v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
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, 2025Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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, 2025Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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, 2024Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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, 2024Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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,
2025202420252024
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 other2,068 (1,909)(774)(3,490)
Amortization of intangibles1,053 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.