Segment Reporting

6 Months Ended

Jun. 30, 2025

We manage our business in five reportable segments: Corporate Finance, FLC, Economic Consulting, Technology and Strategic Communications.

Our Corporate Finance segment focuses on the strategic, operational, financial, transactional and capital needs of our clients around the world. Our clients include companies, boards of directors, investors, private equity sponsors, lenders, and other financing sources and creditor groups, as well as other parties-in-interest and governments. We deliver a wide range of services centered around three core offerings: Transactions, Transformation & Strategy and Turnaround & Restructuring.

Our FLC segment provides law firms, companies, boards of directors, government entities, private equity firms and other interested parties with a multidisciplinary and independent range of services across investigations and disputes, supported by our data & analytics technology-enabled solutions, with a focus on highly regulated industries. Our services are centered around five core offerings: Construction, Projects & Assets and Environmental Solutions, Data & Analytics, Disputes, Healthcare Risk Management & Advisory and Risk and Investigations, which includes our cybersecurity and financial services-related offerings.

Our Economic Consulting segment, including subsidiary Compass Lexecon LLC, provides law firms, companies, government entities and other interested parties with analyses of complex economic issues for use in international arbitration, legal and regulatory proceedings and strategic decision making and public policy debates around the world. We deliver a wide range of services centered around three core offerings: Antitrust & Competition Economics, Financial Economics and International Arbitration.

Our Technology segment provides companies, law firms, private equity firms and government entities with a comprehensive global portfolio of digital insights and risk management consulting and data services. Our professionals help organizations better address risk as the growing volume and variety of enterprise and emerging data intersects with legal, regulatory and compliance needs. We deliver a wide range of expert and analytics-powered solutions driven by investigations, litigation, antitrust and competition, mergers & acquisitions, restructuring and compliance and risk through three core offerings: Corporate Legal Department Consulting, E-discovery and Analytics Services and Expertise, and Information Governance, Privacy & Security Services.

Our Strategic Communications segment develops and executes communications strategies to help management teams, boards of directors, law firms, governments and regulators manage change and mitigate risk surrounding transformational and

disruptive events, including transactions, investigations, disputes, crises, regulation and legislation. We deliver a wide range of services centered around three core offerings: Corporate Reputation, Financial Communications and Public Affairs.

We have considered information that is regularly provided to our Chief Executive Officer, who is our chief operating decision maker (“CODM”) for our segment reporting disclosure. Our CODM assesses the performance and allocates resources to each segment based on revenues and multiple measures of segment profit, including gross profit, which is the measure closest to GAAP reporting principles. Gross profit is defined as revenues less direct costs of revenues. Our CODM is not provided asset information by reportable segment.

The tables below summarize revenues, significant expenses and gross profit by reportable segment:


Three Months Ended June 30, 2025	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	379,239	$	186,517	$	191,657	$	83,599	$	102,650	$	943,662
Direct costs
Compensation expenses (1)	224,942		114,485		134,904		36,519		49,538		560,388
Other segment items (2)	21,209		6,275		14,939		22,345		15,985		80,753
	246,151		120,760		149,843		58,864		65,523		641,141
Segment gross profit (3)	$	133,088	$	65,757	$	41,814	$	24,735	$	37,127	$	302,521

Six Months Ended June 30, 2025	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	722,884	$	377,119	$	371,518	$	180,755	$	189,668	$	1,841,944
Direct costs
Compensation expenses (1)	435,360		225,363		264,009		73,650		95,017		1,093,399
Other segment items (2)	42,363		13,358		24,279		49,472		27,198		156,670
	477,723		238,721		288,288		123,122		122,215		1,250,069
Segment gross profit (3)	$	245,161	$	138,398	$	83,230	$	57,633	$	67,453	$	591,875

Three Months Ended June 30, 2024	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	347,971	$	169,496	$	230,873	$	115,875	$	84,941	$	949,156
Direct costs
Compensation expenses (1)	209,373		111,950		143,873		38,976		46,613		550,785
Other segment items (2)	22,196		7,974		15,166		33,474		8,154		86,964
	231,569		119,924		159,039		72,450		54,767		637,749
Segment gross profit (3)	$	116,402	$	49,572	$	71,834	$	43,425	$	30,174	$	311,407

Six Months Ended June 30, 2024	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	713,981	$	345,570	$	435,421	$	216,588	$	166,149	$	1,877,709
Direct costs
Compensation expenses (1)	424,813		216,312		288,174		75,576		90,832		1,095,707
Other segment items (2)	44,946		16,006		30,305		60,943		15,876		168,076
	469,759		232,318		318,479		136,519		106,708		1,263,783
Segment gross profit (3)	$	244,222	$	113,252	$	116,942	$	80,069	$	59,441	$	613,926

(1)The significant expense category and amounts align with the segment-level information that is regularly provided to the CODM.

(2)Other segment items include expenses for contractor fees, depreciation and other costs. In our Technology segment, other segment items also include expenses related to software and licensing and data storage.

(3)Includes internal cost recovery for work performed on corporate projects of $4.4 million and $7.9 million for the three and six months ended June 30, 2025, respectively, and $4.3 million and $7.8 million for the three and six months

ended June 30, 2024, respectively. Costs associated with billable work performed on corporate projects are included in unallocated corporate expenses as SG&A expenses in the Condensed Consolidated Statements of Comprehensive Income.

The table below reconciles income before income tax provision to total segment gross profit:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Income before income tax provision	$	91,939	$	102,682	$	172,520	$	202,177
Add back:
Interest expense	5,257		3,319		6,225		5,038
Interest income and other	2,068		(1,909)		(774)		(3,490)
Amortization of intangibles	1,053		1,080		2,070		2,096
Special charges	—		—		25,295		—
Selling, general and administrative expenses (1)	202,204		206,235		386,539		408,105
Total segment gross profit (1)	$	302,521	$	311,407	$	591,875	$	613,926

(1)Includes internal cost recovery for work performed on corporate projects of $4.4 million and $7.9 million for the three and six months ended June 30, 2025, respectively, and $4.3 million and $7.8 million for the three and six months ended June 30, 2024, respectively. Costs associated with billable work performed on corporate projects are included in unallocated corporate expenses as SG&A expenses in the Condensed Consolidated Statements of Comprehensive Income.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

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