NYSE:FCN
FTI CONSULTING, INC
A leading global provider of strategic advisory and litigation support services with a robust revenue growth trajectory and strong profitability margins.
Key Metrics
Investment Thesis
Bull Case
Investors may favor FCN due to its consistent revenue expansion over the last three years, a diversified client base that mitigates sector-specific shocks, and a track record of generating substantial free cash flow relative to its capital expenditures.
Bear Case
Concerns regarding valuation are highlighted by significant share repurchases totaling $858.7M alongside a large retained earnings deficit of $1.86B, suggesting aggressive balance sheet management that could limit financial flexibility if growth slows or margins compress.
About FTI CONSULTING, INC
FTI Consulting (FCN) is a global professional services firm providing strategic advisory, litigation support, and valuation services to corporate clients, financial institutions, and public companies worldwide. The company serves diverse markets including energy, healthcare, technology, and consumer goods, leveraging its extensive network of experts to deliver specialized consulting solutions.
Analysis
Management Discussion
Despite a slight dip in net profit to $270.9M in 2025 compared to the previous year, FTI Consulting demonstrated resilient revenue growth, reaching $3.79B from $3.03B in 2022. Operating profit remained strong at $389.1M, indicating effective cost management and pricing power within its professional services portfolio.
Industry Overview
The professional services industry is characterized by high barriers to entry due to the need for specialized expertise and trust, with demand fluctuating based on corporate M&A activity, regulatory changes, and economic cycles affecting restructuring needs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.03B | $3.49B | $3.70B | $3.79B |
| Cost of Revenue | $2.07B | $2.35B | $2.52B | $2.57B |
| Gross Profit | $962.9M | $1.14B | $1.18B | $1.22B |
| Operating Expenses | $659.1M | $757.5M | $834.6M | $828.4M |
| Operating Income | $303.9M | $377.6M | $347.4M | $389.1M |
| G&A | $641.1M | $751.3M | $822.2M | $799.6M |
| Stock-Based Comp | $25.4M | $29.5M | $38.4M | $39.3M |
| D&A | $35.9M | $41.1M | $43.9M | $45.8M |
| Depreciation | $35.9M | $41.1M | $43.9M | $45.8M |
| Amortization | $9.6M | $6.2M | $4.2M | $3.5M |
| Other OpEx | $18.0M | $6.2M | $12.4M | $28.8M |
| Non-Operating Income | $-6.1M | $-19.2M | $3.4M | $-18.1M |
| Interest Expense | $10.0M | $14.3M | — | — |
| Pre-Tax Income | $297.7M | $358.4M | $350.8M | $371.0M |
| Income Tax | $62.2M | $83.5M | $70.7M | $100.1M |
| Continuing Ops | $235.5M | $274.9M | $280.1M | $270.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $235.5M | $274.9M | $280.1M | $270.9M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $235.5M | $274.9M | $280.1M | $270.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.51B | $1.56B | $1.82B | $1.52B |
| Cash & Equivalents | $491.7M | $303.2M | $660.5M | $265.1M |
| Marketable Securities | — | $25.5M | $0 | — |
| Accounts Receivable | $896.2M | $1.10B | $1.02B | $1.04B |
| Prepaid Expenses | $95.5M | $119.1M | $94.0M | $127.0M |
| Other Current Assets | $27.3M | $5.5M | $44.9M | $87.9M |
| Long-Term Assets | $1.73B | $1.77B | $1.78B | $1.97B |
| PP&E (Net) | $153.5M | $159.7M | $150.3M | $169.3M |
| Intangibles | $25.5M | $18.3M | $16.8M | $13.5M |
| Goodwill | $1.23B | $1.23B | $1.23B | $1.24B |
| Operating Leases | $203.8M | $208.9M | $198.3M | $201.5M |
| Other LT Assets | $120.5M | $149.0M | $185.4M | $345.8M |
| Total Assets | $3.24B | $3.33B | $3.60B | $3.49B |
| Current Liabilities | $769.5M | $892.8M | $931.8M | $975.2M |
| Accounts Payable | $20.3M | $21.7M | $26.0M | $15.0M |
| Current Debt | $0 | $0 | — | — |
| Current Leases | $31.9M | $33.9M | $34.1M | $37.2M |
| Deferred Revenue | $53.6M | $67.9M | $67.6M | $56.6M |
| Taxes Payable | $20.4M | $58.7M | $43.9M | $15.2M |
| Other Current Liab | $578.1M | $635.8M | $677.5M | $753.3M |
| Long-Term Liabilities | $790.2M | $451.7M | $406.8M | $781.6M |
| Long-Term Debt | $315.2M | $0 | — | $365.0M |
| LT Operating Leases | $221.6M | $223.8M | $208.0M | $224.5M |
| Other LT Liab | $253.4M | $227.9M | $198.7M | $192.1M |
| Total Liabilities | $1.56B | $1.34B | $1.34B | $1.76B |
| Shareholders' Equity | $1.68B | $1.98B | $2.26B | $1.73B |
| Paid-In Capital | $0 | — | — | — |
| Retained Earnings | $1.86B | $2.11B | $2.39B | $1.86B |
| AOCI | $-176.7M | $-150.5M | $-176.6M | $-129.6M |
| Total L&E | $3.24B | $3.33B | $3.60B | $3.49B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $235.5M | $274.9M | $280.1M | $270.9M |
| Non-Cash Adjustments | $-271.4M | $-383.2M | $3.7M | $-391.9M |
| Working Capital Changes | $224.7M | $332.8M | $111.3M | $273.2M |
| Cash from Operations | $188.8M | $224.5M | $395.1M | $152.1M |
| Capital Expenditures | $53.3M | $49.5M | $35.4M | $58.5M |
| Cash from Investing | $-60.1M | $-73.8M | $-10.2M | $-58.5M |
| Share Buybacks | $85.4M | $21.0M | $10.2M | $858.7M |
| Cash from Financing | $-106.0M | $-354.7M | $-15.4M | $-510.5M |
| FX Effect | $-25.5M | $15.6M | $-12.3M | $21.5M |
| Net Change in Cash | $-2.8M | $-188.5M | $357.3M | $-395.4M |
| Beginning Cash | $494.5M | $491.7M | $303.2M | $660.5M |
| Ending Cash | $491.7M | $303.2M | $660.5M | $265.1M |
Frequently Asked Questions
How does FTI CONSULTING, INC make money?
The company's revenue is driven by three primary segments: Strategic Advisory Services, which includes restructuring and turnaround advice; Litigation Support Services, offering expert testimony and economic analysis for legal proceedings; and Valuation Services, providing fair value assessments for M&A and securities litigation cases.
What are the main risks for FCN?
The company faces exposure to economic downturns that could reduce M&A and restructuring activity, potential liability from litigation support engagements involving high-profile cases, intense competition from larger Big Four firms and niche boutiques, and the risk of losing key partners in the highly interconnected professional services industry.
What is FCN's competitive advantage?
FTI Consulting possesses deep industry-specific expertise across complex sectors like energy and healthcare, a highly specialized talent pool that is difficult for competitors to replicate quickly, and a scalable global delivery model that allows it to serve large multinational clients efficiently.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.