2.15 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 Huron’s Q1 Earnings Call
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Andrew Nicholas (William Blair): asked about the commercial segment’s outlook and potential softness in discretionary projects. CFO John Kelly responded that record sales conversion in digital consulting offset strategy-side caution, and no changes were made to segment-level growth expectations.
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Andrew Nicholas (William Blair): inquired about headcount growth priorities. Kelly explained that headcount will largely track revenue growth, with particular focus on healthcare, and noted improved utilization rates as a positive sign.
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Tobey Sommer (Truist Securities): asked about new business trends in education and healthcare entering the second quarter. Kelly replied there were no notable changes and described the sales environment as “fairly normal,” with steady pipeline conversion.
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Tobey Sommer (Truist Securities): probed about project activity with private universities facing regulatory headlines. CEO Mark Hussey said there was no material change, as relationships and engagement levels have been stable.
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Tobey Sommer (Truist Securities): questioned trends in project assessment activity and use of performance fees. Kelly stated assessment activity remains robust due to client financial strain, but there has not been a shift toward contingent fee structures.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) whether healthcare and education clients sustain current demand levels amid regulatory and funding uncertainty, (2) continued momentum and margin performance in the commercial digital consulting segment, and (3) Huron’s ability to effectively scale headcount and maintain utilization as project size and complexity increase. Progress integrating recent acquisitions and navigating industry-specific challenges will also be key signposts.
Huron currently trades at $134.73, in line with $135.96 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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