Huron Consulting Group Inc. (HURN) Balance Sheet

The debt build during 2025 and early 2026 appears to have been funded alongside rising goodwill, which reached $808.3M in Q3 2026, suggesting acquisition-driven expansion rather than organic working capital needs. Retained earnings grew steadily from $531.7M to $605.4M, indicating internal profit generation is supporting equity even as borrowing increased. Investors should monitor whether the current debt level can be serviced without further buybacks eroding the equity base.

Total debt of $846.5M against equity of $392.3M implies a D/E near 2.16, which is materially above the 1.04 figure reported in Q4 2025 and well above peers such as CRAI at 0.60 and KFRC at 0.67. The gap suggests either a shift in equity base from buybacks and accumulated deficits or a data calculation issue that warrants further investigation before drawing refinancing conclusions. Elevated leverage relative to peers would increase sensitivity to interest rate movements and covenant constraints.

The cash position has remained in a narrow $18M to $31M band across most recent quarters, with the exception of a temporary spike to $61.0M in Q2 2025, implying the company runs lean on cash by design. A current ratio above 1.5 offers some cushion, but the composition of current assets is likely dominated by receivables, which the prior cash flow analysis showed to be a volatile driver of operating cash. Limited cash on hand may constrain the firm's ability to absorb a sudden slowdown in collections.

PPE net of $51.6M is small relative to the asset base, consistent with a human-capital-driven consulting business where value resides in people and client relationships rather than fixed plant. The goodwill concentration raises impairment risk if acquired digital practices underperform their purchase assumptions, particularly given the thin gross margins observed across recent periods. Investors should treat the intangible-heavy asset base as a point of potential write-down exposure.

Retained earnings increased by roughly $74M over the same period, yet total equity fell by more than $169M, implying treasury stock activity and other equity reductions absorbed well over the full earnings contribution. The prior cash flow analysis showed $153.1M in buybacks in Q1 2026 alone, which aligns with this pattern of equity shrinkage. Stock-based compensation additions partially offset dilution, but the net effect is a thinner equity cushion supporting a larger debt load.