FTI CONSULTING, INC

Previous wording

The following is a discussion and analysis of our consolidated financial condition, results of operations, and liquidity and capital resources for the three and six months ended June 30, 2026 and 2025, 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, 2025 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.

Current wording

The following is a discussion and analysis of our consolidated financial condition, results of operations, and liquidity and capital resources for the three and nine months ended September 30, 2026 and 2025, 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, 2025 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.

Previous wording

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.

Current wording

We have included the definition of Segment Operating Income (Loss), 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.

Previous wording

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.

Current wording

We define Segment Operating Income (Loss) 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 (Loss) for all segments, which excludes unallocated corporate expenses. We use Segment Operating Income (Loss) for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as Segment Operating Income (Loss) 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.

Previous wording

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.

Current wording

We define Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by (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.

Previous wording

Net income for the three months ended June 30, 2026 decreased $13.9 million, or 19.4%, compared to the three months ended June 30, 2025. The decrease in net income was primarily due to higher direct costs, selling, general and administrative (“SG&A”) expenses and interest expense, which was partially offset by the increase in revenues and a lower income tax provision compared to the same quarter in the prior year.

Current wording

Net income for the three months ended September 30, 2026 decreased $19.4 million, or 23.4%, compared to the three months ended September 30, 2025. The decrease in net income was primarily due to special charges recorded during the three months ended September 30, 2026, as well as higher direct costs, selling, general and administrative (“SG&A”) expenses and interest expense, which more than offset an increase in revenues and a lower income tax provision compared to the same quarter in the prior year.

Previous wording

Adjusted EBITDA for the three months ended June 30, 2026 decreased $7.2 million, or 6.4%, compared to the three months ended June 30, 2025. Adjusted EBITDA Margin of 10.5% for the three months ended June 30, 2026 compared to 11.8% for the three months ended June 30, 2025. The decrease in Adjusted EBITDA was primarily due to higher direct costs and SG&A expenses, excluding $6.6 million of Extraordinary Litigation-Related Expenses during the three months ended June 30, 2026, which was partially offset by the increase in revenues compared to the same quarter in the prior year.

Current wording

Adjusted EBITDA for the three months ended September 30, 2026 increased $23.1 million, or 17.7%, compared to the three months ended September 30, 2025. Adjusted EBITDA Margin of 15.2% for the three months ended September 30, 2026 compared to 13.7% for the three months ended September 30, 2025. The increase in Adjusted EBITDA was primarily due to higher revenues, which was partially offset by an increase in direct costs and SG&A expenses compared to the same quarter in the prior year. Adjusted EBITDA excludes special charges of $46.0 million and Extraordinary Litigation-Related Expenses of $4.5 million for the three months ended September 30, 2026.

Previous wording

EPS for the three months ended June 30, 2026 decreased $0.14 to $1.99 compared to $2.13 for the three months ended June 30, 2025. The decrease in EPS was primarily due to the decrease in net income as described above, which was partially offset by the favorable impact of lower weighted average shares outstanding.

Current wording

EPS for the three months ended September 30, 2026 decreased $0.25 to $2.35 compared to $2.60 for the three months ended September 30, 2025. The decrease in EPS was primarily due to the decrease in net income as described above, which was partially offset by the favorable impact of lower weighted average shares outstanding.

Previous wording

Adjusted EPS for the three months ended June 30, 2026 increased $0.03 to $2.16 compared to $2.13 for the three months ended June 30, 2025. Adjusted EPS for the three months ended June 30, 2026 excludes the $6.6 million of Extraordinary Litigation-Related Expenses, which increased Adjusted EPS by $0.17. Adjusted EPS was equal to EPS for the three months ended June 30, 2025.

Current wording

Adjusted EPS for the three months ended September 30, 2026 increased $1.24 to $3.84 compared to $2.60 for the three months ended September 30, 2025. Adjusted EPS for the three months ended September 30, 2026 excludes $46.0 million of special charges and $4.5 million of Extraordinary Litigation-Related Expenses, which increased Adjusted EPS by $1.36 and $0.13, respectively. Adjusted EPS was equal to EPS for the three months ended September 30, 2025.

Previous wording

Netcash provided by operating activities for the three months ended June 30, 2026 increased $96.6 million, or 173.5%, to $152.3 million compared to $55.7 million for the three months ended June 30, 2025. The increase in net cash provided by operating activities was primarily due to higher cash collections and decreases in forgivable loan issuances and income tax payments, which was partially offset by an increase in operating expense and compensation payments. Days sales outstanding (“DSO”) of 99 days at June 30, 2026 compared to 100 days at June 30, 2025.

Current wording

Net cash provided by operating activities for the three months ended September 30, 2026 decreased $11.5 million, or 5.7%, to $190.4 million compared to $201.9 million for the three months ended September 30, 2025. The decrease in net cash provided by operating activities was primarily due to an increase in operating expense and compensation payments, which was partially offset by higher cash collections and a decrease in forgivable loan issuances. Days sales outstanding (“DSO”) of 101 days at September 30, 2026 compared to 102 days at September 30, 2025.

Previous wording

Free Cash Flow was an inflow of $141.0 million and $38.3 million for the three months ended June 30, 2026 and 2025, respectively. The increase in Free Cash Flow was primarily due to higher net cash provided by operating activities, as described above.

Current wording

Free Cash Flow was an inflow of $182.0 million and $187.0 million for the three months ended September 30, 2026 and 2025, respectively. The decrease in Free Cash Flow was due to lower net cash provided by operating activities, as described above, which was partially offset by a decrease in purchases of property and equipment.

Previous wording

During thethree months ended June 30, 2026, we made $393.2 million in payments for common stock repurchases, including excise tax, under the Repurchase Program.

Current wording

We made payments of $85.2 million and $234.2 million for common stock repurchases under the Repurchase Program during thethree months ended September 30, 2026 and 2025, respectively.

Previous wording

The following table includes the net headcount additions (reductions) by segment and in total for the six months ended June 30, 2026.

Current wording

The following table includes the net headcount additions (reductions) by segment and in total for the nine months ended September 30, 2026.

Previous wording

Interest income and other, which includes FX gains and losses, increased $1.7 million to a $0.4 million loss for the three months ended June 30, 2026 compared to a $2.1 million loss for the three months ended June 30, 2025, primarily due to a $1.5 million decrease in FX remeasurement losses compared to the same quarter in the prior year.

Current wording

Interest income and other, which includes FX gains and losses, decreased $1.0 million to a $0.7 million gain for the three months ended September 30, 2026 compared to a $1.7 million gain for the three months ended September 30, 2025, primarily due to a $0.3 million FX remeasurement loss compared to a $0.6 million FX remeasurement gain during the same quarter in the prior year.

Previous wording

Interest expense increased $6.4 million, or 121.2%, to $11.6 million for the three months ended June 30, 2026 compared to $5.3 million for the three months ended June 30, 2025, primarily due to higher borrowings on the $300.0 million term loan under our Credit Agreement (the "Incremental Term Loan") and our senior unsecured bank revolving credit facility (the “Revolving Credit Facility”).

Current wording

Interest expense increased $5.7 million, or 74.6%, to $13.3 million for the three months ended September 30, 2026 compared to $7.6 million for the three months ended September 30, 2025, primarily due to higher borrowings on the $300.0 million term loan under our Credit Agreement (the “Incremental Term Loan”) and our senior unsecured bank revolving credit facility (the “Revolving Credit Facility”).

Previous wording

Our income tax provision decreased $5.1 million, or 25.0%, to $15.2 million for the three months ended June 30, 2026 compared to $20.2 million for the three months ended June 30, 2025. Our effective tax rate of 20.8% for the three months ended June 30, 2026 compared to 22.0% for the three months ended June 30, 2025. The decrease in the income tax provision was due to both a decrease in income before income tax provision and a lower effective tax rate. The lower effective tax rate was primarily due to the net tax benefits associated with our tax equity investment, which was partially offset by an unfavorable impact from share-based compensation and an increase in the valuation allowance recorded against current period losses as compared to the three months ended June 30, 2025.

Current wording

Our income tax provision decreased $15.1 million, or 52.4%, to $13.8 million for the three months ended September 30, 2026 compared to $28.9 million for the three months ended September 30, 2025. Our effective tax rate of 17.8% for the three months ended September 30, 2026 compared to 25.9% for the three months ended September 30, 2025. The decrease in the income tax provision was due to both lower income before income tax provision and a lower effective tax rate. The lower effective tax rate was primarily due to a favorable return-to-provision adjustment and the net tax benefits associated with our tax equity investment, which was partially offset by an increase in valuation allowances as compared to the three months ended September 30, 2025.

Previous wording

Unallocated corporate expenses increased $42.4 million, or 71.2%, to $101.9 million compared to $59.5 million for the six months ended June 30, 2025, primarily due to a legal settlement gain recorded during the six months ended June 30, 2025 that did not recur, higher compensation expenses, $6.6 million in Extraordinary Litigation-Related Expenses incurred during the three months ended June 30, 2026, and higher expenses related to our All SMD meeting, which did not occur in 2025.

Current wording

Unallocated corporate expenses increased $54.7 million, or 57.8%, to $149.3 million compared to $94.6 million for the nine months ended September 30, 2025. Excluding the impact of special charges for the nine months ended September 30, 2026 and 2025, unallocated corporate expenses increased $52.2 million, or 56.3%. The increase was primarily due to legal settlement gains recorded during the nine months ended September 30, 2025 that did not recur, $11.1 million in Extraordinary Litigation-Related Expenses incurred during the nine months ended September 30, 2026, higher compensation expenses and expenses related to our All SMD meeting.

Previous wording

Interest income and other, which includes FX gains and losses, decreased $0.1 million to a $0.7 million gain for the six months ended June 30, 2026 compared to a $0.8 million gain for the six months ended June 30, 2025, primarily due to a $3.0 million decrease in interest income, which was partially offset by a $2.8 million decrease in FX remeasurement losses compared to the same period in the prior year.

Current wording

Interest income and other, which includes FX gains and losses, decreased $1.1 million to a $1.4 million gain for the nine months ended September 30, 2026 compared to a $2.5 million gain for the nine months ended September 30, 2025, primarily due to a $3.1 million decrease in interest income, which was partially offset by a $2.0 million decrease in FX remeasurement losses compared to the same period in the prior year.

Previous wording

Interest expense increased $11.9 million, or 190.4%, to $18.1 million for the six months ended June 30, 2026 compared to $6.2 million for the six months ended June 30, 2025, primarily due to higher borrowings on our Revolving Credit Facility and Incremental Term Loan.

Current wording

Interest expense increased $17.5 million, or 126.6%, to $31.4 million for the nine months ended September 30, 2026 compared to $13.9 million for the nine months ended September 30, 2025, primarily due to higher borrowings on our Revolving Credit Facility and Incremental Term Loan.

Previous wording

Our income tax provision decreased $2.9 million, or 7.4%, to $36.1 million for the six months ended June 30, 2026 compared to $39.0 million for the six months ended June 30, 2025. Our effective tax rate of 23.8% for the six months ended June 30, 2026 compared to 22.6% for the six months ended June 30, 2025. The decrease in the income tax provision was primarily due to a decrease in income before income tax provision, which was partially offset by an increase in the effective tax rate. The higher effective tax rate was primarily due to an unfavorable impact from share-based compensation and an increase in the valuation allowance recorded against current period losses, which was partially offset by the net tax benefits related to our tax equity investment, as compared to the six months ended June 30, 2025.

Current wording

Our income tax provision decreased $18.0 million, or 26.6%, to $49.9 million for the nine months ended September 30, 2026 compared to $67.9 million for the nine months ended September 30, 2025. Our effective tax rate of 21.8% for the nine months ended September 30, 2026 compared to 23.9% for the nine months ended September 30, 2025. The decrease in the income tax provision was due to both lower income before income tax provision and a lower effective tax rate. The lower effective tax rate was primarily due to a favorable return-to-provision adjustment and the net tax benefits associated with our tax equity investment, which was partially offset by an increase in valuation allowances as compared to the nine months ended September 30, 2025.

Previous wording

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 tables reconcile Segment Operating Income to Adjusted Segment EBITDA for the three and six months ended June 30, 2026 and 2025:

Current wording

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 tables reconcile Segment Operating Income (Loss) to Adjusted Segment EBITDA for the three and nine months ended September 30, 2026 and 2025:

Previous wording

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 and six months ended June 30, 2026 and 2025:

Current wording

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 and nine months ended September 30, 2026 and 2025:

Previous wording

(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 755 and 357 as-needed employees during the three months ended June 30, 2026 and 2025, respectively.

Current wording

(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 609 and 648 as-needed employees during the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Revenues increased $32.2 million, or 8.5%, to $411.4 million for the three months ended June 30, 2026, primarily due to higher realized bill rates for our transactions, transformation and turnaround & restructuring services, an increase in demand for transformation services, and higher success fees, which was partially offset by lower demand for turnaround & restructuring services.

Current wording

Revenues increased $19.5 million, or 4.8%, to $424.4 million for the three months ended September 30, 2026, primarily due to higher success fees and realized bill rates, which was partially offset by lower demand for turnaround & restructuring and transactions services.

Previous wording

SG&A expenses increased $6.9 million, or 6.1%, to $119.8 million for the six months ended June 30, 2026, primarily due to higher travel and entertainment, compensation and other general and administrative expenses, which was partially offset by lower bad debt expenses. The increase in SG&A expenses included an estimated 2.0% negative impact from FX. SG&A expenses of 14.6% of revenues for the six months ended June 30, 2026 compared to 15.6% of revenues for the six months ended June 30, 2025.

Current wording

SG&A expenses increased $7.2 million, or 4.2%, to $178.3 million for the nine months ended September 30, 2026, primarily due to higher compensation, infrastructure support and other general and administrative expenses, which was partially offset by lower bad debt expenses. The increase in SG&A expenses included an estimated 1.4% negative impact from FX. SG&A expenses of 14.3% of revenues for the nine months ended September 30, 2026 compared to 15.2% of revenues for the nine months ended September 30, 2025.

Previous wording

Revenues increased $7.7 million, or 4.1%, to $194.3 million for the three months ended June 30, 2026, primarily due to higher realized bill rates and demand for our risk & investigations services, which was partially offset by lower demand for our dispute advisory services.

Current wording

Revenues increased $0.4 million, or 0.2%, to $195.1 million for the three months ended September 30, 2026, primarily due to higher realized bill rates for our dispute advisory, risk & investigations and health solutions services, which was partially offset by lower demand for our risk & investigations and data & analytics services.

Previous wording

Gross profit increased $0.6 million, or 1.5%, to $37.7 million for the three months ended June 30, 2026. Gross profit margin increased 1.5 percentage points for the three months ended June 30, 2026. The increase in gross profit margin was primarily due to lower pass-through revenues and expenses, which was partially offset by higher compensation expenses as a percentage of revenues.

Current wording

Gross profit increased $1.1 million, or 1.5%, to $75.5 million for the three months ended September 30, 2026. Gross profit margin increased 0.5 percentage points for the three months ended September 30, 2026. The increase in gross profit margin was primarily due to higher realized bill rates, which was partially offset by a 4 percentage point decrease in utilization.

Previous wording

SG&A expenses increased $0.6 million, or 3.3%, to $20.2 million for the three months ended June 30, 2026, primarily due to higher travel and entertainment and compensation expenses. The increase in SG&A expenses included an estimated 1.2% negative impact from FX. SG&A expenses of 20.2% of revenues for the three months ended June 30, 2026 compared to 19.1% of revenues for the three months ended June 30, 2025.

Current wording

SG&A expenses increased $5.8 million, or 17.0%, to $39.5 million for the three months ended September 30, 2026, primarily due to the recognition of a gain contingency in the prior year period that did not recur, as well as higher bad debt and compensation expenses. SG&A expenses of 20.2% of revenues for the three months ended September 30, 2026 compared to 17.3% of revenues for the three months ended September 30, 2025.

Previous wording

Gross profit decreased $4.4 million, or 10.4%, to $37.5 million for the three months ended June 30, 2026. Gross profit margin decreased 2.0 percentage points for the three months ended June 30, 2026. The decrease in gross profit margin was primarily due to a 3 percentage point decrease in utilization, which was partially offset by higher realized bill rates.

Current wording

Gross profit decreased $3.6 million, or 1.7%, to $209.2 million for the nine months ended September 30, 2026. Gross profit margin decreased 1.3 percentage points for the nine months ended September 30, 2026. The decrease in gross profit margin was primarily due to a 3 percentage point decrease in utilization, which was partially offset by higher realized bill rates.

Previous wording

Revenues decreased $2.8 million, or 1.5%, to $188.8 million for the three months ended June 30, 2026, primarily due to lower demand for our non-M&A-related antitrust and international arbitration services, which was partially offset by higher demand for M&A-related antitrust services and higher realized bill rates for our financial economics services.

Current wording

Revenues increased $16.2 million, or 9.3%, to $189.3 million for the three months ended September 30, 2026, primarily due to higher demand for our non-M&A-related antitrust and M&A-related antitrust services, which was partially offset by lower demand for our financial economics services.

Previous wording

Gross profit increased $43.0 million, or 17.5%, to $288.1 million for the six months ended June 30, 2026. Gross profit margin increased 1.2 percentage points for the six months ended June 30, 2026. The increase in gross profit margin was primarily due to higher realized bill rates and a 1 percentage point increase in utilization.

Current wording

Gross profit increased $16.0 million, or 61.7%, to $41.9 million for the three months ended September 30, 2026. Gross profit margin increased 7.2 percentage points for the three months ended September 30, 2026. The increase in gross profit margin was primarily due to a 6 percentage point increase in utilization and higher realized bill rates.

Previous wording

Revenues decreased $7.1 million, or 1.9%, to $364.5 million for the six months ended June 30, 2026, primarily due to lower demand for our non-M&A-related antitrust and international arbitration services, which was partially offset by higher realized bill rates across our services and higher demand for our M&A-related antitrust services. Excluding an estimated 1.9% positive impact from FX, revenues decreased $14.3 million, or 3.8%.

Current wording

Revenues increased $9.1 million, or 1.7%, to $553.7 million for the nine months ended September 30, 2026, primarily due to higher realized bill rates for our non-M&A-related antitrust and financial economics services, along with higher demand for our M&A-related antitrust services, which was partially offset by lower demand for our non-M&A-related antitrust and financial economics services. Excluding an estimated 1.3% positive impact from FX, revenues increased $2.2 million, or 0.4%.

Previous wording

Gross profit decreased $25.2 million, or 30.3%, to $58.0 million for the six months ended June 30, 2026. Gross profit margin decreased 6.5 percentage points for the six months ended June 30, 2026. The decrease in gross profit margin was primarily due to higher forgivable loan amortization and variable compensation as a percentage of revenues and a 2 percentage point decrease in utilization, which was partially offset by higher realized bill rates.

Current wording

Gross profit decreased $9.2 million, or 8.5%, to $99.9 million for the nine months ended September 30, 2026. Gross profit margin decreased 2.0 percentage points for the nine months ended September 30, 2026. The decrease in gross profit margin was primarily due to higher forgivable loan amortization and variable compensation as a percentage of revenues, which was partially offset by higher realized bill rates.

Previous wording

SG&A expenses increased $0.6 million, or 1.0%, to $57.9 million for the six months ended June 30, 2026, primarily due to higher compensation and outside services expenses, which was partially offset by lower infrastructure support expenses. The increase in SG&A expenses included an estimated 2.3% negative impact from FX. SG&A expenses of 15.9% of revenues for the six months ended June 30, 2026 compared to 15.4% of revenues for the six months ended June 30, 2025.

Current wording

SG&A expenses decreased $1.7 million, or 1.9%, to $87.4 million for the nine months ended September 30, 2026, primarily due to lower bad debt and infrastructure support expenses, which was partially offset by higher compensation and outside services expenses. The decrease in SG&A expenses included an estimated 1.4% negative impact from FX. SG&A expenses of 15.8% of revenues for the nine months ended September 30, 2026 compared to 16.4% of revenues for the nine months ended September 30, 2025.

Previous wording

Revenues increased $15.4 million, or 18.4%, to $99.0 million for the three months ended June 30, 2026, primarily due to higher demand for our M&A-related “second request” services, which was partially offset by lower demand for our investigations services.

Current wording

Revenues increased $9.1 million, or 9.7%, to $103.2 million for the three months ended September 30, 2026, primarily due to higher demand for our M&A-related “second request” services.

Previous wording

Gross profit increased $7.1 million, or 28.7%, to $31.8 million for the three months ended June 30, 2026. Gross profit margin increased 2.6 percentage points for the three months ended June 30, 2026. The increase in gross profit margin was primarily due to an increase in profitability of our consulting, processing and review services, which was partially offset by a decrease in profitability of our hosting services.

Current wording

Gross profit increased $4.5 million, or 14.0%, to $36.4 million for the three months ended September 30, 2026. Gross profit margin increased 1.3 percentage points for the three months ended September 30, 2026. The increase in gross profit margin was primarily due to an increase in profitability of our processing and review services, which was partially offset by a decrease in profitability of our hosting services.

Previous wording

Revenues increased $20.6 million, or 11.4%, to $201.3 million for the six months ended June 30, 2026, primarily due to higher demand for our M&A-related “second request,” litigation and information governance, privacy & security services, which was partially offset by lower demand for our investigations services. Excluding an estimated 1.6% positive impact from FX, revenues increased $17.7 million, or 9.8%.

Current wording

Revenues increased $29.7 million, or 10.8%, to $304.5 million for the nine months ended September 30, 2026, primarily due to higher demand for our M&A-related “second request,” litigation and information governance, privacy & security services, which was partially offset by lower demand for our investigations services. Excluding an estimated 1.1% positive impact from FX, revenues increased $26.8 million, or 9.7%.

Previous wording

Gross profit increased $7.5 million, or 13.0%, to $65.1 million for the six months ended June 30, 2026. Gross profit margin increased 0.5 percentage points for the six months ended June 30, 2026. The increase in gross profit margin was primarily due to higher profitability of our consulting, review and processing services, which was partially offset by lower profitability of our hosting services.

Current wording

Gross profit increased $12.0 million, or 13.4%, to $101.5 million for the nine months ended September 30, 2026. Gross profit margin increased 0.8 percentage points for the nine months ended September 30, 2026. The increase in gross profit margin was primarily due to higher profitability of our processing, review and consulting services, which was partially offset by lower profitability of our hosting services.

Previous wording

Gross profit increased $10.7 million, or 15.8%, to $78.1 million for the six months ended June 30, 2026. Gross profit margin increased 2.9 percentage points for the six months ended June 30, 2026. The increase in gross profit margin was primarily due to lower pass-through revenues and expenses and lower compensation expenses as a percentage of revenues.

Current wording

Gross profit increased $4.7 million, or 13.9%, to $38.8 million for the three months ended September 30, 2026. Gross profit margin increased 0.5 percentage points for the three months ended September 30, 2026. The increase in gross profit margin was primarily due to lower compensation expenses as a percentage of revenues.

Previous wording

Net cash used in operating activities decreased $251.8 million, or 61.5%, to $157.7 million compared to $409.5 million for the six months ended June 30, 2025. The decrease in net cash used in operating activities was primarily due to a decrease in forgivable loan issuances, higher cash collections and a decrease in income tax payments, which was partially offset by an increase in compensation and interest payments. DSO was 99 and 100 days as of June 30, 2026 and 2025, respectively.

Current wording

Net cash provided by operating activities increased $240.3 million to $32.7 million compared to net cash used in operating activities of $207.6 million for the nine months ended September 30, 2025. The increase in net cash provided by operating activities was primarily due to a decrease in forgivable loan issuances, higher cash collections and a decrease in income tax payments, which was partially offset by an increase in compensation and operating expense payments. DSO was 101 and 102 days as of September 30, 2026 and 2025, respectively.

Previous wording

Net cash used in investing activities increased $28.8 million, or 81.6%, to $64.0 million compared to $35.2 million for the six months ended June 30, 2025. The increase in net cash used in investing activities was due to a $42.1 million payment for a tax equity investment, which was partially offset by a $13.3 million decrease in capital expenditures, primarily related to lower spend on leasehold improvements as compared to the six months ended June 30, 2025.

Current wording

Net cash used in investing activities increased $22.3 million, or 44.5%, to $72.4 million compared to $50.1 million for the nine months ended September 30, 2025. The increase in net cash used in investing activities was due to a $42.1 million payment for a tax equity investment, which was partially offset by a $19.8 million decrease in capital expenditures, primarily related to lower spend on leasehold improvements as compared to the nine months ended September 30, 2025.