Financial Data and Key Metrics Changes - The overall performance for the first quarter showed a revenue increase of 70% from $494 million to $838 million, primarily due to the acquisition of Markham [13] - Adjusted EBITDA doubled from $119 million to $238 million, reflecting strong margin and scale attributes [14] - Adjusted diluted EPS increased approximately 40% from $1.63 to $2.29 per share [15] Business Line Data and Key Metrics Changes - The Financial Services segment's revenue was $714 million, up $341 million or approximately 92%, with adjusted EBITDA doubling to $230 million [16] - The Benefits and Insurance segment delivered revenue of $113 million, up $5 million or approximately 4%, with adjusted EBITDA increasing by 10% to $30 million [17] Market Data and Key Metrics Changes - Non-recurring services now represent approximately 23% of total revenue, with anticipated softness due to economic conditions [19] - The government healthcare consulting business showed strong revenue growth and a robust pipeline of new projects [8] Company Strategy and Development Direction - The company is focused on integrating technology systems post-acquisition to enhance operational improvements and streamline processes [23] - There is an ongoing evaluation of M&A opportunities to build geographic presence and strengthen service lines [25] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging economic environment but expressed confidence in the business model's resilience [6] - The company maintained its adjusted EBITDA and adjusted EPS guidance, while widening revenue guidance to $2.8 billion to $2.95 billion due to uncertainties [19] Other Important Information - The company expects approximately $60 million in payments related to prior acquisitions in 2025, with $30 million already paid in Q1 [19] - Total debt at the end of the quarter was approximately $1.5 billion, with a leverage ratio of about four times [18] Q&A Session Summary Question: Concerns about capital markets and revenue guidance - Management indicated that capital markets are a significant concern, with reliance on deal flow affecting revenue [37][40] Question: Outlook for government healthcare consulting - Management expects continued strong performance in government healthcare consulting, with a positive outlook for the remainder of the year [42] Question: Breakdown of integration costs - Management provided insights into integration costs, estimating $75 million for 2025, with significant IT-related costs extending into 2026 [44] Question: Conditions for revised revenue guidance - Management clarified that the revised revenue guidance reflects a pragmatic assessment of current economic conditions and historical performance during similar downturns [49][51] Question: Operational adjustments to maintain earnings guidance - Management highlighted various levers to protect earnings, including adjustments in compensation and discretionary spending [58][60] Question: Capital allocation priorities - Management emphasized a focus on reducing leverage while remaining opportunistic for strategic acquisitions and share repurchases [64][65] Question: Client conflicts and their impact on guidance - Management acknowledged client conflicts as expected during the integration process, with most impacts now behind them [70][72]