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- **Record Q3 Performance**: EPS up 41% YoY, driven by Corp Fin (+18.6%), FLC (+15.4%), and Strat Com (+7.4%).
- **Segment Challenges**: E Con revenue down 22% YoY due to talent transitions, Tech down 14.8% due to lower M&A demand.
- **AI Growth**: New client work leveraging AI tools, no negative impact on billable hours.
- **Restructuring Strength**: Q3 revenue at record levels, 11% YoY growth, winning major global mandates.
- **Guidance Update**: FY2025 revenue $3.685B-$3.735B, adjusted EPS $8.20-$8.70, reflecting segment resilience and share buybacks.

**【CEO Opening Remarks】**
- Reported record Q3 2025 EPS of $2.60, up 41% YoY, driven by strong performance in Corp Fin, FLC, and Strat Com despite headwinds in E Con and Tech.
- Emphasized organic growth strategy, investing in high-value adjacencies (e.g., U.K. insolvency, German restructuring) and talent retention during challenging quarters.
- Highlighted resilience across segments, with Corp Fin and FLC delivering double-digit growth and Strat Com achieving 34% EBITDA increase YoY.
- Acknowledged challenges in E Con and Tech, attributing 2/3 of E Con's revenue decline to talent transitions vs. market conditions.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $956.2M (+3.3% YoY), EPS: $2.60 (+41% YoY), adjusted EBITDA: $130.6M (+27% YoY).
- Segment performance: Corp Fin (+18.6%), FLC (+15.4%), Strat Com (+7.4%), offset by E Con (-22%) and Tech (-14.8%).
- Updated FY2025 guidance: Revenue $3.685B-$3.735B, EPS $7.62-$8.12, adjusted EPS $8.20-$8.70.
- Key trends: Billable headcount decreased 3% YoY but increased 4% sequentially, with 331 new university hires.

**【Q&A Highlights】**
- **E Con Segment**: Costs stabilized, but EBITDA recovery uncertain; 28 new senior hires in Q3 2025. U.S. government shutdown impact negligible so far.
- **Transactions Practice**: Growth driven by team expertise and expanded service offerings, with 16% YoY revenue despite global transaction volume decline.
- **AI Impact**: Positive in client work (e.g., AI algorithm investigations), no negative impact on billable hours; focus on AI tools for complex investigations.
- **Restructuring Outlook**: Record Q3 revenue, 11% YoY growth, winning major mandates in U.S., U.K., and Australia.
- **Headcount Growth**: FY2025 headcount additions lower than historical rates; long-term strategy remains to grow talent in high-demand areas.


FTI Consulting, Inc. (FCN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FCN

FCN fundamentals

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