Everforth (EFOR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were $1.011 billion, down 1.9% year-over-year, reaching the high end of guidance, with Adjusted EBITDA margin of 11.1%.

• 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 book-to-bill ratios at or above 1.0.

• AI and digital transformation remain key demand drivers across both commercial and federal clients.

Financial highlights

• Gross margin for Q3 2025 was 29.4%, up 30 basis points year-over-year; commercial segment gross margin 33.2%, federal segment 20.3%.

• Adjusted EBITDA was $112.6 million; Free Cash Flow $72 million; operating cash flow $83.9 million.

• Diluted EPS was $0.87, down from $1.06 year-over-year; adjusted EPS was $1.31, down from $1.43.

• Cash and equivalents at quarter-end were $126.5 million; working capital $456.1 million.

• Commercial consulting revenues rose 17.5% year-over-year to $334.9 million; assignment revenues fell 13.2% year-over-year.

Outlook and guidance

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

• Adjusted EPS guidance is $1.12–$1.20.

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

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

• Gross margin expected between 28.8% and 29.3%.