ASGN Incorporated (ASGN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were $968.3 million, flat year-over-year and within guidance, with net income declining to $5.5 million from $20.9 million in Q1 2025.

• Adjusted EBITDA was $83.6 million (8.6% margin), down from $93.6 million (9.7%) year-over-year; diluted EPS fell to $0.13 from $0.48.

• The company is rebranding to Everforth, Inc. with new NYSE ticker EFOR effective April 24, 2026.

• Acquisition of Quinnox for $290 million expands digital engineering and offshore delivery capabilities.

• Leadership changes and strategic pivots are underway to support long-term growth and margin expansion.

Financial highlights

• Commercial Segment revenues: $675.5 million, up 0.5% year-over-year; Federal Segment revenues: $292.8 million, down 1.1%.

• Gross margin: 27.5%, down 90 bps year-over-year; Commercial gross margin: 31.0%, down 140 bps; Federal gross margin: 19.6%, up 10 bps.

• Net income: $5.5 million; Adjusted EBITDA: $83.6 million; Adjusted EBITDA margin: 8.6%.

• Free cash flow: $9.1 million, seasonally softer due to higher DSO; operating cash flow: $18.5 million.

• Cash and equivalents: $143.6 million at quarter end.

Outlook and guidance

• Q2 2026 revenue guidance: $970–$1,000 million; net income: $8.0–$13.7 million; Adjusted EBITDA: $85–$95 million (8.8–9.5% margin).

• Q2 gross margin projected at 28.3–28.7%; Adjusted net income per diluted share: $0.72–$0.90.

• Strategic planning expenses of $8–$10 million expected in Q2, declining over the year.

• Quinnox expected to contribute ~$25 million in Q2 revenue, with full-year revenue of ~$100 million and low-20% EBITDA margin.

• Management expects negative impact from government efficiency initiatives to lapse in Q2 2026.