FTI Consulting (FCN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $926.0 million, up 3.7% year-over-year but down sequentially, driven by strong demand in Economic Consulting and Technology, while Corporate Finance and Strategic Communications declined.

• Net income for Q3 2024 was $66.5 million, a 20.2% decrease year-over-year, mainly due to higher compensation, SG&A expenses, and FX losses.

• Adjusted EBITDA for Q3 2024 was $102.9 million (11.1% margin), down 13.3% year-over-year.

• EPS for Q3 2024 was $1.85, down from $2.34 in Q3 2023.

• Free cash flow for Q3 2024 surged to $212.3 million, driven by improved collections and lower capital expenditures.

Financial highlights

• Year-to-date 2024 revenues were $2.80 billion, up 9.3% year-over-year; net income was $230.4 million, up 19.2%.

• Adjusted EBITDA for the nine months was $329.9 million, up 10.9% year-over-year.

• Cash and cash equivalents stood at $386.3 million at quarter-end, with no debt outstanding and $900 million available under the credit facility.

• Net cash provided by operating activities for Q3 2024 was $219.4 million, up from $106.7 million in Q3 2023.

• No share repurchases in Q3 2024; $460.7 million remains authorized for buybacks.

Outlook and guidance

• Full-year 2024 revenue guidance narrowed to $3.70–$3.75 billion (previously $3.70–$3.79 billion).

• Full-year 2024 EPS guidance lowered to $7.90–$8.35 (previously $8.10–$8.60).

• Management expects slow revenue momentum to persist into Q4, with typical seasonal slowdown and some large matters winding down.

• Effective tax rate for the full year expected between 20% and 22%.

• Capital expenditures for the remainder of 2024 projected at $14–$17 million.