Our non-comp expense ratio for the first six months is 13.5%. Nonetheless, the increase for the quarter was larger than normal and is primarily due to investments that are intended to yield near-term results for the firm, such as conferences and client events, or expenses incurred in deal pitching and execution. Also, Investments that are intended to build our business with medium to longer term results such as technology, including AI and data management strategies, search and placement fees related to SMD and non-SMD hiring, and occupancy costs related to offices for our growing team of professionals.

Jul 29, 2026 / receipt, needs a key / Tim LaLonde, CFO | earnings call 2026-07-29 | transcript f6e52a87-32c1-49e8-ad9a-ed3a43a7b3ae | chars 12317-12927 | segment 12

On a headcount adjusted basis, we're actually still something around 30% lower per head. and so we're seeing some benefits there but along you know kind of partially offsetting that you've got things like oil prices are higher that translates to higher jet fuel costs and so flights are a little more expensive hotels are a little more expensive and so you know we go through with each of these components and some of them are headcount related some inflation related some travel to the beat of their own drummer and then you've got technology We're at an inflection point in the technology curve, and what we see is technology is obviously accelerating at a rate that's faster than it has historically, and any management team worth its salt is doubling down there and making sure they take advantage of the opportunities that are available.

Jul 29, 2026 / receipt, needs a key / Tim, CEO | earnings call 2026-07-29 | transcript f6e52a87-32c1-49e8-ad9a-ed3a43a7b3ae | chars 36170-37012 | segment 36

Client-related travel and entertainment spend also increased in the year as deal activity picked up.

Feb 4, 2026 / receipt, needs a key / Tim LaLonde, CFO | earnings call 2026-02-04 | transcript 28016359-cee7-4431-aefd-1b1ecf283994 | chars 15845-15945 | segment 16

An example of this would be travel and related expenses, which increase due to higher levels of client travel, as well as spend for conferences and client events.

Oct 29, 2025 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2025-10-29 | transcript a942e20d-a375-4365-a67e-bbc6b1229914 | chars 14450-14612 | segment 14

And, you know, I think on the travel side, you know, we want our people out seeing clients. I think there's obviously been a benefit there from an increase, you know, post-COVID in an increased use of Zoom for meetings. So it's not every meeting that we have to hop on a plane and fly somewhere for. And so that, to some extent, will be probably permanently a little lower. And the normalization, I think, is starting to flatten a bit. So that's a good sign on there.

Apr 30, 2025 / receipt, needs a key / Tim, CFO | earnings call 2025-04-30 | transcript 8a76dc97-af90-4ac8-a66a-622ccf813ab4 | chars 33557-34024 | segment 34

As the market environment continues on its path to recovery, we remain committed to strategically investing in our growth and balancing that with responsible expense management and medium to long-term value creation for our shareholders.

Feb 5, 2025 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2025-02-05 | transcript 3ace044e-33e8-45d6-8d46-f7dfb429e0db | chars 11287-11524 | segment 11

Travel and travel-related expenses were up 23% year over year, and the number of trips up 19%. This is also correlated with stronger business and higher revenue levels.

Feb 5, 2025 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2025-02-05 | transcript 3ace044e-33e8-45d6-8d46-f7dfb429e0db | chars 16133-16301 | segment 16

We continue to make strategic investments in our firms, and are balancing that with attention to expense management with our focus on providing exceptional client service and building value for our shareholders.

Oct 23, 2024 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2024-10-23 | transcript ed17a261-1916-46a5-9a13-8b170ecb035e | chars 10226-10437 | segment 10

First, an increase in travel and related expenses as client-related travel continues to normalize.

Oct 23, 2024 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2024-10-23 | transcript ed17a261-1916-46a5-9a13-8b170ecb035e | chars 13818-13916 | segment 13

Travel and related fees reflect a combination of continued post-COVID normalization of travel expenses and higher client-related activity levels.

Jul 24, 2024 / receipt, needs a key / Tim Lalonde, CFO | earnings call 2024-07-24 | transcript 227fabe7-a6fc-474d-9374-f3a70b853fe0 | chars 13313-13458 | segment 13

You noted that much of this is from travel expenses, which is obviously a positive for the top line.

Jul 24, 2024 / receipt, needs a key / James Yarrow, other | earnings call 2024-07-24 | transcript 227fabe7-a6fc-474d-9374-f3a70b853fe0 | chars 30689-30789 | segment 31

Now, there's also upward pressure, right? And so travel in the most recent quarter was, and this is measured by number of trips, is about 95% of where we were in the first part of 2019, the pre-COVID year, about 95%.

Jul 24, 2024 / receipt, needs a key / James Yarrow, other | earnings call 2024-07-24 | transcript 227fabe7-a6fc-474d-9374-f3a70b853fe0 | chars 31365-31581 | segment 31