Fti Consulting FCN

NYSE FCN

$150.96 -0.05 (-0.03%)

As of: Sep 9, 2026 · 3:59 PM EDT

Key Stats

Market Cap4.32 Bn

P/E17.08

P/S1.10

Div. Yield0.00

Total Debt (Qtr)1.02 Bn

Revenue Growth (1y) (Qtr)5.28

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About

FTI Consulting, Inc. is a leading global expert firm that assists organizations facing crisis and transformation. The company provides advisory services through five reportable segments: Corporate Finance, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. Each segment delivers specialized expertise to help clients navigate complex financial, legal, regulatory and reputational challenges. We generate revenue primarily by…

We generate revenue primarily by providing professional services to clients in the United States and abroad. Most engagements are billed on a time and expense basis where clients pay for hours worked at agreed rates plus reimbursable costs such as travel and outside consultant fees. Some contracts use fixed fee arrangements or include success fees that depend on achieving predefined objectives. In the Technology segment certain clients are charged based on data storage volume or processing units. This mix of billing methods drives our top line.

The company operates through the following segments: Corporate Finance, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications.

Corporate Finance: This segment focuses on the strategic, operational, financial, transactional, and capital needs of clients including companies, boards, investors, private equity sponsors, lenders, creditor groups, and governments offering services in transactions, transformation, and turnaround restructuring.
Forensic and Litigation Consulting: This segment provides law firms, companies, boards, government entities, private equity firms, and other parties with multidisciplinary independent services across risk investigations and disputes supported by data and analytics technology enabled solutions focusing on highly regulated industries offering core services in construction projects and assets, environmental solutions, data and analytics, dispute advisory, healthcare risk management and advisory, and risk investigations which includes cybersecurity and financial services related offerings.
Economic Consulting: This segment provides law firms, companies, government entities, and other parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings, strategic decision making, and public policy debates worldwide delivering services focused on antitrust and competition economics, financial economics, and international arbitration.
Technology: This segment provides companies, law firms, private equity firms, and government entities with a comprehensive global portfolio of digital insights and risk management, artificial intelligence and data services helping organizations address risk as the volume and variety of enterprise and emerging data intersect with legal, regulatory and compliance needs delivering expert and AI powered solutions driven by client needs in blockchain and digital assets, information governance, privacy and security, investigations, litigation and mergers and acquisitions, and antitrust and competition.
Strategic Communications: This segment develops and executes communications strategies to help management teams, boards, law firms, governments, and regulators manage change and mitigate risk surrounding transformational and disruptive events including crises, transactions, investigations, disputes, regulation and legislation offering services centered on corporate reputation, financial communications, and public affairs.

FTI Consulting, Inc. is recognized as a leading global expert firm that assists organizations facing crisis and transformation. The company competes with other professional services providers but distinguishes itself through deep domain knowledge across its five segments and the integration of data analytics and artificial intelligence into its offerings.

The company serves a diverse client base that includes corporations, boards of directors, investors, private equity sponsors, lenders, creditor groups, government agencies, law firms, and other organizations seeking advisory services in finance, litigation, economics, technology, and communications.

Investment Thesis

▲ Bull case

FTI Consulting's recent all-SMD meeting highlighted a significant shift in employee sentiment, with a notable increase in pride, excitement, and conviction about the company's future. This shift is not merely anecdotal but is backed by tangible results, such as record performance in 2025 and strong momentum in most businesses. The company's ability to turn around challenging situations across various segments, such as Corp Fin, FLC, Tech, and StratCom, suggests a robust operational framework that can navigate and capitalize on market dynamics. This positive sentiment and operational resilience position FTI Consulting for sustained growth and market share expansion.
The company's strategic investments in talent and capabilities are paying off, as evidenced by the significant growth in segments like Corporate Finance and Strategic Communications. The Corporate Finance segment, for instance, reported a 19.2% revenue increase, driven by higher demand in turnaround and restructuring, transactions, and transformation. This growth is not just limited to the U.S. but is also evident globally, with engagements in major bankruptcies and large mergers. The ability to attract and retain top talent, as seen in the significant number of senior hires, further strengthens the company's position to capitalize on future opportunities.
FTI Consulting's diverse portfolio of services allows it to benefit from various market conditions. For example, the disruption in private credit and software markets could drive more business to the restructuring segment. The company's strong relationships with private credit clients and its expertise in fraud investigation position it well to capitalize on any stress in these markets. Additionally, the increasing complexity of data and the rise of AI-related issues present significant opportunities for the Technology segment, which combines domain experts with deep technical expertise to solve complex high-stakes issues.
The company's financial performance in Q1 FY26, despite some headwinds, underscores its resilience and growth potential. Revenue increased by 9.5% year-over-year, with strong growth in Corporate Finance, Strategic Communications, and Technology segments. The Strategic Communications segment, in particular, delivered record revenues and adjusted segment EBITDA, reflecting the strength of multiyear investments in higher-margin event-driven offerings. The company's ability to maintain guidance ranges despite these challenges suggests a solid foundation for future growth.
FTI Consulting's focus on investing in talent and building teams around new leaders indicates a long-term growth strategy. The planned acceleration of junior hiring in the second half of the year aims to support the significant number of senior hires made in recent periods. This strategy not only addresses immediate operational needs but also positions the company for sustained growth by ensuring a robust pipeline of talent. The company's strong balance sheet and excellent free cash flow provide the flexibility to boost shareholder value through organic growth, share buybacks, and strategic acquisitions.

FTI Consulting's recent all-SMD meeting highlighted a significant shift in employee sentiment, with a notable increase in pride, excitement, and conviction about the company's future. This shift is not merely anecdotal but is backed by tangible results, such as record performance in 2025 and strong momentum in most businesses. The company's ability to turn around challenging situations across various segments, such as Corp Fin, FLC, Tech, and StratCom, suggests a robust operational framework that can navigate and capitalize on market dynamics. This positive sentiment and operational resilience position FTI Consulting for sustained growth and market share expansion.
The company's strategic investments in talent and capabilities are paying off, as evidenced by the significant growth in segments like Corporate Finance and Strategic Communications. The Corporate Finance segment, for instance, reported a 19.2% revenue increase, driven by higher demand in turnaround and restructuring, transactions, and transformation. This growth is not just limited to the U.S. but is also evident globally, with engagements in major bankruptcies and large mergers. The ability to attract and retain top talent, as seen in the significant number of senior hires, further strengthens the company's position to capitalize on future opportunities.
FTI Consulting's diverse portfolio of services allows it to benefit from various market conditions. For example, the disruption in private credit and software markets could drive more business to the restructuring segment. The company's strong relationships with private credit clients and its expertise in fraud investigation position it well to capitalize on any stress in these markets. Additionally, the increasing complexity of data and the rise of AI-related issues present significant opportunities for the Technology segment, which combines domain experts with deep technical expertise to solve complex high-stakes issues.
The company's financial performance in Q1 FY26, despite some headwinds, underscores its resilience and growth potential. Revenue increased by 9.5% year-over-year, with strong growth in Corporate Finance, Strategic Communications, and Technology segments. The Strategic Communications segment, in particular, delivered record revenues and adjusted segment EBITDA, reflecting the strength of multiyear investments in higher-margin event-driven offerings. The company's ability to maintain guidance ranges despite these challenges suggests a solid foundation for future growth.
FTI Consulting's focus on investing in talent and building teams around new leaders indicates a long-term growth strategy. The planned acceleration of junior hiring in the second half of the year aims to support the significant number of senior hires made in recent periods. This strategy not only addresses immediate operational needs but also positions the company for sustained growth by ensuring a robust pipeline of talent. The company's strong balance sheet and excellent free cash flow provide the flexibility to boost shareholder value through organic growth, share buybacks, and strategic acquisitions.

▼ Bear case

FTI Consulting faces significant challenges in its Economic Consulting segment, particularly in the Compass Lexecon business. The segment reported a revenue decline of 2.3% and a segment operating loss, primarily due to lower demand for antitrust services. While the company has made progress in Europe, the North American antitrust business is still in the early stages of rebuilding. The multi-quarter journey to improve profitability in this segment poses a risk to the company's overall financial performance. The company's ability to turn around this segment will be critical to its long-term success.
The Financial Crimes and Compliance (FLC) segment underperformed expectations in Q1 FY26, with revenues increasing by only 1.2% and adjusted segment EBITDA decreasing significantly. The underperformance was attributed to timing-driven factors and the lumpy nature of the business. While the company expects this to be a temporary setback, the volatility in this segment could impact overall financial results in the near term. The company's ability to manage this volatility and maintain profitability in the FLC segment will be a key area to watch.
The company's higher effective tax rate in Q1 FY26, at 26.6%, was higher than expected and could impact overall profitability. While the company expects the full-year tax rate to be between 22% and 24%, any deviation from this range could negatively affect earnings. Additionally, the increase in SG&A expenses, particularly legal and compensation expenses, poses a risk to the company's margin profile. The company's ability to control these expenses and maintain profitability will be crucial.
FTI Consulting operates in a highly competitive and event-driven market, which can lead to lumpy results. The company's reliance on event-driven businesses, such as restructuring and strategic communications, makes it susceptible to market volatility and uncertainties. While the company has a strong track record of winning large, headline-making jobs, the timing and volume of these engagements can be unpredictable. The company's ability to navigate these market dynamics and maintain consistent growth will be a key challenge.
The company's significant investments in talent and capabilities, while beneficial in the long term, pose short-term risks. The acceleration of junior hiring in the second half of the year and the continued investment in senior talent could lead to higher compensation expenses and potential integration challenges. Additionally, the company's focus on building teams around new leaders in key geographies and adjacencies, such as Australia and the Middle East, could lead to higher costs and longer payback periods. The company's ability to manage these investments and achieve a positive return will be critical to its long-term success.

FTI Consulting faces significant challenges in its Economic Consulting segment, particularly in the Compass Lexecon business. The segment reported a revenue decline of 2.3% and a segment operating loss, primarily due to lower demand for antitrust services. While the company has made progress in Europe, the North American antitrust business is still in the early stages of rebuilding. The multi-quarter journey to improve profitability in this segment poses a risk to the company's overall financial performance. The company's ability to turn around this segment will be critical to its long-term success.
The Financial Crimes and Compliance (FLC) segment underperformed expectations in Q1 FY26, with revenues increasing by only 1.2% and adjusted segment EBITDA decreasing significantly. The underperformance was attributed to timing-driven factors and the lumpy nature of the business. While the company expects this to be a temporary setback, the volatility in this segment could impact overall financial results in the near term. The company's ability to manage this volatility and maintain profitability in the FLC segment will be a key area to watch.
The company's higher effective tax rate in Q1 FY26, at 26.6%, was higher than expected and could impact overall profitability. While the company expects the full-year tax rate to be between 22% and 24%, any deviation from this range could negatively affect earnings. Additionally, the increase in SG&A expenses, particularly legal and compensation expenses, poses a risk to the company's margin profile. The company's ability to control these expenses and maintain profitability will be crucial.
FTI Consulting operates in a highly competitive and event-driven market, which can lead to lumpy results. The company's reliance on event-driven businesses, such as restructuring and strategic communications, makes it susceptible to market volatility and uncertainties. While the company has a strong track record of winning large, headline-making jobs, the timing and volume of these engagements can be unpredictable. The company's ability to navigate these market dynamics and maintain consistent growth will be a key challenge.
The company's significant investments in talent and capabilities, while beneficial in the long term, pose short-term risks. The acceleration of junior hiring in the second half of the year and the continued investment in senior talent could lead to higher compensation expenses and potential integration challenges. Additionally, the company's focus on building teams around new leaders in key geographies and adjacencies, such as Australia and the Middle East, could lead to higher costs and longer payback periods. The company's ability to manage these investments and achieve a positive return will be critical to its long-term success.

Geographical Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Consulting

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	ACN	Accenture plc	primary	107.93 Bn	13.60	1.48	5.14 Bn
2	ULS	UL Solutions Inc.	primary	14.72 Bn	27.88	4.68	0.30 Bn
3	IT	Gartner Inc	primary	11.25 Bn	14.50	1.74	2.98 Bn
4	TTEK	Tetra Tech Inc	primary	9.17 Bn	21.03	1.81	0.85 Bn
5	BAH	Booz Allen Hamilton Holding Corp	primary	8.68 Bn	11.16	0.78	3.96 Bn
6	G	Genpact LTD	primary	5.90 Bn	10.13	1.12	1.21 Bn
7	FCN	Fti Consulting, Inc	primary	4.32 Bn	17.08	1.10	1.02 Bn
8	KFY	Korn Ferry	primary	4.16 Bn	14.80	1.41	0.40 Bn

Fti Consulting FCN

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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