FTI Consulting (FCN): Neutral Options Outlook per AI Analysis

FTI Consulting is a global business advisory firm providing services to help organizations manage change, mitigate risk, and resolve disputes. The company operates through five segments: 'Corporate Finance & Restructuring', 'Forensic and Litigation Consulting', 'Economic Consulting', 'Technology', and 'Strategic Communications'. These segments offer services such as transaction support, turnaround and restructuring advice, dispute resolution, data analytics, e-discovery, and strategic communications. FTI Consulting's clients include Fortune 500 corporations, law firms, governments, and private equity firms. The company differentiates itself through its recognized expertise in specialized areas and its ability to structure practical solutions to complex issues. They leverage their practitioners' expertise, geographic reach, diverse service offerings, and client relationships to grow organically and through strategic acquisitions.

No relevant news was found for this stock today.

FCN's technical outlook appears mildly bearish. The stock has experienced a significant downtrend over the past 90 days, evidenced by the price declining from approximately $174 in late July to $167.445 recently. The price is currently below its 50-day SMA of 162.27 and well below its 200-day SMA of 167.19, confirming the longer-term downtrend. Momentum indicators also suggest weakness. The MACD is negative (-0.019), and while the MACDh is positive, the MACD line is still below the signal line, indicating bearish momentum. The RSI of 56.72 suggests that the stock is neither overbought nor oversold, but it does not indicate strong buying pressure either. The ADX is at 26.73, suggesting a defined trend, but the recent price action is downwards. While the STOCHk is at 77.39, the STOCHd is at 83.89, suggesting that the stock might be due for a pullback. The recent price action has been volatile, as indicated by the ATR of 4.36. Overall, the technical indicators suggest that FCN is likely to continue its downtrend over the next 1-3 months.

FTI Consulting's MD&A reveals a somewhat mixed financial performance. Total `revenues` for the three months ended September 30, 2025, increased by 3.3% to $956.2 million compared to $926.0 million in the prior year, which included a 1.1% positive impact from FX. However, for the nine months ended September 30, 2025, `revenues` decreased slightly to $2,798.1 million from $2,803.7 million in 2024. The `Corporate Finance` segment showed strong revenue growth of 18.6% for the quarter, while the `Economic Consulting` segment experienced a significant decline of 22.0%. `Net cash used in operating activities` was -$207.6 million for the nine months ended September 30, 2025, a stark contrast to the $79.8 million provided in the same period of 2024, driven primarily by increased forgivable loan issuances and higher compensation and income tax payments. The company spent $770.9 million on common stock repurchases, funded partially by increasing net borrowings by $510.0 million under its `Credit Facility`. The company anticipates additional capital expenditures of between $13 million and $15 million for the remainder of 2025. Management acknowledges that actual results could differ materially from forward-looking statements due to various risks and uncertainties.

FTI Consulting's Q2 2025 earnings call presents a mixed picture. CEO Steve Gunby emphasized the company's resilience in the face of 'formidable headwinds,' particularly in the Technology and Economic Consulting segments. While acknowledging that 2025 was expected to be a challenging year, he highlighted solid overall results. CFO Ajay Sabherwal announced narrowed full-year guidance, with revenue now estimated between $3.66 billion and $3.76 billion and adjusted EPS between $7.80 and $8.40, 'modestly reducing the upper end' of previous ranges. The Tech segment experienced a 27.9% revenue decrease due to lower demand for M&A-related services, while Economic Consulting saw a 17% revenue decline attributed to shifts in antitrust enforcement. However, FLC revenues increased 10%, and Strategic Communications revenues rose 20.8%. Gunby expressed enthusiasm for the potential of FLC and Corp Fin, noting record performances in the latter. While the headwinds in certain segments are concerning, management's confidence in the company's long-term strength and its diverse portfolio suggests a moderately bullish outlook.

FCN's financial performance presents a mixed picture. Revenue has seen a slight increase from $928.55M in Q1 2024 to $956.17M in Q3 2025, indicating modest top-line growth. However, the `grossProfitRatio` has fluctuated, starting at 0.3247 in Q1 2024, peaking at 0.3362 in Q4 2023, and settling at 0.3325 in Q3 2025, suggesting inconsistent profitability. Operating cash flow has been highly volatile, swinging from a negative -$274.82M in Q1 2024 to a positive $201.89M in Q3 2025, which raises concerns about the sustainability of cash generation. Furthermore, the company's `totalDebt` has significantly increased from $453.31M in Q1 2024 to $735.99M in Q3 2025, indicating increased financial leverage. While revenue has grown and recent operating cash flow is positive, the increasing debt and fluctuating margins warrant caution regarding FCN's short-term financial health.

The company demonstrates a moderately bullish profile, characterized by solid revenue growth and improving profitability. Revenue has consistently increased, indicating strong market demand. The gross margin exhibits stability, suggesting efficient cost management. Return on Equity (ROE) has shown positive movement, signaling enhanced profitability and efficient use of shareholder equity. The Price-to-Earnings (P/E) ratio, while elevated, might be justifiable given the growth trajectory and positive ROE trend. The Debt-to-Equity ratio shows a slight increase, which warrants monitoring, but is counterbalanced by a healthy Current Ratio, implying sufficient liquidity to meet short-term obligations. Overall, the company presents a favorable picture with growth and profitability, though the leverage should be watched closely. The combination of growth and profitability suggests potential for continued positive performance over the next 12 months.