Breaking Down Huron Consulting Group Inc. (HURN) Financial Health: Key Insights for Investors

You're looking at Huron Consulting Group Inc. (HURN) because they just posted a stellar Q3 2025, but the real question is whether that momentum is baked into the stock price or if there's still room to run. The firm's latest earnings call, dated October 28, 2025, showed revenues before reimbursable expenses hitting a record $432.4 million, a solid 16.8% jump year-over-year, which is defintely a strong signal of demand across their Healthcare and Commercial segments. Plus, management raised the midpoint of their full-year adjusted diluted earnings per share (EPS) guidance to $7.60, narrowing the revenue range to a tight $1.65 billion to $1.67 billion for 2025. Still, you have to weigh that against the fact that a director just sold 6,500 shares for over $1.05 million on November 19, 2025; that's a concrete data point that warrants a closer look at valuation, especially with the stock trading around a 27.55 P/E ratio. We'll break down the core business segments, the impact of their recent acquisitions, and map out the near-term risks that matter, so you can decide if the growth justifies the premium.

Revenue Analysis

You're looking for a clear picture of where Huron Consulting Group Inc. (HURN) is making its money, and the short answer is: they are accelerating growth across the board, especially in Healthcare. The firm is on track to hit a full-year 2025 revenue (revenues before reimbursable expenses, or RBR) of between $1.65 billion and $1.67 billion, a tight and confident range management affirmed after a strong Q3.

This isn't just organic growth; it's a strategic mix of strong client demand and smart acquisitions. For the first nine months of 2025, total RBR was $1.23 billion, which is a solid 12.1% increase over the same period in 2024. Here's the quick math: acquisitions completed since early 2024 chipped in $58.7 million of that year-to-date revenue growth, showing their bolt-on strategy is defintely working.

Segment Contribution and Growth Drivers

Huron Consulting Group Inc. generates its revenue primarily through professional services-strategy, operations, digital transformation-across three main segments. The Healthcare segment remains the powerhouse, generating the largest share of revenue, but the Commercial segment is showing the most aggressive growth rate.

In the third quarter of 2025, the company reported record revenue of $432.4 million, marking a significant 16.8% year-over-year jump. This growth is directly tied to increased demand for both their core Consulting and Managed Services capabilities, plus a major push in their Digital offerings.

• Healthcare: Revenue of $219.5 million in Q3 2025, up 19.9% YoY. This is the core engine, and its organic growth accelerated sharply in Q3.
• Commercial: Revenue of $83.4 million in Q3 2025, showing the fastest growth at 26.6% YoY. This segment serves industries facing disruption and regulatory change.
• Education: Revenue of $129.4 million in Q3 2025, increasing 6.9% YoY. This segment focuses on management consulting and technology solutions for higher education.

Near-Term Revenue Opportunity

The biggest change in the revenue profile is the accelerating demand for their digital capabilities, particularly within the Commercial and Education segments. To be fair, this growth requires investment, and Huron Consulting Group Inc. is meeting that demand by increasing its headcount. The number of revenue-generating professionals (excluding Managed Services) jumped 15.2% to 5,244 as of September 30, 2025, which is a clear leading indicator for future revenue capacity.

What this estimate hides is the potential for margin pressure if hiring and compensation costs continue to climb faster than billing rates, but for now, the demand environment is strong enough to support the expansion. If you want to dig deeper into the profitability of these segments, check out the full analysis on Breaking Down Huron Consulting Group Inc. (HURN) Financial Health: Key Insights for Investors.

Here's a snapshot of the Q3 2025 revenue breakdown:

The action for you is clear: watch the Healthcare and Commercial segments. Their combined growth is what's driving the stock's momentum. If the Commercial growth rate starts to cool, that's your first sign to re-evaluate the near-term revenue forecast.

Profitability Metrics

Huron Consulting Group Inc. (HURN) is showing solid, expanding profitability in 2025, driven by high demand across its core segments, particularly Healthcare. Your key takeaway is that while their reported operating margin is below the high-end industry average, their recent growth trend and net profit margin are strong, especially against a backdrop of industry-wide cost pressures.

The company's latest financial reports, covering the third quarter of 2025, confirm a healthy trajectory. For Q3 2025, Huron reported net income of $30.4 million on revenues before reimbursable expenses (RBR) of $432.4 million, signaling effective cost management as they scale operations.

Margin Analysis and Operational Efficiency

When you look at a consulting firm, the margins tell you how efficiently they convert their expert labor into profit. Huron's profitability metrics for Q3 2025 are a good snapshot of their current operational health:

• Net Profit Margin: The Q3 2025 net profit margin came in at approximately 6.9% of total revenues, a slight dip from the prior year's Q3 but a solid positive result overall.
• Operating Profit Margin: The Q3 2025 operating margin was 11.3%, holding steady year-over-year. This margin shows the profit remaining after all operating costs-like salaries and overhead-are paid.
• Adjusted EBITDA Margin: Management's full-year 2025 guidance for the Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin is projected to be between 14.0% and 14.5% of RBR. This is the clearest measure of core operational cash profitability.

Here's the quick math on their core operating profitability against the industry:

Profitability Trends and Outlook

The trend is what matters most here. Huron Consulting Group Inc. is defintely on a strong growth path. The company's Q3 2025 net income saw a 12.0% increase from Q3 2024, and Adjusted EBITDA jumped by 22.9% in the same period. This growth is driven by increased client demand across all three segments-Healthcare, Education, and Commercial-with Healthcare revenues alone growing by 19.9%.

What this estimate hides is the impact of their strategic acquisitions and hiring, which can temporarily weigh on margins but build long-term capacity. The rise in the number of revenue-generating professionals by 15.2% to 5,244 is a direct investment in future revenue, and the utilization rate of their consulting capability is also up to 74.1% in Q1 2025, which is a key operational efficiency indicator. They are spending to grow, but they are growing fast. For a deeper look at the market sentiment around this growth, you can check out Exploring Huron Consulting Group Inc. (HURN) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

The capital structure of Huron Consulting Group Inc. (HURN) shows a strategic, but increasing, reliance on debt to fuel its growth and acquisition strategy, a common move for professional services firms. You should view their leverage as moderate, with the Debt-to-Equity (D/E) ratio sitting at 1.46 as of October 2025, indicating that for every dollar of shareholder equity, the company uses about $1.46 in debt to finance its assets.

The company's debt profile is substantial, reflecting its expansion efforts. As of the third quarter of 2025, the long-term debt, net of the current portion, stood at $589.591 million. This is an increase from the prior year, showing a clear appetite for leveraging the balance sheet for strategic purposes. For a clearer picture of total obligations, the total senior bank debt was $657.8 million as of June 30, 2025, with a net debt of $596.8 million. That's a lot of paper, but it's being used to buy growth.

When you compare Huron Consulting Group Inc.'s D/E ratio of 1.46 to the industry median for Management Consulting Services, which was around 1.01 in 2024, the company is more leveraged than its typical peer. A ratio in the 1.0 to 1.5 range is generally considered balanced, suggesting the company is using debt strategically without overextending itself, but it does mean a higher financial risk profile than a more conservatively financed firm. Still, the leverage ratio, as defined in their bank agreement, was 2.5 times adjusted EBITDA as of mid-2025, with management projecting a year-end ratio of approximately 2.0 times.

Huron Consulting Group Inc. made a critical move in July 2025 to solidify its financing structure for the next phase of growth. The company entered a new credit agreement, significantly increasing its borrowing capacity to $1.1 billion. This new facility includes a $700 million revolving credit facility and a $400 million term loan, both maturing in July 2030.

• Extend loan maturity to 2030.
• Increase borrowing capacity to $1.1 billion.
• Improve financial terms for future working capital.

This debt financing is clearly balanced with an equity management strategy. The company uses debt to fund acquisitions and bolster working capital, but it also actively manages its share count through repurchases. For example, in the first half of 2025, Huron Consulting Group Inc. repurchased 938,000 shares for $133.9 million, a move that reduces the equity base but boosts earnings per share (EPS). This dual approach-using debt for strategic growth and cash flow for shareholder returns-is a classic playbook for mature, cash-generative consulting businesses. To dive deeper into the full picture, check out Breaking Down Huron Consulting Group Inc. (HURN) Financial Health: Key Insights for Investors.

Liquidity and Solvency

When you're evaluating a consulting firm like Huron Consulting Group Inc. (HURN), liquidity-the ability to meet short-term obligations-is key, especially since their main assets are receivables, not physical inventory. The good news is that HURN's short-term position looks defintely healthy, but you need to watch the working capital trend.

As of September 30, 2025 (Q3 2025), Huron Consulting Group Inc. reports strong liquidity ratios. The Current Ratio, which measures current assets against current liabilities, stands at approximately 1.44x. Here's the quick math: Current Assets of $475.05 million divided by Current Liabilities of $330.05 million. A ratio above 1.0x is generally fine, but a higher number shows a better buffer. This is a solid cushion, though it's a step down from the roughly 2.1x seen earlier in Q1 2025, primarily due to an increase in current liabilities.

Since Huron Consulting Group Inc. is a professional services firm with negligible inventory, the Quick Ratio (Acid-Test Ratio) is essentially the same as the Current Ratio, meaning its most liquid assets-cash and receivables-cover its immediate debts. The working capital (Current Assets minus Current Liabilities) at the end of Q3 2025 was approximately $145.0 million ($475.05 million - $330.05 million). This is a positive number, but the trend shows a tightening from the Q1 2025 working capital of around $228.4 million, which is something to monitor.

Cash Flow: The Engine of Liquidity

The true measure of a consulting firm's financial health is its cash generation, and Huron Consulting Group Inc.'s operating cash flow remains robust. For the third quarter of 2025 alone, cash flow from operations was a strong $93.8 million. This is the money the company generates from its core business of selling consulting services, and it's a clear sign of operational strength.

The company is using this strong operational cash flow to fund its growth and return capital to shareholders. This is what you want to see. Investing Cash Flow for the quarter reflected capital expenditures (CapEx) of only $8.5 million, resulting in a healthy Free Cash Flow of $85.3 million in Q3 2025. The financing activities for the first nine months of 2025 were dominated by the return of capital to shareholders, with $152.5 million used for stock repurchases.

• Operating Cash Flow: $93.8M (Q3 2025)
• Investing Cash Flow (CapEx): Used $8.5M (Q3 2025)
• Financing Cash Flow (Share Repurchases): Used $152.5M (YTD Q3 2025)

The primary liquidity strength is in the conversion of its substantial revenues-which hit a record $432.4 million in Q3 2025-into cash. The main risk is tied to its accounts receivable and unbilled services, which together make up the bulk of current assets. If client collections slow down, that $145.0 million working capital buffer could shrink quickly. This is a common industry risk, and it's why a high Current Ratio matters.

For a deeper dive into who is investing in this company and why, you should check out Exploring Huron Consulting Group Inc. (HURN) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Huron Consulting Group Inc. (HURN) after a strong run, trying to figure out if the stock is overvalued or if there's still room to climb. The quick takeaway is that HURN is not cheap on a trailing basis, but its forward-looking metrics suggest the market is pricing in the company's expected growth, making it a reasonable hold with a clear upside target.

As of November 2025, Huron Consulting Group Inc. stock has been a solid performer, with the price trading around the $163.00 to $165.50 range. Over the last 12 months, the stock price has surged by approximately 33.09% to 37.05%, reflecting the market's positive reaction to strong earnings and strategic acquisitions.

Is Huron Consulting Group Inc. Overvalued or Undervalued?

To answer this, we need to look past the stock price and into the core valuation multiples. This is where the complexity of a consulting firm's capital structure-heavy on human capital and intellectual property-shows up. We focus on the Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios because they are the most relevant for a services business.

Here's the quick math on the key valuation ratios:

• Trailing P/E Ratio: The P/E ratio, based on the last twelve months of earnings, sits between 27.06 and 28.07. This is defintely higher than the broader market average, suggesting a premium for the company's consistent growth.
• Forward P/E Ratio: Looking ahead, the forward P/E drops significantly to around 19.79 to 21.41. This is based on the company's strong fiscal year (FY) 2025 adjusted diluted earnings per share (EPS) guidance of $7.50 to $7.70. The market is clearly anticipating this earnings acceleration.
• EV/EBITDA: The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is approximately 15.7x to 16.2x. This multiple is a cleaner view of the company's operating value, as it strips out the impact of debt and depreciation. It shows the company is valued at about 16 times its core operating cash flow, which is on the higher end for the consulting sector.

The Price-to-Book (P/B) ratio is less critical here, as a professional services firm's true value is in its people and contracts, not its tangible assets. What this estimate hides is the firm's capital allocation strategy: Huron Consulting Group Inc. does not pay a dividend, with both the dividend yield and payout ratio at 0.00%. Instead, they favor returning capital to shareholders through aggressive share repurchases, evidenced by a buyback yield of 4.20%.

Analyst Consensus and Near-Term Action

The Street is overwhelmingly positive on Huron Consulting Group Inc. Six investment analysts covering the stock have a consensus recommendation of 'Buy' or 'Strong Buy'. This is a strong vote of confidence in the firm's strategy, which you can read more about in their Mission Statement, Vision, & Core Values of Huron Consulting Group Inc. (HURN).

The average 12-month price objective is set between $175.25 and $190.25, which suggests an upside of about 5% to 15% from the current price level. This consensus target is a clear sign that analysts see the company growing into its current valuation, especially with the 2025 revenue guidance reaffirmed in the range of $1.65 billion to $1.67 billion.

If you own the stock, the move is to hold; the forward P/E suggests the growth justifies the price. If you are looking to buy, wait for a pull-back closer to the $150 mark for a better entry point, as the current price is nearing the high end of the 52-week range of $116.77 to $174.26.

Risk Factors

You might look at Huron Consulting Group Inc.'s (HURN) strong Q3 2025 results-revenues before reimbursable expenses (RBR) grew by 16.8% to $432.4 million-and think the path is clear. But as a seasoned analyst, I focus on the headwinds that can derail even the best-performing consulting firm. The core risks here are a mix of industry-specific regulatory shifts and operational execution challenges, especially around talent and M&A.

External Risks: Regulatory and Market Headwinds

The biggest external risk for Huron Consulting Group Inc. is the financial fragility of its core clients, particularly in the Healthcare segment, which accounts for approximately 50% of its year-to-date 2025 RBR. Healthcare providers face persistent margin pressures, and regulatory changes, such as shifts in Medicaid funding, create uncertainty that can delay or shrink high-value consulting engagements.

For example, new legislation like the 'One Big Beautiful Bill Act' has caused some health systems to pivot their capital spending, prioritizing immediate financial stability over longer-term digital transformation projects. This has led to a noticeable softness in digital project conversions within the Healthcare segment, despite overall demand being strong. In Education, clients are dealing with declining research funding and enrollment issues, which directly impacts their budget for Huron's services.

You can't ignore the competition, either. Huron operates in a crowded space, competing with larger, diversified firms like FTI Consulting (FCN), whose net margin of 7.20% slightly edges out Huron's 6.54% net margin.

Internal and Operational Risks

The company's strategic growth-which has helped lift the full-year 2025 adjusted diluted EPS guidance to a range of $7.50 to $7.70-introduces its own set of operational risks. The biggest one is talent management and utilization. They've been hiring aggressively, with revenue-generating professionals increasing by 15.2% to 5,244 as of Q3 2025.

If the firm cannot maintain high utilization rates (the percentage of time consultants are billing clients), increased compensation costs will compress margins. Also, integrating recent acquisitions, which is driving growth in the Commercial segment, has already put margin pressure on that division. In the first nine months of 2025, Huron also recorded an $8.2 million non-cash impairment charge related to a convertible debt investment, a reminder that not all strategic bets pay off defintely.

Here's the quick math on the talent risk:

• Failure to achieve expected utilization rates or retain qualified personnel is a direct hit to revenue.
• Difficulties in successfully integrating acquired businesses may prevent the realization of expected benefits.
• A general downturn in market conditions could quickly expose utilization headwinds.

Mitigation Strategies and Clear Actions

Huron Consulting Group Inc. is not sitting still; their mitigation strategy is centered on diversification and high-demand capabilities. The full-year 2025 RBR is expected to be between $1.65 billion and $1.67 billion, which shows management's confidence in their strategy.

They are broadening their service offerings, especially by expanding their focus on Artificial Intelligence (AI) and automation solutions to meet client demand for efficiency. Their Commercial segment, while smaller, is a critical diversifier, helping to balance the portfolio against sector-specific risks in Healthcare and Education. This is a smart move, as it reduces reliance on any single industry's regulatory cycle.

To dive deeper into the institutional confidence behind these numbers, you should read Exploring Huron Consulting Group Inc. (HURN) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking for a clear map of where Huron Consulting Group Inc. (HURN) goes from here, and the short answer is continued expansion, especially in their core markets. The firm is defintely not resting on its laurels; its strategy is focused on leveraging its deep industry expertise (a major competitive advantage) while aggressively expanding its digital capabilities, which is where the real margin expansion lives.

The company's growth is driven by three clear factors: structural demand in their key segments, strategic acquisitions, and a focused push into digital solutions. Honestly, their market position in Healthcare and Education is their biggest moat (a competitive advantage that protects long-term profits). For the first nine months of 2025, Huron returned a significant $152.5 million to shareholders by repurchasing 1.1 million shares, signaling management's confidence in their cash flow and future earnings potential.

Future Revenue and Earnings Estimates

The financial targets for the full 2025 fiscal year reflect a strong, confident outlook. After a record-setting third quarter, management narrowed its revenue guidance and raised its earnings per share (EPS) forecast. Here's the quick math on their updated guidance, which is a great sign of execution and strong client demand.

The expected full-year 2025 revenues before reimbursable expenses (RBR) are now projected to be in the range of $1.65 billion to $1.67 billion. That's a tight range, which suggests a high degree of visibility into their pipeline. Adjusted diluted earnings per share (EPS) guidance was raised, and is now expected to land between $7.50 and $7.70. Plus, they are maintaining their goal for adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) as a percentage of RBR in the range of 14.0% to 14.5%.

Strategic Growth Drivers and Competitive Edge

Huron Consulting Group Inc. is positioned for growth because its services align perfectly with the biggest pain points for its clients. The Healthcare segment, which is their largest, saw record revenue growth driven by demand for performance improvement and managed services. The Education segment is also performing well, helping universities navigate funding and operational restructuring.

A major strategic initiative is the continued expansion of their global digital capability. They are actively integrating Artificial Intelligence (AI) and automation into their offerings, which not only drives value for clients but also increases the efficiency of their own service delivery-a clear path to margin expansion. Strategic acquisitions, like the recent additions of Eclipse Insights, Treliant, and Wilson Perumal & Company, are key to broadening these capabilities and market reach, especially in the Commercial segment.

Their competitive advantages boil down to this:

• Dominant market share in the recession-resilient Healthcare and Education sectors.
• Deep industry expertise that translates into high-value, complex engagements.
• Integrated digital platform that supports both strategic and operational client needs.
• Strategic acquisitions that quickly expand service offerings, like the integration of AXIA Consulting, Inc.

If you want a deeper dive into the balance sheet and valuation, you should check out the full analysis here: Breaking Down Huron Consulting Group Inc. (HURN) Financial Health: Key Insights for Investors. Your next step should be to monitor Q4 results for confirmation that the strong organic growth, which was 10% in Q3, is sustained.