13.6%.
That is how much FTI’s diluted share count fell year over year, from 33.6 million to 29.0 million. On the surface the company looks tidier: revenue rose to $993.5 million, cash ticked up to $163.7 million, and free-cash-flow margins widened sharply.
And yet operating income slid to $85.0 million, down 14.3%, and net income dropped to $57.8 million, down 19.4%. The filing makes the contradiction obvious: the business is collecting cash better, but financing and operating costs bit into profits.
"The increase in net cash provided by financing activities was primarily due to receipt of $300.0 million in proceeds from the Incremental Term Loan, which was partially offset by a decrease in net borrowings of $115.0 million under our Revolving Credit Facility compared to the six months ended June 30, 2025."
FTI Consulting, Inc. / 10-Q / 2026-07-30
FTI explicitly drew a $300 million incremental term loan this period, reshuffling how it funds the business.
"Interest expense increased $11.9 million, or 190.4%, to $18.1 million for the six months ended June 30, 2026 compared to $6.2 million for the six months ended June 30, 2025, primarily due to higher borrowings on our Revolving Credit Facility and Incremental Term Loan."
FTI Consulting, Inc. / 10-Q / 2026-07-30
That jump in interest is the clearest mechanical reason operating profit and net income compressed even as revenue climbed 5.3% to $993.5 million.
FTI’s EPS held up better than headline net income would suggest because share count fell 13.6%, so diluted EPS slid only from $2.13 to $1.99. In plain terms: fewer shares cushioned a larger drop in the dollar profit pool.
"Future Contractual Obligations Our future contractual obligations as of June 30, 2026 include long-term obligations of $1,020.0 million related to outstanding borrowings under our Revolving Credit Facility and Incremental Term Loan."
FTI Consulting, Inc. / 10-Q / 2026-07-30
That $1.02 billion figure frames scale: FTI is carrying meaningful long-term borrowings even as reported net debt sits relatively modest at the enterprise level. The filing also flags better collections and lower forgivable-loan issuances as reasons operating cash rose, partly offset by higher operating expense and compensation.
The operational picture has two competing receipts. On one hand, capex fell (capex down 37.9% year over year) and free cash flow improved materially, suggesting the business is converting revenue to cash more efficiently. On the other hand, financing costs climbed after the new term loan, and operating expense pressure trimmed margins.
The clear next factual item to watch is FTI’s next 10-Q: it will show whether interest expense stays elevated and whether outstanding borrowings under the credit facilities shrink or grow, which directly resolves the financing-versus-cash-conversion tension.
FTI’s filings show $300.0M of new term-loan proceeds and $1,020.0M of outstanding borrowings against stronger cash collection and a 13.6% drop in diluted shares. [FTI Consulting, Inc. / 10-Q / 2026-07-30]