v3.25.3
Segment Reporting
 9 Months Ended
Sep. 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 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 September 30, 2025Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$404,896 $194,689 $173,086 $94,081 $89,415 $956,167 
Direct costs
Compensation expenses (1)
229,204 114,996 131,804 37,242 47,415 560,661 
Other segment items (2)
24,099 5,278 15,393 24,920 7,882 77,572 
253,303 120,274 147,197 62,162 55,297 638,233 
Segment gross profit (3)
$151,593 $74,415 $25,889 $31,919 $34,118 $317,934 
Nine Months Ended September 30, 2025Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$1,127,780 $571,808 $544,604 $274,836 $279,083 $2,798,111 
Direct costs
Compensation expenses (1)
664,564 340,359 395,813 110,892 142,432 1,654,060 
Other segment items (2)
66,462 18,636 39,672 74,392 35,080 234,242 
731,026 358,995 435,485 185,284 177,512 1,888,302 
Segment gross profit (3)
$396,754 $212,813 $109,119 $89,552 $101,571 $909,809 
Three Months Ended September 30, 2024Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$341,512 $168,778 $222,033 $110,404 $83,292 $926,019 
Direct costs
Compensation expenses (1)
210,774 105,584 143,096 38,691 45,411 543,556 
Other segment items (2)
21,184 7,916 15,097 32,886 7,440 84,523 
231,958 113,500 158,193 71,577 52,851 628,079 
Segment gross profit (3)
$109,554 $55,278 $63,840 $38,827 $30,441 $297,940 
Nine Months Ended September 30, 2024Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$1,055,493 $514,348 $657,454 $326,992 $249,441 $2,803,728 
Direct costs
Compensation expenses (1)
635,587 321,896 431,270 114,267 136,243 1,639,263 
Other segment items (2)
66,130 23,922 45,402 93,829 23,316 252,599 
701,717 345,818 476,672 208,096 159,559 1,891,862 
Segment gross profit (3)
$353,776 $168,530 $180,782 $118,896 $89,882 $911,866 
(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, licensing and data storage.
(3)Includes internal cost recovery for work performed on corporate projects of $5.0 million and $12.9 million for the three and nine months ended September 30, 2025, respectively, and $4.3 million and $12.0 million for the three and nine months ended September 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 September 30,Nine Months Ended September 30,
2025202420252024
Income before income tax provision$111,728 $88,786 $284,248 $290,963 
Add back:
Interest expense 7,634 1,197 13,859 6,235 
Interest income and other(1,692)909 (2,466)(2,581)
Amortization of intangibles780 1,053 2,850 3,149 
Special charges— — 25,295 — 
Selling, general and administrative expenses 199,484 205,995 586,023 614,100 
Total segment gross profit$317,934 $297,940 $909,809 $911,866