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# FTI Consulting Books $46.0 Million Staffing-Cut Charge While Headcount Grows To 8,281
- URL: https://www.bullished.co/fti-consulting-books-46-0-million-staffing-cut-charge-while-headcount-grows-to-8-281-7f4b663a/
- Published: 2026-10-29T12:32:35.000Z
- Updated: 2026-10-29T12:32:35.000Z
- Description: Adjusted EPS rose to $3.84 as the share count shrank, while GAAP EPS slipped to $2.35 from $2.60.
- Author: Matteo Parrino
- Tags: Earnings, FCN, Industry: Industrials

FTI Consulting, the expert advisory firm that works on restructuring, investigations and litigation support, recorded [$46.0 million in special charges](https://www.sec.gov/Archives/edgar/data/0000887936/000088793626000095/fcn-20260930.htm?ref=bullished.co) in the third quarter to align staffing with demand, according to its 10-Q filed Thursday. Total headcount still rose by 157 in the quarter, to 8,281.

## Cuts beside hiring

Of the charge, $45.5 million was salary and benefits tied to targeted headcount reductions, and $0.5 million was non-cash real estate cost. Of the amounts accrued, $38.4 million was still unpaid at quarter-end, and the company expects to settle it in cash within a year.

Corporate Finance took $16.0 million and Forensic and Litigation Consulting $15.7 million. Strategic Communications absorbed $5.3 million, Technology $2.9 million, Economic Consulting $1.6 million and unallocated corporate $4.5 million. Corporate Finance still added 100 billable staff in the quarter.

The [prior quarter's 10-Q](https://www.sec.gov/Archives/edgar/data/0000887936/000088793626000088/fcn-20260630.htm?ref=bullished.co) recorded no special charges for the three months ended June 30, 2026\. The company expects another special charge of about $7 million in the fourth quarter, roughly $2 million of headcount costs and $5 million of real estate costs.

## Two EPS stories

Net income fell 23.4% to [$63.4 million](https://www.wusa9.com/article/syndication/associatedpress/fti-consulting-q3-earnings-snapshot/616-2f7a67fe-a0f7-4bc0-9321-0282878ee149?ref=bullished.co), which the company mainly attributed to the special charges. Diluted EPS dropped to $2.35 from $2.60, while adjusted EPS climbed to $3.84 from $2.60.

The adjustments matter: the special charges add $1.36 to adjusted EPS and $4.5 million of litigation costs tied to its suit against former employee Jonathan Orszag add $0.13\. Revenue rose 5.9% to [$1.01 billion](https://www.wusa9.com/article/syndication/associatedpress/fti-consulting-q3-earnings-snapshot/616-2f7a67fe-a0f7-4bc0-9321-0282878ee149?ref=bullished.co), with growth in every segment, and adjusted EBITDA margin was 15.2% against 13.7%.

Diluted shares fell to 26,988 thousand from 31,823 thousand a year earlier. The company paid $605.3 million for buybacks over nine months and has $264.7 million left under its repurchase authorization.

## Buybacks financed by debt

Long-term debt reached $851.4 million at September 30, up from $365.0 million at December 31\. Nine-month interest expense rose 126.6% to $31.4 million, and cash fell to $88.1 million from $265.1 million.

Retained earnings dropped to $1.46 billion from $1.86 billion as repurchases were charged against them. Company market value was $4.4 billion in Thursday morning data.

The roughly $7 million fourth-quarter charge will show whether the staffing realignment is still running.

### Sources

- [10-Q Filing — FTI Consulting (FCN)](https://www.sec.gov/Archives/edgar/data/0000887936/000088793626000095/fcn-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — FTI Consulting (FCN), Q2 FY2026 filed 2026-07-30 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000887936/000088793626000088/fcn-20260630.htm?ref=bullished.co) — SEC EDGAR
- [FTI Consulting: Q3 Earnings Snapshot | wusa9.com](https://www.wusa9.com/article/syndication/associatedpress/fti-consulting-q3-earnings-snapshot/616-2f7a67fe-a0f7-4bc0-9321-0282878ee149?ref=bullished.co) — Associated Press
- [FTI Consulting Non-GAAP EPS of $3.84 beats by $1.10, revenue of $1.01B in-line (FCN:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4660118-fti-consulting-non-gaap-eps-of-3%5F84-beats-by-1%5F10-revenue-of-1%5F01b-in-line?ref=bullished.co) — seekingalpha.com
- [FTI Consulting Continues Growth of Middle East Tax Practice With Appointment of Sandeep Kumar as Senior Managing Director – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=1330-9853416en-41R6SVM6HN24U55A81OFIIGADB&ref=bullished.co) — Financial Times
- [FTI Consulting Reports Record Third Quarter 2026 Revenues](https://www.globenewswire.com/news-release/2026/10/29/3391147/33891/en/fti-consulting-reports-record-third-quarter-2026-revenues-of-1-013-billion-with-growth-across-all-five-business-segments.html?ref=bullished.co) — globenewswire.com
- [FTI Consulting Adds Neel Malkani to Help Private Capital](https://www.globenewswire.com/news-release/2026/10/27/3388861/33891/en/fti-consulting-adds-neel-malkani-to-help-private-capital-firms-and-portfolio-companies-accelerate-value-creation.html?ref=bullished.co) — globenewswire.com