Financial Data and Key Metrics Changes - The company reported revenues of $943.7 million, a slight decrease from $949.2 million in the prior year quarter, but a sequential increase of $45.4 million or 5.1% from Q1 2025 [27] - Adjusted EBITDA was $111.6 million or 11.8% of revenue, compared to $115.9 million or 12.2% of revenues in the prior year quarter [29] - Earnings per share (EPS) decreased to $2.13 from $2.34 in the prior year quarter, but increased from $1.74 in Q1 2025 [28] Business Line Data and Key Metrics Changes - Corporate Finance and Restructuring achieved record revenues of $379.2 million, up 9% year-over-year, with adjusted segment EBITDA of $81.7 million or 21.5% of segment revenue [31] - Forensic and Litigation Consulting (FLC) revenues increased by 10% to $186.5 million, with adjusted segment EBITDA rising to $31.2 million or 16.7% of segment revenues [33] - Economic Consulting revenues decreased by 17% to $191.7 million, with adjusted segment EBITDA dropping to $14.2 million or 7.4% of segment revenues [36] - Technology segment revenues fell by 27.9% to $83.6 million, with adjusted segment EBITDA down to $5.3 million or 6.3% of segment revenues [38] - Strategic Communication achieved record revenues of $102.7 million, up 20.8%, with adjusted segment EBITDA of $18.5 million or 18% of segment revenue [39] Market Data and Key Metrics Changes - The company noted a slowdown in Foreign Corrupt Practices Act (FCPA) cases and monitorship due to changing regulatory posture, impacting FLC revenues [35] - Economic Consulting faced lower demand for M&A related antitrust services, particularly in EMEA, contributing to revenue declines [36] - The restructuring environment showed a 25% year-over-year growth, driven by increased demand for restructuring services [56] Company Strategy and Development Direction - The company is focused on investing in talent and capabilities, particularly in areas like cybersecurity, financial services, and corporate reputation [16][21] - Management emphasized the importance of maintaining a diverse portfolio to weather economic headwinds and capitalize on opportunities in challenging markets [46] - The company plans to continue hiring senior professionals, particularly in response to disruptions in competitors, to enhance its capabilities [65] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year with significant headwinds, yet the company has delivered solid results [8][22] - The outlook for the second half of the year includes expectations for gradual improvement in demand for M&A related services and a focus on maintaining momentum in restructuring and corporate finance [44] - Management expressed confidence in the company's resilience and potential for future growth despite current challenges [24] Other Important Information - The company repurchased 2.2 million shares at an average price of $161.88 during the quarter, with a total of approximately $309.3 million remaining under its stock repurchase authorization [41] - Total debt, net of cash, increased to $317.2 million as of June 30, 2025, primarily due to share repurchases and forgivable loan issuances [42] Q&A Session Summary Question: Divergence between Economic Consulting and Technology Segment - Management confirmed that the strength in economic consulting was primarily non-M&A related activity, while the technology segment faced challenges due to paused or canceled second requests [50][52] Question: Hiring of Senior Professionals - The company has hired more senior professionals in the first half of the year than ever before and will continue to hire as opportunities arise [63][65] Question: Regulatory Environment Impact - Management indicated that the overall regulatory environment has posed more headwinds than tailwinds this year, affecting various segments differently [67] Question: Drivers of Weakness in Transformation Strategy - The weakness in transformation strategy is attributed to year-over-year comparisons with a strong prior year and a focus on cost takeout matters that yield success fees [78]

Group 1 - The core viewpoint is that despite the challenges posed by Trump's chaotic trade policies, U.S. companies have shown remarkable resilience, leading to a significant upward revision of the stock market outlook by Bank of America strategists [1] - Bank of America raised the year-end target for the S&P 500 index from 5600 to 6300, with a 12-month target of 6600, indicating a 1.2% upside from the closing price of 6225.52 [1] - The strategists noted that while the U.S. economy is performing moderately, corporate earnings forecasts remain stable, providing important reference points for stock investors [1] Group 2 - Subramanian and Hall highlighted that most companies are still issuing earnings guidance, with the earnings per share dispersion nearing pandemic lows, indicating reduced earnings uncertainty [4] - The S&P 500 index has been on the rise since Trump postponed the implementation of the strictest tariff proposals on April 9, achieving its best quarterly performance of 2023 and is close to historical highs [4] - The strategists expressed that the short-term outlook for the S&P 500 appears "muted" due to recent gains, with challenges in finding positive catalysts for continued growth in the third quarter [4] Group 3 - Despite the short-term outlook, the S&P 500 index remains "warmly attractive" compared to bonds in the medium to long term, especially as long-term yields have approached yearly highs again after a decline in June [4] - Subramanian and Hall concluded that the combination of an aging population and persistent inflation creates a supply-demand dynamic that favors stocks over bonds in the current environment [4]

Core Viewpoint - The article emphasizes the critical importance of corporate resilience in navigating ongoing uncertainties and crises, highlighting that CEOs play a unique role in fostering this resilience to transform challenges into growth opportunities [2][3]. Group 1: Importance of Resilience - A McKinsey survey reveals that 84% of leaders feel unprepared for future crises, and 60% of board members believe their companies struggle to respond effectively to major challenges [1]. - Companies face macro-level challenges such as shifting global trade policies and geopolitical conflicts, as well as operational issues like stock price volatility and product quality defects [2]. Group 2: Dimensions of Resilience - Corporate resilience can be categorized into four core dimensions: financial resilience, operational resilience, organizational resilience, and external resilience [3]. - CEOs must understand these dimensions to implement effective strategies that strengthen the company's resilience [3]. Group 3: Key Actions for CEOs - The article outlines five key actions that CEOs can take to enhance corporate resilience, which are derived from long-term collaboration with global CEOs and extensive research [3]. - These actions include integrating resilience into the corporate vision, balancing short- and long-term perspectives, and fostering a culture of adaptability and innovation [4][5]. Group 4: Integrating Resilience into Corporate Vision - When leadership teams align around a shared vision, the likelihood of outperforming industry medians nearly doubles [4]. - CEOs must consistently communicate the corporate vision and values, especially during uncertain times, to ensure all employees are aligned and motivated [5]. Group 5: Balancing Perspectives - CEOs should maintain a dual focus on micro-level details and macro-level strategies, being aware of the potential ripple effects of crises [5]. - Effective CEOs recognize that sometimes maintaining the status quo, even at the cost of short-term gains, can position the company favorably for future opportunities [5]. Group 6: Building a Resilient Workforce - CEOs should recruit and develop adaptable talent who can thrive in challenging environments, fostering a culture of resilience within the organization [11][12]. - The article emphasizes the importance of embedding resilience traits into the entire talent management lifecycle, from recruitment to leadership development [12]. Group 7: External Connections - CEOs must proactively build and maintain relationships with external stakeholders, including suppliers, competitors, and investors, to enhance organizational resilience [14][15]. - Effective communication and collaboration with external parties can help navigate crises and foster trust [15].