# FTI Consulting, Inc: Form 10-Q for the period ended Mar 31, 2025

- Company: [FTI Consulting, Inc](/companies/fcn.md) (CIK 887936)
- Form: 10-Q
- Filed: 2025-04-24
- Accepted by EDGAR: Apr 24, 2025, 07:29 ET
- Period: 2025-03-31
- Accession: 0000887936-25-000071
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/887936/000088793625000071/fcn-20250331.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/887936/000088793625000071/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $898.3m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $608.9m | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $289.4m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $184.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $78.7m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $968.0k | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $18.8m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | $61.8m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | $1.74 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | $1.76 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 35,500,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$465.2m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $17.8m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $182.6m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-03-31 | $151.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $1.43bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $3.35bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $637.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $1.20bn | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $160.0m | us-gaap:LongTermDebtNoncurrent |
| Shareholders' equity | at 2025-03-31 | $2.15bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 63,996 characters.

The following is a discussion and analysis of our consolidated financial condition, results of operations, and liquidity and capital resources for the three months ended March 31, 2025 and 2024, and significant factors that could affect our prospective financial condition and results of operations. This discussion should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes and with our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”). In addition to historical information, the following discussion includes forward-looking statements based on current expectations that involve risks, uncertainties and assumptions, such as our plans, objectives, expectations and intentions. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, these expectations or any of the forward-looking statements could prove to be incorrect, and actual results could differ materially from those projected or assumed in the forward-looking statements.

### BUSINESS OVERVIEW

FTI Consulting, Inc., including its consolidated subsidiaries (collectively, the “Company,” “we,” “our” or “FTI Consulting”), is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. Individually, each of our segments and practices is staffed with experts recognized for the depth of their knowledge and a track record of making an impact. Collectively, FTI Consulting offers a comprehensive suite of services designed to assist clients across the business cycle, from proactive risk management to rapid response to unexpected events and dynamic environments.

We report financial results for the following five reportable segments:

Our **Corporate Finance & Restructuring (“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 **Forensic and Litigation Consulting (“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, Disputes, Healthcare Risk Management & Advisory and Risk and Investigations.

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 (“M&A”), 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 derive substantially all of our revenues from providing professional services to both U.S. and international clients. Most of our services are rendered under time and expense contract arrangements, which require the client to pay us based on the number of hours worked at contractually agreed-upon rates. Under this arrangement, we typically bill our clients for reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other outside service costs. Certain contracts are rendered under fixed-fee arrangements, which require the client to pay a fixed fee in exchange for a predetermined set of professional services. Fixed-fee arrangements may require certain clients to pay us a recurring retainer.

Our contract arrangements may also contain success fees or performance-based arrangements in which our fees are based on the attainment of contractually defined objectives with our client. This type of success fee may supplement a time and expense or fixed-fee arrangement. Success fees and other contractual terms may cause variations in our revenues and operating results due to the timing of when achieving the performance-based criteria becomes probable. Seasonal factors, such as the timing of our employees’ and clients’ vacations and holidays, may impact the timing of our revenue recognition across our segments.

In our Technology segment, certain clients are billed based on the amount of data storage used or the volume of information processed. Unit-based revenues are defined as revenues billed on a per item, per page or another unit-based method and include revenues from data processing and hosting. Unit-based revenues include revenues associated with licensed software products made available to customers via a web browser (“on-demand”). On-demand revenues are charged on a unit or monthly basis and include, but are not limited to, processing and review related functions.

Our financial results are primarily driven by:

- the number, size and type of engagements we secure;
- the number of billable professionals;
- the utilization rates of the billable professionals we employ;
- the rate per hour or fixed charges we charge our clients for services;
- the timing of revenue recognition;
- the length of the billing and collection cycles; and
- the geographic locations of our clients or locations in which services are rendered.

We define acquisition growth as revenues of acquired companies in the first 12 months following the effective date of an acquisition. When significant, we identify the impact of acquisition-related revenue growth.

When significant, we identify the estimated impact of foreign currency (“FX”) driven by our businesses with functional currencies other than the U.S. dollar (“USD”). The estimated impact of FX on the period-to-period performance results is calculated as the difference between the prior period results, multiplied by the average FX exchange rates to USD in the current period and the prior period results, multiplied by the average FX exchange rates to USD in the prior period.

### Non-GAAP Financial Measures

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Certain of these financial measures are considered not in conformity with GAAP (“non-GAAP financial measures”) under the SEC rules. Specifically, we have referred to the following non-GAAP financial measures:

- Total Segment Operating Income
- Adjusted Segment EBITDA
- Total Adjusted Segment EBITDA
- Adjusted EBITDA
- Adjusted EBITDA Margin
- Adjusted Net Income
- Adjusted Earnings per Diluted Share
- Free Cash Flow

We have included the definition of Segment Operating Income, which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in the accompanying analysis of financial information.

We define Segment Operating Income as a segment’s share of consolidated operating income. We define Total Segment Operating Income, which is a non-GAAP financial measure, as the total of Segment Operating Income for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as Segment Operating Income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects core operating performance and provides an indicator of the segment’s ability to generate cash. We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses.

We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, gain or loss on sale of a business and losses on early extinguishment of debt. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. In addition, EBITDA is a common alternative measure of operating performance used by many of our competitors. It is used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that these non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with useful supplemental information.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share (“Adjusted EPS”), which are non-GAAP financial measures, as net income and earnings per diluted share (“EPS”), respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business and losses on early extinguishment of debt. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with useful supplemental information on our business operating results, including underlying trends.

We define Free Cash Flow, which is a non-GAAP financial measure, as net cash used in operating activities less cash payments for purchases of property and equipment. We believe this non-GAAP financial measure, when considered together with our GAAP financial results, provides management and investors with useful supplemental information on the Company’s ability to generate cash for ongoing business operations and capital deployment.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Cash Flows. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included elsewhere in this report.

### EXECUTIVE HIGHLIGHTS

*(dollar amounts in thousands, except per share data)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Revenues | $898,282 | $928,553 |
| Special charges (1) | $25,295 | $— |
| Net income | $61,824 | $79,965 |
| Adjusted EBITDA | $115,164 | $111,073 |
| EPS | $1.74 | $2.23 |
| Adjusted EPS | $2.29 | $2.23 |
| Net cash used in operating activities | $(465,210) | $(274,818) |
| Total number of employees | 8,105 | 8,055 |

(1) Excluded from non-GAAP financial measures, including Adjusted EBITDA and Adjusted EPS

### First Quarter 2025 Executive Highlights

### Revenues

Revenues for the three months ended March 31, 2025 decreased $30.3 million, or 3.3%, compared to the three months ended March 31, 2024. The decrease in revenues was primarily due to decreased revenues in our Economic Consulting and Corporate Finance segments, which was partially offset by higher revenues in our FLC and Strategic Communications segments.

### Special Charges

During the three months ended March 31, 2025, we recorded special charges of $25.3 million related to targeted headcount reductions in each segment and region where we realigned our workforce with current business demand for our consulting services. These targeted headcount reductions concluded as of March 31, 2025. A portion of the special charges was paid during the three months ended March 31, 2025 and the remaining amounts will be paid in cash in the next 12 months.

The following table details the special charges by segment:

|  | Three Months Ended March 31, 2025 |
| --- | ---: |
| Corporate Finance | $11,696 |
| FLC | 5,475 |
| Economic Consulting | 983 |
| Technology | 1,928 |
| Strategic Communications | 3,268 |
| Segment special charges | 23,350 |
| Unallocated Corporate | 1,945 |
| **Total** | $25,295 |

There were no special charges recorded during the three months ended March 31, 2024.

### Net income

Net income for the three months ended March 31, 2025 decreased $18.1 million, or 22.7%, compared to the three months ended March 31, 2024. The decrease in net income was primarily due to lower revenues and special charges recorded during the three months ended March 31, 2025, which was partially offset by a decrease in selling, general and administrative (“SG&A”) expenses, primarily due to legal settlement gains, and a decrease in direct cost of revenues as compared to the same quarter in the prior year.

### Adjusted EBITDA

Adjusted EBITDA for the three months ended March 31, 2025 increased $4.1 million, or 3.7%, compared to the three months ended March 31, 2024. Adjusted EBITDA Margin of 12.8% for the three months ended March 31, 2025 compared to 12.0% for the three months ended March 31, 2024. The increase in Adjusted EBITDA was primarily due to lower SG&A expenses, primarily due to legal settlement gains, as well as lower direct cost of revenues, which more than offset the decline in revenues compared to the same quarter in the prior year. Adjusted EBITDA excludes special charges.

### EPS and Adjusted EPS

EPS for the three months ended March 31, 2025 decreased $0.49 to $1.74 compared to $2.23 for the three months ended March 31, 2024. The decrease in EPS was primarily due to lower net income as described above.

Adjusted EPS for the three months ended March 31, 2025 increased $0.06 to $2.29 compared to $2.23 for the three months ended March 31, 2024. Adjusted EPS for the three months ended March 31, 2025 excludes the $25.3 million in special charges, which increased Adjusted EPS by $0.55.

### Liquidity and Capital Allocation

Net cash used in operating activities for the three months ended March 31, 2025 increased $190.4 million, or 69.3%, to $465.2 million compared to $274.8 million for the three months ended March 31, 2024. The increase in net cash used in operating activities was primarily due to an increase in forgivable loan issuances, higher variable compensation and a decrease in cash collections. Days sales outstanding (“DSO”) of 100 days at March 31, 2025 compared to 105 days at March 31, 2024.

Free Cash Flow was an outflow of $483.0 million and $279.5 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in Free Cash Flow was primarily due to higher net cash used in operating activities, as described above, and higher net cash used for purchases of property and equipment.

### Headcount

The following table includes the net headcount reductions by segment and in total for the three months ended March 31, 2025. The net reductions include involuntary terminations related to special charges and voluntary terminations in our Economic Consulting segment:

|  | Billable Headcount Corporate Finance | FLC | Economic Consulting | Technology | Strategic Communications | Total | Non-Billable Headcount | Total Headcount |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| December 31, 2024 | 2,286 | 1,542 | 1,110 | 714 | 981 | 6,633 | 1,741 | 8,374 |
| Reductions, net | (37) | (33) | (91) | (33) | (44) | (238) | (31) | (269) |
| March 31, 2025 | 2,249 | 1,509 | 1,019 | 681 | 937 | 6,395 | 1,710 | 8,105 |
| Percentage change in headcount from December 31, 2024 | (1.6)% | (2.1)% | (8.2)% | (4.6)% | (4.5)% | (3.6)% | (1.8)% | (3.2)% |

19

### RESULTS OF OPERATIONS

### Segment and Consolidated Operating Results:

*(in thousands, except per share data)*

| Revenues | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Corporate Finance | $343,645 | $366,010 |
| FLC | 190,602 | 176,074 |
| Economic Consulting | 179,861 | 204,548 |
| Technology | 97,156 | 100,713 |
| Strategic Communications | 87,018 | 81,208 |
| **Total revenues** | $898,282 | $928,553 |
| **Segment operating income** |  |  |
| Corporate Finance | $40,950 | $71,919 |
| FLC | 30,106 | 31,967 |
| Economic Consulting | 12,089 | 12,865 |
| Technology | 6,594 | 10,939 |
| Strategic Communications | 8,725 | 11,474 |
| **Total segment operating income** | 98,464 | 139,164 |
| Unallocated corporate expenses | (19,757) | (39,531) |
| **Operating income** | 78,707 | 99,633 |
| **Other income (expense)** |  |  |
| Interest income and other | 2,842 | 1,581 |
| Interest expense | (968) | (1,719) |
|  | 1,874 | (138) |
| **Income before income tax provision** | 80,581 | 99,495 |
| **Income tax provision** | 18,757 | 19,530 |
| **Net income** | $61,824 | $79,965 |
| **Earnings per common share — basic** | $1.76 | $2.29 |
| **Earnings per common share — diluted** | $1.74 | $2.23 |

### Reconciliation of Net Income to Adjusted EBITDA:

*(in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Net income** | $61,824 | $79,965 |
| Add back: |  |  |
| Income tax provision | 18,757 | 19,530 |
| Interest income and other | (2,842) | (1,581) |
| Interest expense | 968 | 1,719 |
| Depreciation of property and equipment | 10,145 | 10,424 |
| Amortization of intangible assets | 1,017 | 1,016 |
| Special charges | 25,295 | — |
| **Adjusted EBITDA** | $115,164 | $111,073 |

20

### Reconciliation of Net Income and EPS to Adjusted Net Income and Adjusted EPS:

*(in thousands, except per share data)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Net income** | $61,824 | $79,965 |
| Add back: |  |  |
| Special charges | 25,295 | — |
| Tax impact of special charges | (5,799) | — |
| **Adjusted Net Income** | $81,320 | $79,965 |
| **EPS** | $1.74 | $2.23 |
| Add back: |  |  |
| Special charges | 0.71 | — |
| Tax impact of special charges | (0.16) | — |
| **Adjusted EPS** | $2.29 | $2.23 |
| Weighted average number of common shares outstanding — diluted | 35,500 | 35,787 |

### Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow:

*(in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Net cash used in operating activities** | $(465,210) | $(274,818) |
| Purchases of property and equipment | (17,803) | (4,641) |
| **Free Cash Flow** | $(483,013) | $(279,459) |

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

### Revenues and operating income

See “Segment Results” for an expanded discussion of revenues, gross profit and SG&A expenses.

### Unallocated corporate expenses

Unallocated corporate expenses decreased $19.8 million, or 50.0%, to $19.8 million for the three months ended March 31, 2025, primarily due to a legal settlement gain.

### Interest income and other

Interest income and other, which includes FX gains and losses, increased $1.3 million, or 79.8%, to $2.8 million for the three months ended March 31, 2025, primarily due to a $1.9 million increase in interest income, which was partially offset by a $0.8 million increase in net FX losses.

FX gains and losses, both realized and unrealized, relate to the remeasurement or settlement of monetary assets and liabilities that are denominated in a currency other than an entity’s functional currency. These monetary assets and liabilities include cash, as well as third-party and intercompany receivables and payables.

### Interest expense

Interest expense decreased $0.8 million, or 43.7%, to $1.0 million for the three months ended March 31, 2025, primarily due to lower borrowings on our senior unsecured bank revolving credit facility (“Credit Facility”).

### Income tax provision

Our income tax provision decreased $0.8 million, or 4.0%, to $18.8 million for the three months ended March 31, 2025 compared to $19.5 million for the three months ended March 31, 2024. Our effective tax rate of 23.3% for the three months ended March 31, 2025 compared to 19.6% for the three months ended March 31, 2024. The decrease in the income tax provision was due to a decrease in income before income tax provision, which was partially offset by an increase in the tax rate.

The tax rate for the three months ended March 31, 2025 was impacted by a less favorable tax benefit related to share-based compensation, as a smaller number of non-qualified stock options were exercised compared to the three months ended March 31, 2024.

### SEGMENT RESULTS

### Adjusted Segment EBITDA

We evaluate the performance of each of our operating segments based on multiple measures of segment profit, including Adjusted Segment EBITDA, which is a non-GAAP financial measure. The following table reconciles Segment Operating Income to Adjusted Segment EBITDA for the three months ended March 31, 2025 and 2024:

| Three Months Ended March 31, 2025 | Corporate Finance | FLC | Economic Consulting | Technology | Strategic Communications | Unallocated Corporate | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| **Net income** |  |  |  |  |  |  | $61,824 |
| Interest income and other |  |  |  |  |  |  | (2,842) |
| Interest expense |  |  |  |  |  |  | 968 |
| Income tax provision |  |  |  |  |  |  | 18,757 |
| **Operating income** | $40,950 | $30,106 | $12,089 | $6,594 | $8,725 | $(19,757) | $78,707 |
| Depreciation of property and equipment | 2,582 | 1,713 | 1,359 | 3,070 | 841 | 580 | 10,145 |
| Amortization of intangible assets | 719 | 229 | — | — | 69 | — | 1,017 |
| Special charges | 11,696 | 5,475 | 983 | 1,928 | 3,268 | 1,945 | 25,295 |
| **Adjusted EBITDA** | $55,947 | $37,523 | $14,431 | $11,592 | $12,903 | $(17,232) | $115,164 |
| **Three Months Ended March 31, 2024** | **Corporate Finance** | **FLC** | **Economic Consulting** | **Technology** | **Strategic Communications** | **Unallocated Corporate** | **Total** |
| **Net income** |  |  |  |  |  |  | $79,965 |
| Interest income and other |  |  |  |  |  |  | (1,581) |
| Interest expense |  |  |  |  |  |  | 1,719 |
| Income tax provision |  |  |  |  |  |  | 19,530 |
| **Operating income** | $71,919 | $31,967 | $12,865 | $10,939 | $11,474 | $(39,531) | $99,633 |
| Depreciation of property and equipment | 2,473 | 1,629 | 1,285 | 3,642 | 882 | 513 | 10,424 |
| Amortization of intangible assets | 833 | 113 | — | — | 70 | — | 1,016 |
| **Adjusted EBITDA** | $75,225 | $33,709 | $14,150 | $14,581 | $12,426 | $(39,018) | $111,073 |

22

### Total Adjusted Segment EBITDA

We define Total Adjusted Segment EBITDA, which is a non-GAAP financial measure, as the total of Adjusted Segment EBITDA for all segments, which excludes unallocated corporate expenses. The following table reconciles net income to Total Segment Operating Income and Total Adjusted Segment EBITDA, for the three months ended March 31, 2025 and 2024:

*(in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Net income** | $61,824 | $79,965 |
| Add back: |  |  |
| Income tax provision | 18,757 | 19,530 |
| Interest income and other | (2,842) | (1,581) |
| Interest expense | 968 | 1,719 |
| Unallocated corporate expenses | 19,757 | 39,531 |
| **Total segment operating income** | 98,464 | 139,164 |
| Add back: |  |  |
| Segment depreciation expense | 9,565 | 9,911 |
| Amortization of intangible assets | 1,017 | 1,016 |
| Segment special charges | 23,350 | — |
| **Total Adjusted Segment EBITDA** | $132,396 | $150,091 |

23

### Other Segment Operating Data

| Number of billable professionals (at period end): | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Corporate Finance | 2,249 | 2,185 |
| FLC | 1,509 | 1,463 |
| Economic Consulting | 1,019 | 1,091 |
| Technology (1) | 681 | 646 |
| Strategic Communications | 937 | 981 |
| **Total billable professionals** | 6,395 | 6,366 |
| Utilization rates of billable professionals: (2) |  |  |
| Corporate Finance | 57% | 62% |
| FLC | 59% | 59% |
| Economic Consulting | 62% | 68% |
| Average billable rate per hour: (3) |  |  |
| Corporate Finance | $493 | $515 |
| FLC | $430 | $406 |
| Economic Consulting | $541 | $533 |

(1) The number of billable professionals for the Technology segment excludes as-needed professionals, who we employ based on demand for the segment’s services. We employed an average of 639 and 727 as-needed employees during the three months ended March 31, 2025 and 2024, respectively.

(2) We calculate the utilization rate for our billable professionals by dividing the number of hours that all of our billable professionals worked on client assignments during a period by the total available working hours for all of our billable professionals during the same period. Available hours are determined by the standard hours worked by each employee, adjusted for part-time hours, U.S. standard work weeks and local country holidays. Available working hours include vacation and professional training days, but exclude holidays. Utilization rates are presented for our segments that primarily bill clients on an hourly basis. We have not presented utilization rates for our Technology and Strategic Communications segments as most of the revenues of these segments are not generated on an hourly basis.

(3) For engagements where revenues are based on number of hours worked by our billable professionals and fixed-fee arrangements, average billable rate per hour is calculated by dividing revenues (excluding revenues from success fees, pass-through revenues and outside consultants) for a period by the number of hours worked on client assignments during the same period. We have not presented average billable rates per hour for our Technology and Strategic Communications segments as most of the revenues of these segments are not based on billable hours.

### CORPORATE FINANCE & RESTRUCTURING

*(dollars in thousands, except rate per hour)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Revenues** | $343,645 | $366,010 |
| Percentage change in revenues from prior year | -6.1% | 16.0% |
| **Operating expenses** |  |  |
| Direct cost of revenues | 231,572 | 238,190 |
| Selling, general and administrative expenses | 58,708 | 55,068 |
| Special charges | 11,696 | — |
| Amortization of intangible assets | 719 | 833 |
|  | 302,695 | 294,091 |
| **Segment operating income** | 40,950 | 71,919 |
| Percentage change in segment operating income from prior year | -43.1% | 49.9% |
| Add back: |  |  |
| Depreciation and amortization of intangible assets | 3,301 | 3,306 |
| Special charges | 11,696 | — |
| **Adjusted Segment EBITDA** | $55,947 | $75,225 |
| Gross profit (1) | $112,073 | $127,820 |
| Percentage change in gross profit from prior year | -12.3% | 25.3% |
| Gross profit margin (2) | 32.6% | 34.9% |
| Adjusted Segment EBITDA as a percentage of revenues | 16.3% | 20.6% |
| Number of billable professionals (at period end) | 2,249 | 2,185 |
| Percentage change in number of billable professionals from prior year | 2.9% | 1.5% |
| Utilization rate of billable professionals | 57% | 62% |
| Average billable rate per hour | $493 | $515 |

(1) Revenues less direct cost of revenues

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenues decreased $22.4 million, or 6.1%, to $343.6 million for the three months ended March 31, 2025, primarily due to lower demand and realized bill rates for our transformation & strategy and restructuring services, which was partially offset by higher realized bill rates for our transactions services and an increase in success fees.

Gross profit decreased $15.7 million, or 12.3%, to $112.1 million for the three months ended March 31, 2025. Gross profit margin decreased 2.3 percentage points for the three months ended March 31, 2025. The decrease in gross profit margin was primarily due to the impact of a 5 percentage point decrease in utilization, which was partially offset by the impact of an increase in success fees.

SG&A expenses increased $3.6 million, or 6.6%, to $58.7 million for the three months ended March 31, 2025. SG&A expenses of 17.1% of revenues for the three months ended March 31, 2025 compared to 15.0% of revenues for the three months ended March 31, 2024. The increase in SG&A expenses was primarily due to higher infrastructure support, bad debt and business development expenses.

### FORENSIC AND LITIGATION CONSULTING

*(dollars in thousands, except rate per hour)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Revenues** | $190,602 | $176,074 |
| Percentage change in revenues from prior year | 8.3% | 11.6% |
| **Operating expenses** |  |  |
| Direct cost of revenues | 117,961 | 112,394 |
| Selling, general and administrative expenses | 36,831 | 31,600 |
| Special charges | 5,475 | — |
| Amortization of intangible assets | 229 | 113 |
|  | 160,496 | 144,107 |
| **Segment operating income** | 30,106 | 31,967 |
| Percentage change in segment operating income from prior year | -5.8% | 57.6% |
| Add back: |  |  |
| Depreciation and amortization of intangible assets | 1,942 | 1,742 |
| Special charges | 5,475 | — |
| **Adjusted Segment EBITDA** | $37,523 | $33,709 |
| Gross profit (1) | $72,641 | $63,680 |
| Percentage change in gross profit from prior year | 14.1% | 23.7% |
| Gross profit margin (2) | 38.1% | 36.2% |
| Adjusted Segment EBITDA as a percentage of revenues | 19.7% | 19.1% |
| Number of billable professionals (at period end) | 1,509 | 1,463 |
| Percentage change in number of billable professionals from prior year | 3.1% | 2.5% |
| Utilization rate of billable professionals | 59% | 59% |
| Average billable rate per hour | $430 | $406 |

(1) Revenues less direct cost of revenues

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenues increased $14.5 million, or 8.3%, to $190.6 million for the three months ended March 31, 2025, primarily due to higher realized bill rates for our risk and investigations, data & analytics and healthcare risk management & advisory services, as well as higher demand for our data & analytics services.

Gross profit increased $9.0 million, or 14.1%, to $72.6 million for the three months ended March 31, 2025. Gross profit margin increased 1.9 percentage points for the three months ended March 31, 2025. The increase in gross profit margin was primarily due to higher realized bill rates and internal cost recovery related to an initiative to develop artificial intelligence (“AI”) capabilities for the Company. The related costs are included in our unallocated corporate expenses.

SG&A expenses increased $5.2 million, or 16.6%, to $36.8 million for the three months ended March 31, 2025. SG&A expenses were 19.3% of revenues for the three months ended March 31, 2025 compared to 17.9% of revenues for the three months ended March 31, 2024. The increase in SG&A expenses was primarily due to higher bad debt and compensation expenses, and the impact of favorable litigation settlements in the prior year.

### ECONOMIC CONSULTING

*(dollars in thousands, except rate per hour)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Revenues** | $179,861 | $204,548 |
| Percentage change in revenues from prior year | -12.1% | 20.6% |
| **Operating expenses** |  |  |
| Direct cost of revenues | 138,445 | 159,440 |
| Selling, general and administrative expenses | 28,344 | 32,243 |
| Special charges | 983 | — |
|  | 167,772 | 191,683 |
| **Segment operating income** | 12,089 | 12,865 |
| Percentage change in segment operating income from prior year | -6.0% | 1.3% |
| Add back: |  |  |
| Depreciation of property and equipment | 1,359 | 1,285 |
| Special charges | 983 | — |
| **Adjusted Segment EBITDA** | $14,431 | $14,150 |
| Gross profit (1) | $41,416 | $45,108 |
| Percentage change in gross profit from prior year | -8.2% | 19.5% |
| Gross profit margin (2) | 23.0% | 22.1% |
| Adjusted Segment EBITDA as a percentage of revenues | 8.0% | 6.9% |
| Number of billable professionals (at period end) | 1,019 | 1,091 |
| Percentage change in number of billable professionals from prior year | -6.6% | 5.8% |
| Utilization rate of billable professionals | 62% | 68% |
| Average billable rate per hour | $541 | $533 |

(1) Revenues less direct cost of revenues

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenues decreased $24.7 million, or 12.1%, to $179.9 million for the three months ended March 31, 2025, primarily due to lower demand for our M&A-related antitrust, financial economics and non-M&A-related antitrust services, which was partially offset by higher realized bill rates.

Gross profit decreased $3.7 million, or 8.2%, to $41.4 million for the three months ended March 31, 2025. Gross profit margin increased 1.0 percentage points for the three months ended March 31, 2025. The increase in gross profit margin was primarily due to higher realized bill rates and lower compensation expenses, which included the impact of a 6.6% decline in billable professionals primarily due to voluntary terminations. This increase was partially offset by the impact of a 6 percentage point decrease in utilization.

SG&A expenses decreased $3.9 million, or 12.1%, to $28.3 million for the three months ended March 31, 2025. SG&A expenses were 15.8% of revenues for the three months ended March 31, 2025 and 2024. The decrease in SG&A expenses was primarily driven by lower bad debt expenses, which was partially offset by higher outside services and infrastructure support expenses.

### TECHNOLOGY

*(dollars in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Revenues** | $97,156 | $100,713 |
| Percentage change in revenues from prior year | -3.5% | 11.1% |
| **Operating expenses** |  |  |
| Direct cost of revenues | 64,258 | 64,069 |
| Selling, general and administrative expenses | 24,376 | 25,705 |
| Special charges | 1,928 | — |
|  | 90,562 | 89,774 |
| **Segment operating income** | 6,594 | 10,939 |
| Percentage change in segment operating income from prior year | -39.7% | -8.0% |
| Add back: |  |  |
| Depreciation of property and equipment | 3,070 | 3,642 |
| Special charges | 1,928 | — |
| **Adjusted Segment EBITDA** | $11,592 | $14,581 |
| Gross profit (1) | $32,898 | $36,644 |
| Percentage change in gross profit from prior year | -10.2% | —% |
| Gross profit margin (2) | 33.9% | 36.4% |
| Adjusted Segment EBITDA as a percentage of revenues | 11.9% | 14.5% |
| Number of billable professionals (at period end) (3) | 681 | 646 |
| Percentage change in number of billable professionals from prior year | 5.4% | 11.2% |

(1) Revenues less direct cost of revenues

(3) Includes personnel involved in direct client assistance and billable consultants and excludes professionals employed on an as-needed basis

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenues decreased $3.6 million, or 3.5%, to $97.2 million for the three months ended March 31, 2025, primarily due to lower demand for our M&A-related “second request” services, which was partially offset by higher demand for our investigations services.

Gross profit decreased $3.7 million, or 10.2%, to $32.9 million for the three months ended March 31, 2025. Gross profit margin decreased 2.5 percentage points for the three months ended March 31, 2025. The decrease in gross profit margin was primarily due to lower profitability and mix of our hosting and processing services, which was partially offset by higher profitability of our consulting services.

SG&A expenses decreased $1.3 million, or 5.2%, to $24.4 million for the three months ended March 31, 2025. SG&A expenses of 25.1% of revenues for the three months ended March 31, 2025 compared to 25.5% of revenues for the three months ended March 31, 2024. The decrease in SG&A expenses was primarily due to lower bad debt expenses, which was partially offset by higher infrastructure support expenses.

### STRATEGIC COMMUNICATIONS

*(dollars in thousands)*

|  | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| **Revenues** | $87,018 | $81,208 |
| Percentage change in revenues from prior year | 7.2% | 11.1% |
| **Operating expenses** |  |  |
| Direct cost of revenues | 56,692 | 51,941 |
| Selling, general and administrative expenses | 18,264 | 17,723 |
| Special charges | 3,268 | — |
| Amortization of intangible assets | 69 | 70 |
|  | 78,293 | 69,734 |
| **Segment operating income** | 8,725 | 11,474 |
| Percentage change in segment operating income from prior year | -24.0% | 32.1% |
| Add back: |  |  |
| Depreciation and amortization of intangible assets | 910 | 952 |
| Special charges | 3,268 | — |
| **Adjusted Segment EBITDA** | $12,903 | $12,426 |
| Gross profit (1) | $30,326 | $29,267 |
| Percentage change in gross profit from prior year | 3.6% | 15.7% |
| Gross profit margin (2) | 34.9% | 36.0% |
| Adjusted Segment EBITDA as a percentage of revenues | 14.8% | 15.3% |
| Number of billable professionals (at period end) | 937 | 981 |
| Percentage change in number of billable professionals from prior year | -4.5% | -1.4% |

(1) Revenues less direct cost of revenues

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Revenues increased $5.8 million, or 7.2%, to $87.0 million for the three months ended March 31, 2025, which included a 1.1% estimated negative impact from FX. Excluding the estimated impact from FX, revenues increased $6.7 million, or 8.2%. The increase in revenues was primarily due to a $3.5 million increase in pass-through revenues and higher demand for corporate reputation services.

Gross profit increased $1.1 million, or 3.6%, to $30.3 million for the three months ended March 31, 2025. Gross profit margin decreased 1.2 percentage points for the three months ended March 31, 2025. The decrease in gross profit margin was primarily due to higher pass-through revenues and expenses.

SG&A expenses increased $0.5 million, or 3.1%, to $18.3 million for the three months ended March 31, 2025, which included a 1.1% estimated positive impact from FX. SG&A expenses of 21.0% of revenues for the three months ended March 31, 2025 compared to 21.8% of revenues for the three months ended March 31, 2024.

### CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial statements, which we have prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Note 1 to the Consolidated Financial Statements included in Part II, Item 8, of our Annual Report on Form 10-K for the year ended December 31, 2024 describes the significant accounting policies and methods used in preparation of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. We evaluate our estimates, including those related to revenues, goodwill and intangible assets, income taxes and contingencies, on an ongoing basis. Our estimates are based on current facts and circumstances, historical experience and various other assumptions that we believe are reasonable, which form the basis for making judgments about the values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The accounting estimates that reflect our more significant judgments, and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results, include the following:

- Revenue Recognition
- Goodwill and Intangible Assets

There were no material changes to our critical accounting estimates from the information provided in “Critical Accounting Estimates” in the Management’s Discussion and Analysis of Financial Condition and Results of Operations, in Part II, Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2024, or from the information provided in Part II, Item 8, of our Annual Report on Form 10-K for the year ended December 31, 2024.

### SIGNIFICANT NEW ACCOUNTING PRONOUNCEMENTS

See Note 2, “New Accounting Standards” in Part I, Item 1, of this Quarterly Report on Form 10-Q.

### LIQUIDITY AND CAPITAL RESOURCES

### Liquidity

Our annual cash flows from operations generally exceed our cash needs for capital expenditures and debt service requirements. We typically finance our day-to-day operations, capital expenditures, acquisitions and share repurchases through cash flows from operations. During the first quarter of each fiscal year, our cash needs generally exceed our cash flows from operations due to the payment of annual incentive compensation. We believe that our cash flows from operations, supplemented by borrowings under our Credit Facility, as necessary, will provide adequate cash to fund our cash needs for at least the next 12 months.

Our operating assets and liabilities consist primarily of billed and unbilled accounts receivable, notes receivable from employees, accounts payable, accrued expenses and accrued compensation expenses. The timing of billings and collections of receivables, as well as compensation and vendor payments, affects the changes in these balances.

Results of operations for our non-U.S. subsidiaries are translated from the designated functional currency to our reporting currency of USD. Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. Resulting net translation adjustments are recorded as a component of stockholders’ equity in “Accumulated other comprehensive loss.”

### Uncertainties and Trends Affecting Liquidity

Our conclusion that we will be able to fund our cash requirements for at least the next 12 months by using existing capital resources and cash generated from operations does not take into account events beyond our control that could result in a material adverse impact on our business, the impact of any future acquisitions or unexpected significant changes in the number of employees or other unanticipated uses of cash. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, if events such as economic, political and workforce disruptions arise, including any impact of future public health crises, or economic, political or business conditions change from those currently prevailing or from those now anticipated, or if unexpected circumstances or other events beyond our control arise that may have a material adverse effect on the cash flow or profitability of our business, including material negative changes in the health and welfare of our employees or those of our clients, and the operating performance or financial results of our business. Any of these events or circumstances, including any new business opportunities, could involve significant additional funding and could require us to borrow under our Credit Facility or raise additional debt or equity funding to meet those needs. Our ability to borrow or raise additional capital, if necessary, is subject to a variety of factors that we cannot predict with certainty, including:

- our future profitability;
- the quality of our accounts receivable;
- our relative levels of debt and equity;
- the volatility and overall condition of the capital markets; and
- the market prices of our securities.

Any new debt funding, if available, may be on terms less favorable to us than our Credit Facility. See “Forward-Looking Statements” in Part I, Item 2, of this Quarterly Report on Form 10-Q, and the information contained under the heading “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024.

### Cash Flows

*(dollars in thousands)*

| Cash Flows | Three Months Ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Net cash used in operating activities | $(465,210) | $(274,818) |
| Net cash provided by (used in) investing activities | $(17,803) | $20,606 |
| Net cash provided by (used in) financing activities | $(32,301) | $198,585 |
| Effect of exchange rate changes on cash and cash equivalents | $5,942 | $(3,635) |
| DSO (1) | 100 | 105 |

(1) DSO is a performance measure used to assess how quickly revenues are collected by the Company. We calculate DSO at the end of each reporting period by dividing net accounts receivable reduced by billings in excess of services provided, by revenues for the quarter, adjusted for changes in FX rates. We multiply the result by the number of days in the quarter.

### Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

Net cash used in operating activities increased $190.4 million, or 69.3%, to $465.2 million compared to $274.8 million for the three months ended March 31, 2024. The increase in net cash used in operating activities was primarily due to an increase in forgivable loan issuances, higher variable compensation and a decrease in cash collections. DSO was 100 and 105 days as of March 31, 2025 and 2024, respectively.

Net cash used in investing activities increased $38.4 million to $17.8 million compared to net cash provided by investing activities of $20.6 million for the three months ended March 31, 2024. The increase was primarily due to the maturity of a short-term investment of $25.2 million during the three months ended March 31, 2024. In addition, there was a $13.2 million increase in capital expenditures primarily driven by higher spend on leasehold improvements and an increase in purchases of software licenses as compared to the three months ended March 31, 2024.

Net cash used in financing activities increased $230.9 million to $32.3 million compared to net cash provided by financing activities of $198.6 million for the three months ended March 31, 2024. The increase was primarily due to $182.6 million in payments for common stock repurchases under the Repurchase Program and a decrease in net borrowings of $45.0 million under our Credit Facility as compared to the same period in the prior year.

The effect of exchange rate changes on cash and cash equivalents had a favorable impact of $5.9 million for the three months ended March 31, 2025 compared to an unfavorable impact of $3.6 million for the three months ended March 31, 2024.

Cash paid for income taxes and tax credits, net of tax refunds included $16.8 million and $23.5 million of payments for the purchase of tax credits during the three months ended March 31, 2025 and 2024, respectively.

### Principal Sources of Capital Resources

As of March 31, 2025, our capital resources included $151.1 million of cash and cash equivalents and available borrowing capacity of $740.0 million under the revolving line of credit under our Credit Facility. The $900.0 million revolving line of credit under our Credit Facility includes a $125.0 million sublimit for borrowings in currencies other than USD, including the euro, British pound, Australian dollar, Canadian dollar, Swiss franc and Japanese yen.

The availability of borrowings, as well as issuances and extensions of letters of credit under our Credit Facility, are subject to specified conditions. Subject to certain conditions, at any time prior to maturity, we will be able to invite existing and new lenders to increase the size of the facility up to a maximum of $1.2 billion. See Note 8, “Debt” in Part I, Item 1, of this Quarterly Report on Form 10-Q for a further discussion of variable interest rates and guarantees under the Credit Facility.

The second amended and restated credit agreement entered into on November 21, 2022 (the “Credit Agreement”) governing the Credit Facility and our other indebtedness outstanding from time to time contains covenants that, among other things, may limit our ability to: incur additional indebtedness; create liens; pay dividends on our capital stock, make distributions or repurchases of our capital stock or make specified other restricted payments; consolidate, merge or sell all or substantially all of our assets; guarantee obligations of other entities or our foreign subsidiaries; enter into hedging agreements; enter into transactions with affiliates or related persons; or engage in any business other than consulting-related businesses. In addition, the Credit Agreement includes a financial covenant that requires us not to exceed a maximum consolidated total net leverage ratio (the ratio of funded debt (less unrestricted cash up to $300.0 million) to Consolidated EBITDA, as defined in the Credit Agreement). As of March 31, 2025, we were in compliance with the covenants contained in the Credit Agreement. See Note 8, “Debt” in Part I, Item 1, of this Quarterly Report on Form 10-Q for a further discussion of the Credit Agreement.

### Principal Uses of Capital Resources

### Future Capital Requirements

We anticipate that our future capital requirements will principally consist of funds required for:

- operating and general corporate expenses;
- capital expenditures, primarily for information technology equipment and systems, office furniture and leasehold improvements;
- debt service requirements, including interest payments;
- compensation to designated executive management and senior managing directors under our various long-term incentive compensation programs, including forgivable loans;
- discretionary funding of the Repurchase Program;
- contingent obligations related to our acquisitions;
- potential acquisitions of businesses; and
- other known future contractual obligations.

### Capital Expenditures

During the three months ended March 31, 2025, we spent $17.8 million in capital expenditures to support our organization, including direct support for specific client engagements. For the remainder of 2025, we currently expect additional capital expenditures to support our organization in an aggregate amount of between $50 million and $60 million, which includes costs related to leasehold improvements for our new office space in Chicago, Illinois. Our estimate takes into consideration the needs of our existing businesses but does not include the impact of any purchases that we may be required to make as a result of future acquisitions or specific client engagements that are not completed or not currently contemplated. Our capital expenditure requirements may change if our staffing levels or technology needs change significantly from what we currently anticipate, if we are required to purchase additional equipment specifically to support new client engagements, or if we pursue and complete additional acquisitions.

### Share Repurchase Program

During the three months ended March 31, 2025, we made $182.6 million in payments for common stock repurchases under the Repurchase Program. We had $264.3 million remaining available under the Repurchase Program to repurchase additional shares of our common stock as of March 31, 2025.

### Future Contractual Obligations

Our future contractual obligations as of March 31, 2025 include long-term obligations of $160.0 million related to outstanding borrowings under our Credit Facility. For more information on our Credit Facility, refer to Note 8, “Debt” in Part I, Item 1 of this Quarterly Report on Form 10-Q. Future contractual obligations related to our debt assume that payments will be made based on the current payment schedule and that interest payments will be at their stated rates and exclude any revolving line of credit borrowings or repayments subsequent to March 31, 2025 and prior to the November 21, 2027 maturity date of our Credit Facility. Under our operating leases as described in Note 9, “Leases” in Part I, Item 1 of this Quarterly Report on Form 10-Q, we have current obligations of $33.8 million and non-current obligations of $201.2 million.

These amounts reflect future unconditional payments and are based on the terms of the relevant agreements, appropriate classification of items under GAAP currently in effect and certain assumptions such as interest rates. Future events could cause actual payments to differ from these amounts.

### Off-Balance Sheet Arrangements

As of March 31, 2025 and December 31, 2024, the Company was contingently liable under bank guarantees issued in favor of third parties that totaled $13.1 million and $10.9 million, respectively. These bank guarantees primarily support bid and performance obligations and operating leases for office space. The amounts are guaranteed under guarantee facilities totaling $46.8 million and $42.7 million as of March 31, 2025 and December 31, 2024, respectively. The Company had $33.7 million and $31.8 million available under the guarantee facilities as of March 31, 2025 and December 31, 2024, respectively. These bank guarantees are issued separate from our Credit Facility and, as a result, do not affect available borrowing capacity under our Credit Facility.

### Forward-Looking Statements

This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve uncertainties and risks. Forward-looking statements include statements concerning our plans, initiatives, projections, prospects, policies, processes and practices, objectives, goals, commitments, strategies, future events, future revenues, future results and performance, future capital allocations and expenditures, expectations, plans or intentions relating to acquisitions, share repurchases and other matters, business trends, new, or changes to, laws and regulations, including U.S. and foreign tax laws, environmental, social and governance (“ESG”)-related issues, climate change-related matters, scientific or technological developments, including relating to new and emerging technologies, such as AI and machine learning and other information that is not historical. Forward-looking statements often contain words such as “*estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “commits,” “aspires,” “forecasts,” “future,” “goal,” “seeks”* and variations of such words or similar expressions. All forward-looking statements, including, without limitation, management’s financial guidance and examination of operating trends, are based upon our historical performance and our current plans, estimates, intentions and expectations at the time we make them, and various assumptions. Our actual financial results, performance or achievements and outcomes could differ materially from those expressed in, or implied by, any forward-looking statements. Any references to standards of measurement and performance made regarding our climate change-, ESG- or other sustainability-related plans, goals, commitments, intentions, aspirations, forecasts or projections, or expectations are developing and based on assumptions. There can be no assurance that management’s plans, performance, expectations, intentions, aspirations, beliefs, goals, estimates, forecasts and projections, including any that are ESG- or other sustainability-related, will result or be achieved, and the inclusion of any forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, forecasts, intentions, aspirations, beliefs or expectations contemplated by us will be achieved. Given these risks, uncertainties and other factors, you should not place undue reliance on any forward-looking statements.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in, or implied by, this Quarterly Report on Form 10-Q. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this Quarterly Report on Form 10-Q include those set forth under the heading “Risk Factors” in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024, as well as in other information that we file with the SEC from time to time. Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this Quarterly Report on Form 10-Q include, but are not limited to, the following:

- changes in demand for our services;
- our ability to recruit and retain qualified professionals and senior management, including segment, industry and regional leaders;
- conflicts resulting in our inability to represent certain clients;
- our former employees joining or forming competing businesses;
- the enactment of legislation rendering contractual protections against competition by former employees unenforceable;
- our ability to manage our headcount needs and our professionals’ utilization and billing rates and maintain or increase the pricing of our services and products;
- our ability to identify suitable acquisition candidates, negotiate favorable terms, take advantage of opportunistic acquisition situations and integrate the operations of acquisitions, as well as the costs of integration;
- our ability to adapt to and manage the risks associated with operating in non-U.S. markets;
- our ability to replace key personnel, including former executives, officers, senior managers and practice and regional leaders who have highly specialized skills and experience;
- our ability to protect the confidentiality of internal and client data and proprietary and confidential information, including from cyberattacks, systems failures or other similar events or outside or internal bad actors, or the use or misuse of social media;
- legislation or judicial rulings, including legislation or rulings regarding data privacy and the discovery process;
- periodic fluctuations in revenues, operating income and cash flows;
- damage to our reputation as a result of claims involving the quality of our services, failures of our internal information technology systems controls or adverse publicity relating to certain clients or engagements;
- fee discounting or renegotiation, lower pricing, less advantageous contract terms and unexpected termination of client engagements;
- competition for clients and key personnel;
- general economic factors, industry trends, restructuring and bankruptcy rates, legal or regulatory requirements, capital market conditions, merger and acquisition activity, major litigation activity, geopolitical disruptions and other events outside of our control;
- our ability to manage growth;
- risk of non-payment of receivables;
- the amount and terms of our outstanding indebtedness;
- risks relating to the obsolescence, replacement, protection, implementation or operation of our information technology systems, including our enterprise resource planning and other financial systems, and software, proprietary software products, intellectual property rights and trade secrets, which could adversely affect our ability to retain or win clients, conduct business, preserve or enhance our reputation, maintain business continuity or report financial results;
- risks relating to the adoption and integration of technological innovations such as AI and machine learning;
- foreign currency disruptions and currency fluctuations between the U.S. dollar and foreign currencies;
- U.S. and foreign tax law changes, including the enactment of tax legislation, proposed from time to time, into law, which could increase our effective tax rate and cash tax expenditures;
- physical risks related to climate change, including rising temperatures, severe storms, energy disruptions, fires or wildfires, flooding and rising sea levels, among others, which could adversely impact our ability to conduct business or maintain business continuity, including by affecting our access to our leased office space in affected geographies and the integrity of our information technology systems;
- our climate change and ESG-related initiatives and goals, including our policies and practices relating to the environment and climate change, sustainability, and inclusion, if they do not meet or keep pace with current or evolving governmental, investor or other stakeholder or media (including social media) expectations and standards or rules and regulations; and
- fluctuations in the mix of our services and the geographic locations in which our clients are located or our services are rendered.

There may be other factors that may cause our actual results to differ materially from our forward-looking statements. All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date of this Quarterly Report on Form 10-Q and are expressly qualified in their entirety by the cautionary statements included herein. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances and do not intend to do so.

## Market risk

As filed, 350 characters.

For information regarding our exposure to certain market risks, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes in our market risk exposure during the period covered by this Quarterly Report on Form 10-Q.

## Controls and procedures

As filed, 1,449 characters.

***Evaluation of Disclosure Controls and Procedures.*** An evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) under the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q, was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) were effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is timely recorded, processed, summarized and reported and (b) included, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting***. There have not been any changes in our internal control over financial reporting during the three months ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 451 characters.

There have been no material changes in any risk factors previously disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC. We may disclose changes to risk factors or disclose additional factors from time to time in our future filings with the SEC. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations.

Filed Apr 24, 2025.
Source: SEC EDGAR, the filing index for accession 0000887936-25-000071. Last ingested by Listed: Nov 7, 2026, 03:12 ET. No prices; not investment advice.