Financial Data and Key Metrics Changes - The company reported record results with earnings per share (EPS) and adjusted EPS of $2.60, an increase of over 40% year-over-year [5][36] - Revenue for Q3 2025 was $956.2 million, a 3.3% increase compared to the prior year quarter [36] - Net income rose to $82.8 million, reflecting a 25% increase year-over-year [36] - Adjusted EBITDA for Q3 was $130.6 million, or 13.7% of revenue, compared to $102.9 million, or 11.1% of revenue in the prior year quarter [36][37] Business Line Data and Key Metrics Changes - **Corporate Finance & Restructuring**: Revenue increased by 18.6% to $404.9 million, driven by higher demand for restructuring and transaction services [38] - **Forensic & Litigation Consulting**: Revenue rose 15.4% to $194.7 million, attributed to higher realized bill rates and increased demand for risk and investigation services [41] - **Economic Consulting**: Revenue decreased by 22% to $173.1 million, primarily due to lower demand for antitrust services [42] - **Technology**: Revenue fell 14.8% to $94.1 million, mainly due to reduced demand for M&A-related services [46] - **Strategic Communications**: Revenue increased by 7.4% to $89.4 million, driven by higher demand for corporate reputation services [48] Market Data and Key Metrics Changes - The company experienced double-digit organic revenue growth across Corporate Finance & Restructuring, Forensic & Litigation Consulting, and Strategic Communications, which offset declines in Economic Consulting and Technology [35][36] - The restructuring revenue is up 11% year-to-date, with significant mandates won in key geographies [40] - The transactions revenue increased by 16% year-to-date, despite a slight decline in global transaction volumes [40] Company Strategy and Development Direction - The company emphasizes organic growth and investment in high-value areas, focusing on enhancing team capabilities and attracting top talent [9][11] - There is a commitment to maintaining leadership in key markets and expanding service offerings, particularly in restructuring and forensic consulting [40][41] - The management highlighted the importance of resilience and adaptability in navigating market challenges and pursuing long-term growth [33][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in Economic Consulting and Technology but expressed confidence in the overall resilience and potential for growth across other segments [33][54] - The company expects to continue delivering adjusted EPS growth for the 11th consecutive year, despite anticipated seasonal slowdowns in Q4 [33][51] - There is cautious optimism regarding the stabilization of the Economic Consulting business and gradual revenue growth in the coming quarters [52] Other Important Information - The company repurchased 1.426 million shares at an average price of $164.18, with an additional $500 million authorized for share repurchases [49][50] - Cash and cash equivalents decreased to $146 million from $386.3 million a year ago, while total debt net of cash increased to $364 million [50] Q&A Session Summary Question: Economic Consulting performance and market impact - Management estimated that about two-thirds of the revenue decline in Economic Consulting was due to talent transition, with the remainder attributed to market conditions [57][59] - There is uncertainty regarding whether EBITDA has bottomed out, with a cautious outlook on the timing of revenue recovery [60] Question: Strength in transactions practice - The strength in the transactions practice is largely attributed to the team's leadership and credibility built over the years, rather than solely market-driven factors [62][63] Question: Price realization in Forensic & Litigation Consulting - Management indicated that the price realization improvements could continue into the next year, but specifics on the sustainability of rate increases were not confirmed [66]

Financial Data and Key Metrics Changes - The company reported record results with earnings per share (EPS) and adjusted EPS of $2.6, representing an increase of over 40% year-over-year [5][40] - Revenue for Q3 2025 was $956.2 million, a 3.3% increase compared to the prior year quarter [40] - Net income increased by 25% to $82.8 million compared to the prior year quarter [40] - Adjusted EBITDA for Q3 2025 was $130.6 million, or 13.7% of revenue, compared to $102.9 million, or 11.1% of revenue in the prior year quarter [40][42] Business Line Data and Key Metrics Changes - **Corporate Finance (Corp Fin)**: Revenue increased by 18.6% to $404.9 million, driven by higher demand for restructuring and transaction services [43] - **Forensic and Litigation Consulting (FLC)**: Revenue rose by 15.4% to $194.7 million, primarily due to higher realized bill rates and increased demand for risk and investigation services [46] - **Economic Consulting (Econ)**: Revenue decreased by 22% to $173.1 million, attributed to lower demand for non-M&A related antitrust services [49] - **Technology (Tech)**: Revenue decreased by 14.8% to $94.1 million, mainly due to lower demand for M&A related services [53] - **Strategic Communications (Stratcom)**: Revenue increased by 7.4% to $89.4 million, driven by higher demand for corporate reputation services [54] Market Data and Key Metrics Changes - The company experienced double-digit organic revenue growth across Corp Fin, FLC, Tech, and Stratcom, which offset declines in Econ and Tech [39] - The restructuring segment represented 46% of Corp Fin's revenue, with significant growth in key geographies including the U.S., UK, Germany, Spain, France, and Australia [45] Company Strategy and Development Direction - The company emphasizes organic growth and investment in high-value areas where it believes it has a competitive advantage [8][9] - There is a focus on enhancing team capabilities and attracting top talent, even during challenging market conditions [35][61] - The leadership is committed to maintaining a diverse and resilient business model, with a strong emphasis on client service and expertise [10][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and potential for future growth, despite facing headwinds in certain segments [37][60] - The company anticipates a gradual return to revenue growth in the Econ segment, although the timing remains uncertain [59] - There is a belief that the company is closer to the beginning of its growth journey than to the end, indicating optimism for long-term prospects [38] Other Important Information - The company repurchased 1.426 million shares at an average price of $164.18, with an additional $500 million authorized for share repurchases [57][58] - Cash and cash equivalents decreased to $146 million from $386.3 million a year ago, while total debt net of cash increased to $364 million [58] Q&A Session Summary Question: Can you unpack how much of the top line performance in the quarter was market-driven versus talent dynamics? - Management estimated that approximately two-thirds of the revenue decline was due to talent transition and one-third due to market conditions [69] Question: What is the outlook for the U.S. Government shutdown's impact? - Management noted that there has not been a significant effect from the government shutdown so far, but an extended shutdown could impact business [70] Question: Can you elaborate on the strength of the transactions practice? - The strength is largely attributed to the quality of the team and their credibility in the market, which has allowed for the introduction of additional services [75][76] Question: Regarding price realization, can this continue into future years? - Management indicated that there is potential for rate increases across all segments, but the significant catch-up seen this year may not be repeated annually [80]