Huron Consulting Group Inc. Q3 FY2025 earnings call

• In the Healthcare segment, it achieved record RBR in the third quarter, growing 20% over the third quarter of 2024, with organic growth 19% excluding recent acquisitions and divestitures. Driven by broad-based demand across offerings like performance improvement, financial advisory, etc., and leveraging AI and automation. - The Education segment's RBR grew 7% in the third quarter of 2025, driven by strong demand for strategy, operations, research and digital offerings. - The Commercial segment's RBR grew 27% in the third quarter of 2025, driven by acquisitions and organic growth in the digital business. Integrated offerings and leveraged AI and analytics for competitive advantage, and acquired Wilson Perumal & Company to enhance the platform.

The Healthcare segment generated 51% of total company RBR during the third quarter of 2025. It posted record RBR of $219.5 million, up $36.4 million or 19.9% from the third quarter of 2024. Organic Healthcare segment RBR grew 19% over the third quarter of 2024. The Education segment generated 30% of total company RBR during the third quarter of 2025. It posted record RBR of $129.4 million, up $8.4 million or 6.9% from the third quarter of 2024. The Commercial segment generated 19% of total company RBR during the third quarter of 2025, and posted record RBR of $83.4 million, up $17.5 million or 26.6% from the third quarter of 2024.

• Updated annual RBR guidance to a range of $1.65 billion to $1.67 billion. - Affirmed adjusted EBITDA guidance range of 14% to 14.5% of RBR. - Increased adjusted non-GAAP EPS to a range of $7.50 to $7.70. The midpoint of the RBR guidance reflects strong year-over-year growth in the fourth quarter as underlying demand for offerings across all segments is expected to continue.

Q: Andrew Nicholas of William Blair asked about performance improvement and consulting in the Healthcare segment, pipeline, hiring, and 2026 outlook.

A: Mark Hussey and John Kelly discussed strong market demand, record pipeline, head count additions, and reference to the Investor Day framework.

Q: Andrew Nicholas asked about the inflection point in demand for Commercial segment.

A: Mark Hussey discussed strategy and financial advisory seeing inflection due to market trends.

Q: Tobey Sommer of Truist asked about Education pipeline, managed services utilization, restructuring wins, and health care performance fees.

A: John Kelly discussed strong Education sales conversions, high managed services utilization, restructuring reputation, and potential increase in performance fees.

Q: William Sutherland of Benchmark asked about Education pipeline, Education margin outlook, and AI in the book.

A: John Kelly discussed Education sales conversions, consistent margin range, and AI usage in the book.

Q: Kevin Steinke of Barrington Research asked about Education project mix, consulting utilization, and margin expansion.

A: C. Hussey and John Kelly discussed core ERP implementations, consulting hiring impact on utilization, and long-term margin potential.