v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 June 30, 2026Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$411,399 $194,254 $188,812 $99,017 $99,982 $993,464 
Direct costs
Compensation expenses (1)
247,199 120,840 138,755 38,698 52,758 598,250 
Other segment items (2)
23,119 5,201 12,605 28,483 9,533 78,941 
270,318 126,041 151,360 67,181 62,291 677,191 
Segment gross profit$141,081 $68,213 $37,452 $31,836 $37,691 $316,273 
Six Months Ended June 30, 2026Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$820,901 $387,132 $364,460 $201,340 $202,976 $1,976,809 
Direct costs
Compensation expenses (1)
487,932 242,376 282,429 77,375 104,880 1,194,992 
Other segment items (2)
44,821 11,078 24,006 58,822 19,990 158,717 
532,753 253,454 306,435 136,197 124,870 1,353,709 
Segment gross profit$288,148 $133,678 $58,025 $65,143 $78,106 $623,100 
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$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$245,161 $138,398 $83,230 $57,633 $67,453 $591,875 
(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 June 30,Six Months Ended June 30,
2026202520262025
Income before income tax provision$72,990 $91,939 $151,536 $172,520 
Add back:
Interest expense 11,630 5,257 18,075 6,225 
Interest income and other401 2,068 (673)(774)
Amortization of intangibles539 1,053 1,151 2,070 
Special charges— — — 25,295 
Selling, general and administrative expenses 230,713 202,204 453,011 386,539 
Total segment gross profit$316,273 $302,521 $623,100 $591,875