Huron Consulting Group Inc. (HURN) Income Statement

The re-acceleration to 18.0% in Q2 2026 followed a slower 8.3% print in Q2 2025, which suggests the growth rate is more cyclical than the multi-year trend implies. Management's characterization of the growth as organic across all three segments, if borne out, would indicate durability beyond acquisition-driven lift. Investors should monitor whether the 11.4% growth in Q3 2026 represents a normalization toward a high-single-digit run rate.

The gross margin range appears consistent with a labor-intensive consulting model where billable utilization drives most of the variance. The 27.8% trough in Q1 2026 suggests that revenue mix shifts toward lower-margin managed services and digital implementation work can compress margins materially. Relative to the specialist peer set, HURN's margin profile looks more like a services integrator than a premium advisory firm.

SG&A rose from $70.4M to $82.8M over this window, growing more slowly than revenue, which implies some overhead efficiency. However, the operating margin gains have been small relative to the top-line expansion, indicating that incremental revenue is largely absorbed by direct labor costs. Investors should monitor whether SG&A discipline persists as headcount scales.

The cost structure is overwhelmingly variable, with direct labor scaling with billable headcount and utilization. SG&A held in a relatively narrow band of $70M to $90M per quarter, suggesting that fixed overhead is controlled even as revenue grew. Investors should monitor wage inflation, since limited pricing flexibility means cost pressure would flow directly into gross margin.