What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-05 compared with 2025-05-06 · 141 added, 102 removed, 161 unchanged (60% of the section changed)

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Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

the impact of global economic and geopolitical conditions, including inflation, and recession;

uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies;

risks associated with the creditworthiness, budget cuts, priorities and shutdown of governments and agencies;

our ability to maintain and expand our products and services;

our ability to keep pace with technological developments in artificial intelligence (“AI”) and comply with evolving AI regulations;

our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures;

our ability to grow or sustain revenue from individual customers;

our ability to expand or retain our customer base;

our ability to carry out our strategic initiatives and manage associated costs;

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our ability to achieve and effectively manage growth, including our ability to integrate our acquisitions and consummate and integrate future acquisitions;

our ability to pay our debt obligations;

our ability to maintain and expand our products and services;

our ability to expand or retain our customer base;

our ability to grow or sustain revenue from individual customers;

our ability to attract and retain a professional staff of research analysts and consultants as well as experienced sales personnel upon whom we are dependent, especially in light of labor competition;

our ability to achieve continued customer renewals and achieve new contract value, backlog and deferred revenue growth in light of competitive pressures;

our ability to attract and retain a professional staff of analysts and consultants as well as experienced sales personnel upon whom we are dependent, especially in light of labor competition;

our ability to successfully compete with existing competitors and potential new competitors;

our ability to enforce and protect our intellectual property rights;

our ability to keep pace with technological developments in artificial intelligence (“AI”) and comply with evolving AI regulations;

the impact of cybersecurity incidents or other disruptions to our information systems;

our ability to pay our debt obligations;

the impact of global economic and geopolitical conditions, including inflation and recession;

uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies;

risks associated with the creditworthiness, budget cuts, priorities and shutdown of governments and agencies;

additional risks associated with international operations, including foreign currency fluctuations;

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the impact of restructuring and other charges on our businesses and operations;

cybersecurity incidents or other disruptions to our information systems;

our ability to meet sustainability commitments and comply with applicable regulatory requirements, as well as potential reactions by customers to these commitments;

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Gartner, Inc.

IT) delivers actionable, objective insight that drives smarter decisions and stronger performance on an organization’s mission-critical priorities.

We deliver our products and services globally through three business segments – Research, Conferences and Consulting, as described below.

• Research equips executives and their teams from every function and across all industries with actionable, objective insight, guidance and tools.

IT) delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization’s mission-critical priorities.

We deliver our products and services globally through three business segments – Business and Technology Insights, Conferences and Consulting, as described below.

In the second quarter of 2025, we renamed our segment previously referred to as Research to Business and Technology Insights (or “Insights”) to reflect the nature of the value we provide to clients.

Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission-critical priorities.

• Insights equips executives and their teams from every function and across all industries with actionable, objective business and technology insights, guidance and tools.

Our experienced experts deliver all this value informed by an unmatched combination of practitioner-sourced and data-driven research to help our clients address their mission critical priorities.

• Conferences provides executives and teams across an organization the opportunity to learn, share and network.

From our Gartner Symposium/Xpo series, to industry-leading conferences focused on specific business roles and topics, to peer-driven sessions, our offerings enable attendees to experience the best of Gartner insight and guidance.

• Consulting serves senior executives leading technology-driven strategic initiatives leveraging the power of Gartner’s actionable, objective insight.

• Consulting serves senior executives leading technology-driven strategic initiatives leveraging the power of Gartner’s actionable, objective insights.

Through custom analysis and on-the-ground support we enable optimized technology investments and stronger performance on our clients’ mission critical priorities.

As of March 31, 2025 we had 21,107 employees globally, an increase of 4.0% from March 31, 2024.

As of June 30, 2025 we had 20,994 employees globally, an increase of 2.4% from June 30, 2024.

Recent Developments

Our Research contract value with the US federal government was approximately $225.0 million at March 31, 2025, as compared to approximately $275.0 million at December 31, 2024.

Nearly all of our US federal contracts will come to term during 2025, with about 40% having transacted in the first quarter of 2025, the largest quarter of this calendar year.

Slightly less than half of the US federal government contract value that was eligible for renewal in the first quarter of 2025 was retained.

In addition to the non-renewals, we received notices of termination-for-convenience from various US government agencies for approximately $30.0 million of contracts in the first quarter of 2025.

These contracts are non-refundable, with nearly all scheduled to expire during 2025.

Our Insights contract value with the US federal government was approximately $200.0 million at June 30, 2025, as compared to approximately $275.0 million at December 31, 2024.

Over 60% of our US federal contracts have transacted in the first half of 2025, and slightly less than half of that contract value was retained.

In addition to the non-renewals, we have received notices of termination-for-convenience from various US government agencies for approximately $20.0 million of contracts that are primarily scheduled to expire in the second half of 2025.

As the current geopolitical environment remains unpredictable, we continue to monitor and evaluate the impact, both direct and indirect, of government actions that could adversely impact our business operations and financial performance.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing its impact on our consolidated financial statements.

BUSINESS MEASUREMENTS

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BUSINESS SEGMENT BUSINESS MEASUREMENT

Research Contract value represents the dollar value attributable to all of our subscription-related contracts.

Insights Contract value represents the dollar value attributable to all of our subscription-related contracts.

It is calculated as the annualized value of all contracts in effect at a specific point in time, without regard to the duration of the contract.

Contract value primarily includes Research deliverables for which revenue is recognized on a ratable basis, as well as other deliverables (primarily Conferences tickets) for which revenue is recognized when the deliverable is utilized.

Comparing contract value year-over-year not only measures the short-term growth of our business, but also signals the long-term health of our Research subscription business since it measures revenue that is highly likely to recur over a multi-year period.

Contract value primarily includes Insights deliverables for which revenue is recognized on a ratable basis, as well as other deliverables (primarily Conferences tickets) for which revenue is recognized when the deliverable is utilized.

Comparing contract value year-over-year not only measures the short-term growth of our business, but also signals the long-term health of our Insights subscription business since it measures revenue that is highly likely to recur over a multi-year period.

Our contract value consists of Global Technology Sales contract value, which includes sales to users and providers of technology, and Global Business Sales contract value, which includes sales to all other functional leaders.

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EXECUTIVE SUMMARY OF OPERATIONS AND FINANCIAL POSITION

The fundamentals of our strategy include a focus on creating actionable insight for executives and their teams, delivering innovative and highly differentiated product offerings, building a strong sales capability, providing world class client service with a focus on client engagement and retention, and continuously improving our operational effectiveness.

We had total revenues of $1.5 billion during the first quarter of 2025, an increase of 4% compared to the first quarter of 2024.

During the first quarter of 2025, revenues for Research, Conferences and Consulting each increased by 4%, compared to the first quarter of 2024.

The fundamentals of our strategy include a focus on creating actionable business and technology insights for executives and their teams, delivering innovative and highly differentiated product offerings, building a strong sales capability, providing world class client service with a focus on client engagement and retention, and continuously improving our operational effectiveness.

We had total revenues of $1.7 billion during the second quarter of 2025, an increase of 6% compared to the second quarter of 2024.

During the second quarter of 2025, revenues for Insights increased by 4%, Conferences revenue increased by 14% and Consulting revenue increased by 9%, compared to the second quarter of 2024.

For a more complete discussion of our results by segment, see Segment Results below.

For the first quarter of 2025 and 2024, we had net income of $210.9 million and $210.5 million, respectively, and diluted net income per share of $2.71 and $2.67, respectively.

Cash provided by operating activities was $0.3 billion and $0.2 billion during the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, we had $2.1 billion of cash and cash equivalents and approximately $0.7 billion of available borrowing capacity on our revolving credit facility.

For the second quarter of 2025 and 2024, we had net income of $240.8 million and $229.5 million, respectively, and diluted net income per share of $3.11 and $2.93, respectively.

Cash provided by operating activities was $0.7 billion and $0.6 billion during the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, we had $2.2 billion of cash and cash equivalents and approximately $0.7 billion of available borrowing capacity on our revolving credit facility.

For a more complete discussion of our cash flows and financial position, see the Liquidity and Capital Resources section below.

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The table below presents an analysis of selected line items and period-over-period changes in our interim Condensed Consolidated Statements of Operations for the periods indicated (in thousands).

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Increase (Decrease) Increase

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Increase (Decrease) Increase

Total revenues $ 1,686,454 $ 1,595,060 $ 91,394 6 %

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Net income $ 240,783 $ 229,548 $ 11,235 5 %

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Increase (Decrease) Increase

Total revenues $ 3,220,584 $ 3,067,986 $ 152,598 5 %

Costs and expenses:

Cost of services and product development 1,006,761 972,755 34,006 3

Selling, general and administrative 1,507,196 1,401,904 105,292 8

Depreciation 59,401 53,911 5,490 10

Amortization of intangibles 42,098 45,930 (3,832) (8)

Acquisition and integration charges — 818 (818) (100)

Operating income 605,128 592,668 12,460 2

Interest expense, net (25,214) (39,209) (13,995) (36)

Other income, net 4,887 5,395 (508) (9)

Provision for income taxes 133,079 118,761 14,318 12

Net income $ 451,722 $ 440,093 $ 11,629 3 %

In addition to GAAP results, we provide foreign currency neutral dollar amounts and percentages for our revenues, certain expenses, contract values and other metrics.

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dollars by applying the same foreign exchange rates to all periods presented.

Total revenues for the three months ended March 31, 2025 were $1.5 billion, an increase of $61.2 million, or 4% compared to the same period in 2024 on a reported basis and 6% excluding the foreign currency impact.

Total revenues for the three months ended June 30, 2025 were $1.7 billion, an increase of $91.4 million, or 6% compared to the same period in 2024 on a reported basis and 5% excluding the foreign currency impact.

Total revenues for the six months ended June 30, 2025 were $3.2 billion, an increase of $0.2 billion, or 5% compared to the same period in 2024 on both a reported basis and excluding the foreign currency impact.

Refer to the section of this MD&A below entitled “Segment Results” for a discussion of revenues and results by segment.

Cost of services and product development was $475.0 million during the three months ended March 31, 2025, an increase of $15.6 million compared to the same period in 2024, or 3% on a reported basis and 4% excluding the foreign currency impact.

The increase in Cost of services and product development was primarily due to a $19.0 million increase in personnel expenses associated with headcount increases.

Cost of services and product development as a percent of revenues was 31% for each of the three months ended March 31, 2025 and 2024.

Selling, general and administrative (“SG&A”) expense was $730.3 million during the three months ended March 31, 2025, an increase of $40.5 million compared to the same period in 2024, or 6% and on a reported basis and 7% excluding the foreign currency impact.

The increase in SG&A expense during the three months ended March 31, 2025 was primarily a result of a $40.8 million increase in personnel expenses due to increased headcount.

The number of quota-bearing sales associates in Global Technology Sales increased by 3% to 3,707 and in Global Business Sales, increased by 9% to 1,331 compared to March 31, 2024.

On a combined basis, the total number of quota-bearing sales associates increased by 4% when compared to March 31, 2024.

SG&A expense as a percent of revenues was 48% and 47% during the three months ended March 31, 2025 and 2024, respectively.

Depreciation increased by 10% during the three months ended March 31, 2025, compared to the same periods in 2024.

The increase for the three months ended March 31, 2025 was primarily due to increased software additions during the last twelve months.

Amortization of intangibles decreased by 5% during the three months ended March 31, 2025, compared to the same periods in 2024, due to certain intangible assets becoming fully amortized in 2024.

Acquisition and integration charges decreased by $0.5 million during the three months ended March 31, 2025, respectively, compared to the same periods in 2024.

Operating income was $278.0 million and $273.9 million during the three months ended March 31, 2025 and 2024, respectively.

The slight increase in operating income for the three months ended March 31, 2025 as compared to the prior year period was primarily due to increased revenues, partially offset by increases in cost of services and product development and selling, general and administrative expenses.

Interest expense, net decreased by $5.8 million during the three months ended March 31, 2025, compared to the same period in 2024.

The decrease for the three months ended March 31, 2025 was due to increased interest income, primarily as a result of higher cash balances than the prior year.

Cost of services and product development was $531.7 million during the three months ended June 30, 2025, an increase of $18.4 million compared to the same period in 2024, or 4% on a reported basis and 2% excluding the foreign currency impact.

The increase in Cost of services and product development during the three months ended June 30, 2025 was primarily due to a $12.2 million increase in personnel expenses associated with merit increases.

Cost of services and product development as a percent of revenues was 32% for each of the three months ended June 30, 2025 and 2024.

Cost of services and product development was $1.0 billion during the six months ended June 30, 2025, an increase of $34.0 million compared to the same period in 2024, or 3% on both a reported basis and excluding the foreign currency impact.

The increase in Cost of services and product development during the six months ended June 30, 2025 was primarily due to a $31.2 million increase in personnel expenses associated with merit increases.

Cost of services and product development as a percent of revenues was 31% and 32% for the six months ended June 30, 2025 and 2024, respectively.

Selling, general and administrative (“SG&A”) expense was $776.9 million during the three months ended June 30, 2025, an increase of $64.8 million compared to the same period in 2024, or 9% and on a reported basis and 8% excluding the foreign currency impact.

The increase in SG&A expense during the three months ended June 30, 2025 was primarily a result of a $40.9 million increase in personnel expenses due to increased headcount and merit increases.

SG&A expense was $1.5 billion during the six months ended June 30, 2025, an increase of $105.3 million compared to the same period in 2024, or 8% on both reported basis and excluding the foreign currency impact.

The increase in SG&A expense during the six months ended June 30, 2025 was primarily a result of an $81.6 million increase in personnel expenses due to increased headcount and merit increases.

The number of quota-bearing sales associates in Global Technology Sales increased by 3% to 3,695 and in Global Business Sales, increased by 10% to 1,339 compared to June 30, 2024.

On a combined basis, the total number of quota-bearing sales associates increased by 5% when compared to June 30, 2024.

SG&A expense as a percent of revenues was 46% and 45% during the three months ended June 30, 2025 and 2024, respectively.

SG&A expense as a percent of revenues was 47% and 46% during the six months ended June 30, 2025 and 2024, respectively.

Depreciation increased by 11% and 10% during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

The increase for the three and six months ended June 30, 2025 was primarily due to increased software additions during the last twelve months.

Amortization of intangibles decreased by 12% and 8% during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, due to certain intangible assets becoming fully amortized in 2024.

Acquisition and integration charges decreased by $0.4 million and 0.8 million during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

Operating income was $327.1 million and $318.8 million during the three months ended June 30, 2025 and 2024, respectively.

Operating income was $605.1 million and $592.7 million during the six months ended June 30, 2025 and 2024, respectively.

The increases in operating income for the three and six months ended June 30, 2025 as compared to the prior year periods were primarily due to increased revenues, partially offset by increases in cost of services and product development and selling, general and administrative expenses.

Interest expense, net decreased by $8.2 million and $14.0 million during the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

The decrease for the three and six months ended June 30, 2025 was due to increased interest income, primarily as a result of higher cash balances than the prior year.

Other income, net for the periods presented herein included the net impact of foreign currency gains and losses from our hedging activities.

Other income, net for the three months ended March 31, 2025 and 2024 also included gains of $0.2 million and $4.5 million, respectively, on de-designated interest rate swaps.

The provision for income taxes was $56.1 million and $49.0 million for the three months ended March 31, 2025 and 2024, respectively.

The effective income tax rate was 21.0% and 18.9% for the three months ended March 31, 2025 and 2024, respectively.

T he effective income tax rate is higher in the current year primarily due to larger unrecognized tax benefits compared to the same period in the prior year.

Net income for the three months ended March 31, 2025 and 2024 was $210.9 million and $210.5 million, respectively.

Our diluted net income per share during the three months ended March 31, 2025 increased b y $0.04 .

The slight increase in net income during the three months ended March 31, 2025 was primarily due to an increase in revenues and lower interest expense, net, partially offset by increases in operating expenses and the provision for income taxes.

Other income, net for the three months ended June 30, 2025 and 2024 also included gains of $0.3 million and $0.6 million, respectively, on de-designated interest rate swaps.

Other income, net for the six months ended June 30, 2025 and 2024 also included gains of $0.4 million and $5.0 million, respectively, on de-designated interest rate swaps.

The provision for income taxes was $77.0 million and $69.7 million for the three months ended June 30, 2025 and 2024, respectively and $133.1 million and $118.8 million for the six months ended June 30, 2025 and 2024, respectively.

The effective income tax rate was 24.2% and 23.3% for the three months ended June 30, 2025 and 2024, respectively and 22.8% and 21.3% for the six months ended June 30, 2025 and 2024, respectively.

While all periods include benefits related to research and development tax credits, the current year effective income tax rates reflect a lower benefit than the same periods in the prior year.

Net income for the three months ended June 30, 2025 and 2024 was $240.8 million and $229.5 million, respectively, while net income for the six months ended June 30, 2025 and 2024 was $451.7 million and $440.1 million , respectively.

Our diluted net income per share during the three months ended June 30, 2025 increased b y $0.18 .

The increases in net income during the three and six months ended June 30, 2025 were primarily due to an increase in revenues and lower interest expense, net, partially offset by increases in operating expenses and the provision for income taxes.

SEGMENT RESULTS

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The sections below present the results of the Company’s three reportable business segments:

Research, Conferences and Consulting.

As Of And For The Three Months Ended March 31, 2025 As Of And For The Three Months Ended March 31, 2024 Increase

Insights (formerly Research), Conferences and Consulting.

As Of And For The Three Months Ended June 30, 2025 As Of And For The Three Months Ended June 30, 2024 Increase

(Decrease) Percentage

(Decrease) As Of And For The Six Months Ended June 30, 2025 As Of And For The Six Months Ended June 30, 2024 Increase

(Decrease) Percentage

Financial Measurements:

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Client retention 84 % 83 % 1 point —

Wallet retention 101 % 101 % — —

Wallet retention 99 % 101 % (2) points —

Global Business Sales (2):

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(3) Contract values are on a foreign currency neutral basis.

Contract values as of March 31, 2024 have been calculated using the same foreign currency rates as 2025.

Research revenues i ncreased by $53.7 million during the three months ended March 31, 2025 compared to the same period in 2024, or 4% on a reported basis and 6% excluding the foreign currency impact.

The increase in revenues during 2025 was primarily due to Research contract value growth in 2024.

The segment gross contribution margin was 74% for both the three months ended March 31, 2025 and 2024.

Contract value increased to $5.1 billion at March 31, 2025, or 7% compared to March 31, 2024 excluding the foreign currency impact.

The majority of industry sectors grew high single-digit rates.

Growth was led by the energy, manufacturing and healthcare sectors, with public sector lagging in the low single digits.

Global Technology Sales (“GTS”) contract value increased by 6% at March 31, 2025 when compared to March 31, 2024.

Contract values as of June 30, 2024 have been calculated using the same foreign currency rates as 2025.

Insights revenues i ncreased by $53.5 million during the three months ended June 30, 2025 compared to the same period in 2024, or 4% on a reported basis and 3% excluding the foreign currency impact.

For the six months ended June 30, 2025, Insights revenue increased by $107.1 million compared to the same period in 2024 or 4% on a reported basis and 5% excluding the foreign currency impact.

The increase in revenues during 2025 was primarily due to Insights contract value growth in 2024.

The segment gross contribution margin was 74% for both the three and six months ended June 30, 2025 and 2024.

Contract value increased to $5.0 billion at June 30, 2025, or 5% compared to June 30, 2024 excluding the foreign currency impact.

The majority of industry sectors grew mid single-digit rates or faster.

Growth was led by the energy, manufacturing and healthcare sectors, with public sector having a low single digit decrease.

Global Technology Sales (“GTS”) contract value increased by 4% at June 30, 2025 when compared to June 30, 2024.

The increase in GTS contract value was primarily due to new business from existing clients.

GTS contract value increased by mid single-digit rates or faster for all enterprise sizes except small enterprises and public sector and nearly all industry sectors.

GTS contract value increased by mid single-digit rates or faster for all commercial enterprise sizes and nearly all industry sectors.

Global Business Sales (“GBS”) contract value increased by 9% year-over-year, also primarily driven by new business from existing clients.

The majority of our GBS practices achieved double-digit growth rates, with the majority of enterprise sizes and sectors growing double-digits year-over-year as well.

GTS client retention was 84% and 83% as of March 31, 2025 and 2024, respectively while wallet retention was 101% for both periods.

GBS client retention was 87% as of both March 31, 2025 and 2024, while wallet retention was 105% and 107%, respectively.

The decrease in GBS wallet retention was largely due to lower levels of spending by existing clients compared to the same period in 2024.

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Increase

The majority of our GBS practices achieved double-digit growth rates, with the majority of enterprise sizes and sectors growing high single-digits or faster year-over-year as well.

GTS client retention was 84% and 83% as of June 30, 2025 and 2024, respectively, while wallet retention was 99% and 101% as of June 30, 2025 and 2024, respectively.

GBS client retention was 87% as of both June 30, 2025 and 2024, while wallet retention was 104% and 106%, respectively.

The decrease in GTS and GBS wallet retention was largely due to lower levels of spending by existing clients compared to the same period in 2024.

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Increase

(Decrease) Percentage

(Decrease) Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Increase

(Decrease) Percentage

Financial Measurements:

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Gross contribution (1) $ 121,388 $ 108,112 $ 13,276 12 % $ 148,770 $ 131,367 $ 17,403 13 %

Gross contribution margin 38 % 33 % 5 points —

Gross contribution margin 57 % 58 % (1) point — 52 % 51 % 1 point —

Business Measurements:

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(2) Single day, local meetings are excluded.

Conferences revenues increased by $2.5 million during the three months ended March 31, 2025 compared to the same period in 2024, or 4% on a reported basis and 5% excluding the foreign currency impact.

The increase in revenues for the three months ended March 31, 2025 was primarily due to increased exhibitor revenue compared to the same period in 2024.

We held 10 and 12 in-person destination conferences during the three months ended March 31, 2025 and 2024, respectively.

Gross contribution increased to $27.4 million during the three months ended March 31, 2025 compared to $23.3 million in the same period last year.

The increase in gross contribution during the three months ended March 31, 2025 was primarily the result of the increase in revenues, as well as a decrease in conference-related expenses as a result of two destination conferences moving from the first quarter to the second quarter in 2025.

As Of And For The Three Months Ended March 31, 2025 As Of And For The Three Months Ended March 31, 2024 Increase

Conferences revenues increased by $25.3 million during the three months ended June 30, 2025 compared to the same period in 2024, or 14% on a reported basis and 12% excluding the foreign currency impact.

The increase in revenues for the three months ended June 30, 2025 was primarily due to increased destination conferences compared to the same period in 2024.

We held 19 and 16 destination conferences during the three months ended June 30, 2025 and 2024, respectively, with the increase primarily as a result of three destination conferences moving from the first and third quarters to the second quarter in 2025.

Gross contribution increased to $121.4 million during the three months ended June 30, 2025 compared to $108.1 million in the same period last year.

The increase in gross contribution during the three ended June 30, 2025 was primarily the result of the increase in revenues, partially offset by an increase in conference-related expenses as a result of holding three additional destination conferences in the second quarter in 2025 compared to the same period in 2024.

For the six months ended June 30, 2025 Conferences revenues increased by $27.9 million compared to the same period in 2024, or 11% on a reported basis and 10% excluding the foreign currency impact.

We held 29 and 28 destination conferences during the six months ended June 30, 2025 and 2024, respectively.

The increase in revenues for the six months ended June 30, 2025 was primarily due to increased exhibitor revenue compared to the same period in 2024.

Gross contribution increased to $148.8 million during the six months ended June 30, 2025 compared to $131.4 million in the same period last year.

The increase in gross contribution during the six months ended June 30, 2025 was primarily the result of the increase in revenues, partially offset by an increase in conference-related expenses.

As Of And For The Three Months Ended June 30, 2025 As Of And For The Three Months Ended June 30, 2024 Increase

(Decrease) Percentage

(Decrease) As Of And For The Six Months Ended June 30, 2025 As Of And For The Six Months Ended June 30, 2024 Increase

(Decrease) Percentage

Financial Measurements:

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Billable headcount 949 953 (4) — %

Consultant utilization 64 % 66 % (2) points —

Consultant utilization 65 % 67 % (2) points — 64 % 66 % (2) points —

(1) Dollars in thousands.

(2) Backlog is on a foreign currency neutral basis.

Backlog as of March 31, 2024 has been calculated using the same foreign currency rates as 2025.

Consulting revenues increased by 4% during the three months ended March 31, 2025 compared to the same period in 2024 on a reported basis and 5% excluding the foreign currency impact, with a decrease in labor-based consulting revenue of 4% and an increase in contract optimization revenue of 36%, each on a reported basis.

Contract optimization revenue may vary significantly and, as such, revenues for the first quarter of 2025 may not be indicative of results for the remainder of 2025 or beyond.

The segment gross contribution margin was 38% and 40% for the three months ended March 31, 2025 and 2024, respectively.

The decrease in gross contribution margin for the three months ended March 31, 2025 was primarily due to an increase in personnel expenses due to higher headcount.

Backlog increased by $29.8 million, or 16%, from March 31, 2024 to March 31, 2025, excluding the foreign currency impact.

Backlog as of June 30, 2024 has been calculated using the same foreign currency rates as 2025.

Consulting revenues increased by 9% during the three months ended June 30, 2025 compared to the same period in 2024 on a reported basis and 6% excluding the foreign currency impact, with an increase in labor-based consulting revenue of 3% and an increase in contract optimization revenue of 26%, each on a reported basis.

Contract optimization revenue may vary significantly and, as such, revenues for the second quarter of 2025 may not be indicative of results for the remainder of 2025 or beyond.

The segment gross contribution margin was 40% and 38% for the three months ended June 30, 2025 and 2024, respectively.

The increase in gross contribution margin for the three months ended June 30, 2025 was primarily due to the increase in revenues.

For the six months ended June 30, 2025, Consulting revenues increased 6% compared to the same period in 2024 on both a reported basis and excluding the foreign currency impact, with a decrease in labor-based consulting revenue of 1% and an increase in contract optimization revenue of 30%, each on a reported basis.

The segment gross contribution margin for the six months ended June 30, 2025 was flat compared to the same period in 2024.

Backlog decreased by $3.9 million, or 2%, from June 30, 2024 to June 30, 2025, excluding the foreign currency impact.

LIQUIDITY AND CAPITAL RESOURCES

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Note 7 — Debt in the Notes to Condensed Consolidated Financial Statements provides additional information regarding the Company’s outstanding debt obligations.

At March 31, 2025, we had $2.1 billion of cash and cash equivalents and approximately $0.7 billion of available borrowing capacity on the revolving credit facility under our 2024 Credit Agreement.

At June 30, 2025, we had $2.2 billion of cash and cash equivalents and approximately $0.7 billion of available borrowing capacity on the revolving credit facility under our 2024 Credit Agreement.

We believe that the Company has adequate liquidity to meet its currently anticipated needs for both the next twelve months and the foreseeable future.

We have historically generated significant cash flows from our operating activities, benefiting from the favorable working capital dynamics of our subscription-based business model in our Research segment, which is our largest business segment and historically has constituted a significant portion of our total revenues.

The majority of our Research customer contracts are paid in advance and, combined with a strong customer retention rate and high incremental margins, our subscription-based business model has resulted in continuously strong operating cash flow.

We have historically generated significant cash flows from our operating activities, benefiting from the favorable working capital dynamics of our subscription-based business model in our Insights segment, which is our largest business segment and historically has constituted a significant portion of our total revenues.

The majority of our Insights customer contracts are paid in advance and, combined with a strong customer retention rate and high incremental margins, our subscription-based business model has resulted in continuously strong operating cash flow.

Cash flow generation has also benefited from our ongoing efforts to improve the operating efficiencies of our businesses as well as a focus on the optimal management of our working capital as we increase sales.

During the fourth quarter of 2024, we entered into an amended lease agreement to significantly reduce the square footage and reduce future lease payments at one of our leased locations.

We made an installment payment of $24.0 million during the fourth quarter of 2024, and will make an equal installment payment during the second quarter of 2025 in consideration for the lease amendment.

We made installment payments of $24.0 million during each of the fourth quarter of 2024 and the second quarter of 2025 in consideration for the lease amendment.

Our cash and cash equivalents are held in numerous locations throughout the world with 45% held outside the U.S.

at March 31, 2025.

at June 30, 2025.

We intend to distribute a portion of the accumulated undistributed earnings of non-U.S.

subsidiaries as of March 31, 2025 in conjunction with global restructuring activity and have recorded a modest tax expense for the anticipated impact of such distribution.

subsidiaries in conjunction with global restructuring activity and have recorded a modest tax expense for the anticipated impact of such distribution.

We continue to assert our intention to reinvest substantially all remaining accumulated undistributed foreign earnings, except in instances where repatriation would result in minimal additional tax.

The table below summarizes the changes in our cash balances for the periods indicated (in thousands).

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Increase

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Increase

Cash provided by operating activities $ 697,077 $ 558,800 $ 138,277

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Ending cash and cash equivalents $ 2,197,536 $ 1,235,785 $ 961,751

Cash provided by operating activities was $313.5 million and $188.8 million during the three months ended March 31, 2025 and 2024, respectively.

The year-over-year increase was primarily due to the improved timing of collections.

Cash used in investing activities was $25.6 million and $24.7 million during the three months ended March 31, 2025 and 2024, respectively.

Cash provided by operating activities was $697.1 million and $558.8 million during the six months ended June 30, 2025 and 2024, respectively.

The year-over-year increase was primarily due to the improved timing of collections and lower income tax payments.

Cash used in investing activities was $61.8 million and $54.0 million during the six months ended June 30, 2025 and 2024, respectively.

The increase from 2024 to 2025 was primarily the result of higher leasehold improvements expenditures.

Cash used in financing activities was $152.9 million and $219.7 million during the three months ended March 31, 2025 and 2024, respectively.

We used $162.7 million and $225.1 million of cash for share repurchases during the three months ended

March 31, 2025 and 2024, respectively.

Cash used in financing activities was $419.7 million and $553.2 million during the six months ended June 30, 2025 and 2024, respectively.

We used $437.2 million and $564.7 million of cash for share repurchases during the six months ended June 30, 2025 and 2024, respectively.

In March 2024, the Company borrowed $274.4 million under the 2024 Credit Agreement.

The initial borrowing was used to repay the outstanding amounts under the 2020 Credit Agreement.

As of March 31, 2025, the Company had $2.5 billion of principal amount of debt outstanding.

As of June 30, 2025, the Company had $2.5 billion of principal amount of debt outstanding.

Note 7 — Debt in the Notes to Condensed Consolidated Financial Statements provides additional information regarding the Company’s outstanding debt obligations.

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OFF BALANCE SHEET ARRANGEMENTS

From January 1, 2025 through March 31, 2025, the Company has not entered into any material off-balance sheet arrangements or transactions with unconsolidated entities or other persons.

From January 1, 2025 through June 30, 2025, the Company has not entered into any material off-balance sheet arrangements or transactions with unconsolidated entities or other persons.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis