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]