- Clients are delaying discretionary investments due to economic uncertainty, tariffs, geopolitical unrest, and government funding cuts.
- Revenue from nonrecurring project-based services is down low single digits year-over-year, with increased client pushback on rate increases, averaging about 4%, below expectations.
- Market conditions have led to a headwind of approximately $75 million for the full year due to lower-than-expected rate increases.
- Management has accelerated revenue and cost control initiatives, including targeted client outreach and workforce optimization, to mitigate these pressures.
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- Management notes a 28% YoY increase in net earnings to $243 million for Q2 2025.
- Signs of economic slowing are present, but tariff-related risks have abated, leading to a more optimistic outlook.
- Management observed a willingness among small businesses to adapt to tariffs, with some seeing opportunities despite challenges.
Dafinchi