Company: BWMN
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023232
Chunk: 113

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 represented 54.7% and 54.7% of revenue attributable to our workforce, respectively (see Net Service Billing).

Direct payroll costs increased $4.3 million or 11.4% to $42.0 million for the three months ended March 31, 2025, as compared to $37.7 million for the three months ended March 31, 2024. Direct payroll accounted for 76.6% of total contract costs for the three months ended March 31, 2025, a decrease of 3.8% as compared to 80.4% for the three months ended March 31, 2024.

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $3.6 million or 12.9% to $31.4 million for the three months ended March 31, 2025 as compared to $27.8 million for the three months ended March 31, 2024. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the three months ended March 31, 2025 and 2024, direct labor costs represented 27.8% and 29.3% of gross contract revenue, respectively, and represented 31.4% and 32.4% 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 $0.6 million or 6.1% to $10.5 million as compared to $9.9 million.

Sub-consultants and other direct expenses increased $3.7 million or 40.2% to $12.9 million for the three months ended March 31, 2025 as compared to $9.2 million for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, sub-consultant and other direct expenses represented 11.4% and 9.7% of gross contract revenue, respectively. This increase is not indicative of an anticipated long-term shift in the composition of our gross contract revenue, and we expect to experience periodic volatility in concentration of sub-consultant utilization. 

Operating Expense

Total operating expense increased $6.4 million or 12.6% to $57.0 million for the three months ended March 31,