Huron Consulting Group Inc.

Second-quarter 2026 RBR was a record $465.6 million, up 15.7% from $402.5 million a year earlier; organic RBR growth was 10.8%. Net income was $31.2 million, or $1.91 per diluted share, versus $19.4 million, or $1.09 per diluted share, last year. Adjusted EBITDA was $72.6 million, or 15.6% of RBR, versus $60.6 million, or 15.1% of RBR, and adjusted net income was $40.2 million, or $2.46 per diluted share, versus $33.7 million, or $1.89 per diluted share. For full year 2026, Huron raised and narrowed guidance to RBR of $1.85 billion-$1.89 billion, adjusted EBITDA margin of 14.5%-15% of RBR, and adjusted non-GAAP EPS of $9-$9.40. Management said RelateCare should add about $30 million of RBR in 2026 and be accretive to adjusted EPS by about $0.10; full-year free cash flow is still expected at $180 million-$220 million.

Mark Hussey said Huron’s growth is being driven by strong organic performance across all three segments, continued margin expansion, and a strengthening backlog and pipeline. He emphasized that AI is increasingly creating demand for digital services and widening the company’s addressable market, especially through AI-enabled offerings in healthcare and other regulated industries. His tone was upbeat and confident, and he linked the raised outlook to durable market tailwinds, consistent execution, and progress toward the company’s medium-term goals.

John Kelly highlighted the quarter’s financial strength, including record RBR of $465.6 million, adjusted EBITDA of $72.6 million, adjusted EBITDA margin of 15.6%, and free cash flow of $111.3 million after $9.1 million of capital expenditures. He noted cash flow from operations of $120.5 million, DSO of 79 days, net debt of $802.8 million, and leverage of 2.8x adjusted EBITDA, with a year-end target of 2x to 2.5x. He also pointed to 438,000 shares repurchased in the quarter for $53.1 million, year-to-date buybacks of $208.6 million, and reiterated that RelateCare should add about $30 million of RBR and roughly $0.10 of EPS in 2026.

Analysts focused on utilization, hiring plans, AI’s impact on demand, and the durability of managed services and digital growth. Management said utilization is running hot above its typical upper-70% target, so it expects to add headcount, with consulting headcount growth likely in the high single-digit range. On AI, management said demand is showing up both as stand-alone AI projects and as part of broader digital work, and that AI is also being used internally to improve assessments, contracting, billing, collections, and sales support. They also said managed services growth is being driven by outcomes-based pricing, strong client retention, and a land-and-expand model, while M&A remains focused on smaller, proprietary, accretive deals rather than transformational transactions.