v3.26.3
Segment Reporting
 9 Months Ended
Sep. 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 cost 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, 2026Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$424,365 $195,137 $189,253 $103,197 $100,611 $1,012,563 
Direct costs
Compensation expenses (1)
244,001 114,934 136,809 38,150 52,322 586,216 
Other segment items (2)
22,230 4,661 10,580 28,644 9,442 75,557 
266,231 119,595 147,389 66,794 61,764 661,773 
Segment gross profit$158,134 $75,542 $41,864 $36,403 $38,847 $350,790 
Nine Months Ended September 30, 2026Corporate
Finance		FLCEconomic
Consulting		TechnologyStrategic CommunicationsTotal
Revenues$1,245,266 $582,269 $553,713 $304,537 $303,587 $2,989,372 
Direct costs
Compensation expenses (1)
731,933 357,310 419,238 115,525 157,202 1,781,208 
Other segment items (2)
67,051 15,739 34,586 87,466 29,432 234,274 
798,984 373,049 453,824 202,991 186,634 2,015,482 
Segment gross profit$446,282 $209,220 $99,889 $101,546 $116,953 $973,890 
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$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$396,754 $212,813 $109,119 $89,552 $101,571 $909,809 
(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 September 30,Nine Months Ended September 30,
2026202520262025
Income before income tax provision$77,222 $111,728 $228,758 $284,248 
Add back:
Interest expense 13,331 7,634 31,406 13,859 
Interest income and other(713)(1,692)(1,386)(2,466)
Amortization of intangibles538 780 1,689 2,850 
Special charges46,008 — 46,008 25,295 
Selling, general and administrative expenses 214,404 199,484 667,415 586,023 
Total segment gross profit$350,790 $317,934 $973,890 $909,809