Segment Reporting

3 Months Ended

Mar. 31, 2026

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, governments and other interested parties. We deliver a wide range of services centered around three core offerings: Transactions, Transformation 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 risk & 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, Dispute Advisory Services, Healthcare Risk Management & Advisory and Risk & 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, artificial intelligence (“AI”) 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 AI-powered solutions driven by five core client needs: Blockchain & Digital Assets, Information Governance, Privacy & Security, Investigations, Litigation, and M&A, Antitrust and Competition.

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 crises, transactions, investigations, disputes, 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 uses gross profit (i) to evaluate reportable segment performance against budgets, forecasts and strategies and (ii) to make strategic decisions regarding resource allocation, such as billable headcount and related compensation costs, as well as utilization and bill rates of our service offerings. 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 March 31, 2026	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	409,502	$	192,878	$	175,648	$	102,323	$	102,994	$	983,345
Direct costs
Compensation expenses (1)	240,733		121,536		143,674		38,677		52,122		596,742
Other segment items (2)	21,702		5,877		11,401		30,339		10,457		79,776
	262,435		127,413		155,075		69,016		62,579		676,518
Segment gross profit	$	147,067	$	65,465	$	20,573	$	33,307	$	40,415	$	306,827









Three Months Ended March 31, 2025	Corporate Finance		FLC		Economic Consulting		Technology		Strategic Communications		Total
Revenues	$	343,645	$	190,602	$	179,861	$	97,156	$	87,018	$	898,282
Direct costs
Compensation expenses (1)	210,418		110,878		129,105		37,131		45,479		533,011
Other segment items (2)	21,154		7,083		9,340		27,127		11,213		75,917
	231,572		117,961		138,445		64,258		56,692		608,928
Segment gross profit	$	112,073	$	72,641	$	41,416	$	32,898	$	30,326	$	289,354

(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 and other costs. In our Technology segment, other segment items also include expenses related to software, licensing, data storage and depreciation.

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


	Three Months Ended March 31,
	2026		2025
Income before income tax provision	$	78,546	$	80,581
Add back:
Interest expense	6,445		968
Interest income and other	(1,074)		(2,842)
Amortization of intangibles	612		1,017
Special charges	—		25,295
Selling, general and administrative expenses	222,298		184,335
Total segment gross profit	$	306,827	$	289,354

- 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.

+ References

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+ Details

FTI CONSULTING, INC 10-Q