ASGN (ASGN) investor relations material

Executive summary

• Q3 2025 revenues were $1.01 billion, down 1.9% year-over-year, with adjusted EBITDA margin of 11.1% at the high end of guidance.

• Net income for Q3 2025 was $38.1 million, down from $47.5 million in Q3 2024.

• IT consulting revenues grew to 63% of total, up from 58% year-over-year.

• Commercial and federal segments saw strong bookings and contract awards, with commercial consulting bookings at $324 million (book-to-bill 1.2x) and federal new contract awards at $461 million (book-to-bill 1x TTM, 1.5x for the quarter).

• Ongoing investment in AI and digital transformation is a key demand driver across the client base.

Financial highlights

• Gross margin was 29.4%, up 30 bps year-over-year, driven by a higher mix of consulting revenues.

• Commercial segment revenues were $711.3 million (70% of total), down 1% year-over-year; federal segment revenues were $300.1 million (30% of total), down 3.9%.

• Net income was $38.1 million; adjusted EBITDA was $112.6 million (11.1% margin).

• Free cash flow was $72 million; operating cash flow was $83.9 million.

• Earnings per diluted share: $0.87 (GAAP), $1.31 (Adjusted); cash and equivalents: $126.5 million.

Outlook and guidance

• Q4 2025 revenue guidance: $960–$990 million; net income: $32.1–$35.7 million; adjusted EBITDA: $102–$107 million; adjusted EBITDA margin: 10.6%–10.9%.

• Adjusted EPS guidance: $1.12–$1.20; gross margin expected between 28.8% and 29.3%.

• Guidance assumes no further market deterioration and 61 billable days, the lowest quarterly total due to holidays.

• Slight sequential improvement expected in commercial segment; federal segment guidance remains cautious due to government shutdown uncertainty.

• Management expects cash, operating cash flows, and credit facility availability to be sufficient for obligations and capital needs for the next 12 months and beyond.