Financial Data and Key Metrics Changes - The company reported revenues of $943.7 million for Q2 2025, 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 [32] - Adjusted EBITDA for Q2 2025 was $111.6 million or 11.8% of revenue, compared to $115.9 million or 12.2% of revenues in the prior year quarter [34] - Earnings per share (EPS) decreased to $2.13 from $2.34 in the prior year quarter, but increased sequentially from $1.74 in Q1 2025 [33] Business Line Data and Key Metrics Changes - Corporate Finance and Restructuring achieved record revenues of $379.2 million, a 9% increase year-over-year, with adjusted segment EBITDA of $81.7 million or 21.5% of segment revenue [36] - 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 [38] - 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 [41] - Technology segment revenues fell by 27.9% to $83.6 million, with adjusted segment EBITDA decreasing to $5.3 million or 6.3% of segment revenues [43] Market Data and Key Metrics Changes - The company noted a slowdown in demand for M&A related services, particularly impacting the technology segment due to regulatory changes [50] - The economic consulting segment faced challenges from lower demand for antitrust services, particularly in EMEA [50] Company Strategy and Development Direction - The company is focused on investing in talent and capabilities across its diverse business segments, despite facing headwinds in certain areas [52] - Management emphasized the resilience of the company's diverse portfolio, which allows for growth even when specific segments face challenges [52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 has been a challenging year, with several negative factors impacting performance, yet the company has delivered solid results [5][8] - The outlook for the second half of the year includes expectations for gradual improvement in demand for M&A related services and continued strength in corporate finance and restructuring [50] Other Important Information - The company repurchased approximately 3.3 million shares in the first half of 2025, with $309.3 million remaining under its stock repurchase authorization [47] - The effective tax rate for Q2 2025 was 22%, compared to 18.2% in the prior year quarter [34] Q&A Session Summary Question: Can you elaborate on the divergence between economic consulting and technology segments? - The strength in economic consulting was primarily due to non-M&A related activity, while technology faced challenges from paused or canceled second requests [58] Question: What is the timeline for assessing the commercial capability of newly hired professionals? - It is expected that a better sense of their commercial capability will emerge in about a year [62] Question: What is driving the growth in the restructuring environment? - The growth is attributed to the best restructuring professionals globally and factors such as tariff impacts and liability management exercises [66] Question: Will the pace of hiring senior professionals continue through the end of the year? - The company has hired more senior professionals in the first half of the year than ever before and will continue to hire when great talent is available [73] Question: How do you assess the overall impact of US regulatory changes? - The overall impact is seen as more headwinds than tailwinds, particularly affecting the FLC and technology businesses [78]

Financial Data and Key Metrics Changes - First quarter 2025 revenues were $898.3 million, a decrease of $30.3 million or 3.3% compared to the first quarter of the previous year [49] - GAAP earnings per share (EPS) were $1.74 compared to $2.23 in the prior year quarter, while adjusted EPS was $2.29 compared to $2.23 in the prior year quarter [50] - Net income decreased to $61.8 million from $80 million in the prior year quarter, primarily driven by lower revenues and a special charge [51] - Adjusted EBITDA for the first quarter 2025 was $115.2 million, or 12.8% of revenues, compared to $111.1 million, or 12% of revenues in the prior year quarter [53] Business Line Data and Key Metrics Changes - Corporate Finance and Restructuring revenues were $343.6 million, a decrease of 6.1% compared to the previous year, with Restructuring representing 46% of segment revenues [56] - Forensic and Litigation Consulting (FLC) achieved record revenues of $190.6 million, an increase of 8.3%, driven by higher realized bill rates for Risk and Investigation services [59] - Economic Consulting revenues decreased by 12.1% to $179.9 million, primarily due to lower demand for M&A-related antitrust services [61] - Technology revenues decreased by 3.5% to $97.2 million, mainly due to lower demand for M&A-related second request services [64] - Strategic Communications revenues increased by 7.2% to $87 million, driven by higher demand for corporate reputation services [66] Market Data and Key Metrics Changes - The federal premerger notification program recorded just 89 transactions in March 2025, marking the lowest monthly filing total in nearly five years [66] - U.S. deal volume fell 13% year over year, with only one mega-deal over $10 billion announced in Q1 [75] Company Strategy and Development Direction - The company is focused on helping clients navigate disruptions in areas such as cybersecurity, export controls, and regulatory advocacy [79] - The restructuring practice is positioned to assist clients globally, with a strong emphasis on adapting to changing market conditions [79] - The company continues to invest in talent acquisition, particularly in areas like antitrust, financial economics, and digital assets, despite the near-term financial impact [78] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the potential impact of regulatory changes on business performance, particularly in areas like anti-consumer fraud and anti-money laundering [17][90] - There is significant uncertainty in the M&A market, which could affect demand for related services in Economic Consulting and Technology [75] - Despite challenges, management remains confident in the company's long-term prospects and the strength of its various business segments [44][48] Other Important Information - The company funded $162 million in forgivable loans to attract new talent, which will impact adjusted EBITDA in the near term [73] - The board of directors authorized an additional $400 million for share repurchases, with approximately $568.3 million remaining available under the program [71] Q&A Session Summary Question: Impact of tariffs on business - Management noted that tariffs could create stress for clients dependent on cost of goods sold from China, leading to increased demand for restructuring services [86] Question: Effect of regulatory changes on business - Management indicated that while there has not been a significant effect from recent regulatory changes, they are monitoring the situation closely [90] Question: Guidance for the year - Management confirmed that the guidance provided at the fourth quarter 2024 earnings call is still applicable and will be updated at the second quarter earnings call [94] Question: Revenue headwind from departures in Economic Consulting - Management acknowledged that the financial impact from departures is likely to be higher than previously speculated, affecting EBITDA significantly [102] Question: Trends in healthcare business within FLC - Management reported good performance in healthcare practices, with both regulatory-oriented and performance improvement segments showing positive results [112] Question: Distribution of headcount actions - Management stated that headcount actions were spread across all levels and geographies, with a slight bias towards senior positions [119]