Financial Data and Key Metrics Changes - ASGN reported revenues of $1,010,000,000 for Q3 2025, a decrease of 1.9% year over year, but at the high end of guidance expectations [23] - Adjusted EBITDA was $112,600,000 with an adjusted EBITDA margin of 11.1% [25] - Net income for the quarter was $38,100,000 [25] - Free cash flow was $72,000,000, representing a conversion rate of approximately 64% of adjusted EBITDA [27] Business Line Data and Key Metrics Changes - The IT consulting business accounted for approximately 63% of total revenues, up from 58% in the same period last year [5] - Commercial consulting revenues totaled $334,900,000, an increase of 17.5% year over year [23] - Federal segment revenues were $300,100,000, a decrease of 3.9% year over year [24] - Assignment revenues decreased by 13.2% year over year, reflecting softness in parts of the commercial segment sensitive to macroeconomic changes [23] Market Data and Key Metrics Changes - Consumer and industrial accounts saw mid-teens growth year over year, driven by materials, utilities, and consumer discretionary clients [10] - Healthcare industry revenues increased by high single digits year over year, supported by healthcare provider and pharmaceutical clients [11] - Financial services, TMT, and business services experienced year-over-year declines [11] Company Strategy and Development Direction - The company is focusing on AI and digital advancement, with ongoing investments in AI reflecting a commitment to enterprise technology re-platforming [7] - ASGN is actively tracking changes to the H1B application process, believing it will positively impact the company [8] - The company plans to host an Investor Day on November 20 to discuss its strategy and unveil new three-year financial targets [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for IT services despite macroeconomic conditions, noting strong quarterly bookings [6] - The government shutdown has had an immaterial impact on operations, but it may slow down new awards and ramp-up activities [40] - The company anticipates that increased defense budgets will benefit its federal segment in the future [62] Other Important Information - The gross margin for Q3 2025 was 29.4%, an increase of 30 basis points year over year [24] - SG&A expenses for the quarter were $212,200,000, including $4,200,000 in acquisition and integration expenses [25] - The company repurchased 900,000 shares at an average price of $51.46, with approximately $423 million remaining under its share repurchase authorization [27] Q&A Session Summary Question: H1B situation and its impact - Management believes that tighter H1B regulations will increase the importance of onshore and nearshore technical capabilities, benefiting ASGN [35][36] Question: Federal government segment and shutdown impact - The government shutdown is causing caution in the fourth quarter guidance, primarily affecting new awards and ramp-up activities [41][42] Question: Demand for software implementations - Continued demand is noted in data and AI, particularly with platforms like Snowflake and Databricks, as well as Workday and ServiceNow [46][47] Question: Pricing dynamics and competition - ASGN competes with major firms like Accenture and sees stable pricing due to the quality of its services and unique accelerators [77][78] Question: Federal contracts and margins - The increase in cost-reimbursable contracts is not impacting margins significantly; it reflects the natural ebb and flow of contracts [71][73]

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Q3 2025 Financial Performance - Revenues decreased to $1,011.4 million, a 1.9% decrease compared to $1,031.0 million in Q3 2024[6] - Net Income decreased to $38.1 million, compared to $47.5 million in Q3 2024[6] - Adjusted EBITDA decreased to $112.6 million, compared to $116.9 million in Q3 2024[6] - Adjusted EBITDA margin was 11.1%, a decrease from 11.3% in Q3 2024[6] - Free Cash Flow decreased to $72.0 million, a 43.7% decrease compared to $127.9 million in Q3 2024[8] Revenue Mix - Consumer & Industrial sector accounted for 22% of revenue in Q3 2025, compared to 19% in Q3 2024[7] - TMT (Technology, Media & Telecom) sector remained stable at 14% in both Q3 2025 and Q3 2024[7] - Financial Services sector accounted for 13% of revenue in Q3 2025, compared to 15% in Q3 2024[7] - Defense & Intel sector accounted for 13% of revenue in Q3 2025, compared to 14% in Q3 2024[7] Federal Segment - Federal segment revenues decreased by 3.9% year-over-year, from $312.2 million in Q3 2024 to $300.1 million in Q3 2025[18] - Adjusted EBITDA for the Federal segment was $33.5 million, representing 11.2% of revenues[18,21] - New contract awards in the Federal segment were $461.4 million in Q3 2025, compared to $666.4 million in Q3 2024[23] Q4 2025 Financial Estimates - Revenues are estimated to be between $960.0 million and $980.0 million, representing a year-over-year decrease of 0.5% to 2.5%[26] - Adjusted EBITDA is estimated to be between $102.0 million and $107.0 million, with an Adjusted EBITDA Margin between 10.6% and 10.9%[26]

October 22, 2025 RICHMOND, VA.— (BUSINESS WIRE) -- ASGN Incorporated (NYSE: ASGN), a leading provider of IT services and solutions to the commercial and government sectors, reported financial results for the quarter ended September 30, 2025. Highlights IT Consulting Revenues - Approximately 63 percent of total revenues Management Commentary "ASGN delivered a solid performance in the third quarter, with revenues, Adjusted EBITDA, and Adjusted EBITDA margin all at the high end of our guidance ranges," said AS ...

Financial Performance - Revenues for Q2 2025 were $1,020.6 million, a decrease of 1.3% from $1,034.7 million in Q2 2024[8] - Net income for Q2 2025 was $29.3 million, a decline of 38.0% compared to $47.2 million in Q2 2024[8] - Basic earnings per share for Q2 2025 were $0.67, down from $1.03 in Q2 2024, representing a decrease of 35.0%[8] - Gross profit for the six months ended June 30, 2025, was $568.7 million, down 4.8% from $597.3 million in the same period of 2024[8] - Net income for the six months ended June 30, 2025, was $50.2 million, a decrease of 41.1% compared to $85.3 million in 2024[11] - Total comprehensive income for Q2 2025 was $31.9 million, compared to $49.3 million in Q2 2024, a decrease of 35.2%[8] - Operating income decreased to $59.6 million in Q2 2025, a decline of 26.0% from $80.4 million in Q2 2024[8] - Segment operating income for the Commercial Segment in Q2 2025 was $64.6 million, compared to $74.7 million in Q2 2024, a decline of 13.5%[30] Assets and Liabilities - Total assets increased to $3,715.0 million as of June 30, 2025, compared to $3,429.0 million at the end of 2024, reflecting a growth of 8.4%[7] - Long-term debt rose to $1,211.7 million as of June 30, 2025, up from $1,033.5 million at the end of 2024, indicating an increase of 17.3%[7] - Stockholders' equity increased to $1,826.8 million as of June 30, 2025, compared to $1,776.7 million at the end of 2024, a growth of 2.8%[7] - Cash and cash equivalents decreased to $138.9 million as of June 30, 2025, from $205.2 million at the end of 2024, a decline of 32.2%[7] - The carrying amount of long-term debt as of June 30, 2025, was $1.2 billion, with its fair value slightly less than the carrying value[37] Acquisitions - The company completed an acquisition that contributed $28.7 million to paid-in capital during the six months ended June 30, 2025[10] - The company acquired TopBloc, LLC for $340.0 million, with 90% paid in cash and 10% in equity, impacting the Commercial Segment[14] - Goodwill increased to $2,141.0 million as of June 30, 2025, following the acquisition of TopBloc, which contributed $246.3 million[15] Expenses - Selling, general, and administrative expenses for Q2 2025 were $216.8 million, an increase of 5.8% from $205.6 million in Q2 2024[8] - Corporate SG&A expenses for the six months ended June 30, 2025, were $56.7 million, an increase from $39.9 million in the same period of 2024[31] - The company reported interest expense of $18.2 million for the three months ended June 30, 2025, compared to $15.8 million in the same period of 2024[30] Cash Flow - Net cash provided by operating activities was $141.7 million, down from $164.0 million in the same period last year[11] - Cash flows from operating activities for the first half of 2025 were $141.7 million, down from $164.0 million in the same period of 2024[11] - The company incurred $306.1 million in cash paid for acquisitions in the first half of 2025[11] Tax and Compliance - The effective tax rate is based on the estimated full-year income and is subject to adjustments for discrete items occurring in the period[22] - The company expects no material impact from the One Big Beautiful Bill Act on its estimated effective tax rate[23] - The company was in compliance with its debt covenants, with a senior secured debt to trailing-twelve-months EBITDA ratio of 1.53 to 1 as of June 30, 2025[19] Segment Performance - Total revenues for the Commercial Segment in Q2 2025 were $708.1 million, compared to $725.7 million in Q2 2024, reflecting a decline of 2.4%[30] - Federal Government Segment revenues for Q2 2025 were $312.5 million, slightly up from $309.0 million in Q2 2024, an increase of 0.5%[33] - The Department of Defense and Intelligence Agencies contributed $136.2 million to Federal Government Segment revenues for the three months ended June 30, 2025, down from $141.6 million in 2024[33] Future Projections - Estimated future amortization expense for identifiable intangible assets is projected to be $182.3 million over the next several years[17] - The estimated future amortization expense for identifiable intangible assets totals $182.3 million, with $33.3 million expected in the remainder of 2025[17]

Core Viewpoint - ASGN Inc reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, but down from $1.36 per share a year ago, indicating a mixed performance despite the earnings surprise of +8.33% [1][2] Financial Performance - The company posted revenues of $1.02 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.95%, although this is a slight decrease from year-ago revenues of $1.03 billion [2] - Over the last four quarters, ASGN has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - ASGN Inc shares have declined approximately 40.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [3] - The current Zacks Rank for ASGN is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $988.12 million, and for the current fiscal year, it is $4.30 on revenues of $3.91 billion [7] - The trend of estimate revisions for ASGN Inc was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Computers - IT Services industry, to which ASGN belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - ASGN reported revenues of $1,020,000,000 for Q2 2025, which was above the high end of guidance and represented a decrease of 1.4% year over year [6][23] - Adjusted EBITDA was $108,500,000 with an adjusted EBITDA margin of 10.6%, at the top end of expectations for the quarter [6][26] - Net income for the quarter was $29,300,000, and free cash flow was $115,800,000, translating to a conversion rate of approximately 107% of adjusted EBITDA [26][27] Business Line Data and Key Metrics Changes - Revenues from the commercial segment were $708,100,000, a decrease of 2.4% compared to the prior year, while commercial consulting revenues increased by 15.7% year over year to $325,700,000 [23][24] - Federal government segment revenues were $312,500,000, an increase of 1.1% year over year, including approximately $10,000,000 of higher than expected license revenue [24] - Assignment revenues totaled $382,400,000, reflecting a decline of 13.9% year over year due to macroeconomic softness [23] Market Data and Key Metrics Changes - The consumer and industrial accounts performed strongly, with mid double-digit growth year over year, driven by materials, utilities, and consumer discretionary accounts [11] - The healthcare vertical remained flat year over year, while financial services and TMT accounts saw declines compared to the previous year [11][12] - Federal contract awards totaled $72,000,000 for the quarter, with a book-to-bill ratio of 1.1 times on a trailing twelve-month basis [8] Company Strategy and Development Direction - ASGN is focusing on AI investments, recognizing the need for clients to stay competitive through technological advancements [29][30] - The company launched the ASGN AI Innovation Center to enhance innovation and promote AI-driven business growth [30][31] - Strategic partnerships with companies like AWS and Workday are being leveraged to build client-specific IP and enhance service offerings [67][70] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainties but highlighted continued client investment in AI and modernization efforts [6][29] - The recent increase in U.S. Defense spending is expected to benefit ASGN's federal business, particularly in AI and cybersecurity [9][48] - Management expressed cautious optimism regarding the recovery of discretionary spending and the potential for growth in consulting services [45][60] Other Important Information - The company has approximately $470,000,000 remaining under its share repurchase authorization [27] - Guidance for Q3 2025 estimates revenue between $992,000,000 and $1,012,000,000, with net income projected between $35,800,000 and $39,400,000 [28] Q&A Session Summary Question: How is TopLock performing relative to expectations? - Management indicated that TopLock is tracking just ahead of revenue and bookings expectations, contributing over $150,000,000 in revenues for the full year [36][37] Question: What impact is AI having on the cyclical assignment business? - Management stated that the assignment business remains stable and that current softness is largely due to macroeconomic factors rather than AI [39][42] Question: What is the long-term margin profile for the government consulting area? - Management noted that while higher margin work is diminishing, there are opportunities to increase direct labor, which could improve margins in the future [50][52] Question: What are the expectations for the impact of DOGE on revenues? - Management confirmed that the DOGE impact was expected to be less than 2% of total revenues, consistent with prior expectations [55] Question: What drove the strength in the consumer and industrial segments? - Management highlighted significant investments and demand in cloud, data, and AI as key drivers of strength in these segments [82][84] Question: How is ASGN using AI internally to improve efficiencies? - Management discussed ongoing efforts to implement AI across enterprise software tools to enhance productivity and streamline operations [87][89]

Financial Data and Key Metrics Changes - ASGN reported revenues of $1,020 million for Q2 2025, which was above the high end of guidance and represented a decrease of 1.4% year over year [5][23] - Adjusted EBITDA margin was 10.6%, at the top end of expectations for the quarter [5][27] - Net income for the quarter was $29.3 million, with free cash flow of $115.8 million, translating to a conversion rate of approximately 107% of adjusted EBITDA [27][28] Business Line Data and Key Metrics Changes - IT consulting revenues grew to approximately 63% of total revenues, up from 57% in the prior year [5] - Commercial consulting revenues totaled $325.7 million, an increase of 15.7% year over year, driven by contributions from TopLock [23] - Federal government segment revenues were $312.5 million, an increase of 1.1% year over year, including $10 million of higher than expected license revenue [23] Market Data and Key Metrics Changes - Consumer and industrial accounts showed mid double-digit growth year over year, driven by strong performance in materials, utilities, and consumer discretionary sectors [10] - The healthcare vertical remained flat year over year, while financial services and TMT accounts declined compared to the previous year [10][11] - Federal contract awards totaled $72 million for the quarter, with a book-to-bill ratio of 1.1 times [7] Company Strategy and Development Direction - ASGN is focusing on AI investments to enhance competitiveness and drive demand for cloud and data solutions [6][30] - The company launched the ASGN AI Innovation Center to unify AI expertise and promote business growth [31][33] - Strategic partnerships with companies like AWS and Workday are being leveraged to deliver tailored technology solutions [18][31] Management Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is impacting discretionary spending, but clients are still investing in AI to maintain competitiveness [5][30] - The recent increase in U.S. Defense spending is expected to benefit ASGN's federal business, particularly in AI and automation [8][30] - Management expressed cautious optimism regarding future growth, particularly in the commercial consulting space [63] Other Important Information - The company has approximately $470 million remaining under its $750 million share repurchase authorization [28] - ASGN plans to host an Investor Day in Q4 to discuss long-term strategies for growth and value creation [34] Q&A Session Summary Question: How is TopLock performing relative to expectations? - TopLock is tracking just ahead of revenue and bookings expectations, with EBITDA margins in the high teens [39] Question: What impact is AI having on the cyclical part of the assignment business? - The cyclicality is stable, with no significant impact from AI observed at this stage [46] Question: What is the long-term margin profile for the government consulting area? - The long-term margin profile is expected to remain in the 20% to 21% range, with opportunities for increasing direct labor [56] Question: What were the expectations regarding the DOGE impact? - The DOGE impact was expected to be less than 2% of total revenues, consistent with prior expectations [59] Question: Can you discuss the strength in the consumer and industrial segments? - Strength was driven by significant investments in cloud, data, and AI, particularly in materials and utilities [87][90] Question: How is ASGN using AI internally? - ASGN is implementing AI across enterprise software tools to enhance productivity and efficiency in operations [92]

Q2 2025 Earnings Supplemental Materials Safe Harbor Operating Data | | | Q2 | | | --- | --- | --- | --- | | | 2025 | | 2024 | | Results Operating | | | | | Revenues | $ 1,020.6 | $ | 1,034.7 | | Gross Profit | 293.3 | | 301.1 | | Net Income | 29.3 | | 47.2 | | Adjusted Net Income | 51.6 | | 62.6 | | Adjusted EBITDA | 108.5 | | 117.1 | | Margins | | | | | Gross | 28.7% | | 29.1% | | EBITDA Adjusted | 10.6% | | 11.3% | | Earnings per Share - Diluted | | | | | Income per Share | $ 0.67 | $ | 1.02 | | Net Incom ...

Executive Summary & Highlights [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) ASGN reported solid second quarter 2025 results with revenues exceeding the high-end of guidance estimates and Adjusted EBITDA margin at the top end of expectations. IT consulting revenues grew to 63% of total revenues, with the recent acquisition TopBloc performing above expectations Q2 2025 Key Financial Highlights | Metric | Value | | :-------------------------------- | :------------------- | | Revenues | $1.02 billion | | Net income | $29.3 million | | Adjusted EBITDA | $108.5 million | | Adjusted EBITDA margin | 10.6 % | | Operating cash flows | $124.9 million | | Free Cash Flow | $115.8 million | | Shares Repurchased | 200,000 shares | | Repurchase Value | $9.5 million | | Commercial Segment TTM Bookings | $1.4 billion | | Commercial Book-to-bill ratio | 1.2 to 1 | | Federal Government TTM Awards | $1.4 billion | | Federal Book-to-bill ratio | 1.1 to 1 | - IT Consulting Revenues reached **63%** of total revenues for the quarter[3](index=3&type=chunk) - TopBloc, the newest addition to ASGN, is performing above expectations and contributed to the continued growth of the IT consulting business[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Ted Hanson highlighted strong Q2 performance with revenues above guidance and Adjusted EBITDA margin at the top end. He noted the positive impact of TopBloc and the growth in IT consulting. Despite macroeconomic uncertainty affecting discretionary spending, client demand for cloud, data solutions, and AI for IT modernization remains strong - Revenues of **$1.02 billion** were above the high-end of guidance, while Adjusted EBITDA margin of **10.6 percent** was at the top end of expectations[3](index=3&type=chunk) - While commercial consulting bookings are growing, macroeconomic uncertainty continues to impact discretionary spending[3](index=3&type=chunk) - Clients remain focused on staying competitive, driving strong demand for cloud and data solutions to modernize legacy systems and enable AI[3](index=3&type=chunk) Second Quarter 2025 Financial Results [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) ASGN's consolidated revenues for Q2 2025 were $1.02 billion, a slight decrease compared to Q2 2024. Net income and Adjusted EBITDA also saw year-over-year declines Q2 2025 Consolidated Financial Summary | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------------------- | :------------------- | | Revenues | $1,020.6 million | $1,034.7 million | | Net income | $29.3 million | $47.2 million | | Earnings per diluted share | $0.67 | $1.02 | | Adjusted EBITDA | $108.5 million | $117.1 million | | Adjusted EBITDA margin | 10.6 % | 11.3 % | - Consolidated revenues for the quarter were **$1.02 billion**, compared with **$1.03 billion** in the second quarter of 2024[6](index=6&type=chunk) [Segment Performance (Commercial & Federal Government)](index=2&type=section&id=Segment%20Performance) Commercial Segment revenues decreased year-over-year, while the Federal Government Segment experienced a slight increase. Within the Commercial Segment, the Consumer and Industrial vertical showed double-digit growth, while other verticals declined or remained flat Segment Revenues (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Revenues | Q2 2024 Revenues | % of Total Revenues (Q2 2025) | | :------------------------ | :----------------- | :----------------- | :------------------------------ | | Commercial Segment | $708.1 million | $725.7 million | 69 % | | Federal Government Segment | $312.5 million | $309.0 million | 31 % | - The Consumer and Industrial industry vertical was up double digits, Healthcare was flat, and the remaining three industry verticals declined[6](index=6&type=chunk) [Revenue Mix (IT Consulting vs. Assignment)](index=2&type=section&id=Revenue%20Mix) IT consulting revenues significantly increased year-over-year, now representing 63% of total revenues, driven by a 15.7% growth in Commercial Segment consulting. Conversely, assignment revenues declined, reflecting continued softness in macro-sensitive parts of the Commercial Segment Revenue Mix (Q2 2025 vs Q2 2024) | Revenue Type | Q2 2025 Revenues | % of Total (Q2 2025) | Q2 2024 Revenues | % of Total (Q2 2024) | | :------------------- | :----------------- | :------------------- | :----------------- | :------------------- | | IT consulting revenues | $638.2 million | 63 % | $590.5 million | 57 % | | Assignment revenues | $382.4 million | 37 % | $444.2 million | 43 % | - Commercial Segment consulting revenues were up **15.7 percent** year-over-year[7](index=7&type=chunk) - Assignment revenues reflected continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles[7](index=7&type=chunk) [Gross Margin Analysis](index=2&type=section&id=Gross%20Margin%20Analysis) Consolidated gross margin compressed by 40 basis points to 28.7% in Q2 2025 compared to Q2 2024. Commercial Segment gross margin improved due to a higher mix of consulting revenues, while Federal Government Segment gross margin declined due to an increased volume of low-margin software licenses Gross Margin (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Gross Margin | Q2 2024 Gross Margin | | :------------------------ | :------------------- | :------------------- | | Commercial Segment | 33.0 % | 32.7 % | | Federal Government Segment | 19.2 % | 20.6 % | | Consolidated | 28.7 % | 29.1 % | - Gross margin for the Commercial Segment was up **30 basis points**, reflecting a higher mix of consulting revenues[8](index=8&type=chunk) - Gross margin for the Federal Government Segment was down **140 basis points**, due to higher volume of low-margin software licenses revenue[8](index=8&type=chunk) [Operating Expenses and Net Income](index=2&type=section&id=Operating%20Expenses%20and%20Net%20Income) Selling, general, and administrative (SG&A) expenses increased, partly due to unguided acquisition, integration, and strategic planning expenses. Net income and diluted earnings per share significantly decreased year-over-year, as did Adjusted EBITDA Net Income and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :-------------------------- | :------------------- | :------------------- | | SG&A expenses | $216.8 million | $205.6 million | | Net income | $29.3 million | $47.2 million | | Earnings per diluted share | $0.67 | $1.02 | | Adjusted EBITDA | $108.5 million | $117.1 million | | Adjusted EBITDA margin | 10.6 % | 11.3 % | - SG&A expenses included **$8.3 million** in acquisition, integration, and strategic planning expenses, which were not included in the Company's previously-announced guidance estimates[9](index=9&type=chunk) Capital Resources and Allocation [Balance Sheet Highlights](index=3&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, ASGN maintained a strong liquidity position with $138.9 million in cash and significant availability under its revolving credit facility, alongside its senior secured debt and unsecured notes Capital Resources (as of June 30, 2025) | Metric | Value | | :------------------------------------------------ | :------------------- | | Cash and cash equivalents | $138.9 million | | Availability under Senior Secured Revolving Credit Facility | $320.0 million | | Senior Secured Debt (term loan B facility) | $491.3 million | | Senior unsecured notes (4.625% due 2028) | $550.0 million | [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) During Q2 2025, ASGN repurchased 200,000 shares of its common stock for $9.5 million, with approximately $470 million remaining available under the existing stock repurchase plan - In the second quarter of 2025, Company repurchased **200,000 shares** of its common stock for **$9.5 million** at an average price of **$58.69 per share**[11](index=11&type=chunk) - Approximately **$470 million** remained available at quarter end for repurchases under the Company's stock repurchase plan[11](index=11&type=chunk) Third Quarter 2025 Financial Outlook [Q3 2025 Estimates](index=3&type=section&id=Q3%202025%20Estimates) ASGN provided financial estimates for the third quarter of 2025, projecting revenues between $992.0 million and $1,012.0 million, and diluted EPS between $0.82 and $0.90. These estimates exclude acquisition, integration, or strategic planning expenses Q3 2025 Financial Estimates | Metric | Low Estimate | High Estimate | | :-------------------------- | :------------------- | :------------------- | | Revenues | $992.0 million | $1,012.0 million | | SG&A expenses | $206.5 million | $210.5 million | | Amortization of intangible assets | $16.6 million | $16.6 million | | Net income | $35.8 million | $39.4 million | | Earnings per diluted share | $0.82 | $0.90 | | Gross margin | 29.3 % | 29.6 % | | Effective tax rate | 28.0 % | 28.0 % | | Adjusted EBITDA | $108.5 million | $113.5 million | | Adjusted Net Income | $51.7 million | $55.4 million | | Adjusted Net Income per diluted share | $1.18 | $1.26 | | Adjusted EBITDA margin | 10.9 % | 11.2 % | [Billable Days Impact](index=3&type=section&id=Billable%20Days%20Impact) The financial estimates for Q3 2025 are based on 63.50 billable days, which is consistent with the prior year period and slightly more than the second quarter of 2025 - There are **63.50 Billable Days** in the third quarter of 2025, which is equal to the year ago period, and **0.25 more days** than the second quarter of 2025[14](index=14&type=chunk) Company Information & Legal Disclosures [Conference Call Details](index=4&type=section&id=Conference%20Call) ASGN held a conference call on July 23, 2025, to discuss its Q2 2025 financial results and provide Q3 2025 estimates. A replay of the call is available until August 6, 2025 - The Company held a conference call on July 23, 2025, at 4:30 p.m. ET to review its financial results for the second quarter of 2025 and to provide third quarter 2025 estimates[16](index=16&type=chunk) - A replay of the conference call will be available beginning today at 7:30 p.m. ET until August 6, 2025[17](index=17&type=chunk) [About ASGN Incorporated](index=4&type=section&id=About%20ASGN%20Incorporated) ASGN Incorporated is a leading provider of IT services and solutions for both commercial and government sectors, assisting organizations in developing, implementing, and operating critical IT and business solutions - ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions to the commercial and government sectors[18](index=18&type=chunk) - ASGN helps corporate enterprises and government organizations develop, implement, and operate critical IT and business solutions through its integrated offerings[18](index=18&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor) This news release contains forward-looking statements that involve significant risks and uncertainties, meaning actual results could differ materially from projections. The company explicitly disclaims any obligation to update these forward-looking statements - Certain statements made in this news release are 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and involve a high degree of risk and uncertainty[19](index=19&type=chunk) - Forward-looking statements are not guarantees of future performance and actual results might differ materially[20](index=20&type=chunk) - We specifically disclaim any intention or duty to update any forward-looking statements contained in this news release[20](index=20&type=chunk) Consolidated Financial Statements (Unaudited) [Consolidated Statements of Operations](index=5&type=section&id=Results%20of%20Operations) This section presents the unaudited consolidated results of operations for the three and six months ended June 30, 2025, and 2024, detailing revenues, costs of services, gross profit, operating expenses, and net income Consolidated Statements of Operations (Unaudited) | Metric (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $1,020.6 | $1,034.7 | $968.3 | $1,988.9 | $2,083.7 | | Costs of services | 727.3 | 733.6 | 692.9 | 1,420.2 | 1,486.4 | | Gross profit | 293.3 | 301.1 | 275.4 | 568.7 | 597.3 | | Selling, general, and administrative expenses | 216.8 | 205.6 | 214.5 | 431.3 | 415.8 | | Amortization of intangible assets | 16.9 | 15.1 | 14.3 | 31.2 | 30.2 | | Operating income | 59.6 | 80.4 | 46.6 | 106.2 | 151.3 | | Interest expense | (18.2) | (15.8) | (15.4) | (33.6) | (33.4) | | Income before income taxes | 41.4 | 64.6 | 31.2 | 72.6 | 117.9 | | Provision for income taxes | 12.1 | 17.4 | 10.3 | 22.4 | 32.6 | | Net income | $29.3 | $47.2 | $20.9 | $50.2 | $85.3 | | Earnings per share: Basic | $0.67 | $1.03 | $0.48 | $1.15 | $1.85 | | Earnings per share: Diluted | $0.67 | $1.02 | $0.48 | $1.14 | $1.83 | | Number of shares and share equivalents used to calculate earnings per share: Basic | 43.8 | 45.7 | 43.7 | 43.8 | 46.1 | | Number of shares and share equivalents used to calculate earnings per share: Diluted | 44.0 | 46.1 | 44.0 | 44.0 | 46.5 | [Consolidated Statements of Cash Flow](index=6&type=section&id=Summary%20Statements%20of%20Cash%20Flow%20Data) This section provides unaudited consolidated cash flow data for the three and six months ended June 30, 2025, and 2024, detailing cash flows from operating, investing, and financing activities, along with Free Cash Flow Summary Statements of Cash Flow Data (Unaudited) | Metric (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash provided by operating activities | $124.9 | $90.7 | $16.8 | $141.7 | $164.0 | | Cash used in investing activities | (9.1) | (5.2) | (316.3) | (325.4) | (16.0) | | Cash provided by (used in) financing activities | (84.9) | (110.7) | 201.2 | 116.3 | (190.7) | | Capital expenditures | (9.1) | (5.3) | (10.2) | (19.3) | (16.1) | | Free Cash Flow (non-GAAP measure) | $115.8 | $85.4 | $6.6 | $122.4 | $147.9 | [Consolidated Balance Sheets](index=6&type=section&id=Summary%20Balance%20Sheet%20Data) This section presents unaudited consolidated balance sheet data as of June 30, 2025, and December 31, 2024, providing a snapshot of the company's assets, liabilities, and stockholders' equity Summary Balance Sheet Data (Unaudited) | Metric (In millions) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $138.9 | $205.2 | | Working capital | 481.7 | 550.6 | | Goodwill and intangible assets, net | 2,628.5 | 2,332.9 | | Total assets | 3,715.0 | 3,429.0 | | Long-term debt | 1,211.7 | 1,033.5 | | Total liabilities | 1,888.2 | 1,652.3 | | Total stockholders' equity | 1,826.8 | 1,776.7 | Non-GAAP Financial Measures [Reconciliation of GAAP to Non-GAAP Measures (Q2 2025)](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measure) This section provides detailed reconciliations of GAAP net income to various non-GAAP measures, including EBITDA, Adjusted EBITDA, and Adjusted Net Income, for the three and six months ended June 30, 2025, and 2024 Reconciliation of Net Income to Adjusted EBITDA (Unaudited) | Metric (In millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :----------------------------- | | Net income | $29.3 | $47.2 | $20.9 | $50.2 | $85.3 | | Interest expense | 18.2 | 15.8 | 15.4 | 33.6 | 33.4 | | Provision for income taxes | 12.1 | 17.4 | 10.3 | 22.4 | 32.6 | | Depreciation and other amortization | 11.8 | 9.4 | 11.2 | 23.0 | 18.8 | | Amortization of intangible assets | 16.9 | 15.1 | 14.3 | 31.2 | 30.2 | | EBITDA (non-GAAP measure) | 88.3 | 104.9 | 72.1 | 160.4 | 200.3 | | Stock-based compensation | 11.9 | 11.0 | 13.8 | 25.7 | 22.7 | | Acquisition, integration, and strategic planning expenses | 8.3 | 1.2 | 3.3 | 11.6 | 2.4 | | Software costs write-off | — | — | 4.4 | 4.4 | — | | Adjusted EBITDA (non-GAAP measure) | $108.5 | $117.1 | $93.6 | $202.1 | $225.4 | Reconciliation of Net Income to Adjusted Net Income (Unaudited) | Metric (In millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Three Months Ended March 31, 2025 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------- | :----------------------------- | | Net income | $29.3 | $47.2 | $20.9 | $50.2 | $85.3 | | Acquisition, integration, and strategic planning expenses | 8.3 | 1.2 | 3.3 | 11.6 | 2.4 | | Software costs write-off | — | — | 4.4 | 4.4 | — | | Credit facility amendment expenses | — | — | — | — | 1.5 | | Tax effect on adjustments | (2.2) | (0.3) | (1.9) | (4.1) | (1.0) | | Non-GAAP net income | 35.4 | 48.1 | 26.7 | 62.1 | 88.2 | | Amortization of intangible assets | 16.9 | 15.1 | 14.3 | 31.2 | 30.2 | | Other | (0.7) | (0.6) | (0.6) | (1.3) | (1.2) | | Adjusted Net Income (non-GAAP measure) | $51.6 | $62.6 | $40.4 | $92.0 | $117.2 | | Per diluted share: Net income | $0.67 | $1.02 | $0.48 | $1.14 | $1.83 | | Per diluted share: Adjustments | 0.50 | 0.34 | 0.44 | 0.95 | 0.69 | | Adjusted Net Income (non-GAAP measure) | $1.17 | $1.36 | $0.92 | $2.09 | $2.52 | | Common shares and share equivalents (diluted) | 44.0 | 46.1 | 44.0 | 44.0 | 46.5 | [Reconciliation of Estimated GAAP to Non-GAAP Measures (Q3 2025)](index=8&type=section&id=FINANCIAL%20ESTIMATES%20FOR%20THE%20THIRD%20QUARTER%20OF%202025%20RECONCILIATIONS%20OF%20ESTIMATED%20GAAP%20TO%20NON-GAAP%20MEASURES) This section provides reconciliations of estimated GAAP net income to estimated non-GAAP measures, including Adjusted EBITDA and Adjusted Net Income, for the third quarter of 2025 Reconciliation of Estimated Net Income to Adjusted EBITDA (Q3 2025) | Metric (In millions) | Low Estimate | High Estimate | | :------------------------------------------ | :------------- | :-------------- | | Net income | $35.8 | $39.4 | | Interest expense | 17.7 | 17.7 | | Provision for income taxes | 14.1 | 15.5 | | Depreciation and other amortization | 12.2 | 12.2 | | Amortization of intangible assets | 16.6 | 16.6 | | EBITDA (non-GAAP measure) | 96.4 | 101.4 | | Stock-based compensation | 12.1 | 12.1 | | Adjusted EBITDA (non-GAAP measure) | $108.5 | $113.5 | Reconciliation of Estimated Net Income to Adjusted Net Income (Q3 2025) | Metric (In millions, except per share data) | Low Estimate | High Estimate | | :------------------------------------------ | :------------- | :-------------- | | Net income | $35.8 | $39.4 | | Amortization of intangible assets | 16.6 | 16.6 | | Other | (0.7) | (0.6) | | Adjusted Net Income (non-GAAP measure) | $51.7 | $55.4 | | Per diluted share: Net income | $0.82 | $0.90 | | Per diluted share: Adjustments | 0.36 | 0.36 | | Adjusted Net Income (non-GAAP measure) | $1.18 | $1.26 | [Definitions of Non-GAAP Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section defines ASGN's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, Commercial consulting bookings, Federal Government Segment new contract awards, and Revenues on a Same Billable Days basis, explaining their purpose in evaluating core business performance - Non-GAAP financial measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Net Income per diluted share, Free Cash Flow, and Revenues on a same Billable Days basis) are provided as additional information to enhance the overall understanding of the Company's current financial performance and not as an alternative to GAAP statements[28](index=28&type=chunk) - EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin focus on core business performance by removing non-operating and certain non-cash expenses[29](index=29&type=chunk) - Commercial consulting bookings are defined as the value of new contracts entered into during a specified period, including adjustments for changes in contract scope and terminations[32](index=32&type=chunk)