FTI Consulting Reports Fourth Quarter and Full Year 2024 Financial Results

  • Fourth Quarter 2024 Revenues of $894.9 Million, Down 3% Compared to $924.7 Million in Prior Year Quarter
  • Fourth Quarter 2024 EPS of $1.38 and Adjusted EPS of $1.56, Compared to EPS and Adjusted EPS of $2.28 in Prior Year Quarter 
  • Record Full Year 2024 Revenues of $3.699 Billion, Up 6% Compared to $3.489 Billion in Prior Year
  • Record Full Year 2024 EPS of $7.81 and Adjusted EPS of $7.99, Compared to EPS and Adjusted EPS of $7.71 in Prior Year
  • Introduces 2025 Guidance

WASHINGTON, Feb. 20, 2025 (GLOBE NEWSWIRE) --  FTI Consulting, Inc. (NYSE: FCN) today released financial results for the full year and fourth quarter ended December 31, 2024.

For the full year 2024, revenues of $3.699 billion increased $209.4 million, or 6.0%, compared to revenues of $3.489 billion in the prior year. The increase in revenues was driven by revenue growth in all business segments. Net income of $280.1 million compared to $274.9 million in the prior year. The increase in net income was primarily due to higher revenues, lower income taxes and a foreign currency (“FX”) remeasurement gain compared to an FX remeasurement loss in the prior year, which was partially offset by an increase in direct compensation and selling, general and administrative ("SG&A") expenses compared to the prior year. Adjusted EBITDA of $403.7 million, or 10.9% of revenues, compared to $424.8 million, or 12.2% of revenues, in the prior year.

Full year 2024 earnings per diluted share ("EPS") of $7.81 compared to $7.71 in the prior year. Full year 2024 EPS included an $8.2 million special charge related to severance and other employee-related costs, which reduced EPS by $0.18. Full year 2024 Adjusted EPS of $7.99 compared to Adjusted EPS of $7.71 in the prior year.

Steven H. Gunby, President and Chief Executive Officer of FTI Consulting, commented, “Though a number of headwinds that we saw towards the end of 2024 resulted in second half performance that was below our expectations, we are pleased that, in aggregate, 2024 was yet another year of record revenues and earnings per share. Notwithstanding those headwinds, many of which we expect to persist into 2025, we continue to feel confident in the powerful multiyear growth trajectory that we are on.”

Cash Position and Capital Allocation

Net cash provided by operating activities of $395.1 million for the year ended December 31, 2024 compared to $224.5 million for the year ended December 31, 2023. The year-over-year increase in net cash provided by operating activities was primarily due to an increase in cash collections, which was partially offset by an increase in compensation payments, forgivable loan issuances, operating expenses and income tax payments.

Cash and cash equivalents and short-term investments of $660.5 million at December 31, 2024 compared to $328.7 million at December 31, 2023 and $386.3 million at September 30, 2024. There was no debt outstanding at December 31, 2024 or in either of the comparative periods.

During the quarter ended December 31, 2024, the Company repurchased 51,717 shares of its common stock at an average price per share of $197.53 for a total cost of $10.2 million. As of December 31, 2024, approximately $450.4 million remained available for common stock repurchases under the Company’s stock repurchase program.

Fourth Quarter 2024 Results

Fourth quarter 2024 revenues of $894.9 million decreased $29.8 million, or 3.2%, compared to revenues of $924.7 million in the prior year quarter. The decrease in revenues was primarily due to lower demand in the Corporate Finance & Restructuring and Technology segments, which was partially offset by higher demand in the Forensic and Litigation Consulting segment. Net income of $49.7 million compared to $81.6 million in the prior year quarter. The decrease in net income was primarily due to lower revenues, an increase in direct compensation and SG&A expenses, and the aforementioned special charge of $8.2 million, which was partially offset by lower income taxes and an FX remeasurement gain compared to an FX remeasurement loss in the prior year quarter. Adjusted EBITDA of $73.7 million, or 8.2% of revenues, compared to $127.4 million, or 13.8% of revenues, in the prior year quarter.

Fourth quarter 2024 EPS of $1.38 compared to $2.28 in the prior year quarter. Fourth quarter 2024 EPS included the $8.2 million special charge, which reduced EPS by $0.18. Fourth quarter 2024 Adjusted EPS of $1.56 compared to $2.28 in the prior year quarter.

Fourth Quarter 2024 Segment Results

Corporate Finance & Restructuring
Revenues in the Corporate Finance & Restructuring segment decreased $29.8 million, or 8.2%, to $335.7 million in the quarter compared to $365.6 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for transformation & strategy and transactions services. Adjusted Segment EBITDA of $44.7 million, or 13.3% of segment revenues, compared to $65.4 million, or 17.9% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to lower revenues, which was partially offset by a decrease in contractor costs and compensation expenses compared to the prior year quarter.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased $10.4 million, or 6.3%, to $175.9 million in the quarter compared to $165.5 million in the prior year quarter. Acquisition-related revenues contributed $2.4 million in the quarter. Excluding acquisition-related revenues, the increase in revenues was primarily due to higher demand and realized bill rates for data and analytics and construction solutions services. Adjusted Segment EBITDA of $18.0 million, or 10.2% of segment revenues, compared to $19.2 million, or 11.6% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to an increase in compensation, which more than offset the increase in revenues compared to the prior year quarter.

Economic Consulting
Economic Consulting revenues of $206.1 million in the quarter compared to $206.1 million in the prior year quarter. Higher merger and acquisition (“M&A”)-related antitrust revenues were offset by lower international arbitration and non-M&A-related antitrust revenues. Adjusted Segment EBITDA of $15.8 million, or 7.7% of segment revenues, compared to $38.3 million, or 18.6% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to higher bad debt and an increase in compensation compared to the prior year quarter.

Technology
Revenues in the Technology segment decreased $10.3 million, or 10.2%, to $90.6 million in the quarter compared to $100.9 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for M&A-related “second request” services. Adjusted Segment EBITDA of $6.6 million, or 7.2% of segment revenues, compared to $12.4 million, or 12.3% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was largely due to lower revenues, which was partially offset by a decrease in SG&A expenses compared to the prior year quarter.

Strategic Communications
Strategic Communications segment revenues of $86.6 million in the quarter compared to $86.6 million in the prior year quarter. Higher demand for financial communications services was offset by lower demand for corporate reputation services. Adjusted Segment EBITDA of $13.8 million, or 15.9% of segment revenues, compared to $15.6 million, or 18.0% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to higher SG&A expenses compared to the prior year quarter.

First Quarter 2025 Special Charge
The Company’s actions to align staffing with demand continued into the first quarter of 2025, resulting in an estimated first quarter special charge of approximately $17 million. Together with the $8.2 million special charge in the fourth quarter of 2024, the estimated combined special charge of approximately $25 million reflects the termination of approximately 4% of the Company’s more than 8,300 employees. The Company expects that such actions taken in the fourth quarter of 2024 and the first quarter of 2025 will result in cost savings of approximately $70 million of salary- and benefits-related compensation costs in full year 2025.

2025 Guidance:
The Company estimates that revenues for full year 2025 will range between $3.660 billion and $3.810 billion. The Company estimates that EPS for full year 2025 will range between $7.44 and $8.24 and Adjusted EPS will range between $7.80 and $8.60. The variance between EPS and Adjusted EPS guidance is related to the aforementioned first quarter of 2025 special charge, which the Company estimates will be approximately $17 million, or $0.36 per share.

Fourth Quarter and Full Year 2024 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss fourth quarter and full year 2024 financial results at 9:00 a.m. Eastern Time on Thursday, February 20, 2025. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,300 employees located in 34 countries and territories as of December 31, 2024. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.70 billion in revenues during fiscal year 2024. More information can be found at www.fticonsulting.com.

Non-GAAP Financial Measures
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:

  • Adjusted Segment EBITDA
  • Adjusted EBITDA
  • Adjusted EBITDA Margin
  • Adjusted Net Income
  • Adjusted Earnings per Diluted Share

We have included the definition of Segment Operating Income, which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in the accompanying analysis of financial information. We define Segment Operating Income as a segment’s share of consolidated operating income. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as a segment’s share of consolidated operating income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects core operating performance and provides an indicator of the segment’s ability to generate cash.

We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, gain or loss on sale of a business and losses on early extinguishment of debt. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with useful supplemental information.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, losses on early extinguishment of debt and the gain or loss on sale of a business. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with useful supplemental information on our business operating results, including underlying trends.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-looking statements include statements concerning our plans, initiatives, projections, prospects, policies, processes and practices, objectives, goals, commitments, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends, new or changes to laws and regulations, including U.S. and foreign tax laws, scientific and technological developments, including relating to new and emerging technologies, such as Artificial Intelligence and machine learning, and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "commits," "aspires," "forecasts," "future," "goal," "seeks" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, estimates of our future financial results, are based upon our expectations at the time we make them and various assumptions. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s plans, expectations, intentions, aspirations, beliefs, goals, estimates, forecasts and projections will result or be achieved. Our actual financial results, performance or achievements and outcomes could differ materially from those expressed in, or implied by, any forward-looking statements. Further, unaudited quarterly results are subject to normal year-end adjustments. The Company has experienced fluctuating revenues, operating income and cash flows in prior periods and expects that this will occur from time to time in the future. Other factors that could cause such differences include declines in demand for, or changes in, the mix of services and products that we offer; the mix of the geographic locations where our clients are located or where services are performed; fluctuations in the price per share of our common stock; adverse financial, real estate or other market and general economic conditions; the impact of public health crises and related events that are beyond our control, which could affect our segments, practices and the geographic regions in which we conduct business differently and adversely; and other future events, which could impact each of our segments, practices and the geographic regions in which we conduct business differently and could be outside of our control; the pace and timing of the consummation and integration of future acquisitions; the Company’s ability to realize cost savings and efficiencies; competitive and general economic conditions; retention of staff and clients; new laws and regulations or changes thereto; and other risks described under the heading "Item 1A, Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 20, 2025 and in the Company’s other filings with the SEC. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

FINANCIAL TABLES FOLLOW

     FTI CONSULTING, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
 
    December 31,   December 31,
      2024       2023  
Assets        
Current assets        
Cash and cash equivalents   $ 660,493     $ 303,222  
Accounts receivable, net     1,020,174       1,102,142  
Current portion of notes receivable     44,894       30,997  
Prepaid expenses and other current assets     93,953       119,092  
Total current assets     1,819,514       1,555,453  
Property and equipment, net     150,295       159,662  
Operating lease assets     198,318       208,910  
Goodwill     1,226,556       1,234,569  
Intangible assets, net     16,770       18,285  
Notes receivable, net     109,119       75,431  
Other assets     76,258       73,568  
Total assets   $ 3,596,830     $ 3,325,878  
Liabilities and Stockholders’ Equity        
Current liabilities        
Accounts payable, accrued expenses and other   $ 224,394     $ 223,758  
Accrued compensation     639,745       601,074  
Billings in excess of services provided     67,620       67,937  
Total current liabilities     931,759       892,769  
Noncurrent operating lease liabilities     208,036       223,774  
Deferred income taxes     111,825       140,976  
Other liabilities     86,920       86,939  
Total liabilities     1,338,540       1,344,458  
Stockholders’ equity        
Preferred stock, $0.01 par value; shares authorized — 5,000; none outstanding     —       —  
Common stock, $0.01 par value; shares authorized — 75,000; shares issued and outstanding — 35,913 (2024) and 35,521 (2023)     359       355  
Additional paid-in capital     39,650       16,760  
Retained earnings     2,394,853       2,114,765  
Accumulated other comprehensive loss     (176,572 )     (150,460 )
Total stockholders’ equity     2,258,290       1,981,420  
Total liabilities and stockholders’ equity   $ 3,596,830     $ 3,325,878  


FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
 
  Three Months Ended
December 31,
    2024       2023  
  (Unaudited)
Revenues $ 894,924     $ 924,684  
Operating expenses      
Direct cost of revenues   624,864       613,809  
Selling, general and administrative expenses   208,051       194,634  
Special charges   8,230       —  
Amortization of intangible assets   1,034       1,220  
    842,179       809,663  
Operating income   52,745       115,021  
Other income (expense)      
Interest income and other   7,779       (8,088 )
Interest expense   (716 )     (3,896 )
    7,063       (11,984 )
Income before income tax provision   59,808       103,037  
Income tax provision   10,098       21,404  
Net income $ 49,710     $ 81,633  
Earnings per common share ― basic $ 1.41     $ 2.34  
Weighted average common shares outstanding ― basic   35,317       34,889  
Earnings per common share ― diluted $ 1.38     $ 2.28  
Weighted average common shares outstanding ― diluted   35,855       35,778  
Other comprehensive income (loss), net of tax      
Foreign currency translation adjustments, net of tax expense of $— and $— $ (41,713 )   $ 28,244  
Total other comprehensive income (loss), net of tax   (41,713 )     28,244  
Comprehensive income $ 7,997     $ 109,877  


FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
 
  Year Ended December 31,
    2024       2023  
Revenues $ 3,698,652     $ 3,489,242  
Operating expenses      
Direct cost of revenues   2,516,726       2,354,216  
Selling, general and administrative expenses   822,151       751,306  
Special charges   8,230       —  
Amortization of intangible assets   4,183       6,159  
    3,351,290       3,111,681  
Operating income   347,362       377,561  
Other income (expense)      
Interest income and other   10,360       (4,867 )
Interest expense   (6,951 )     (14,331 )
    3,409       (19,198 )
Income before income tax provision   350,771       358,363  
Income tax provision   70,683       83,471  
Net income $ 280,088     $ 274,892  
Earnings per common share ― basic $ 7.96     $ 8.10  
Weighted average common shares outstanding ― basic   35,208       33,924  
Earnings per common share ― diluted $ 7.81     $ 7.71  
Weighted average common shares outstanding ― diluted   35,845       35,646  
Other comprehensive income (loss), net of tax      
Foreign currency translation adjustments, net of tax expense of $— and $— $ (26,112 )   $ 26,262  
Total other comprehensive income (loss), net of tax   (26,112 )     26,262  
Comprehensive income $ 253,976     $ 301,154  


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND EPS TO ADJUSTED EPS
(in thousands, except per share data)
 
    Three Months Ended
December 31,
   Year Ended
December 31,
      2024       2023     2024       2023  
    (Unaudited)    
Net income   $ 49,710     $ 81,633   $ 280,088     $ 274,892  
Add back:                
Special charges     8,230       —     8,230       —  
Tax impact of special charges     (1,857 )     —     (1,857 )     —  
Adjusted Net Income   $ 56,083     $ 81,633   $ 286,461     $ 274,892  
Earnings per common share — diluted   $ 1.38     $ 2.28   $ 7.81     $ 7.71  
Add back:                
Special charges     0.23       —     0.23       —  
Tax impact of special charges     (0.05 )     —     (0.05 )     —  
Adjusted earnings per common share — diluted   $ 1.56     $ 2.28   $ 7.99     $ 7.71  
Weighted average number of common shares outstanding ― diluted     35,855       35,778     35,845       35,646  


FTI CONSULTING, INC.
RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE
 
    Year Ended December 31, 2025
    Low   High
Guidance on estimated earnings per common share—diluted (GAAP)(1)   $ 7.44     $ 8.24  
Special charges     0.48       0.48  
Tax impact of special charges     (0.12 )     (0.12 )
Guidance on estimated adjusted earnings per common share (non-GAAP)(1)   $ 7.80     $ 8.60  

(1) The forward-looking guidance on estimated 2025 EPS and Adjusted EPS does not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to the future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business or losses on early extinguishment of debt, as these items are dependent on future events that are uncertain and difficult to predict.

FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA
(in thousands)
 
Three Months Ended December 31, 2024
(Unaudited)		   Corporate Finance & Restructuring   Forensic and Litigation Consulting   Economic Consulting   Technology   Strategic Communications   Unallocated Corporate   Total
Net income                           $ 49,710  
Interest income and other                             (7,779 )
Interest expense                             716  
Income tax provision                             10,098  
Operating income   $ 36,096   $ 14,305   $ 14,393   $ 1,275   $ 12,534   $ (25,858 )   $ 52,745  
Depreciation of property and equipment     2,587     1,704     1,407     4,623     910     503       11,734  
Amortization of intangible assets     736     229     —     —     69     —       1,034  
Special charges     5,326     1,785     8     667     295     149       8,230  
Adjusted EBITDA   $ 44,745   $ 18,023   $ 15,808   $ 6,565   $ 13,808   $ (25,206 )   $ 73,743  
                             


Year EndedDecember 31, 2024   Corporate Finance & Restructuring   Forensic and Litigation Consulting   Economic Consulting   Technology   Strategic Communications   Unallocated Corporate   Total
Net income                           $ 280,088  
Interest income and other                             (10,360 )
Interest expense                             6,951  
Income tax provision                             70,683  
Operating income   $ 225,711   $ 77,490   $ 104,090   $ 41,875   $ 45,790   $ (147,594 )   $ 347,362  
Depreciation of property and equipment     10,251     6,604     5,400     15,999     3,607     2,049       43,910  
Amortization of intangible assets     3,068     838     —     —     277     —       4,183  
Special charges     5,326     1,785     8     667     295     149       8,230  
Adjusted EBITDA   $ 244,356   $ 86,717   $ 109,498   $ 58,541   $ 49,969   $ (145,396 )   $ 403,685  


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA
(in thousands)
 
Three Months Ended December 31, 2023
(Unaudited)		   Corporate Finance & Restructuring   Forensic and Litigation Consulting   Economic Consulting   Technology   Strategic Communications   Unallocated Corporate   Total
Net income                           $ 81,633  
Interest income and other                             8,088  
Interest expense                             3,896  
Income tax provision                             21,404  
Operating income   $ 61,779   $ 17,415   $ 36,801   $ 8,393   $ 14,703   $ (24,070 )   $ 115,021  
Depreciation of property and equipment     2,597     1,680     1,534     3,992     875     475       11,153  
Amortization of intangible assets     1,010     152     —     —     58     —       1,220  
Adjusted EBITDA   $ 65,386   $ 19,247   $ 38,335   $ 12,385   $ 15,636   $ (23,595 )   $ 127,394  
                             
Year EndedDecember 31, 2023   Corporate Finance & Restructuring   Forensic and Litigation Consulting   Economic Consulting   Technology   Strategic Communications   Unallocated Corporate   Total
Net income                           $ 274,892  
Interest income and other                             4,867  
Interest expense                             14,331  
Income tax provision                             83,471  
Operating income   $ 216,504   $ 81,296   $ 109,818   $ 48,196   $ 47,167   $ (125,420 )   $ 377,561  
Depreciation of property and equipment     9,254     6,030     5,989     14,515     3,445     1,846       41,079  
Amortization of intangible assets     5,079     783     —     —     297     —       6,159  
Adjusted EBITDA   $ 230,837   $ 88,109   $ 115,807   $ 62,711   $ 50,909   $ (123,574 )   $ 424,799  


FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
 
  Segment
Revenues		   Adjusted
EBITDA		   Adjusted EBITDA
Margin		   Utilization   Average
Billable Rate		   Billable
Headcount		  
  (in thousands)               (at period end)  
Three Months Ended December 31, 2024(Unaudited)                        
Corporate Finance & Restructuring $ 335,713     $ 44,745     13.3 %   52 %   $ 527   2,286  
Forensic and Litigation Consulting   175,863       18,023     10.2 %   55 %   $ 392   1,542  
Economic Consulting   206,103       15,808     7.7 %   60 %   $ 610   1,110  
Technology(1)   90,645       6,565     7.2 %   N/M   N/M   714  
Strategic Communications(1)   86,600       13,808     15.9 %   N/M   N/M   981  
  $ 894,924     $ 98,949     11.1 %           6,633  
Unallocated Corporate       (25,206 )                  
Adjusted EBITDA     $ 73,743     8.2 %              
                         
Year EndedDecember 31, 2024                        
Corporate Finance & Restructuring $ 1,391,206     $ 244,356     17.6 %   58 %   $ 510   2,286  
Forensic and Litigation Consulting   690,211       86,717     12.6 %   57 %   $ 390   1,542  
Economic Consulting   863,557       109,498     12.7 %   66 %   $ 584   1,110  
Technology(1)   417,637       58,541     14.0 %   N/M   N/M   714  
Strategic Communications(1)   336,041       49,969     14.9 %   N/M   N/M   981  
  $ 3,698,652     $ 549,081     14.8 %           6,633  
Unallocated Corporate       (145,396 )                  
Adjusted EBITDA     $ 403,685     10.9 %              
                         
Three Months Ended December 31, 2023(Unaudited)                        
Corporate Finance & Restructuring $ 365,554     $ 65,386     17.9 %   61 %   $ 503   2,215  
Forensic and Litigation Consulting   165,469       19,247     11.6 %   56 %   $ 391   1,447  
Economic Consulting   206,091       38,335     18.6 %   65 %   $ 586   1,089  
Technology(1)   100,933       12,385     12.3 %   N/M   N/M   628  
Strategic Communications(1)   86,637       15,636     18.0 %   N/M   N/M   971  
  $ 924,684     $ 150,989     16.3 %           6,350  
Unallocated Corporate       (23,595 )                  
Adjusted EBITDA     $ 127,394     13.8 %              
                         
Year EndedDecember 31, 2023                        
Corporate Finance & Restructuring $ 1,346,678     $ 230,837     17.1 %   60 %   $ 494   2,215  
Forensic and Litigation Consulting   654,105       88,109     13.5 %   57 %   $ 386   1,447  
Economic Consulting   771,374       115,807     15.0 %   67 %   $ 547   1,089  
Technology(1)   387,855       62,711     16.2 %   N/M   N/M   628  
Strategic Communications(1)   329,230       50,909     15.5 %   N/M   N/M   971  
  $ 3,489,242     $ 548,373     15.7 %           6,350  
Unallocated Corporate       (123,574 )                  
Adjusted EBITDA     $ 424,799     12.2 %              
                         

N/M Not meaningful

(1) The majority of the Technology and Strategic Communications segments' revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.


FTI CONSULTING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
  Year Ended December 31
    2024       2023  
Operating activities      
Net income $ 280,088     $ 274,892  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of property and equipment   43,910       41,079  
Amortization of intangible assets   4,183       6,159  
Amortization of notes receivable   51,621       27,784  
Provision for expected credit losses   50,315       35,149  
Share-based compensation   38,436       29,534  
Deferred income taxes   (16,605 )     (25,453 )
Acquisition-related contingent consideration   (779 )     3,818  
Amortization of debt issuance costs and other   1,082       1,925  
Changes in operating assets and liabilities, net of effects from acquisitions:      
Accounts receivable, billed and unbilled   18,340       (229,296 )
Notes receivable   (99,892 )     (50,703 )
Prepaid expenses and other assets   (2,810 )     7,606  
Accounts payable, accrued expenses and other   12,875       8,687  
Income taxes   (29,441 )     29,335  
Accrued compensation   43,503       50,186  
Billings in excess of services provided   271       13,759  
Net cash provided by operating activities   395,097       224,461  
Investing activities      
Purchases of property and equipment and other   (35,408 )     (49,479 )
Purchase and maturity of short-term investment   25,246       (24,356 )
Net cash used in investing activities   (10,162 )     (73,835 )
Financing activities      
Borrowings under revolving line of credit   600,000       835,000  
Repayments under revolving line of credit   (600,000 )     (835,000 )
Repayment of convertible notes   —       (315,763 )
Purchase and retirement of common stock   (10,217 )     (20,982 )
Share-based compensation tax withholdings   (19,021 )     (16,375 )
Proceeds on stock option exercises   10,887       1,297  
Deposits and other   2,968       (2,840 )
Net cash used in financing activities   (15,383 )     (354,663 )
Effect of exchange rate changes on cash and cash equivalents   (12,281 )     15,571  
Net increase (decrease) in cash and cash equivalents   357,271       (188,466 )
Cash and cash equivalents, beginning of period   303,222       491,688  
Cash and cash equivalents, end of period $ 660,493     $ 303,222  


FTI Consulting, Inc. 
555 12th Street NW Washington, DC 20004
+1.202.312.9100

Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791 mollie.hawkes@fticonsulting.com


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Source: FTI Consulting, Inc.

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