Everforth Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue and adjusted EBITDA exceeded guidance, with growth supported by AI, cloud, cybersecurity, and federal bookings. Q4 guidance reflects seasonality, while longer-term priorities include deleveraging, $80M of cost savings, and margin expansion.
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Q2 2026 revenues and adjusted EBITDA margin exceeded guidance, driven by strong commercial bookings and federal contract wins. Quinnox integration is boosting margins and capabilities, while new AI platforms and automation fuel efficiency. Q3 guidance anticipates continued momentum, with commercial growth leading and federal gains expected later.
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Everforth, recently rebranded from ASGN, is leveraging unified branding, strategic acquisitions, and AI-driven solutions to drive growth in IT and digital engineering. The company targets 4%-6% organic CAGR, $1B free cash flow, and expanded delivery capabilities, with a focus on high-value consulting and platform partnerships.
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Q1 2026 revenue was $968.3M, flat year-over-year, with commercial growth offset by a federal decline. Margins were pressured by slower ramp-up of higher-margin solutions and business mix, but Q2 guidance anticipates improvement. Acquisition of Quinnox and leadership changes support long-term growth.
Fiscal Year 2025
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Q4 2025 revenue reached $980.1M with strong commercial consulting growth and record bookings. The company is rebranding to Everforth and acquiring Quinnox to boost digital engineering and offshore delivery. Guidance for Q1 2026 projects stable revenue and continued margin strength.
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The company is rebranding as EverForth, unifying its business to focus on high-value technology solutions, AI, and cybersecurity, supported by strategic acquisitions and partnerships. Financial targets include 4-6% organic revenue CAGR, 12.5-13.5% EBITDA margin, and $1B in free cash flow over three years, with additional growth from M&A and a $1B share repurchase program.
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Q3 2025 revenues reached $1.01B with strong IT consulting growth and robust AI-driven demand, despite a slight year-over-year decline. Commercial consulting outperformed, while federal segment guidance remains cautious due to the government shutdown.
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Q2 2025 revenue was $1.02B, exceeding guidance, with strong growth in IT consulting and commercial bookings. Federal backlog remains robust, and AI investments are accelerating, while macro uncertainty and sector-specific softness persist.
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The event highlighted a strategic shift toward higher-margin consulting, strong free cash flow, and a resilient business model. Demand is robust in AI, data, and cybersecurity, with government and commercial bookings signaling future growth. Margin expansion is expected as consulting grows.
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Q1 2025 revenue and adjusted EBITDA met guidance despite a 7.7% revenue decline year-over-year. Consulting revenues and bookings grew, TopBloc integration is ahead of expectations, and Q2 guidance reflects ongoing macro uncertainty and cautious client IT spending.
Fiscal Year 2024
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IT consulting revenues rose to 58% of total, with strong margin performance despite an 8.3% revenue decline in Q4. The TopBloc acquisition is set to boost ERP and AI capabilities, while guidance for Q1 2025 anticipates stable demand and continued focus on high-value consulting.
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The business has shifted from IT staffing to high-margin consulting, now comprising 60% of revenue. Growth is driven by large enterprise and federal clients, with key opportunities in ServiceNow, cybersecurity, cloud, and nearshoring. Share repurchases are prioritized amid limited M&A.
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Q3 2024 revenues were flat sequentially but down year-over-year, with stable demand and strong consulting growth offset by client caution in IT spending. Bookings and backlog remain robust, especially in federal, and the company maintains strong margins, cash flow, and disciplined capital allocation.
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The business is shifting toward higher-value consulting and IT solutions, leveraging strong enterprise and federal relationships. Despite cautious client spending, demand for security, cloud migration, and data modernization remains robust. Nearshore delivery in Mexico and a stable federal segment provide resilience and growth opportunities.
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Q2 2024 saw steady revenues of $1.035B and strong margins, with IT consulting and AI-related projects driving growth despite macro headwinds. Federal segment bookings are expected to improve in Q3, and the company remains active in share repurchases and strategic positioning.
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The company is rapidly expanding its consultative IT services, now comprising 60% of revenue, and leveraging a flexible cost structure to drive strong free cash flow. With significant growth potential in both commercial and government sectors, it is well-positioned in AI and emerging technologies.