Consulting Industry Faces Continued Decline in Q2 – Growth Slows, Margins Under Pressure

The publicly traded consulting firms continue to report weak performance in Q2 2025. According to Cinode’s aggregated Q2 financial reports, the majority of firms are experiencing negative growth, compressed profit margins, , and workforce reductions. Calendar effects — such as fewer working days and late Easter — have adversely impacted the results.

– Nine out of ten companies report lower operating margins compared to the same quarter last year. Calendar effects are a major contributing factor, but the economic downturn has firmly taken hold. IT consultants continue to face the greatest challenges, while companies with strong positions in defense, energy, and industry demonstrate greater stability, says Mattias Loxi, co-founder of Cinode – the Nordic region’s leading SaaS platform for consulting firms.

Reduced workforce

The workforce has on average decreased by approximately 3.2 percent over the past six months. Seven out of ten companies have fewer employees compared to the start of the year. The largest declines are seen at Vincit, DevPort, and Exsitec, while Softronic, Combitech, and Etteplan stand out by increasing their workforce.

Lower Margins

The average EBIT margin for the second quarter stood at 4.9 percent, compared to 6.0 percent during the same period last year. The highest margins were reported by Exsitec, Bouvet, and Addnode, while Vincit, Wise Group, and Gofore reported the weakest figures for the quarter.

Declining Growth

The companies declined by an average of 3.3 percent, compared to a 1.7 percent decrease in Q1. Only a handful of players showed growth — primarily Combitech, B3 Consulting, and Softronic. The largest declines were reported by Addnode, Vincit, and Wise Group.

– Consulting firms continue to streamline operations and reduce costs in line with the weak market conditions. What we are seeing now is a clearer polarization, where companies that grow also manage to improve their margins, while others fall behind, says Mattias Loxi.