Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][20] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [21] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [22] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, achieving a record $219.5 million in Q3 2025 [4][24] - Education segment RVR grew 7% year-over-year, reaching $129.4 million in Q3 2025 [9][25] - Commercial segment RVR grew 27% year-over-year, achieving $83.4 million in Q3 2025 [12][26] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with an organic growth rate of 18.6% [23][24] - The education segment accounted for 30% of total company RVR, with a 25.7% operating income margin [25] - The commercial segment generated 19% of total company RVR, with a decline in operating income margin to 16.4% [26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [8][12] - The strategy includes integrating commercial offerings to enhance the go-to-market strategy and drive above-average growth [15][16] - The company is focused on delivering demonstrable ROI for clients, which is critical for maintaining competitive advantage [34] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion to $1.67 billion, affirming adjusted EBITDA guidance [16][30] - Management highlighted the importance of a strong culture in attracting and retaining talent, which supports growth [49][50] Other Important Information - The company closed on acquisitions of Treliant and Wilson Perumal & Company, contributing to growth in the commercial segment [19][14] - The effective income tax rate for Q3 2025 was 28.7%, with an expected full-year rate of 23% to 25% [22] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management noted strong market conditions driven by margin pressures, leading to increased demand for performance improvement services [33][34] Question: Outlook for 2026 - Management indicated confidence in the multi-year growth model discussed at the investor day, with continued execution expected to drive growth [41] Question: Demand in commercial segment - Management observed an inflection point in demand for strategy and financial advisory services, contributing to improved sales conversion [44][45] Question: Hiring capabilities - Management expressed confidence in hiring capabilities, attributing low attrition rates to a strong company culture [49][50] Question: AI focus in projects - Approximately 15% to 20% of total revenue is related to AI projects, with expectations for this to grow as AI becomes integrated into more offerings [64][66]

Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][19] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [20] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [21] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, achieving a record $219.5 million in Q3 2025 [4][23] - Education segment RVR grew 7% year-over-year, reaching $129.4 million in Q3 2025 [9][25] - Commercial segment RVR grew 27% year-over-year, reaching $83.4 million in Q3 2025 [12][26] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with an organic growth rate of 18.6% [23][24] - The education segment accounted for 30% of total company RVR, with strong demand for strategy and operations, research, and digital offerings [10][25] - The commercial segment generated 19% of total company RVR, with growth driven by acquisitions and organic growth in digital business [12][26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [7][8] - Continued focus on integrating commercial offerings to enhance go-to-market strategy and drive above-average growth [15][16] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion to $1.67 billion, affirming adjusted EBITDA guidance of 14% to 14.5% of RVR [17][31] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The healthcare segment is experiencing persistent margin pressures, leading clients to seek comprehensive solutions [6][36] - Management expressed confidence in the ability to sustain accelerated RVR growth and margin expansion despite macroeconomic challenges [17][30] Other Important Information - The company completed several acquisitions, including Eclipse Insights, Treliant, and Wilson Perumal & Company, which contributed to revenue growth [19][12] - The effective income tax rate for Q3 2025 was 28.7%, with expectations for a full-year rate of 23% to 25% [21][30] - Free cash flow for Q3 2025 was $85.3 million, with full-year expectations in the range of $165 million to $185 million [28][30] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management highlighted strong market demand driven by margin pressures and the need for transformation, with a record pipeline and larger project scopes [33][34][39] Question: Outlook for 2026 - Management indicated confidence in continued demand and execution, aligning with previously discussed multi-year targets [42][43] Question: Demand in commercial segment - Management noted an inflection point in demand for strategy and financial advisory services, with improved sales conversion [44][45] Question: Hiring capabilities - Management expressed confidence in hiring capabilities, citing a strong culture that attracts talent and leads to lower attrition rates [47][48] Question: Customer decision-making in education - Management observed a stable outlook in education, with clients making long-term decisions amidst previous disruptions [49] Question: Utilization rates and project absorption - Management confirmed high utilization rates in managed services, with a tight correlation between sales and hiring [50][51] Question: AI focus in projects - Management reported that approximately 15% to 20% of total revenue is related to AI projects, with expectations for growth in this area [60][61]