FTI posts $983.3m Q1 revenue

Consulting revenue is one of those numbers that tells you what companies are worried about before they say it out loud. When FTI Consulting grows, it usually means clients are dealing with stress, regulation, litigation, cyber risk, or messy balance-sheet work. That is basically what showed up in its first quarter. FTI posted $983.3 million in revenue for the quarter ended March 31, up 9.5% from a year earlier, and kept its full-year outlook in place. But the mix mattered more than the headline — some practices were strong, while one of its most prestigious engines, Economic Consulting, was still dragging. (fticonsulting.com) ### What kind of firm is FTI, really? FTI is not a strategy shop in the classic McKinsey sense. It makes money from high-stakes advisory work — corporate turnarounds, investigations, disputes, crisis communications, cybersecurity, e-discovery, and expert-economics assignments. So when revenue rises here, the signal is often less “companies are expanding” and more “companies need help dealing with pressure.” That makes the segment breakdown unusually useful. (ir.fticonsulting.com) ### Where did the growth come from? Three businesses did most of the lifting. Corporate Finance & Restructuring revenue climbed to $364.1 million from $318.3 million. Strategic Communications rose to $110.7 million from $95.6 million. Technology increased to $101.9 million from $89.7 million. Those are solid jumps, and they line up with a market that still needs restructuring advice, public-affairs support, and digital-forensics or legal-tech work. (fticonsulting.com) ### What went wrong in Economic Consulting? Economic Consulting fell to $193.8 million from $207.8 million — down 6.7%. The weak spot was antitrust work at Compass Lexecon, FTI’s economics unit. That matters because Economic Consulting has historically been one of the firm’s premium-margin businesses. When that practice slows, the revenue hit hurts, (fticonsulting.com)s work. (fticonsulting.com) ### Did profit keep up with revenue? Not really. GAAP EPS rose to $1.90 from $1.74, which looks fine on the surface. But adjusted EBITDA dropped to $96.8 million from $114.7 million, and adjusted EBITDA margin fell to 9.8% from 12.8%. That is the catch in this quarter. FTI grew, but it grew with more cost pressure and a less favorable business mix. Think of it like a restaurant filling more tables but selling fewer high-margin drinks. (fticonsulting.com) ### What does headcount say? Headcount was 8,054 at March 31, up from 7,834 a year earlier but down from 8,108 at December 31. That small sequential dip matters because consulting firms usually hire ahead of demand when they feel confident. Here, FTI looks more selective. Management talked about investing in senior talent, but the numbers suggest the firm is being careful about where it adds people and how fast. (fticonsulting.com) ### Did guidance change? No — and that was part of the message. FTI reaffirmed 2026 guidance for revenue of $3.94 billion to $4.10 billion and EPS of $8.90 to $9.60. Keeping that range after a mixed quarter says management still believes stronger practices can offset the Economic Consulting slump, at least for now. It also tells investors the company does not see this quarter as a reason to reset expectations. (fticonsulting.com) ### Why should anyone care about the mix? Because this quarter was less about one big beat and more about what kind of consulting is in demand. Restructuring, communications, and technology are practical, implementation-heavy businesses. Antitrust economics is more episodic and more exposed to swings in deal activity and regulatory timing. So the re(fticonsulting.com)tice. (fticonsulting.com) ### Bottom line? FTI’s quarter was good enough to show momentum, but not clean enough to call it a breakout. Revenue growth was real. The weak spot was real too. The next question is whether Compass Lexecon stabilizes — because if it does, the same topline growth could start looking a lot more profitable. (fticonsulting.com)