v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
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, 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, 2026Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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, 2025Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
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,
20262025
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 intangibles612 1,017 
Special charges— 25,295 
Selling, general and administrative expenses 222,298 184,335 
Total segment gross profit$306,827 $289,354