Huron's Revenue Soars 17% on Acquisitions, But Net Income Dips

Ticker: HURN · Form: 10-Q · Filed: Oct 28, 2025 · CIK: 1289848

Sentiment: mixed

Topics: Consulting Services, Acquisitions, Revenue Growth, Debt Increase, Net Income Decline, Financial Services, Healthcare Consulting

TL;DR

**HURN is buying growth, but the debt pile and falling net income make it a risky bet for now.**

AI Summary

Huron Consulting Group Inc. reported a robust increase in total revenues for the three months ended September 30, 2025, reaching $441.28 million, up from $378.09 million in the prior year, representing a 16.7% increase. For the nine months ended September 30, 2025, total revenues grew to $1.26 billion from $1.12 billion, an 11.9% increase. Despite this revenue growth, net income for the nine-month period decreased to $74.39 million from $82.64 million in 2024, a 9.98% decline, primarily due to significantly higher interest expense, net, which rose to $25.94 million from $19.89 million. The company actively pursued strategic acquisitions, completing five in the first nine months of 2025, including Treliant for financial services and WP&C for strategy and operations, totaling $151.6 million in consideration. These acquisitions contributed to a substantial increase in goodwill to $781.76 million from $678.74 million and intangible assets to $71.96 million from $26.08 million. Long-term debt also surged to $589.59 million from $342.86 million, reflecting increased leverage for these growth initiatives. The company also reported a significant unrealized loss on investment of $15.77 million for the nine months ended September 30, 2025.

Why It Matters

Huron's aggressive acquisition strategy, evidenced by five deals totaling $151.6 million in the first nine months of 2025, signals a clear intent to expand its market footprint in consulting. While this fuels significant revenue growth, the corresponding surge in long-term debt to $589.59 million and a dip in nine-month net income raises questions about profitability and leverage for investors. Employees and customers of acquired firms like Treliant and WP&C will experience integration challenges and opportunities. In a competitive consulting landscape, Huron's inorganic growth could position it strongly against rivals, but successful integration and debt management will be critical to realizing long-term value and avoiding market skepticism.

Risk Assessment

Risk Level: high — The company's long-term debt increased significantly to $589.59 million as of September 30, 2025, from $342.86 million at December 31, 2024, representing a 72% increase. This substantial increase in leverage, coupled with a 9.98% decrease in net income for the nine months ended September 30, 2025, to $74.39 million, indicates heightened financial risk. Additionally, the company reported an unrealized loss on investment of $15.77 million, further impacting profitability.

Analyst Insight

Investors should exercise caution and closely monitor Huron's debt repayment strategy and integration success of its recent acquisitions. While revenue growth is positive, the declining net income and increased leverage warrant a deeper dive into future earnings potential and cash flow generation before considering new positions.

Financial Highlights

debt To Equity
1.18
revenue
$1.26B
operating Margin
N/A
total Assets
$1.54B
total Debt
$609.59M
net Income
$74.39M
eps
N/A
gross Margin
N/A
cash Position
$23.89M
revenue Growth
+11.9%

Revenue Breakdown

SegmentRevenueGrowth
Healthcare$15.3MN/A
EducationN/AN/A
CommercialN/AN/A
Consulting and Managed ServicesN/AN/A
DigitalN/AN/A
Acquisitions (aggregate)$17.8MN/A

Key Numbers

Key Players & Entities

FAQ

What were Huron Consulting Group's total revenues for the third quarter of 2025?

Huron Consulting Group Inc. reported total revenues of $441.28 million for the three months ended September 30, 2025. This represents a significant increase from $378.09 million in the same period of 2024.

How did Huron Consulting Group's net income change for the nine months ended September 30, 2025?

For the nine months ended September 30, 2025, Huron Consulting Group's net income decreased to $74.39 million from $82.64 million in the prior year, a decline of 9.98%.

What was the total consideration for Huron Consulting Group's acquisitions in the first nine months of 2025?

The aggregate fair value of consideration transferred for all acquisitions completed by Huron Consulting Group in the first nine months of 2025 was $151.6 million. This included $105.8 million in cash, $27.1 million in common stock, and $18.7 million in contingent consideration liabilities.

Which companies did Huron Consulting Group acquire in 2025?

In 2025, Huron Consulting Group acquired Advancement Resources, Halpin Partnership Limited, Eclipse Insights LLC, TVG-Treliant Holdings, LLC., and Wilson Perumal and Company, Inc. These acquisitions span the Education, Healthcare, and Commercial segments.

What is Huron Consulting Group's current long-term debt position?

As of September 30, 2025, Huron Consulting Group's long-term debt, net of current portion, stood at $589.59 million. This is a substantial increase from $342.86 million reported at December 31, 2024.

What impact did acquisitions have on Huron Consulting Group's goodwill and intangible assets?

The acquisitions significantly increased Huron Consulting Group's goodwill to $781.76 million as of September 30, 2025, from $678.74 million at December 31, 2024. Intangible assets also rose to $71.96 million from $26.08 million over the same period.

Why did Huron Consulting Group's net income decline despite revenue growth?

Despite strong revenue growth, Huron Consulting Group's net income declined primarily due to a significant increase in interest expense, net, which rose to $25.94 million for the nine months ended September 30, 2025, compared to $19.89 million in the prior year. This reflects increased borrowing to fund acquisitions.

What new accounting pronouncements will affect Huron Consulting Group?

Huron Consulting Group will be affected by ASU 2023-09 (Improvements to Income Tax Disclosures) effective December 31, 2025, ASU 2024-03 (Disaggregation of Income Statement Expenses) effective December 31, 2027, ASU 2025-05 (Credit Losses for Accounts Receivable) effective December 31, 2026, and ASU 2025-06 (Internal-Use Software) effective December 31, 2028.

What was Huron Consulting Group's cash and cash equivalents at the end of Q3 2025?

As of September 30, 2025, Huron Consulting Group reported cash and cash equivalents of $23.89 million. This represents a net increase of $1.98 million from the beginning of the period.

What is Huron Consulting Group's strategic outlook based on this 10-Q?

Huron Consulting Group's strategic outlook appears focused on aggressive inorganic growth through acquisitions, expanding its service offerings across Healthcare, Education, and Commercial segments. While this strategy drives revenue, it also increases leverage and impacts short-term profitability, indicating a focus on long-term market share and capability expansion.

Risk Factors

Industry Context

Huron operates in the highly competitive professional services industry, serving the Healthcare, Education, and Commercial sectors. The industry is characterized by a demand for specialized expertise in areas like digital transformation, regulatory compliance, and operational efficiency. Consolidation through acquisitions, as seen with Huron's recent activity, is a common strategy to expand service offerings and market reach.

Regulatory Implications

Huron's clients, particularly in the financial services and healthcare industries, are subject to stringent regulations. The company's advisory services must ensure compliance with these evolving regulatory landscapes. Failure to do so could expose Huron and its clients to significant legal and financial penalties.

What Investors Should Do

  1. Monitor acquisition integration success
  2. Analyze debt levels and interest coverage
  3. Evaluate profitability trends beyond revenue growth
  4. Assess the impact of unrealized investment losses

Key Dates

Glossary

Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. It represents the future economic benefits arising from assets acquired that are not individually identified and recognized. (The significant increase in goodwill to $781.76 million reflects the company's aggressive acquisition strategy and the premium paid for acquired businesses.)
Intangible Assets
Non-physical assets that have value, such as patents, copyrights, trademarks, and customer lists. In acquisitions, they represent identifiable assets acquired that lack physical substance. (The surge in intangible assets to $71.96 million is a direct result of the acquisitions, representing the value of acquired intellectual property, client relationships, and other non-physical assets.)
Accumulated other comprehensive income (loss)
A component of equity that includes unrealized gains and losses on investments, foreign currency translation adjustments, and pension plan adjustments that have not yet been realized in net income. (The negative balance of ($7.495 million) indicates unrealized losses, such as the $15.77 million unrealized loss on investment, impacting the company's overall equity.)
Acquisition Method of Accounting
An accounting standard that requires companies to record the assets acquired and liabilities assumed in a business combination at their fair values on the acquisition date. (This method was used for all five acquisitions in 2025, leading to the recognition of goodwill and intangible assets based on fair value assessments.)
Contingent Consideration
An obligation to transfer additional consideration to an seller of an entity as compensation for the acquisition of an entity if one or more future events occur or conditions are met. ($18.7 million of the acquisition consideration was in the form of contingent consideration, meaning future payments depend on specific performance targets of the acquired companies.)
Reimbursable Expenses
Costs incurred by the consulting firm on behalf of a client that are passed through and billed to the client, often in addition to a professional fee. (These are reported separately and are part of total revenues, indicating a portion of the company's revenue is directly tied to costs incurred for client projects.)
Deferred Revenues
Revenue that has been received by the company but has not yet been earned because the services have not yet been performed. (The balance of $30.906 million indicates services that have been paid for in advance but not yet delivered, representing future revenue recognition.)
Operating lease right-of-use assets
An asset representing the lessee's right to use an underlying asset for the lease term, recognized under ASC 842 for leases classified as operating leases. (The $21.269 million balance reflects the company's use of leased assets, such as office space, under operating lease agreements.)

Year-Over-Year Comparison

Compared to the prior year, Huron Consulting Group Inc. has demonstrated robust revenue growth, with total revenues increasing by 16.7% in Q3 2025 and 11.9% year-to-date. However, this top-line growth has not translated into improved profitability, as net income for the nine-month period decreased by 9.98% primarily due to a substantial rise in interest expenses. The company's balance sheet reflects a significant increase in leverage, with long-term debt nearly doubling, and a corresponding surge in goodwill and intangible assets driven by an aggressive acquisition strategy.

Filing Stats: 4,575 words · 18 min read · ~15 pages · Grade level 16.7 · Accepted 2025-10-28 16:18:48

Key Financial Figures

Filing Documents

– Financial Information

Part I – Financial Information

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) Consolidated Balance Sheets 1 Consolidated Statements of Operations and Other Comprehensive Income 2 Consolidated Statements of Stockholders' Equity 3 Consolidated Statements of Cash Flows 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 47

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 49 Signature 50 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS HURON CONSULTING GROUP INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) September 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 23,889 $ 21,911 Receivables from clients, net of allowances of $ 10,361 and $ 11,575 , respectively 201,960 197,771 Unbilled services, net of allowances of $ 3,118 and $ 2,203 , respectively 195,157 160,017 Income tax receivable 17,789 1,355 Prepaid expenses and other current assets 36,250 28,063 Total current assets 475,045 409,117 Property and equipment, net 21,746 21,678 Deferred income taxes, net 2,712 2,546 Long-term investments, net of allowances of $ 11,125 and $ 0 , respectively 35,144 69,712 Operating lease right-of-use assets 21,269 19,176 Other non-current assets 134,551 116,569 Intangible assets, net 71,958 26,076 Goodwill 781,757 678,743 Total assets $ 1,544,182 $ 1,343,617 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 11,783 $ 11,539 Accrued expenses and other current liabilities 37,882 26,768 Accrued payroll and related benefits 215,354 247,579 Current maturities of long-term debt 20,000 13,750 Current maturities of operating lease liabilities 14,129 12,315 Deferred revenues 30,906 26,869 Total current liabilities 330,054 338,820 Non-current liabilities: Deferred compensation and other liabilities 63,442 42,481 Long-term debt, net of current portion 589,591 342,857 Operating lease liabilities, net of current portion 27,166 29,686 Deferred income taxes, net 34,151 28,446 Total non-current liabilities 714,350 443,470 Commitments and contingencies Stockholders' equity Common stock; $ 0.01 par value; 500,000,000 shares authorized; 20,501,837 and 20,780,928 shares issued, respectively 205 208 Treasury stock, at cost, 3,269,062 and 3,065,633 shares, respectively ( 189,604 ) ( 160,093 ) Additional paid-in capital 90,633 177,673 Reta

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) 1. Description of Business Huron is a global professional services firm that partners with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. We provide our services and products and manage our business under three operating segments - Healthcare, Education, and Commercial - which aligns our business by industry. The Commercial segment includes all industries outside of healthcare and education, including, but not limited to, financial services, energy and utilities, industrials and manufacturing, and the public sector. We also provide revenue reporting across two principal capabilities: i) Consulting and Managed Services and ii) Digital, which are methods by which we deliver our services and products. See Note 15 "Segment Information" for a discussion of our three segments. 2. Basis of Presentation and Significant Accounting Policies The accompanying unaudited consolidated financial statements reflect the financial position, results of operations, and cash flows as of and for the three and nine months ended September 30, 2025 and 2024. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statemen

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) reporting periods beginning with the fiscal year ending December 31, 2028, with early adoption permitted, and may be applied prospectively, retrospectively, or via a modified prospective transition method. We are currently evaluating the impact this guidance will have on our consolidated financial statements. 4. Acquisitions Advancement Resources On March 1, 2025 , we acquired 100 % of the ownership interests of Advancement Resources , a research-based, philanthropy-focused professional education services firm . The results of operations of Advancement Resources are included within our consolidated financial statements and results of operations of our Education segment as of the acquisition date. Halpin Partnership Limited On March 17, 2025 , we completed the acquisition of certain assets and liabilities of Halpin Partnership Limited ("Halpin") , a U.K.-based management consultancy specializing in higher education fundraising, governance, and strategy . The results of operations of Halpin are included within our consolidated financial statements and results of operations of our Education segment as of the acquisition date. Eclipse Insights LLC On June 24, 2025 , we completed the acquisition of certain assets and liabilities of Eclipse Insights LLC ("Eclipse Insights") , a revenue cycle consulting firm dedicated to helping healthcare organizations maximize revenue and improve cash flow . The results of operations of Eclipse Insights are included within our consolidated financial statements and results of operations of our Healthcare segment as of the acquisition date. TVG-Treliant Holdings, LLC. On July 11, 2025 , we acquired 100 % of the membership interests of TVG-Treliant Holdings, LLC. ("Treliant") , an advisory and managed services firm that provides expertise to the financial services industry in navigating regulatory requirements . The

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) The aggregate fair value of consideration transferred for all acquisitions completed in the first nine months of 2025 was $ 151.6 million, which consisted of $ 105.8 million in cash (inclusive of net working capital and other accrued proceeds adjustments), $ 27.1 million in Huron common stock, and $ 18.7 million in the acquisition date fair value of contingent consideration liabilities. Refer to Note 11 "Fair Value of Financial Instruments" for additional information on our contingent consideration liabilities. Refer to Note 5 "Goodwill and Intangible Assets" for additional information on the goodwill and intangibles acquired. No other significant assets or liabilities were acquired in connection with these acquisitions. For the three and nine months ended September 30, 2025, we recognized total revenues of $ 15.3 million and $ 17.8 million, respectively, in the aggregate, from our acquisitions completed in 2025. We determined that it is impractical to determine the amount of earnings generated by the acquisitions, individually or in the aggregate, for the three and nine months ended September 30, 2025 due to the integration of operations after the acquisition date. 5. Goodwill and Intangible Assets Goodwill The table below sets forth the changes in the carrying value of goodwill by reportable segment for the nine months ended September 30, 2025. Healthcare Education Commercial Total Balance as of December 31, 2024: Goodwill $ 643,552 $ 145,981 $ 345,102 $ 1,134,635 Accumulated impairment losses ( 190,024 ) ( 1,417 ) ( 264,451 ) ( 455,892 ) Goodwill, net as of December 31, 2024 $ 453,528 $ 144,564 $ 80,651 $ 678,743 Goodwill recorded in connection with business acquisitions (1) 53,760 6,219 42,867 102,846 Foreign currency translation — 190 ( 22 ) 168 Goodwill, net as of September 30, 2025 $ 507,288 $ 150,973 $ 123,496 $ 781,757 (1) See

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands, except per share amounts) (Unaudited) Intangible Assets Intangible assets as of September 30, 2025 and December 31, 2024 consisted of the following: As of September 30, 2025 As of December 31, 2024 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 4 to 10 $ 82,021 $ 14,840 $ 30,683 $ 9,790 Technology and software 2 to 5 17,970 13,999 16,230 12,771 Trade names 6 6,000 6,000 6,000 6,000 Customer contracts 2 to 4 1,487 1,151 1,483 418 Non-competition agreements 2 to 5 1,380 910 1,260 601 Total $ 108,858 $ 36,900 $ 55,656 $ 29,580 During the nine months ended September 30, 2025, we acquired intangible assets of $ 53.7 million related to our business combinations completed in 2025. Of the $ 53.7 million of intangible assets acquired, $ 27.6 million relates to our acquisition of Eclipse Insights and includes $ 25.5 million for customer relationships and $ 2.1 million for technology and software. The acquired customer relationships and technology and software intangible assets have an estimated useful life of 10 years and 5 years, respectively. Also included in the $ 53.7 million of intangible assets acquired is $ 19.1 million for the preliminary fair value of the Treliant customer relationships, which have an initial estimated useful life of 10 years. Identifiable intangible assets with finite lives are amortized over their estimated useful lives using either an accelerated or straight-line basis to correspond to the cash flows expected to be derived from the assets. Intangible asset amortization expense was $ 3.5 million and $ 1.6 million for the three months ended September 30, 2025 and 2024, respectively; and $ 7.9 million and $ 4.9 million for the nine months ended September 30, 2025 and 2024, respectively. The table below sets forth the estimated annual amortization expense for the i

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