With shares up 1.4% after earnings, the quarter was mixed: revenue rose 5% year over year to $692 million, while adjusted EPS was flat at $1.85. Higher average transaction fees supported Corporate Finance growth, but deal counts fell in both Corporate Finance and Restructuring, and adjusted non-compensation costs increased.
- Corporate Finance revenue increased 10% to $481 million, despite transactions declining to 142 from 171; higher average fees reflected a greater share of high-fee deals.
- Restructuring revenue fell 12% to $118 million, with transactions down 27% to 27. Management cited record backlog and expects higher revenue in the second half and elevated restructuring revenue through fiscal 2028.
- Financial and Valuation Advisory revenue rose 7% to $93 million; fee events were nearly flat at 1,071 versus 1,075 a year earlier.
- Adjusted non-compensation expenses grew 11% to $91 million, lifting the expense ratio to 13.3% from 12.5%. The adjusted compensation ratio remained at 61.5%.
- Management described the market as normalizing but remained cautious about macro volatility, interest rates, geopolitical instability, and software-sector dislocation.
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