Company: ASGN
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000890564-25-000039
Chunk: 69

Company: ASGN Inc
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 7
Chunk 69
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.8 million, up 10.3 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $608.6 million, down 2.9 percent year-over-year as stated above. Assignment revenues, which totaled $764.5 million (38.4 percent of total revenues), were down 14.9 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.

Gross Profit and Gross Margin

The table below shows gross profit and gross margin by segment for the six months ended June 30, 2025 and 2024 (in millions).

Gross ProfitGross Margin20252024Change20252024ChangeCommercial $451.1 $471.1 (4.2%)32.7%32.3%0.4%Federal Government 117.6 126.2 (6.8%)19.3%20.1%(0.8%)Consolidated$568.7 $597.3 (4.8%)28.6%28.7%(0.1%) 

Consolidated gross profit declined 4.8 percent year-over-year on a revenue decline of 4.5 percent. Gross margin was 28.6 percent, a compression of 10 basis points from the first six months of 2024. Gross margin for the Commercial Segment was up 40 basis points, reflecting a higher mix of consulting revenues as well as margin expansion in these revenues. Gross margin for the Federal Government Segment was down 80 basis points, primarily due to a higher volume of revenues from low-margin software licenses, the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency, and higher rates of fringe benefits.

Selling, General, and Administrative Expenses

SG&A expenses were $431.3 million, up from $415.8 million in the first six months of 2024. SG&A expenses in the first six months of 2025 included $11.6 million acquisition, integration, and strategic planning expenses, inclusive of $5.2 million in charges related to strategic workforce optimization initiatives. Additionally, in 2025 there was a $4.4 million write-off charge related to previously capitalized costs for software enhancements that will no longer be placed into service. SG&A expenses in the first six months of 2024 included $2.4 million in acquisition, integration, and