Financial Analysis

Acquisitions 2026 Acquisition On June 3, 2026, we acquired 100% of the ownership interests of Akusus Holdings Limited, the parent company of RelateCare (RelateCare). RelateCare is a provider of AI-enabled clinical and patient access solutions. The results of operations of the acquired business are included within our consolidated financial statements and results of operations of our Healthcare segment as of the acquisition date. The acquisition was accounted for using the acquisition method of accounting. Contract assets and contract liabilities acquired are recorded at the value calculated under Topic 606: Revenue from Contracts with Customers as if we had entered into the original contract at the same date and on the same terms as the acquired company. The acquisition date values of assets acquired and liabilities assumed in the acquisition are considered preliminary and are based on the information that was available as of the date of the acquisition. We believe that the information provides a reasonable basis for estimating the preliminary values of assets acquired and liabilities assumed but certain items, such as the valuations of the intangible assets and deferred taxes and purchase price adjustments, among other items, may be subject to change as additional information is received. Thus, the provisional measurements of assets acquired, including goodwill, and liabilities assumed related to the acquisition are subject to change. We expect to finalize the valuations as …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Financing Arrangements The Company has a $700 million senior secured revolving credit facility (the Revolver) and a $400 million senior secured term loan facility (the Term Loan), subject to the terms of the Fourth Amended and Restated Credit Agreement dated as of July 30, 2025 (the Amended Credit Agreement). Both the Revolver and the Term Loan mature on July 30, 2030. The Term Loan is subject to scheduled quarterly amortization payments of $5.0 million which began September 30, 2025 and continue through the maturity date of July 30, 2030, at which time the outstanding principal balance and all accrued interest will be due. As of June 30, 2026, we had total borrowings outstanding under the Amended Credit Agreement of $834.0 million, consisting of $454.0 million outstanding under the Revolver and $380.0 million outstanding under the Term Loan. A summary of the scheduled maturities of those borrowings as of June 30, 2026 follows: Scheduled Maturities of Long-Term Debt 2026 $ 10,000 2027 $ 20,000 2028 $ 20,000 2029 $ 20,000 2030 $ 764,000 Borrowings under the Amended Credit Agreement may be used for working capital, capital expenditures, share repurchases, permitted acquisitions, and other general corporate purposes. The initial borrowings under the Amended Credit Agreement were used to reduce borrowings outstanding under a prior credit agreement. The Amended Credit Agreement provides the option to increase the revolving credit facility or establish additional term loan faciliti …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended June 30, Six Months Ended June 30, Total Revenues by Capability 2026 2025 2026 2025 Healthcare: Consulting and Managed Services $ 177,837 $ 150,148 $ 352,981 $ 297,181 Digital 59,015 53,123 113,056 109,411 Total revenues $ 236,852 $ 203,271 $ 466,037 $ 406,592 Education: Consulting and Managed Services $ 66,749 $ 68,351 $ 130,247 $ 133,009 Digital 75,439 63,335 141,552 123,693 Total revenues $ 142,188 $ 131,686 $ 271,799 $ 256,702 Commercial: Consulting and Managed Services $ 36,405 $ 16,225 $ 73,907 $ 33,317 Digital 59,597 60,573 115,066 119,285 Total revenues $ 96,002 $ 76,798 $ 188,973 $ 152,602 Total Huron: Consulting and Managed Services $ 280,991 $ 234,724 $ 557,135 $ 463,507 Digital 194,051 177,031 369,674 352,389 Total revenues $ 475,042 $ 411,755 $ 926,809 $ 815,896 Three Months Ended June 30, Six Months Ended June 30, Revenues before Reimbursable Expenses by Capability 2026 2025 2026 2025 Healthcare: Consulting and Managed Services $ 174,450 $ 145,755 $ 346,641 $ 289,129 Digital 57,853 52,067 110,863 107,183 Total revenues before reimbursable expenses $ 232,303 $ 197,822 $ 457,504 $ 396,312 Education: Consulting and Managed Services $ 65,585 $ 67,329 $ 128,045 $ 130,873 Digital 73,790 61,972 138,798 121,176 Total revenues before reimbursable expenses $ 139,375 $ 129,301 $ 266,843 $ 252,049 Commercial: Consulting and Managed Services $ 35,886 $ 16,038 $ 72,852 $ 33,041 Digital 58,072 59,344 112,149 116,793 Total revenues before reimbursable expense …

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"Fair Value of Financial Instruments Certain of our assets and liabilities are measured at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value and requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy consists of three levels based on the objectivity of the inputs as follows: Level 1 Inputs Quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs Quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Inputs Unobservable inputs for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability. The table below sets forth our fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025. Level 1 Level 2 Level …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Goodwill and Intangible Assets Goodwill The table below sets forth the changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2026. Healthcare Education Commercial Total Balance as of December 31, 2025: Goodwill $ 701,624 $ 152,431 $ 388,733 $ 1,242,788 Accumulated impairment losses (190,024) (1,417) (264,451) (455,892) Goodwill, net as of December 31, 2025 $ 511,600 $ 151,014 $ 124,282 $ 786,896 Goodwill recorded in connection with business acquisitions (1) 18,341 209 18,550 Foreign currency translation (312) (126) (69) (507) Goodwill, net as of June 30, 2026 $ 529,629 $ 150,888 $ 124,422 $ 804,939 (1) The $18.3 million of goodwill recorded in connection with a business acquisition in the Healthcare segment is related to the acquisition of RelateCare. Goodwill is recognized for the excess of purchase price over the net fair value of assets acquired and liabilities assumed, and largely reflects the expanded market opportunities expected from combining the service offerings of Huron and RelateCare, as well as the assembled workforce of RelateCare. All of the $18.3 million of goodwill is expected to be nondeductible for tax purposes. The $0.2 million of goodwill recorded in connection with a business acquisition in the Commercial segment relates to the finalized measurements of assets acquired and liabilities assumed in the acquisition of Treliant. See Note 4 ""Acquisitions"" for additional information on our business combinations com …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

ncome Taxes For the three months ended June 30, 2026, our effective tax rate was 27.2% as we recognized income tax expense of $11.7 million on income of $42.9 million. The effective tax rate of 27.2% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to certain nondeductible expense items and the inability to recognize tax benefits related to certain foreign and capital losses, partially offset by a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability. For the three months ended June 30, 2025, our effective tax rate was 29.9% as we recognized income tax expense of $8.3 million on income of $27.7 million. The effective tax rate of 29.9% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to the establishment of a valuation allowance for a deferred tax asset recorded as the result of the capital loss on our investment in a hospital-at-home company as well as certain nondeductible expense items, partially offset by a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability. For the six months ended June 30, 2026, our effective tax rate was 22.1% as we recognized income tax expense of $15.5 million on income of $70.0 million. The effective tax rate of 22.1% was more favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to a discrete tax be …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Charges Restructuring charges for the three and six months ended June 30, 2026 were $0.4 million and $1.1 million, respectively. The $0.4 million of restructuring charges recognized in the second quarter of 2026 included $0.7 million of rent and related expenses, net of sublease income, for our previously vacated office spaces, partially offset by a $0.2 million non-cash gain on lease modification on our office space in Hillsboro, Oregon. The $1.1 million of restructuring charges recognized in the first six months of 2026 included $3.2 million of severance-related expenses and $1.7 million of rent and related expenses, net of sublease income, for our previously vacated office spaces, largely offset by $4.0 million of non-cash gains on lease modifications. In the first quarter of 2026, we entered into the Seventh Amendment to the office lease agreement for our principal executive offices in Chicago, Illinois, which, among other items, provides for the early termination of the lease with respect to certain leased spaces previously vacated. As a result of this modification, we recognized a $3.8 million non-cash gain on lease modification. See Note 14 Commitments, Contingencies and Guarantees within the notes to our consolidated financial statements for additional information on the Seventh Amendment to the Chicago, Illinois office lease. Restructuring charges for the three and six months ended June 30, 2025 were $0.6 million and $1.9 million, respectively. The $0.6 …

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Revenues For the three months ended June 30, 2026 and 2025, we recognized total revenues of $475.0 million and $411.8 million, respectively. Of the $475.0 million total revenues recognized in the second quarter of 2026, we recognized $4.5 million from obligations satisfied, or partially satisfied, in prior periods, of which $3.0 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $1.5 million was due to the release of allowances on receivables from clients and unbilled services. Of the $411.8 million total revenues recognized in the second quarter of 2025, we recognized $12.8 million from obligations satisfied, or partially satisfied, in prior periods, of which $11.6 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $1.2 million was due to the release of allowances on receivables from clients and unbilled services. For the six months ended June 30, 2026 and 2025, we recognized total revenues of $926.8 million and $815.9 million, respectively. Of the $926.8 million total revenues recognized in the first six months of 2026, we recognized $16.6 million from obligations satisfied, or partially satisfied in prior periods, of which $14.7 million was due to changes in the estimates of our variable consideration under performance-based billing arrangements and $1.9 million was due to the release of allowances on receivables from clients and u …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information We provide our services and products and manage our business under three reportable segments: Healthcare, Education, and Commercial, which align our business by industry. Healthcare Our Healthcare segment serves acute care providers, including national and regional health systems; academic health systems; community health systems; the federal health system; and public, childrens and critical access hospitals, and non-acute care providers, including physician practices and medical groups; payors; and long-term care or post-acute providers. Our healthcare-focused consulting and managed services offerings include financial and operational performance improvement consulting, which spans revenue cycle, business operations and care delivery transformation; organizational transformation; revenue cycle, clinical and patient access managed services and outsourcing; financial and capital advisory consulting; and strategy consulting. Our healthcare-focused digital services span technology and analytic-related services, including core systems of record, such as enterprise health record (EHR), enterprise resource planning (ERP), enterprise performance management (EPM), and customer relationship management (CRM) systems; data management, artificial intelligence (AI) and automation; technology managed services; and payor core administration systems. We also have a portfolio of software products we deliver to the healthcare industry. In June 2025, we enhanced our consulti …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing