[Management View]
ASGN's management emphasized the strategic importance of AI and technology partnerships, highlighting the launch of the ASGN AI Innovation Center to unify AI expertise and drive client solutions. The company is focusing on expanding its proprietary intellectual property and embedding AI into both client offerings and internal operations.

[Outlook]
ASGN provided guidance for Q3 2025, expecting revenue between $992 million and $1.012 billion, with adjusted EBITDA ranging from $108.5 million to $113.5 million. The company anticipates continued demand for AI, cloud, and data solutions, with potential growth in federal contracts due to increased U.S. defense spending.

[Financial Performance]
ASGN reported Q2 2025 revenue of $1.02 billion, a 1.4% decline YoY but above guidance. Adjusted EBITDA was $108.5 million, with a margin of 10.6%. Commercial consulting revenues grew by 15.7% YoY, while assignment revenues fell by 13.9% due to macroeconomic factors.

[Q&A Highlights]
1. Question: How is TopBloc performing relative to expectations?
Answer: TopBloc is tracking just ahead of revenue and booking targets, contributing $150 million in annual revenue with high-teen EBITDA margins.

2. Question: What impact is AI having on the Creative Circle business?
Answer: AI's impact is minimal; current softness is attributed to macroeconomic cyclicality.

3. Question: What is the long-term margin profile for the federal segment post-Doge contracts?
Answer: Federal margins are expected to stabilize as direct labor increases, despite the loss of high-margin Doge contracts.

4. Question: What are the expectations for Doge's impact in Q3?
Answer: Doge's impact remains less than 2% of total revenues, consistent with Q2.

5. Question: What is the sentiment in assignment versus consulting revenues?
Answer: Consulting shows positive signs, especially in cloud and AI, while assignment remains stable with cautious optimism.

6. Question: How is ASGN building IP in AI?
Answer: ASGN is developing client-specific IP and leveraging partnerships to scale solutions, focusing on both internal and external applications.

7. Question: What is the baseline for federal segment revenues?
Answer: Baseline revenues are estimated at $290-$295 million, with growth potential from new federal contracts.

8. Question: What drove strength in the consumer and industrial segment?
Answer: Growth was driven by demand in cloud, data, and AI solutions, with significant contributions from materials and utilities sectors.

9. Question: How is AI being used internally at ASGN?
Answer: AI is enhancing productivity in recruiting, sales, and cybersecurity, with ongoing efforts to integrate AI across enterprise systems.

10. Question: What are the costs associated with AI investments?
Answer: AI investments are not negatively impacting margins; they are expected to enhance margin profiles as initiatives mature.

[Sentiment Analysis]
Analysts and management maintained a cautiously optimistic tone, acknowledging macroeconomic challenges while highlighting growth opportunities in AI and federal contracts.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|---------------------------------|---------------|---------------|
| Total Revenue | $1.02 billion | $1.035 billion|
| Adjusted EBITDA | $108.5 million| $110 million |
| Commercial Consulting Revenue | $325.7 million| $281.5 million|
| Assignment Revenue | $382.4 million| $444.2 million|
| Federal Government Revenue | $312.5 million| $309.1 million|

[Risks and Concerns]
Key risks include macroeconomic uncertainty affecting assignment revenues and potential volatility in federal contract awards. The loss of high-margin Doge contracts poses a challenge to federal segment margins.

[Final Takeaway]
ASGN's Q2 2025 performance highlights the company's strategic pivot towards AI and technology partnerships, with strong growth in commercial consulting despite overall revenue decline. The federal segment faces challenges from the loss of high-margin contracts, but increased defense spending offers potential for future growth. Management remains focused on leveraging AI to drive operational efficiency and client solutions, positioning ASGN for long-term success amid evolving market dynamics.