XML 32 R21.htm IDEA: XBRL DOCUMENT
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, 2025 |  | Corporate Finance |  | FLC |  | Economic Consulting |  | Technology |  | Strategic Communications |  | Total
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, 2025 |  | Corporate Finance |  | FLC |  | Economic Consulting |  | Technology |  | Strategic Communications |  | Total
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, 2024 |  | Corporate Finance |  | FLC |  | Economic Consulting |  | Technology |  | Strategic Communications |  | Total
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, 2024 |  | Corporate Finance |  | FLC |  | Economic Consulting |  | Technology |  | Strategic Communications |  | Total
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,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
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 other |  | 2,068 |  |  | (1,909) |  |  | (774) |  |  | (3,490) |
Amortization of intangibles |  | 1,053 |  |  | 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 12: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 14: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration