Total Revenue

Down ~3.2%

Total revenue decreased to $894.9 million in Q4 2024, a 3.2% decline year-over-year. This change reflects the combined impact of weaker performance in segments such as Corporate Finance and Technology, despite strength in FLC, compared to Q4 2023. " "

Corporate Finance segment

Down ~15.8%

Revenue declined to $335.72 million in Q4 2024, a drop of 15.8% from $398.71 million in Q4 2023. This suggests significantly weakened demand and possibly lower realized bill rates, consistent with declining trends noted in prior periods where lower demand for business transformation and strategy services impacted performance. " "

Forensic and Litigation Consulting (FLC)

Up ~33%

FLC revenues rose to $175.84 million in Q4 2024, an increase of roughly 33% year-over-year, up from $132.4 million. The robust growth is driven by strong performance in areas like construction solutions and disputes, building on previous period modest gains where service mix adjustments positively impacted the segment. " "

Technology segment

Down ~10.1%

Technology segment revenue fell to $90.66 million, a decline of about 10.1% from $100.98 million in Q4 2023. This drop, in contrast to some previous period strength, implies a contraction in demand for certain services, and may reflect seasonal factors or shifts in client priorities. " "

Operating Income

Down ~54.1%

Operating income was $52.75 million in Q4 2024, representing a dramatic drop from $115.02 million in Q4 2023—a 54.1% decrease. The steep decline relative to the marginal revenue drop indicates significant margin compression driven by higher direct costs, increased SG&A expenses, and possibly unfavorable currency impacts relative to the prior period. " "

Net Income

Down ~39%

Net income declined nearly 39% to approximately $49.71 million in Q4 2024 from $81.63 million in Q4 2023. The reduction can be attributed to the lower operating income, amplified by factors such as rising costs and higher effective tax rates that were more favorable in previous periods. " " "

EPS - Basic

Down ~40%

EPS - Basic dropped to $1.41 in Q4 2024, a decline of about 40% from $2.35 in Q4 2023. This decline mirrors the net income contraction, suggesting that cost pressures, margin erosion, and possibly increased share counts have significantly impacted earnings on a per-share basis. " " "

Interest Expense

Down ~81.6%

Interest expense fell sharply to $716 thousand in Q4 2024, an 81.6% decrease from $3.90 million in Q4 2023. This reduction is primarily due to lower borrowings following the repayment of the 2.0% convertible senior notes and reduced utilization of the bank revolving credit facility, despite slightly higher prevailing interest rates on remaining debt. " "

Revenues

FY 2024

$3.7B to $3.79B "

$3.7B to $3.75B "

lowered

EPS

FY 2024

$8.10 to $8.60 "

$7.90 to $8.35 "

lowered

Revenue Guidance

FY 2025

no prior guidance

$3.66 billion to $3.81 billion "

no prior guidance

GAAP EPS Guidance

FY 2025

no prior guidance

$7.44 to $8.24 "

no prior guidance

Adjusted EPS Guidance

FY 2025

no prior guidance

$7.80 to $8.60 "

no prior guidance

Effective Tax Rate

FY 2025

no prior guidance

23% to 25% "

no prior guidance

Cost Savings from Headcount Reductions

FY 2025

no prior guidance

$70 million "

no prior guidance

Special Charge in Q1 2025

FY 2025

no prior guidance

$17 million "

no prior guidance

SG&A Expenses

FY 2025

no prior guidance

flat compared to 2024 "

no prior guidance

Bad Debt as Percentage of Revenue

FY 2025

no prior guidance

below 1% "

no prior guidance

Economic Consulting Segment Impact

FY 2025

no prior guidance

Substantial revenue reduction and erosion of adjusted segment EBITDA margin due to competitive pressures and senior departures " "

no prior guidance

Evolving Growth Outlook

Q2 delivered high organic growth ( " ) while Q3 highlighted a shift toward muted guidance and revenue slowdown ( " )

Q4 showed strong first‐half performance but a notable slowdown in the second half with muted 2025 guidance, reflecting headwinds such as large job roll‐offs and competitive pressures ( " " " )

Sentiment shifted from robust organic growth to a more tempered guidance, indicating caution for near-term growth.

Economic Consulting Performance

Q1 noted strong revenues offset by margin erosion ( " ), Q2 reported record revenue growth alongside margin concerns ( " ), and Q3 emphasized strong revenue performance without mention of departures or significant erosion ( " )

Q4 experienced flat revenues with significant margin erosion driven by rising compensation costs and senior talent departures ( " " )

A more negative tone is emerging, as performance issues (costs and talent departures) that were less pronounced earlier are now affecting margins.

Restructuring Business

Q1 was described as stronger than expected ( " ), Q2 demonstrated stability despite sequential declines ( " ), and Q3 reflected robust and even sequential growth in some metrics ( " " )

Q4 continues to show stability with flat sequential performance and a reliable revenue contribution, although its share increased slightly relative to the prior year ( " )

Consistent strength and reliability remain evident across periods despite some variability in engagement sizes.

Talent Management

Q1 emphasized aggressive talent attraction and broad lateral hiring ( " " " ); Q2 maintained focus on top talent and strategic lateral hires with minor attrition ( " " ); Q3 focused primarily on attracting top talent with no explicit mention of major departures ( " " )

Q4 presents a dual narrative: continued success in attracting top talent ( " " ) juxtaposed with significant senior departures—especially impacting Economic Consulting—which may erode margins ( " " )

Despite consistent talent acquisition, emerging concerns over significant departures in Q4 signal rising caution.

Margin Pressure and Cost Management

Q1 reported margin headwinds due to compensation and SG&A pressures ( " " ); Q2 noted margin contraction driven by increased hiring and bonuses ( " ); Q3 saw margin compression from rising costs and strategic investments ( " " )

Q4 intensified margin pressure with a steep drop in adjusted EBITDA, higher SG&A expenses, and headcount reduction charges, marking a worsening cost environment ( " " )

Persistent and deepening cost challenges are evident, with the Q4 period showing more severe margin compression than prior quarters.

Global Market Conditions

Q1 had minimal commentary; Q2 mentioned an “uncertain economic” backdrop ( " ); Q3 highlighted a weaker global economic environment with client demand uncertainty particularly in Asia and Europe ( " " )

Q4 stressed a more challenging demand backdrop driven by slower M&A activity and broader economic pressures in key regions such as the U.K., reinforcing uncertainty ( " " )

Negative sentiment persists and intensifies, with global market uncertainty continuing to dampen client demand.

Investment in AI Capabilities

Q1 described systematic evaluation and early investment in AI-driven initiatives ( " ); Q2 did not mention AI; Q3 focused on expanding AI capabilities, internal tool development, and workforce training for AI engagement ( " )

Q4 reaffirms the commitment by planning continued investments in upgrading HR systems and enhancing AI capabilities as part of the long-term innovation strategy ( " )

A consistently positive focus on AI investments remains, as the company continues to prioritize technological innovation despite near-term cost implications.

Forensic and Litigation Consulting

Q1 showcased strong revenue growth and improved margins ( " ); Q2 reported modest revenue gains offset by higher compensation expense ( " ); Q3 observed steady revenues with slight margin pressures due to compensation adjustments ( " )

Q4 indicated modest revenue growth coupled with margin pressures from elevated compensation, while leadership in the U.S. market remains focused on winning larger engagements ( " " )

A mixed but consistent focus is noted—with revenue growth maintained but margin improvement challenged by rising costs, reflecting ongoing efforts to bolster this segment.

Emerging Regulatory Risks

Q1 included an active discussion by Gunby regarding noncompete legislation and the potential impact on senior-level agreements ( " )

Q4 does not mention any emerging regulatory risks or noncompete issues.

The topic has receded, with regulatory concerns raised in Q1 no longer featured in subsequent discussion.

Decline of Business Transformation and Strategy

Q1 observed an 8% sequential decline due to the conclusion of large jobs ( " " ); Q2 noted sequential declines despite year-over-year growth, partly due to large engagements ending ( " ); Q3 reported further contraction with decreased revenue share from transformation and strategy initiatives ( " " )

Q4 reflected an ongoing decline with transformation and strategy revenues representing a lower share of overall segment revenues (from 34% to 31%), underscoring diminished demand for these initiatives ( " )

The decline is consistent and deepening over the quarters, suggesting a sustained reduction in demand and contribution from transformation and strategy services.