ASGN Inc
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
EFOR$34.34-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000890564-25-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000890564-25-000063
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 56 current paragraphs.
28 unchanged; 25 reworded; 3 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Net income was $38.1 million, down from $47.5 million in the third quarter of 2024.
Current report
Net income was $88.3 million, down from $132.8 million in the first nine months of 2024.
Current report
All ASUs that are applicable, and not yet adopted, are disclosed in the Company's Annual Report on Form 10-K and in Note 2. Accounting Standards Update in the notes to the condensed consolidated financial statements in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Removed paragraphs (3)
Previous report
Net income was $29.3 million, down from $47.2 million in the second quarter of 2024.
Previous report
Net income was $50.2 million, down from $85.3 million in the first six months of 2024.
Previous report
There have been no recent accounting pronouncements that significantly impact the Company.
Reworded paragraphs (25)
Previous wording
ASGN provides information technology ("IT") services and solutions across the commercial and government sectors. ASGN operates through two segments, Commercial and Federal Government. The Commercial Segment, which is the largest segment, provides consulting, creative digital marketing, and permanent placement services primarily to Fortune 1000 and large mid-market companies. The Federal Government Segment provides advanced IT solutions in data and AI, cybersecurity, and enterprise transformation to the defense, intelligence, and national security agencies, along with other organizations including state and local and civilian agencies. Virtually all of the Company's revenues are generated in the United States.
Current wording
ASGN provides IT services and solutions across the commercial and government sectors. ASGN operates through two segments, Commercial and Federal Government. The Commercial Segment, which is the largest segment, provides consulting, creative digital marketing, and permanent placement services primarily to Fortune 1000 and large mid-market companies. The Federal Government Segment provides advanced IT solutions in data and AI, cybersecurity, and enterprise transformation to the following four customer types: (i) Defense and Intelligence, (ii) National Security, (iii) Federal Civilian, and (iv) other clients. Virtually all of the Company's revenues are generated in the United States.
Previous wording
Revenues for the quarter were $1.0 billion, down 1.4 percent year-over-year. The table below shows our revenues by segment for the three months ended June 30, 2025 and 2024 (in millions).
Current wording
Revenues for the quarter were $1.0 billion, down 1.9 percent year-over-year. The table below shows our revenues by segment for the three months ended September 30, 2025 and 2024 (in millions).
Previous wording
From an industry perspective, the Company operates in six broad industry verticals. Commercial Segment revenues (69.4 percent of total revenues) were down 2.4 percent year-over-year and are categorized in five verticals: (i) Consumer and Industrial, (ii) Financial Services, (iii) Technology, Media, and Telecom ("TMT"), (iv) Healthcare, and (v) Business Services. The Consumer and Industrial vertical was up double digits, Healthcare was flat, and the remaining three verticals declined. Federal Government Segment revenues (30.6 percent of total revenues), the sixth industry vertical, were up 1.1 percent year-over-year.
Current wording
Commercial Segment revenues (70.3 percent of total revenues) were down 1.0 percent year-over-year and are categorized in five industries: (i) Consumer and Industrial, (ii) Financial Services, (iii) Technology, Media, and Telecom ("TMT"), (iv) Healthcare, and (v) Business Services. Consumer and Industrial was up mid-teens, Healthcare was up high single digits, and the remaining three industries declined. Federal Government Segment revenues (29.7 percent of total revenues) were down 3.9 percent year-over-year. Federal Government Segment revenues are categorized into four customer types: (i) Defense and Intelligence, (ii) National Security, (iii) Civilian, and (iv) other clients. Federal Civilian and Defense and Intelligence both declined year-over-year, while National Security was up.
Previous wording
Total IT consulting revenues were $638.2 million (62.5 percent of total revenues), up 8.1 percent year-over-year. Commercial Segment consulting revenues were $325.7 million, up 15.7 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $312.5 million, up 1.1 percent year-over-year as stated above. Assignment revenues, which totaled $382.4 million (37.5 percent of total revenues), were down 13.9 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.
Current wording
Total IT consulting revenues were $635.0 million (62.8 percent of total revenues), up 6.3 percent year-over-year. Commercial Segment consulting revenues were $334.9 million, up 17.5 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $300.1 million, down 3.9 percent year-over-year as stated above. Assignment revenues, which totaled $376.4 million (37.2 percent of total revenues), were down 13.2 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.
Previous wording
Consolidated gross profit declined 2.6 percent year-over-year on a revenue decline of 1.4 percent. Gross margin for the second quarter of 2025 was 28.7 percent, a compression of 40 basis points compared with the second quarter of 2024. Gross margin for the Commercial Segment was up 30 basis points, reflecting a higher mix of consulting revenues as well as margin expansion in these revenues. Gross margin for the Federal Government Segment was down 140 basis points, primarily due to a higher volume of revenues from low-margin software licenses and the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency.
Current wording
Consolidated gross profit declined 1.2 percent year-over-year on a revenue decline of 1.9 percent. Gross margin for the third quarter of 2025 was 29.4 percent, an expansion of 30 basis points compared with the third quarter of 2024. Gross margin for the Commercial Segment was up 40 basis points, reflecting a higher mix of consulting revenues. Gross margin for the Federal Government Segment was down 40 basis points, due to the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency.
Previous wording
Selling, general, and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, information systems, rent, public company expenses, and other general and administrative expenses. SG&A expenses were $216.8 million, compared with $205.6 million in the second quarter of 2024. SG&A expenses in the second quarter of 2025 included $8.3 million in acquisition, integration, and strategic planning expenses, inclusive of $5.2 million in charges related to strategic workforce optimization initiatives. The second quarter of 2024 included $1.2 million of acquisition, integration, and strategic planning expenses.
Current wording
Selling, general, and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, information systems, rent, public company expenses, and other general and administrative expenses. SG&A expenses were $212.2 million, compared with $207.5 million in the third quarter of 2024. SG&A expenses in the third quarter of 2025 included $4.2 million in acquisition, integration, and strategic planning expenses.
Previous wording
Amortization of intangible assets was $16.9 million, compared with $15.1 million in the second quarter of 2024. The increase relates to the effects of the TopBloc acquisition, partially offset by older intangibles that have reached the end of their useful lives.
Current wording
Amortization of intangible assets was $16.8 million, compared with $14.0 million in the third quarter of 2024. The increase relates to the effects of the TopBloc acquisition, partially offset by older intangibles that have reached the end of their useful lives.
Previous wording
Interest expense, net, which consists primarily of cash-based interest expense, amortization, adjustments to deferred loan costs, and interest income, was $18.2 million, up from $15.8 million in the second quarter of 2024. The increase was due to higher outstanding borrowings. Theweighted-average outstanding borrowings and cash-based interest rate in the second quarter of 2025 and 2024 were$1.28 billion and 5.6 percent, and $1.04 billion and 6.0 percent, respectively.
Current wording
Interest expense, net, which consists primarily of cash-based interest expense, amortization, adjustments to deferred loan costs, and interest income, was $17.4 million, up from $16.0 million in the third quarter of 2024. The increase was due to higher outstanding borrowings. The weighted-average outstanding borrowings and cash-based interest rates in the third quarter of 2025 and 2024 were $1.22 billion and 5.7 percent, and $1.05 billion and 6.0 percent, respectively.
Previous wording
The provision for income taxes was $12.1 million, down from $17.4 million in the second quarter of 2024 due to lower income before income taxes. The effective tax rate was 29.2 percent, up from 26.9 percent in the second quarter of 2024. The increase in the effective tax rate relates to shortfalls on stock-based compensation.
Current wording
The provision for income taxes was $12.4 million, down from$15.4 million in the third quarter of 2024 due to lower income before income taxes. The effective tax rate was 24.6 percent, up from 24.5 percent in the third quarter of 2024.
Previous wording
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2025 COMPARED WITH THE SIX MONTHS ENDED JUNE 30, 2024
Current wording
RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 COMPARED WITH THE NINE MONTHS ENDED SEPTEMBER 30, 2024
Previous wording
Revenues for the first six months of the year were $2.0 billion, down 4.5 percent year-over-year. The table below shows our revenues by segment for the six months ended June 30, 2025 and 2024 (in millions).
Current wording
Revenues for the first nine months of the year were $3.0 billion, down 3.7 percent year-over-year. The table below shows our revenues by segment for the nine months ended September 30, 2025 and 2024 (in millions).
Previous wording
Commercial Segment revenues (69.4 percent of total revenues) were down 5.3 percent year-over-year. The Consumer and Industrial vertical was up low double digits, while the remaining four industry verticals declined year-over-year. Federal Government Segment revenues (30.6 percent of total revenues), the sixth industry vertical, were down 2.9 percent year-over-year.
Current wording
Commercial Segment revenues (69.7 percent of total revenues) were down 3.9 percent year-over-year. Consumer and Industrial revenues were up low double digits, while the remaining four commercial industries declined year-over-year. Federal Government Segment revenues (30.3 percent of total revenues) were down 3.2 percent year-over-year. Federal Civilian and Defense and Intelligence revenues both declined, while National Security revenues were up.
Previous wording
Total IT consulting services revenues were $1.2 billion (61.6 percent of total revenues), up 3.3 percent year-over-year. Commercial Segment consulting revenues were $615.8 million, up 10.3 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $608.6 million, down 2.9 percent year-over-year as stated above. Assignment revenues, which totaled $764.5 million (38.4 percent of total revenues), were down 14.9 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.
Current wording
Total IT consulting services revenues were $1.9 billion (62.0 percent of total revenues), up 4.3 percent year-over-year. Commercial Segment consulting revenues were $950.7 million, up 12.7 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $908.7 million, down 3.2 percent year-over-year as stated above. Assignment revenues, which totaled $1.1 billion (38.0 percent of total revenues), were down 14.4 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.
Previous wording
The table below shows gross profit and gross margin by segment for the six months ended June 30, 2025 and 2024 (in millions).
Current wording
The table below shows gross profit and gross margin by segment for the nine months ended September 30, 2025 and 2024 (in millions).
Previous wording
Consolidated gross profit declined 4.8 percent year-over-year on a revenue decline of 4.5 percent. Gross margin was 28.6 percent, a compression of 10 basis points from the first six months of 2024. Gross margin for the Commercial Segment was up 40 basis points, reflecting a higher mix of consulting revenues as well as margin expansion in these revenues. Gross margin for the Federal Government Segment was down 80 basis points, primarily due to a higher volume of revenues from low-margin software licenses, the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency, and higher rates of fringe benefits.
Current wording
Consolidated gross profit declined 3.6 percent year-over-year on a revenue decline of 3.7 percent. Gross margin was 28.9 percent, an expansion of 10 basis points from the first nine months of 2024. Gross margin for the Commercial Segment was up 30 basis points, reflecting a higher mix of consulting revenues. Gross margin for the Federal Government Segment was down 60 basis points, primarily due to a higher volume of revenues from low-margin software licenses, the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency, and higher rates of fringe benefits.
Previous wording
SG&A expenses were $431.3 million, up from $415.8 million in the first six months of 2024. SG&A expenses in the first six months of 2025 included $11.6 million acquisition, integration, and strategic planning expenses, inclusive of $5.2 million in charges related to strategic workforce optimization initiatives. Additionally, in 2025 there wasa $4.4 million write-off charge related to previously capitalized costs for software enhancements that will no longer be placed into service. SG&A expenses in the first six months of 2024 included $2.4 million inacquisition, integration, and strategic planning expenses.
Current wording
SG&A expenses were $643.5 million, up from $623.3 million in the first nine months of 2024. SG&A expenses in the first nine months of 2025 included $15.8 million in acquisition, integration, and strategic planning expenses, inclusive of $5.2 million incharges related to strategic workforce optimization initiatives. Additionally, in 2025, there wasa $4.4 million write-off charge related to previously capitalized costs for software enhancements that will no longer be placed into service.
Previous wording
Amortization of intangible assets was $31.2 million, compared with $30.2 million in the first six months of 2024. The increase relates to the effects of the TopBloc acquisition, partially offset by older intangibles that have reached the end of their useful lives.
Current wording
Amortization of intangible assets was $48.0 million, compared with $44.2 million in the first nine months of 2024. The increase relates to the effects of the TopBloc acquisition, partially offset by older intangibles that have reached the end of their useful lives.
Previous wording
Interest expense, net was $33.6 million, up from $33.4 million in the first six months of 2024. Excluding $1.5 million of costs from the prior year period that related to the March 2024 amendment to the senior secured credit facility, the weighted-average outstanding borrowings and cash-based interest rate in the first six months of 2025 and 2024 were $1.20 billion and 5.6 percent, and $1.04 billion and 6.1 percent, respectively.
Current wording
Interest expense, net was $51.0 million, up from $49.4 million in the first nine months of 2024. Excluding $1.5 million of costs from the prior year period that related to the March 2024 amendment to the senior secured credit facility, the weighted-average outstanding borrowings and cash-based interest rates in the first nine months of 2025 and 2024 were $1.21 billion and 5.6 percent, and $1.05 billion and 6.1 percent, respectively.
Previous wording
The provision for income taxes was $22.4 million, down from $32.6 million in the first six months of 2024 due to lower income before income taxes. The effe ctive tax rate was 30.9 percent, up from 27.7 percent in the first six months of 2024. The increase in the effective tax rate relates to shortfalls on stock-based compensation.
Current wording
The provision for income taxes was $34.8 million, down from $48.0 million in the first nine months of 2024 due to lower income before income taxes. The effective tax rate was 28.3 percent, up from 26.5 percent in the first nine months of 2024. The increase in the effective tax rate relates to shortfalls on stock-based compensation.
Previous wording
Our working capital, which is current assets less current liabilities, at June 30, 2025 was $481.7 million, and our cash and cash equivalents were $138.9 million. Our cash flows from operating activities have been our primary source of liquidity and have been sufficient to meet our working capital and capital expenditure needs. At June 30, 2025, we had approximately $320.0 million available under the $500.0 million revolving credit facility. We believe that our cash and cash equivalents on hand, expected operating cash flows, and availability under our revolving credit facility will be sufficient to fulfill our obligations, working capital requirements, and capital expenditures for the next 12 months and beyond.
Current wording
Our working capital, which is current assets less current liabilities, at September 30, 2025, was $456.1 million, and our cash and cash equivalents were $126.5 million. Our cash flows from operating activities have been our primary source of liquidity and have been sufficient to meet our working capital and capital expenditure needs. At September 30, 2025, we had approximately $460.0 million available under the $500.0 million revolving credit facility. We believe that our cash and cash equivalents on hand, expected operating cash flows, and availability under our revolving credit facility will be sufficient to fulfill our obligations, working capital requirements, and capital expenditures for the next 12 months and beyond.
Previous wording
Net cash provided by operating activities was $141.7 million for the first six months of 2025, compared with $164.0 million in the same period of 2024. This year-over-year change primarily related to lower net income in the first six months of 2025.
Current wording
Net cash provided by operating activities was $225.6 million for the first nine months of 2025, compared with $299.8 million in the same period of 2024. Net cash provided by operating activities before changes in operating assets and liabilities was $217.9 million, compared with $245.0 million in the same period of 2024. Changes in operating assets and liabilities provided net cash of $7.7 million for the first nine months of 2025, compared with $54.8 million in the same period of 2024. This year-over-year change primarily related to an increase in accounts receivable days sales outstanding in the first nine months of 2025.
Previous wording
Net cash used in investing activities for the first six months of 2025 was $325.4 million, comprised of $306.1 million used to acquire TopBloc and $19.3 million used for capital expenditures. Net cash used in investing activities for the first six months of 2024 was $16.0 million and related to capital expenditures.
Current wording
Net cash used in investing activities for the first nine months of 2025 was $337.3 million, comprised of $306.1 million used to acquire TopBloc and $31.2 million used for capital expenditures. Net cash used in investing activities for the first nine months of 2024 was $24.0 million and related to capital expenditures.
Previous wording
Net cash provided by financing activities was $116.3 million for the first six months of 2025 and included net borrowings under the senior secured credit facility totaling $177.5 million, offset by $59.9 million used to repurchase the Company's common stock. Net cash used in financing activities in the first six months of the prior year was $190.7 million and included $187.7 million used to repurchase the Company's common stock.
Current wording
Net cash provided by financing activities was $31.8 million for the first nine months of 2025 and included net borrowings under the senior secured credit facility totaling $134.6 million, offset by $105.9 million used to repurchase the Company's common stock. Net cash used in financing activities in the first nine months of the prior year was $283.6 million and included $283.3 million used to repurchase the Company's common stock.
Previous wording
For details on the Company’s senior secured credit facility, comprised of a revolving credit facility and term loan B, and unsecured senior notes, see Note 5. Long-Term Debt in Part I, Item 1 in this Quarterly Report on Form 10-Q ("10-Q").
Current wording
For details on the (i) senior secured credit facility, comprised of a revolving credit facility, term loan A, and term loan B, and (ii) unsecured senior notes, see Note 6. Long-Term Debt in Part I, Item 1 in this Quarterly Report on Form 10-Q.
Previous wording
There were no material changes to our critical accounting policies and estimates during thesecond quarter of 2025 compared with those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2024 10-K.
Current wording
There were no material changes to our critical accounting policies and estimates during thethird quarter of 2025 compared with those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2024 10-K.