Financial Data and Key Metrics Changes - For Q2 2025, consolidated revenue was $684 million, and first half revenue was $1.5 billion, reflecting a 6366% increase, largely driven by the Marcom acquisition [15] - Adjusted EBITDA for Q2 increased by 128% to $66 million, and more than doubled to $356 million for the first half [16] - Adjusted EBITDA margin was 17% for the quarter and 23% year to date, an increase of nearly 500 basis points compared to last year [17] - Adjusted diluted earnings per share for Q2 increased by 64% to $0.95, and for the first half, it increased by 47% to $3.26 [19] Business Line Data and Key Metrics Changes - Financial Services segment revenue for Q2 was $570 million, up approximately 84%, with adjusted EBITDA more than doubling to $111 million, a margin of 20% [20] - Benefits and Insurance segment revenue was $102 million in Q2, up approximately 5%, with adjusted EBITDA of $20 million, a 21% increase [21] Market Data and Key Metrics Changes - Year-to-date organic revenue for core services in Benefits and Insurance and Accounting and Tax Services grew by low single digits, while the National Practice segment grew by 13% [6] - Year-to-date rate increases averaged about 4%, which is 200 to 300 basis points below expectations, creating a headwind of about $75 million for the full year [9] Company Strategy and Development Direction - The Marcom acquisition is viewed as a significant strategic decision, enhancing the company's position in key U.S. markets and expanding its client base [12] - The company aims to maintain a disciplined approach to capital allocation, focusing on deleveraging to 2.5 times or below by 2026 [22][23] Management's Comments on Operating Environment and Future Outlook - The current economic climate has impacted market-sensitive areas, with clients prioritizing cost controls and waiting for more stable conditions before investing in discretionary services [6][8] - Management expects continued steady demand for core recurring essential businesses, despite ongoing headwinds in nonrecurring services [10] Other Important Information - The company ended the quarter with approximately $1.6 billion in net debt, representing 3.7 times leverage, and approximately $400 million of available liquidity [23] - The company has repurchased approximately 1 million shares at a value of approximately $71 million during the second quarter [24] Q&A Session Summary Question: Advisory business performance and guidance - Management indicated that the guidance for the rest of the year suggests the second half will look much like the first half, with clients remaining cautious in a challenging environment [31][32] Question: Pricing pushback and structural limits - Management believes the pricing pushback is market-driven and not indicative of reaching structural limits, with optimism for future pricing improvements as market conditions stabilize [38][39] Question: Integration costs and synergies - Integration costs are expected to remain around $75 million for the year, with ongoing efforts to realize synergies exceeding initial expectations [50][45] Question: Free cash flow and leverage targets - The company anticipates a similar cash flow profile moving forward, with a notable use of working capital in the first quarter and aims to achieve 2.5x leverage by 2026 [54][55] Question: Client feedback on the Markham transaction - Management reported positive feedback regarding team quality and collaboration, with adjustments made to improve client experiences during the integration process [57][66]