Everforth (EFOR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenues reached $980.1 million, at the top end of guidance, with IT consulting comprising 63% of total revenue, up from 59% year-over-year.

• Net income for Q4 2025 was $25.2 million, with adjusted EBITDA of $107.9 million (11.0% margin), exceeding expectations.

• The company is rebranding to Everforth in 2026, unifying commercial and federal brands to drive cross-selling and operational scale.

• Announced acquisition of Quinnox for $290 million to enhance digital engineering and global delivery capabilities, expected to close in March 2026.

• Full-year 2025 revenues were $4.0 billion, net income $113.5 million, and adjusted EBITDA $422.6 million (10.6% margin).

Financial highlights

• Commercial segment revenues were $698.6 million in Q4, up 0.9% year-over-year; consulting revenues grew 19.2% year-over-year.

• Federal segment revenues were $281.5 million in Q4, down 3.7% year-over-year.

• Q4 gross margin was 28.9%; commercial segment gross margin was 32.6%, federal segment 19.9%.

• Free cash flow for Q4 was $93.7 million (87% of adjusted EBITDA); full-year free cash flow was $288.1 million.

• Q4 diluted EPS was $0.59, adjusted EPS $1.15; full-year diluted EPS $2.60, adjusted EPS $4.55.

Outlook and guidance

• Q1 2026 revenue guidance: $960–$980 million; net income: $25.8–$29.4 million; adjusted EBITDA: $93.5–$98.5 million; adjusted EBITDA margin: 9.7%–10.1%.

• Q1 2026 adjusted EPS guidance is $0.93–$1.02.

• Quinnox expected to generate low- to mid-teens revenue growth in 2026 over $100 million 2025 revenue, with adjusted EBITDA margins in the low 20% range.

• Cost savings initiatives targeting $80 million over three years, with moderate impact in 2026 and ramping up in 2027–2028.

• Gross margin guidance for Q1 2026: 28.7%–29.1%.