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FTI Consulting's $390.9M Q2 Buyback Shrinks Shares but Raises Leverage
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Key Takeaways
FTI Consulting spent $390.9 million repurchasing 2.59 million shares in the second quarter of 2026.
FCN's diluted share count fell to 29 million, helping adjusted EPS rise 1.4% despite lower net income.
FCN's net debt climbed to $856.3 million, while second-quarter interest expense more than doubled.
FTI Consulting, Inc. (FCN - Free Report) spent $390.9 million repurchasing 2.59 million shares in the second quarter of 2026, extending a capital-return program that has materially reduced its share count.
The trade-off is becoming more important. Lower shares outstanding supported per-share earnings, but net debt climbed sharply as repurchases absorbed substantial capital.
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 - Free Report) 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.
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 - Free Report) 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.
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.
View the Zacks #1 Rank List
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FTI Consulting's $390.9M Q2 Buyback Shrinks Shares but Raises Leverage
Key Takeaways
FTI Consulting, Inc. (FCN - Free Report) spent $390.9 million repurchasing 2.59 million shares in the second quarter of 2026, extending a capital-return program that has materially reduced its share count.
The trade-off is becoming more important. Lower shares outstanding supported per-share earnings, but net debt climbed sharply as repurchases absorbed substantial capital.
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 - Free Report) 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.
FTI Consulting, Inc. EPS Diluted (Quarterly)
FTI Consulting, Inc. eps-diluted | FTI Consulting, Inc. Quote
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 - Free Report) 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.