What were the key takeaways from ASGN’s earnings call?

What factors drove the changes in ASGN's revenue and profit?

What does ASGN do and what are its main business segments?

Did ASGN beat or miss consensus estimates last quarter?

What were the key takeaways from ASGN's earnings call?

What is the revenue and EPS growth rate for ASGN year over year?

What is ASGN's gross profit margin?

What guidance did ASGN's management provide for the next earnings period?

- **Revenue Growth**: Q3 2025 revenue $1.01B, IT consulting at 63% of total. Commercial consulting up 17.5% YoY.
- **AI Momentum**: 70% of AI projects require platform integration; ASGN accelerators reduce timelines by 25%.
- **Financial Strength**: Adjusted EBITDA $112.6M (11.1% margin); free cash flow $72M. Q4 guidance cautious on Federal due to shutdown.
- **Strategic Positioning**: Benefits from H-1B tightening; leading in data/AI, application development, and federal defense work.
- **Risks**: Softness in staffing; potential delays in Federal awards from government shutdown.

**【CEO Summary Section】**
- Q3 2025 revenue reached $1.01 billion, with IT consulting contributing 63% (up from 58% YoY). Commercial consulting revenue grew 17.5% YoY to $334.9 million.
- Bookings: Commercial consulting at 1.2x TTM book-to-bill; Federal segment awards $461 million (1x TTM). Federal backlog $3.1 billion (2.6x TTM coverage).
- AI investment highlights: 70% of client AI projects require deep platform integration; ASGN's accelerators reduce project timelines by 25%.
- H-1B visa impact: Tighter regulations favor onshore/nearshore delivery, aligning with ASGN's capabilities.

**【President's Industry & Project Insights】**
- **Commercial Performance**: Consumer/industrial up mid-teens YoY; healthcare +high single digits YoY. Sequential growth in healthcare, consumer/industrial, TMT.
- **Federal Segment**: Defense/intel 70% of revenues; DHS projects drive 12% YoY growth. Federal bookings 1.5x Q3 2025.
- **Key Projects**: Fortune 500 data platform modernization (Databricks, AWS), FBI DNA analytics, crop insurance modernization (3-year $376M contract).

**【CFO Financial Commentary】**
- Q3 2025: GAAP net income $38.1M, adjusted EBITDA $112.6M (11.1% margin). Free cash flow $72M (64% conversion).
- Margins: Commercial segment 33.2% (up 40bps YoY); Federal 20.3% (down 40bps YoY). SG&A $212.2M (+2.3% YoY).
- Q4 Guidance: Revenue $960M-$980M; adjusted EBITDA $102M-$107M (10.6%-10.9% margin). Share buybacks $46M Q3, $423M remaining.

**【Q&A Highlights】**
- **Government Shutdown**: Minimal impact to date; cautious on Q4 Federal bookings due to award delays.
- **AI ROI Challenges**: 70% of projects require enterprise platform integration; ASGN's accelerators reduce risk/time-to-value.
- **Competitive Dynamics**: Pricing stable in consulting; staffing faces headwinds as clients prioritize outcomes over augmentation.
- **One Big Beautiful Bill**: Defense funding increases expected to flow into 2026 revenues via new contracts.
- **Accelerators Pricing**: Exploring standalone pricing for AI tools like Pathfinder, but early days.

ASGN Incorporated (ASGN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ASGN

ASGN fundamentals

You can ask Aime