Company: ASGN
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000890564-25-000008
Chunk: 52

Company: ASGN Inc
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 52
---
 IT consulting services revenues were $2.4 billion (57.5 percent of total revenues), down 0.5 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $1.2 billion, down 3.5 percent year-over-year as stated above. Commercial Segment consulting revenues were $1.1 billion, up 3.0 percent year-over-year. Assignment revenues, which totaled $1.7 billion (42.5 percent of total revenues), were down 16.3 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment Business that are more sensitive to changes in the macroeconomic cycles (i.e., more cyclical).

 Gross Profit and Gross Margin

The table below shows gross profit and gross margin by segment (in millions).

Gross ProfitGross Margin20242023Change20242023ChangeCommercial$932.9 $1,017.6 (8.3)%32.5 %32.1 %0.4 %Federal Government250.8 262.4 (4.4)%20.4 %20.6 %(0.2)%Consolidated$1,183.7 $1,280.0 (7.5)%28.9 %28.8 %0.1 %

Gross profit is comprised of revenues less costs of services, which consist primarily of compensation for our contract professionals, other

direct costs, and reimbursable out-of-pocket expenses.

Consolidated gross profit declined 7.5 percent on a revenue decline of 7.9 percent. Gross margin was 28.9 percent, an expansion of 10 basis points year-over-year, reflecting a higher mix of Commercial consulting revenues (which carry a higher gross margin than assignment revenues and Federal Government Segment revenues), as well as margin expansion in these revenues.

Selling, General, and Administrative Expenses

Selling, general and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, rent, information systems, marketing, telecommunications, public company expenses and other general and administrative expenses. SG&A expenses were $821.2 million (20.0 percent of revenues), compared with $844.2 million (19.0 percent of revenues) in 2023. The decrease in SG&A expenses was primarily due to lower compensation-related expense.

Amortization of Intangible Assets

Amortization of intangible assets was $58.1 million