FTI Consulting (earlier Forensics Technologies International) is a business consultancy firm founded in 1982 and headquartered in Washington, D.C., United States. The company specializes in corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications, technology and strategy consulting. FTI Consulting employs more than 7,700 staff in 31 countries and is one of the largest financial consulting firms worldwide.3 Its chief executive is Steven H. Gunby.1 Its shares trade on NYSE under the symbol FCN.1Wikipedia text CC BY-SA 4.0
FTI Consulting (earlier Forensics Technologies International) is a business consultancy firm founded in 1982 and headquartered in Washington, D.C., United States. The company specializes in corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications, technology and strategy consulting. FTI Consulting employs more than 7,700 staff in 31 countries and is one of the largest financial consulting firms worldwide.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Where each dollar of operating cash went, fiscal 2025
Share buybacks
Capital spending6¢$58.5M
Share buybacks94¢$858.7M
Out of $152.1M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.10
Financial statements
Revenue1112131410$3.8B in 2025+61% since 2019Gross profit1410$1.2B in 2025+26% since 2022Operating income1512131410$389.1M in 2025+27% since 2019Net income1512131410$270.9M in 2025+25% since 2019
Revenue1617$993.5M in Q2 FY2026+1% since Q1 FY2026Gross profit1617$316.3M in Q2 FY2026+3% since Q1 FY2026Operating income1617$85.0M in Q2 FY2026+1% since Q1 FY2026Net income1617$57.8M in Q2 FY2026+0% since Q1 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.10
Period ending
2025-12-31
2024-12-31
2023-12-31
Revenues
$3.8B
$3.7B
$3.5B
Direct cost of revenues
$2.6B
$2.5B
$2.4B
Selling, general and administrative expenses
$799.6M
$822.2M
$751.3M
Special charges
$25.3M
$8.2M
$0
Amortization of intangible assets
$3.5M
$4.2M
$6.2M
Costs and expenses
$3.4B
$3.4B
$3.1B
Operating income
$389.1M
$347.4M
$377.6M
Interest income and other
$3.3M
$10.4M
-$4.9M
Interest expense
-$21.4M
-$7.0M
-$14.3M
Other income (expense)
-$18.1M
$3.4M
-$19.2M
Total
$371.0M
$350.8M
$358.4M
Income tax provision
$100.1M
$70.7M
$83.5M
Net income
$270.9M
$280.1M
$274.9M
Earnings per common share basic (in dollars per share)
$8.33
$7.96
$8.10
Earnings per common share diluted (in dollars per share)
$8.24
$7.81
$7.71
Foreign currency translation adjustments, net of tax expense of $, $ and $
$47.0M
-$26.1M
$26.3M
Total other comprehensive income (loss), net of tax
Total assets181512131410$3.5B in 2025+25% since 2019Total liabilities181512131410$1.8B in 2025+36% since 2019Shareholders’ equity12131410$1.7B in 2025+16% since 2019Cash181512131410$265.1M in 2025−28% since 2019Long-term debt1815121310$365.0M in 2025+32% since 2019
Total assets1617$3.5B in Q2 FY2026+1% since Q1 FY2025Total liabilities1617$2.2B in Q2 FY2026+25% since Q1 FY2025Shareholders’ equity1617$1.3B in Q2 FY2026−23% since Q1 FY2025Cash1617$163.7M in Q2 FY2026−38% since Q1 FY2025Long-term debt1617$1.0B in Q2 FY2026+179% since Q1 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.10
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$265.1M
$660.5M
Accounts receivable, net
$1.0B
$1.0B
Current portion of notes receivable
$87.9M
$44.9M
Prepaid expenses and other current assets
$127.0M
$94.0M
Total current assets
$1.5B
$1.8B
Property and equipment, net
$169.3M
$150.3M
Operating lease assets
$201.5M
$198.3M
Goodwill
$1.2B
$1.2B
$1.2B
Intangible assets, net
$13.5M
$16.8M
Notes receivable, net
$250.7M
$109.1M
Other assets
$95.1M
$76.3M
Total assets
$3.5B
$3.6B
Accounts payable, accrued expenses and other
$206.2M
$224.4M
Accrued compensation
$712.3M
$639.7M
Billings in excess of services provided
$56.6M
$67.6M
Total current liabilities
$975.2M
$931.8M
Long-term debt
$365.0M
$0
Noncurrent operating lease liabilities
$224.5M
$208.0M
Deferred income taxes
$99.6M
$111.8M
Other liabilities
$92.5M
$86.9M
Total liabilities
$1.8B
$1.3B
Preferred stock, $0.01 par value; shares authorized 5,000; none outstanding
$0
$0
Common stock, $0.01 par value; shares authorized 75,000; shares issued and outstanding 30,864 (2025) and 35,913 (2024)
$309.0K
$359.0K
Additional paid-in capital
$354.0K
$39.6M
Retained earnings
$1.9B
$2.4B
Accumulated other comprehensive loss
-$129.6M
-$176.6M
Total stockholders equity
$1.7B
$2.3B
$2.0B
$1.7B
Total liabilities and stockholders equity
$3.5B
$3.6B
Preferred stock, par value (in dollars per share)
$0.01
$0.01
Preferred stock, shares authorized (in shares)
5.0M shares
5.0M shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.01
$0.01
$0.01
Common stock, shares authorized (in shares)
75.0M shares
75.0M shares
Common stock, shares issued (in shares)
30.9M shares
35.9M shares
Common stock, shares outstanding (in shares)
30.9M shares
35.9M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$265.1M
$660.5M
Accounts receivable, net
$1.0B
$1.0B
Current portion of notes receivable
$87.9M
$44.9M
Prepaid expenses and other current assets
$127.0M
$94.0M
Total current assets
$1.5B
$1.8B
Property and equipment, net
$169.3M
$150.3M
Operating lease assets
$201.5M
$198.3M
Goodwill
$1.2B
$1.2B
$1.2B
Intangible assets, net
$13.5M
$16.8M
Notes receivable, net
$250.7M
$109.1M
Other assets
$95.1M
$76.3M
Total assets
$3.5B
$3.6B
Accounts payable, accrued expenses and other
$206.2M
$224.4M
Accrued compensation
$712.3M
$639.7M
Billings in excess of services provided
$56.6M
$67.6M
Total current liabilities
$975.2M
$931.8M
Long-term debt
$365.0M
$0
Noncurrent operating lease liabilities
$224.5M
$208.0M
Deferred income taxes
$99.6M
$111.8M
Other liabilities
$92.5M
$86.9M
Total liabilities
$1.8B
$1.3B
Preferred stock, $0.01 par value; shares authorized 5,000; none outstanding
$0
$0
Common stock, $0.01 par value; shares authorized 75,000; shares issued and outstanding 30,864 (2025) and 35,913 (2024)
$309.0K
$359.0K
Additional paid-in capital
$354.0K
$39.6M
Retained earnings
$1.9B
$2.4B
Accumulated other comprehensive loss
-$129.6M
-$176.6M
Total stockholders equity
$1.7B
$2.3B
$2.0B
$1.7B
Total liabilities and stockholders equity
$3.5B
$3.6B
Preferred stock, par value (in dollars per share)
$0.01
$0.01
Preferred stock, shares authorized (in shares)
5.0M shares
5.0M shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.01
$0.01
$0.01
Common stock, shares authorized (in shares)
75.0M shares
75.0M shares
Common stock, shares issued (in shares)
30.9M shares
35.9M shares
Common stock, shares outstanding (in shares)
30.9M shares
35.9M shares
Cash from operations1512131410$152.1M in 2025−30% since 2019Capital spending1512131410$58.5M in 2025+40% since 2019Free cash flow1512131410$93.6M in 2025−47% since 2019Share buybacks1512131410$858.7M in 2025+712% since 2019
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.10
Period ending
2025-12-31
2024-12-31
2023-12-31
Net income
$270.9M
$280.1M
$274.9M
Depreciation of property and equipment
$45.8M
$43.9M
$41.1M
Amortization of intangible assets
$3.5M
$4.2M
$6.2M
Amortization of notes receivable
$73.6M
$51.6M
$27.8M
Provision for expected credit losses
$42.8M
$50.3M
$35.1M
Share-based compensation
$39.3M
$38.4M
$29.5M
Deferred income taxes
$23.7M
-$16.6M
-$25.5M
Other
$1.2M
$303.0K
$5.7M
Accounts receivable, billed and unbilled
-$34.3M
$18.3M
-$229.3M
Notes receivable, net of repayments
-$255.0M
-$99.9M
-$50.7M
Prepaid expenses and other assets
-$15.6M
-$2.8M
$7.6M
Accounts payable, accrued expenses and other
$6.6M
$12.9M
$8.7M
Income taxes
-$68.0M
-$29.4M
$29.3M
Accrued compensation
$29.6M
$43.5M
$50.2M
Billings in excess of services provided
-$12.1M
$271.0K
$13.8M
Net cash provided by operating activities
$152.1M
$395.1M
$224.5M
Purchases of property and equipment and other
-$58.5M
-$35.4M
-$49.5M
Purchase and maturity of short-term investment
$0
$25.2M
-$24.4M
Net cash used in investing activities
-$58.5M
-$10.2M
-$73.8M
Borrowings under revolving line of credit
$1.3B
$600.0M
$835.0M
Repayments under revolving line of credit
-$915.0M
-$600.0M
-$835.0M
Repayment of convertible notes
$0
$0
-$315.8M
Purchase and retirement of common stock
-$858.7M
-$10.2M
-$21.0M
Share-based compensation tax withholdings
-$18.5M
-$19.0M
-$16.4M
Proceeds on stock option exercises
$1.4M
$10.9M
$1.3M
Deposits and other
$358.0K
$3.0M
-$2.8M
Net cash used in financing activities
-$510.5M
-$15.4M
-$354.7M
Effect of exchange rate changes on cash and cash equivalents
$21.5M
-$12.3M
$15.6M
Net increase (decrease) in cash and cash equivalents
-$395.4M
$357.3M
-$188.5M
Cash paid for interest
$19.7M
$5.9M
$14.4M
Cash paid for income taxes and tax credits, net of refunds
$144.4M
$116.7M
$79.6M
Issuance of stock units under incentive compensation plans
$2.1M
$2.8M
$2.3M
Excise tax on purchase and retirement of common stock
FTI Consulting sits at the top of its group. 114 entities, 35 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
FTI Consulting (DIFC) Limited Subsidiary · United Arab Emirates
and 88 more
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; subsidiaries, stakes and holdings from Wikidata (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What FTI Consulting reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our executive offices located in Washington, D.C., consist of 100,511 square feet under a lease expiring April 2028. We also lease offices to support our operations in 30 other cities across the U.S., including New York, Chicago, Denver, Houston, Dallas, Los Angeles and San Francisco, and we lease office space to support our international locations in 31 countries and territories — the UK, Ireland, Finland, France, Germany, Spain, Belgium, Switzerland, Denmark, Italy, Netherlands, Portugal, Sweden, Australia, China (including Hong Kong), Japan, Singapore, the United Arab Emirates, Lebanon, South Korea, South Africa, Argentina, Brazil, Colombia, Mexico, Canada, India, Qatar, Saudi Arabia, the Cayman Islands and the Virgin Islands (British). In November 2025, we entered into a material lease agreement to accept possession of three leases for our new office space in London, England for an initial fixed term of 15 years, subject to a one-time renewal option of five or ten years for each of the three leases. The Company expects to accept possession of the premises on or about September 25, 2027. We believe our existing leased facilities are adequate to meet our current requirements and that suitable space will be available as needed.
Forensic Technologies International was founded in 1982 by two engineers, Joseph Reynolds and Daniel Luczak, to provide expert witnesses for litigation and visual presentations to demonstrate complex technical issues for juries. Luczak later served as FTI's chairman from 1992 to 1998. The company went public in May 1996, raising $11.1 million and debuting at $8.50 a share. It was one of the first litigation support companies to be publicly traded.
Forensic Technologies International rebranded itself as FTI Consulting in 1998, and in 1999 began trading on the New York Stock Exchange as FCN. After 1998, FTI's business focused increasingly on "financial surgery on troubled companies, either through bankruptcy proceedings or in workout situations with creditors."
The company added over 1,000 employees to its Forensic and Litigation Consulting ("FLC") division since the passing of the 2002 Sarbanes-Oxley Act, which excluded auditors from providing consulting work to their public clients. FTI Consulting purchased PricewaterhouseCoopers' U.S. Business Recovery Services Division ("BRS") for $250 million in 2002, which at the time was the largest provider of bankruptcy, turnaround, and business restructuring services in the United States. The company purchased KPMG's Dispute Advisory Services in 2003. The company purchased Chicago-based Compass Lexecon in 2003, maintaining the name as a subsidiary.
FTI acquired Ringtail Solutions Group in 2005. Ringtail's signature product, the Ringtail Discovery Software Suite, provides e-discovery and document management tools to assist corporations and law firms during litigation engagements. FTI acquired Attenex Corporation in 2008 and merged Attenex Patterns with Ringtail Discovery Software Suite to form Ringtail 8 E-discovery Software.
In 2006, the company acquired the London-based communications consultancy Financial Dynamics ("FD"). FD is now referred to as the Strategic Communications Division of FTI. In 2007, FTI expanded into Latin America and reported US$1 billion in annual revenue for the first time.
From Wikipedia’s article on FTI Consulting, shared under CC BY-SA 4.0.3
Leadership
Who has led FTI Consulting, and when. Pick a name to see everywhere that person has worked.
FTI Consulting Management Limited [fka FTI Consulting Limited] [fka Carmill Limited] England and Wales7
FTI Consulting Management Ltd [fka FTI Consulting (Asia) Limited] [fka Baker Tilly Hong Kong Business Recovery Ltd] [fka Baker Tilly Purserblade Asia Limited] [fka Purserblade Asia Limited] Hong Kong7
FTI Consulting Management Services Limited British Virgin Islands7
From Wikidata.1 The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.
Acquisitions
Forensic Technologies International was founded in 1982 by two engineers, Joseph Reynolds and Daniel Luczak, to provide expert witnesses for litigation and visual presentations to demonstrate complex technical issues for juries. Luczak later served as FTI's chairman from 1992 to 1998. The company went public in May 1996, raising $11.1 million and debuting at $8.50 a share. It was one of the first litigation support companies to be publicly traded.
Forensic Technologies International rebranded itself as FTI Consulting in 1998, and in 1999 began trading on the New York Stock Exchange as FCN. After 1998, FTI's business focused increasingly on "financial surgery on troubled companies, either through bankruptcy proceedings or in workout situations with creditors."
The company added over 1,000 employees to its Forensic and Litigation Consulting ("FLC") division since the passing of the 2002 Sarbanes-Oxley Act, which excluded auditors from providing consulting work to their public clients. FTI Consulting purchased PricewaterhouseCoopers' U.S. Business Recovery Services Division ("BRS") for $250 million in 2002, which at the time was the largest provider of bankruptcy, turnaround, and business restructuring services in the United States. The company purchased KPMG's Dispute Advisory Services in 2003. The company purchased Chicago-based Compass Lexecon in 2003, maintaining the name as a subsidiary.
FTI acquired Ringtail Solutions Group in 2005. Ringtail's signature product, the Ringtail Discovery Software Suite, provides e-discovery and document management tools to assist corporations and law firms during litigation engagements. FTI acquired Attenex Corporation in 2008 and merged Attenex Patterns with Ringtail Discovery Software Suite to form Ringtail 8 E-discovery Software.
Read the full text
In 2006, the company acquired the London-based communications consultancy Financial Dynamics ("FD"). FD is now referred to as the Strategic Communications Division of FTI. In 2007, FTI expanded into Latin America and reported US$1 billion in annual revenue for the first time.
In 2008, FTI purchased the Schonbraun McCann Group, a real estate consulting firm based in New York, and Forensic Accounting, a forensic accounting practice based in the UK.
In 2010, FS Asia Advisory Limited was acquired in Hong Kong, expanding FTI's activities in Asia. In January 2014, FTI Consulting acquired London-based TLG Partners, which produced a series of annual thought leader indexes. In the same month, Steven H. Gunby was named the firm's new president and chief executive officer.
In 2012, FTI Consulting acquired KordaMentha partner, KordaMentha (Qld), starting its financial advisory business in Australia. In 2016, it acted as liquidator of Queensland Nickel and pressed payments to creditors by owner Clive Palmer who, while working to return the operation to profitability after acquiring it, allegedly drained the company to fuel mostly his political career despite a fall in the nickel price at the time. In 2025, it acted as liquidator of Mosaic Brands, as well as logistics giant XL Express.
In 2015, The Deal named FTI Consulting the world's top restructuring adviser to distressed companies.
In 2017, the company acquired the CDG Group, a leading restructuring advisory, turnaround management, value enhancement, and transaction advisory firm in New York.
In 2019, FTI Consulting acquired Andersch AG, a leading German restructuring and advisory firm, as part of its strategic expansion in Europe.
FORENSIC TECHNOLOGIES INTERNATIONAL CORPAug 14, 1996 to Apr 10, 19986
Controversies and legal
Criticism and controversies
In 2020, the New York Times reported on FTI consulting's work for the fossil fuel industry. Reporting found that FTI had helped to design, staff and run organizations and websites funded by energy companies that were made to appear to represent grass-roots support for fossil-fuel initiatives.
In 2023, the company was hired by Johnny & Associates to manage a press conference addressing sexual abuse by its late founder Johnny Kitagawa. The Japanese public broadcaster NHK reported that the consulting firm had a 'blacklist' of journalists to avoid calling on during the event. FTI admitted the existence of the 'blacklist' as well as a list of reporters who should preferably be given a chance to ask a question. The firm also admitted the lists were given to the conference modulator. Their concern about some reporters who would spend long periods talking about their own opinions or ask thoughtless questions (or remarks) that could be unnecessarily stressful and painful to the victims watching the press conference was given as a reason to prepare the list. FTI told the press that their press conference policy was confirmed with the talent agency. On whether it is a good system to prepare such lists, Akihiro Nojiri, Senior Managing Director of Strategic Communications at FTI Consulting Japan Office, said, "Well, I don't think I am in a position to judge whether it is good or not."
Feb 27, 2026Reported quarterly or annual results75
Oct 24, 2025Reported quarterly or annual results78
Jul 25, 2025Reported quarterly or annual results82
Apr 28, 2025Reported quarterly or annual results83
Apr 25, 2025Reported quarterly or annual results84
Apr 25, 2025Reported quarterly or annual results85
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
404 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 76 major events, 235 insider forms, 28 large holders, 45 other. The latest 20:
60 open-market trades by officers, directors and large owners since October 2021: 5 buys and 55 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Feb 26, 2026 (Section 12(b) of the Exchange Act).19
Risk factors and legal proceedings
The risks FTI Consulting names in Item 1A of its 10-K filed Feb 26, 2026: 38 risks under these headings, as written.19
Risks Related to Our Reportable Segments
Changes in capital markets, M&A activity, legal or regulatory requirements, general economic conditions and monetary or geopolitical disruptions, as well as other factors beyond our control, could reduce demand for one or more of our segment or practice offerings or services, in which case our revenues and profitability could decline.
Our revenues, operating income and cash flows are likely to fluctuate.
If we do not effectively manage the utilization of our professionals or billable rates, our financial results could decline.
Our segments may face risks of fee non-payment, and clients may seek to renegotiate existing fees and contract arrangements and may not accept billable rate or price increases, which could result in loss of engagements, fee write-offs, reduced revenues and less profitable business.
Our segments and practices could suffer competitive, reputational and business harm or increased liability or legal or regulatory action arising from the rapid introduction, integration, deployment, evolution and use of new technologies, including AI.
Our Technology segment faces certain risks, including (i) industry consolidation and a highly competitive environment, (ii) downward pricing pressure, (iii) data breaches, (iv) technology changes and obsolescence, including AI and machine learning, and (v) failure to protect intellectual property (“IP”) used by the segment, which individually or together could cause the financial results and prospects of this segment and the Company to decline.
We face certain risks relating to cybersecurity and the failure to protect the confidentiality of our or our client’s information against misuse or disclosure.
We may not manage our growth effectively, and our profitability may suffer.
Risks Related to Our Operations
Our operations involve financial and business risks that differ among the U.S. and foreign jurisdictions.
Failure to comply with governmental, regulatory and legal requirements or with our Company-wide Code of Ethics and Business Conduct, Anti-Corruption Policy, Policy on Inside Information and Insider Trading, and other policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.
The other 28 risks
Governmental focus on data privacy and security has increased, and could continue to increase, our costs of operations.
Changes to corporate income tax rates, legislation, rules and regulations and tax treaties in countries in which we operate may negatively impact our effective tax rate and financial results and increase our cash tax payment obligations.
We may be required to recognize goodwill impairment charges, which could materially affect our financial results.
We are exposed to certain physical and regulatory risks related to climate change, which could adversely affect our business, financial condition and results of operations.
Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our social-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks, including reputational harm.
Our business depends on our ability to use and access information systems, and modernize or replace such systems from time to time, and failure to effectively maintain such systems or modernize or replace systems could materially adversely affect our business and operations and harm our reputation.
The compromise of confidential or proprietary information could damage our reputation, harm our businesses and adversely impact our financial results.
Risks Related to Our People
Our failure to recruit and retain qualified professionals and manage headcount needs and utilization could negatively affect our financial results and our ability to staff client engagements, maintain relationships with clients and drive future growth.
We incur substantial costs to hire and retain our professionals, and we expect these costs to continue and to grow.
We rely heavily on our executive officers and the heads of our segments and industry and regional leaders for the success of our business, the loss of whom may negatively impact our business and operations.
Professionals may leave our Company to form or join competitors or clients, and the loss of such professionals may negatively impact our business and operations.
We may not have, or may choose not to pursue, legal recourse against professionals that leave our Company to join competitors or clients.
Our failure to achieve and maintain an inclusive workforce may impair our ability to attract and retain qualified employees, win and maintain clients, or attract investment, which could have a material adverse effect on our business and financial results, as well as reputational harm.
Risks Related to Our Client Relationships
Damage to our reputation could result in material adverse consequences to our business and adversely impact our client engagements and financial results.
If we are unable to accept or continue client engagements due to real or perceived relationship issues, our revenues, growth, client engagements and prospects may be negatively affected.
Claims involving our services or adverse publicity could harm our overall professional reputation and our ability to compete and attract business or hire or retain qualified professionals.
We may incur significant costs and may lose engagements as a result of claims by our clients regarding our services.
Our clients may terminate our engagements with little or no notice and without penalty, which may result in unexpected declines in our utilization and revenues.
We may not have, or may choose not to pursue, legal remedies against clients that terminate their engagements.
Risks Related to Competition
If we fail to compete effectively, we may miss business opportunities or lose existing clients, and our revenues and profitability may decline.
We may face competition from parties who sell us their businesses and from professionals who cease working for us.
Risks Related to Acquisitions
We may have difficulty integrating acquisitions or convincing clients to allow assignment of their engagements to us, which can increase costs of, and reduce the benefits we receive from, acquisitions.
We may have different systems of governance and management from a company we acquire or its parent, which could cause professionals who join us from an acquired company to leave us.
Risks Related to Our Indebtedness
Our leverage could adversely affect our financial condition or operating flexibility if the Company fails to comply with operating covenants under applicable debt instruments.
We and our subsidiaries may incur significant additional indebtedness.
We may be unable to generate sufficient cash to service our indebtedness, and we may be forced to take actions to satisfy our payment obligations under our indebtedness, which may not be successful.
Our Credit Facility is guaranteed by substantially all of our wholly-owned domestic subsidiaries and will be required to be guaranteed by future wholly-owned domestic subsidiaries, including those that join us in connection with acquisitions.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our annual debt service obligations to increase significantly.
Legal proceedings
From time to time in the ordinary course of business, we are subject to claims, asserted or unasserted, or named as a party to lawsuits or investigations. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings cannot be predicted with any certainty, and in the case of more complex legal proceedings the results are difficult to predict at all. We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we establish reserves and/or disclose the relevant litigation claims or legal proceedings, as appropriate. These assessments and estimates are based on the information available to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from those anticipated at the time. As of the filing of our Annual Report on Form 10-K, we are not aware of any asserted or unasserted legal proceedings or claims that we believe would have a material adverse effect on our financial condition or results of our operations.
