FTI Consulting, Inc. Q1 FY2026 earnings call

Steve Gumby started by discussing the all-SMB meeting and the pride, motivation, and confidence it brought. He then talked about the quarter's performance with some zigs and zags like FLC and Compass Lexicon issues but also growth in some segments. Paul Linton went through company-wide and segment results, including revenues, net income, direct costs, SG&A, adjusted EBITDA, tax rate, EPS, billable and non-billable headcount. He also discussed segment performances in detail such as corporate finance, FLC, economic consulting, technologies, strategic communications, and cash flow/balance sheet items.

First quarter of 2026 revenues of $983.3 million increased 8.5% compared to the first quarter of 2025. At segment level: Corporate finance revenues of $409.5 million increased 19.2%, FLC revenues of $192.9 million increased 1.2%, economic consulting revenues of $175.6 million decreased 2.3%, technologies revenues of $102.3 million increased 5.3%, strategic communications record revenues of $103 million increased 18.4%. Details for each segment include revenue drivers, operating income, adjusted segment EBITDA etc.

Maintaining guidance ranges for 2026 with revenues between $3.94 billion and $4.1 billion and EPS between $8.90 and $9.60. Considerations include Compass Lexicon work ahead, event-driven business lumpy nature, M&A market uncertainty, talent investment, and SG&A expenses increase. Adjusted segment EBITDA in economic consulting hit low point this quarter but working to improve P&L.

First question from Andrew Nicholas on macro environment, CFR growth feasibility, segment margins. Followed by James Yarrow on restructuring, impact of private credit and software, business impacts of disruptions, hiring acceleration. Then Toby Sommer on AI impact on pricing and ratios, profitability path of economic consulting, regain position in competition consulting domestically