Asgn Incorporated (NYSE: ASGN) reported its financial results for the third quarter ended September 30, 2025, with revenues hitting $1.01 billion, and net income reaching $38.1 million. The adjusted EBITDA, a non-GAAP measure, was reported at $112.6 million, accounting for 11.1 percent of revenues. The company's operating cash flows stood at $83.9 million, with free cash flow at $72.0 million.
In terms of share repurchases, Asgn repurchased approximately 0.9 million shares of its common stock for $46.0 million. The company also secured a new $100.0 million term loan, using the proceeds to pay down the revolving credit facility, with the term loan due in 2028.
It is important to note that the company's IT consulting revenues, which accounted for approximately 63 percent of total revenues, were up from 58 percent in the year-ago period. The commercial segment recorded new bookings for the trailing-twelve-month period at $1.4 billion, with a book-to-bill ratio of 1.2 to 1. On the other hand, the federal government segment saw new contract awards for the same period at $1.2 billion, with a book-to-bill ratio of 1.0 to 1.
Looking at the financial results, Asgn's consolidated revenues for the quarter were $1.01 billion, compared with $1.03 billion in the third quarter of 2024. The commercial segment's revenues totaled $711.3 million, down from $718.8 million in the same period of 2024. Meanwhile, federal government segment revenues were reported at $300.1 million, a decrease from $312.2 million in the prior-year period.
The total IT consulting revenues were $635.0 million, compared with $597.2 million in the third quarter of 2024. The commercial segment consulting revenues were $334.9 million, up 17.5 percent year-over-year, while federal government segment revenues were $300.1 million.
The company's gross margin for the third quarter of 2025 was reported at 29.4 percent, an expansion of 30 basis points from the same period in 2024. Additionally, Asgn repurchased 0.9 million shares of its common stock for $46 million at an average price of $51.46 per share, leaving approximately $423 million available at quarter end for repurchases under the company's stock repurchase plan.
Looking ahead, Asgn provided its financial estimates for the fourth quarter of 2025, with revenues expected to range between $960.0 million and $980.0 million. The company also provided estimates for SG&A expenses, amortization of intangible assets, net income, earnings per diluted share, gross margin, effective tax rate, adjusted EBITDA, and adjusted net income.
The company will hold a conference call today at 4:30 p.m. ET to review its financial results for the third quarter of 2025 and to provide fourth quarter 2025 estimates.
Asgn Incorporated (NYSE: ASGN) is a leading provider of IT services and solutions to the commercial and government sectors. Following these announcements, the company's shares moved 2.96%, and are now trading at a price of $48.02. Check out the company's full 8-K submission here.
