Everforth (EFOR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues were $968.3 million, flat year-over-year and within guidance, with Commercial Segment up 0.5% and Federal Segment down 1.1%.

• Net income declined to $5.5 million from $20.9 million in Q1 2025, mainly due to higher SG&A and interest expenses.

• Adjusted EBITDA was $83.6 million (8.6% margin), down from $93.6 million (9.7%) year-over-year.

• The company is rebranding to Everforth, unifying brands and updating segment reporting to focus on industry verticals.

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

Financial highlights

• Gross profit was $266.6 million, down 3.2% year-over-year; gross margin was 27.5%, down 90 bps; Commercial Segment gross margin fell 140 bps to 31.0%.

• SG&A expenses rose to $224.4 million, including $12.8 million in acquisition and integration costs.

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

• Cash and equivalents at quarter-end were $143.6 million; $160 million available on $500 million revolver.

• $39 million deployed for share repurchases in Q1; $934 million remains authorized.

Outlook and guidance

• Q2 2026 revenue guidance: $970 million–$1 billion; net income expected $8–$13.7 million; Adjusted EBITDA $85–$95 million (8.8–9.5% margin).

• Q2 gross margin projected at 28.3–28.7%.

• Strategic planning and integration 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.