Everforth (EFOR) Q3 2025 earnings summary

Executive summary

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

• IT consulting drove growth, comprising 63% of total revenues, up from 58% year-over-year.

• Commercial consulting bookings totaled $324 million (book-to-bill 1.2x TTM); federal new contract awards were $461 million (book-to-bill 1x TTM); federal contract backlog stood at $3.1 billion.

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

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

Financial highlights

• Q3 revenues decreased 1.9% year-over-year to $1.01 billion, at the top end of guidance.

• Commercial segment revenues were $711.3 million, down 1% year-over-year; consulting revenues rose 17.5%; assignment revenues fell 13.2%.

• Federal government segment revenues were $300.1 million, down 3.9% year-over-year.

• Gross margin was 29.4% (up 30 bps YoY); commercial segment gross margin 33.2% (up 40 bps), federal segment 20.3% (down 40 bps).

• Net income was $38.1 million; Adjusted EBITDA $112.6 million (11.1% margin); Free Cash Flow $72 million (64% conversion of Adjusted EBITDA).

Outlook and guidance

• Q4 2025 revenue guidance: $960–$980 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; gross margin expected between 28.8% and 29.3%.

• 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.