Company: ASGN
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000890564-25-000063
Chunk: 53

Company: ASGN Inc
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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iii) Civilian, and (iv) other clients. Federal Civilian and Defense and Intelligence both declined year-over-year, while National Security was up.

Total IT consulting revenues were $635.0 million (62.8 percent of total revenues), up 6.3 percent year-over-year. Commercial Segment consulting revenues were $334.9 million, up 17.5 percent year-over-year. Federal Government Segment revenues, which are all consulting revenues, were $300.1 million, down 3.9 percent year-over-year as stated above. Assignment revenues, which totaled $376.4 million (37.2 percent of total revenues), were down 13.2 percent year-over-year, reflecting continued softness in the portions of the Commercial Segment business that are more sensitive to changes in macroeconomic cycles.

13

Gross Profit and Gross Margin

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

Gross ProfitGross Margin20252024Change20252024ChangeCommercial $235.9 $235.8 —%33.2%32.8%0.4%Federal Government 61.0 64.6 (5.6%)20.3%20.7%(0.4%)Consolidated$296.9 $300.4 (1.2%)29.4%29.1%0.3% 

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 1.2 percent year-over-year on a revenue decline of 1.9 percent. Gross margin for the third quarter of 2025 was 29.4 percent, an expansion of 30 basis points compared with the third quarter of 2024. Gross margin for the Commercial Segment was up 40 basis points, reflecting a higher mix of consulting revenues. Gross margin for the Federal Government Segment was down 40 basis points, due to the loss of certain higher margin contracts as a result of initiatives associated with the U.S. Department of Government Efficiency.

Selling, General, and Administrative Expenses

Selling, general, and administrative ("SG&A") expenses consist primarily of compensation expense for our field operations and corporate staff, information systems, rent, public company expenses, and other general and administrative expenses. SG&A expenses