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Sep 30
ASGN Q3 2025 Earnings Report
ASGN reported solid third quarter 2025 results, with revenues, Adjusted EBITDA, and Adjusted EBITDA margin reaching the high end of guidance estimates.
Key Takeaways
ASGN delivered a solid performance in the third quarter of 2025, with revenues of $1.01 billion and net income of $38.1 million. The IT consulting business continued its growth, accounting for 63% of total revenues, while Adjusted EBITDA stood at $112.6 million, representing an 11.1% margin. The company also generated strong operating cash flows and repurchased shares.
Revenues for the third quarter of 2025 were $1.01 billion, aligning with the high end of guidance estimates.
Net income was $38.1 million, and Adjusted EBITDA reached $112.6 million, with an Adjusted EBITDA margin of 11.1%.
IT consulting revenues grew to $635.0 million, representing 63% of total revenues, up from 58% in the prior-year period.
The company generated $83.9 million in operating cash flows and $72.0 million in Free Cash Flow, and repurchased $46.0 million of its common stock.
ASGN
ASGN
ASGN Revenue by Segment
Revenue by Segment
Commercial Segment Revenue
CapyFin.comFederal Government Segment Revenue
CapyFin.comIT Consulting Revenue
CapyFin.comAssignment Revenue
CapyFin.com Forward Guidance
ASGN's financial estimates for the fourth quarter of 2025 project revenues between $960.0 million and $980.0 million, with Adjusted EBITDA ranging from $102.0 million to $107.0 million. Diluted EPS is expected to be between $0.75 and $0.83.
Positive Outlook
- Projected revenues of $960.0 million to $980.0 million for Q4 2025.
- Anticipated Adjusted EBITDA between $102.0 million and $107.0 million.
- Estimated Adjusted EBITDA margin of 10.6% to 10.9%.
- Expected diluted EPS of $0.75 to $0.83.
- Gross margin is estimated to be between 28.8% and 29.3%.
Challenges Ahead
- The fourth quarter has the lowest number of billable days in the year due to holidays.
- Estimates assume no deterioration in the markets ASGN serves.
- Estimates do not include any acquisition, integration, or strategic planning expenses.
- Adjusted Net Income per diluted share does not include the cash tax savings benefit from goodwill and trademark amortization.
- Federal Civilian and Defense and Intelligence segments declined year-over-year in Q3, which could impact future performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income