FTI Consulting's $390.9M Q2 Buyback Shrinks Shares but Raises Leverage

FCN's Q2 Buyback Was Material

The second-quarter purchase followed $126.8 million of repurchases in the first quarter and $858.7 million during 2025. Management said the latest purchases reflected its assessment of long-term value and available balance-sheet capacity while continuing to fund talent investments.

The scale stands out among consulting peers. Huron Consulting Group Inc. HURN repurchased $53.1 million of stock in the second quarter, bringing its first-half 2026 repurchases to $208.6 million.

FTI Consulting's Share Count Fell Sharply

FCN's weighted-average diluted shares fell to 29.0 million in the second quarter from 33.6 million a year earlier. The reduction helped offset weaker absolute profitability on a per-share basis.

Adjusted earnings rose 1.4% year over year to $2.16 per share even as net income declined 19.4% to $57.8 million. Fewer outstanding shares and a lower effective tax rate helped protect per-share results.

FCN's Debt Load Rose With Repurchases

Net debt reached $856.3 million at June 30, 2026, up from $317.2 million a year earlier. Total debt stood at about $1.02 billion, versus $470 million at June 30, 2025.

The higher borrowing burden makes future capital allocation more consequential. Second-quarter interest expense increased to $11.6 million from $5.3 million a year earlier, adding another cost to consider as FCN balances repurchases with operating investments.

FTI Consulting Still Has Liquidity Capacity

Liquidity remains substantial. Current assets totaled $1.59 billion at quarter-end compared with current liabilities of $782.4 million, while second-quarter operating cash flow increased to $152.3 million from $55.7 million a year earlier.

FTI Consulting also increased its revolving credit line from $900 million to as much as $1.5 billion. The existing $300 million incremental term loan remained outstanding under the amended credit agreement.

FCN Has More Buyback Capacity Ahead

The board added $370 million to the repurchase authorization in June 2026, leaving about $344 million available at quarter-end. Further purchases could keep reducing the share count, but the pace will matter given the higher debt balance.

CRA International Inc. CRAI offers a different capital-return mix. CRA returned $31.4 million to shareholders in its fiscal second quarter, including $27.8 million of share repurchases and $3.6 million of dividend payments, while FCN does not pay a dividend.

FCN's Style Signals Keep the Trade-Off Balanced

The buyback has delivered a clear per-share benefit, but the accompanying rise in leverage keeps the capital-allocation equation balanced. Continued repurchases can reduce shares outstanding, while higher debt and interest expense remain offsets.

FCN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FTI Consulting’s VGM Score of A and Value Score of A, along with a Growth Score of B and Momentum Score of B, indicate favorable style characteristics, but the #3 Rank supports a measured stance rather than treating the buyback alone as a decisive near-term signal.

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