ASGN Incorporated announced its third‑quarter 2025 results on October 24, 2025, reporting $1.01 billion in revenue, a 1.4% year‑over‑year decline, and $112.6 million in adjusted EBITDA, which represents an 11.1% margin. The company’s earnings per diluted share were $0.87, up from $0.67 in the same quarter a year earlier, and adjusted net income reached $57.3 million. Commercial segment revenue was $711.3 million, while the federal government segment generated $300.1 million, with IT consulting revenues accounting for 63% of total sales.
The commercial segment’s consulting revenue rose 17.5% year‑over‑year to $334.9 million, offset by a 13.9% decline in assignment revenue to $376.4 million. Federal government consulting revenue remained steady at $300.1 million, but the segment’s gross margin fell 40 basis points to 19.2% due to a shift toward lower‑margin license work. Overall gross margin expanded to 29.4%, a 30‑basis‑point improvement over the prior year’s 29.1%.
For the fourth quarter, ASGN provided guidance of $960 million to $980 million in revenue and an adjusted EBITDA range of $102 million to $107 million, implying a margin of 10.6% to 10.9%. The company also reiterated its expectation of a 1.2x book‑to‑bill ratio for the trailing twelve months and maintained its focus on high‑margin consulting work. The guidance reflects confidence in continued demand for AI‑driven solutions and a resilient backlog of $2.9 billion in federal contracts.
Capital allocation remains a priority: ASGN repurchased 0.9 million shares for $46 million in the third quarter, leaving $423 million available under its stock‑repurchase plan. Free cash flow for the quarter was $72 million, and the company’s cash and cash equivalents stood at $126.5 million as of September 30, 2025. These metrics underscore ASGN’s ability to generate liquidity while investing in growth initiatives such as its AI Innovation Center and the integration of TopBloc.
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