Company: ASGN
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000890564-25-000039
Chunk: 50

Company: ASGN Inc
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 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 strategic planning expenses.

Amortization of Intangible Assets

Amortization of intangible assets was $31.2 million, compared with $30.2 million in the first six months of 2024. The increase relates to the effects of the TopBloc acquisition, partially offset by older intangibles that have reached the end of their useful lives.

15

Interest Expense, Net 

Interest expense, net was $33.6 million, up from $33.4 million in the first six months of 2024. Excluding $1.5 million of costs from the prior year period that related to the March 2024 amendment to the senior secured credit facility, the weighted-average outstanding borrowings and cash-based interest rate in the first six months of 2025 and 2024 were $1.20 billion and 5.6 percent, and $1.04 billion and 6.1 percent, respectively. 

Provision for Income Taxes

The provision for income taxes was $22.4 million, down from $32.6 million in the first six months of 2024 due to lower income before income taxes. The effective tax rate was 30.9 percent, up from 27.7 percent in the first six months of 2024. The increase in the effective tax rate relates to shortfalls on stock-based compensation. 

Net Income

Net income