• Revenue: $968.3 million, a decrease of 7.7% year over year.
• Adjusted EBITDA Margin: 9.7%.
• Commercial Segment Revenue: $672.2 million, a decrease of 8.1% year over year.
• Federal Government Segment Revenue: $296.1 million, a decrease of 6.7% year over year.
• Gross Margin: 28.4%, an increase of 20 basis points from the previous year.
• Commercial Segment Gross Margin: 32.4%, up 40 basis points year over year.
• Federal Government Segment Gross Margin: 19.5%, a decline of 20 basis points year over year.
• Net Income: $20.9 million.
• Adjusted EBITDA: $93.6 million.
• Free Cash Flow: $6.6 million.
• Cash and Cash Equivalents: $107 million at quarter end.
• Net Leverage Ratio: 2.6 times at the end of the first quarter.
• Q2 2025 Revenue Guidance: $985 million to $1.015 billion.
• Q2 2025 Net Income Guidance: $29.3 million to $34.3 million.
• Q2 2025 Adjusted EBITDA Guidance: $101 million to $108 million.
• Q2 2025 Adjusted EBITDA Margin Guidance: 10.3% to 10.6%.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ASGN Inc (NYSE:ASGN) reported revenues of $968.3 million and an adjusted EBITDA margin of 9.7%, in line with guidance expectations.
• IT consulting revenues grew to 61% of total revenues, up from 57% in the prior year period.
• The acquisition of TopBloc is tracking ahead of bookings, revenue, and adjusted EBITDA expectations.
• Strong bookings in both commercial and government segments, with a book-to-bill ratio of 1.2 times for the quarter.
• ASGN Inc (NYSE:ASGN) continues to deliver high-value IT services, focusing on AI, data solutions, cybersecurity, and cloud engineering.

Negative Points

• Revenues decreased by 7.7% year over year, with the Commercial segment down by 8.1%.
• Federal Government segment revenues declined by 6.7% year over year due to program endings and DOGE impacts.
• Assignment revenue decreased by 16% year over year, reflecting softness in certain commercial segments.
• SG&A expenses increased slightly, including acquisition and integration costs, and a one-time write-off related to software enhancements.
• Macroeconomic factors such as higher inflation and uncertainty regarding tariffs have led to cautious IT spending by clients.

Q & A Highlights

Q: Could you characterize your bookings in the quarter across different businesses from a new customer and new project perspective versus renewal of existing work? A: Theodore Hanson, CEO: On the commercial side, bookings are a mix of renewal work and new work, with renewals still being a larger percentage. On the Federal side, bookings were strong, with a mix of recompete work, new work, and expansions of existing work. The trend remains consistent with previous quarters.

Q: How is DOGE impacting the Federal business, and can you describe the type of work affected? A: Theodore Hanson, CEO: The impact has been more on the Fed civilian side, particularly in traditional management consulting and program oversight work. Our core technical work in AI, data, and cybersecurity remains steady.

Q: How have you been able to maintain strong margins, and what is the outlook for SG&A expenses? A: Theodore Hanson, CEO: The increase in commercial consulting work, which has higher margins, contributes to margin expansion. Our model supports a variable cost structure in SG&A, which acts as a stabilizer for the business.

Q: What are you hearing from commercial clients regarding future projects, and how variable could this be? A: Shiv Iyer, President: Clients continue to invest in strategic areas like AI and cybersecurity. While there is some cautiousness due to macroeconomic factors, we are not seeing a slowdown in these strategic areas.

Q: How much did TopBloc contribute to Q1, and how does it impact Q2 guidance? A: Theodore Hanson, CEO: TopBloc's contribution in Q1 was minimal as we only owned it for a few weeks. The impact on Q2 is aligned with our initial expectations shared during the acquisition announcement.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.