Company: BWMN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050314
Chunk: 57

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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1% of total contract revenue, respectively. For the nine months ended September 30, 2025 and 2024 total contract costs represented 53.3% and 53.7% of revenue attributable to our workforce, respectively (see Net Service Billing).

Direct payroll costs increased $11.0 million or 9.3% to $129.5 million for the nine months ended September 30, 2025, as compared to $118.5 million for the nine months ended September 30, 2024. Direct payroll accounted for 76.0% of total contract costs for the nine months ended September 30, 2025, an decrease of 2.6 percentage points as compared to 78.6% for the nine months ended September 30, 2024.

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $10.8 million or 12.3% to $98.9 million for the nine months ended September 30, 2025 as compared to $88.1 million for the nine months ended September 30, 2024. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the nine months ended September 30, 2025 and 2024, direct labor costs represented 27.4% and 28.1% of gross contract revenue, respectively and represented 30.9% and 31.4% of the revenue attributable to our workforce, respectively.

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $0.2 million or 0.7% to $30.6 million as compared to $30.4 million.

Sub-consultants and other direct expenses increased $8.6 million or 26.6% to $40.9 million for the nine months ended September 30, 2025 as compared to $32.3 million for the nine months ended September 30, 2024. For the nine months ended September 30, 2025 and 2024, sub-consultant and other direct expenses represented 11.3% and 10.3% of gross contract revenue, respectively.

Operating Expense

Total operating expense increased $9.1 million or 5.5% to $175.1 million for the nine months ended September 30, 2025 as compared to $166.