Huron Consulting Group (HURN) Financials

Huron Consulting Group (NASDAQ:HURN) has continued to grow revenue, but the latest quarter shows a meaningful deterioration in cash generation and a heavier debt load. Over the last four years, the company has generally expanded sales and posted solid accounting profits, but its balance sheet and cash flow trends suggest that growth has been financed in part by acquisitions, debt issuance, and share repurchases.

What stands out from the recent numbers:

• Revenue rose to $451.8 million in Q1 2026 from $404.1 million in Q1 2025, showing continued top-line growth year over year.
• Gross profit remained strong at $443.7 million, indicating Huron still converts a large share of revenue into gross profit.
• Q1 2026 net income was $23.2 million, or $1.34 diluted EPS, which is still profitable despite softer cash flow.
• Quarterly revenue has trended higher over the multi-year period, moving from about $326.4 million in Q1 2023 to $451.8 million in Q1 2026.
• Equity remains positive at $397.4 million, so the company is not in a distressed negative-equity position.
• Huron continues to produce large non-cash add-backs such as depreciation and amortization, which support reported earnings but also reflect a business with substantial acquired intangible assets.
• Goodwill and intangible assets remain very large on the balance sheet, totaling well over $850 million combined in Q1 2026, so future impairment risk is something investors should watch.
• Accounts receivable also remained elevated at $444.4 million, suggesting a meaningful amount of working capital is tied up in customer collections.
• Operating cash flow turned sharply negative in Q1 2026 at -$162.2 million, compared with $126.4 million of operating cash flow in Q4 2025 and $80.0 million in Q2 2025.
• Long-term debt climbed to $834.7 million in Q1 2026 from $561.5 million in Q1 2025, increasing leverage materially.

Trend analysis over the last several years:

Huron’s revenue trend has been positive. Quarterly sales have generally climbed from the low-$300 million range in early 2023 to the mid-$400 million range by early 2026. That is a constructive sign for a consulting and advisory firm, where sustained demand can translate into operating leverage.

Profitability also looks decent on paper. Operating income improved over time, and net income has generally stayed positive. But the income statement does not tell the full story. Huron’s reported earnings are being supported by very large amortization add-backs tied to acquisitions, and the cash flow statement shows that accounting profit has not consistently turned into cash.

The biggest red flag is operating cash flow. In Q1 2026, Huron reported negative operating cash flow despite positive net income. That was driven by a large negative swing in operating assets and liabilities, which overwhelmed the quarter’s earnings and non-cash add-backs. For retail investors, this is important because cash flow is often a better indicator of financial flexibility than earnings alone.

The balance sheet has also become more leveraged. Total debt has increased significantly over the last year, while cash at the end of Q1 2026 was only $26.5 million. That leaves a thinner cash cushion relative to debt than in prior periods. Huron is still equity-positive and operationally profitable, but the debt trend deserves close monitoring.

Bottom line: Huron Consulting Group appears to be growing and remains profitable, but the latest quarter showed a big cash flow setback and a rising debt burden. Investors may like the revenue momentum, but they should also watch whether earnings can consistently convert into free cash flow and whether leverage begins to weigh on future results.