Huron Consulting Group (HURN) Q4 2024 earnings summary

Executive summary

• Achieved record revenues before reimbursable expenses (RBR) in Q4 and full year 2024, with Q4 RBR up 14.5% and full year up 9.1%, driven by strong performance in healthcare and education.

• Net income rose to $34M in Q4 (from $2.8M) and $116.6M for 2024 (up 86.7% year-over-year), reflecting margin expansion and one-time gains.

• Adjusted EBITDA increased 37.3% in Q4 and 20.2% for the year; adjusted diluted EPS up 47.3% in Q4 and 31.8% for 2024.

• Returned over $122M to shareholders via share repurchases, representing 6.6% of shares outstanding, with stock price up 21% in 2024.

• Completed acquisitions of GG+A (education) and AXIA Consulting (commercial), and divested Studer Education.

Financial highlights

• Q4 2024 RBR: $388.4M (+14.5% YoY); full year 2024 RBR: $1.49B (+9.1% YoY).

• Q4 2024 net income: $34M (8.5% margin, $1.84/diluted share); full year 2024 net income: $116.6M (7.7% margin, $6.27/share).

• Adjusted EBITDA margin for 2024: 13.5% of RBR; Q4 adjusted EBITDA: $56.8M (14.6% margin); full year: $201.2M.

• Adjusted net income for 2024: $120.4M ($6.47/share); adjusted diluted EPS: $1.90 in Q4, $6.47 for 2024.

• Record free cash flow of $168M in 2024; net cash from operating activities: $201.3M for 2024 (+48.8% YoY); DSO improved to 76 days in Q4.

Outlook and guidance

• 2025 RBR guidance: $1.58B–$1.66B (9% growth at midpoint); adjusted EBITDA margin: 14%–14.5%; adjusted EPS: $6.80–$7.60 (11% increase at midpoint).

• Cash flow from operations expected at $195M–$235M; free cash flow $160M–$190M; capex $35M–$45M.

• Healthcare: mid-single-digit revenue growth, 26%–28% margin; education: mid to upper single-digit growth, 23%–25% margin; commercial: low 20% growth (including AXIA), 21%–23% margin.