ICF International Stock Declines 5.6% Since Q3 Earnings Miss

Core Insights - ICF International, Inc. reported disappointing third-quarter 2025 results, with both earnings and revenues missing the Zacks Consensus Estimate, leading to a 5.6% decline in share price since the earnings release on October 30 [1] Financial Performance - Quarterly EPS was $1.67, missing the Zacks Consensus Estimate by 4.6% and declining 21.6% year-over-year [2] - Total revenues amounted to $465.4 million, missing estimates by 3.5% and decreasing 10% year-over-year [2][10] Segmental Revenues - Revenues from government clients decreased 20.4% year-over-year to $308.8 million, below the estimate of $388.1 million [3] - U.S. state and local government revenues were $81.7 million, representing 17.6% of total revenues, lagging behind the prediction of $107 million but increasing 3.7% year-over-year [3] - International government revenues reached $29 million, representing 6.2% of total revenues, below the anticipated $34.4 million but up 8.2% year-over-year [4] - U.S. federal government revenues were $198 million, contributing 42.6% to total revenues, missing the estimate of $246.7 million and decreasing 29.8% year-over-year [4] - Commercial revenues, which accounted for 33.7% of total revenues, amounted to $156.6 million, exceeding expectations of $88.5 million and increasing 20.9% year-over-year [5] Operating Performance - Adjusted EBITDA fell 9.2% year-over-year to $53.2 million, with an adjusted EBITDA margin of 11.4%, which increased by 10 basis points from the previous year [6] Balance Sheet and Cash Flow - The company ended the quarter with cash and cash equivalents of $3.99 billion, down from $4.96 billion at the end of December 2024 [7] - Long-term debt increased to $449.4 million from $411.7 million in December 2024 [7] - Cash used in operating activities was $66.24 million, with capital expenditures of $5.5 million [7] Guidance - For 2025, the company expects full-year cash flow to range between $125 million and $150 million, with capital expenditures anticipated between $23 million and $25 million [8] - The full-year tax rate is now expected to be approximately 18.5% [8]