Everforth, Inc. Reports Unchanged Revenues of $968.3 Million in Q1 2026

Everforth, Inc., formerly known as ASGN Incorporated, reported its financial results for the first quarter of 2026, revealing consolidated revenues of $968.3 million, unchanged from the same period in 2025. The Commercial Segment, which constitutes approximately 70% of total revenues, saw a slight increase of 0.5% year-over-year, driven primarily by growth in the Healthcare, Consumer and Industrial, and Technology, Media, and Telecom sectors. Conversely, the Federal Government Segment experienced a decline of 1.1%, attributed to reduced revenues from Defense and Intelligence and Federal Civilian agencies due to ongoing initiatives from the Department of Government Efficiency.

The company's gross profit for the quarter was $266.6 million, a decrease of 3.2% compared to $275.4 million in the prior year, resulting in a gross margin of 27.5%, down from 28.4%. The decline in gross profit was primarily due to a shift in business mix within the Commercial Segment, which saw a reduced contribution from higher-margin solutions. Selling, general, and administrative expenses rose to $224.4 million from $214.5 million, reflecting increased costs associated with acquisition and strategic planning efforts. Net income fell significantly to $5.5 million, down from $20.9 million in the previous year, leading to earnings per share of $0.13, compared to $0.48 in the first quarter of 2025.

In March 2026, Everforth completed the acquisition of Quinnox Inc. for $290 million, enhancing its capabilities in the Commercial Segment. This acquisition is expected to contribute positively to future revenues, although the purchase accounting remains incomplete as management continues to assess the fair value of acquired assets and liabilities. The company reported an increase in goodwill to $2.281 billion, reflecting the acquisition's impact, while identifiable intangible assets rose to $612.9 million.

Operationally, Everforth's cash and cash equivalents decreased to $143.6 million from $161.2 million at the end of 2025. The company reported net cash provided by operating activities of $18.5 million, an increase from $16.8 million in the prior year. However, net cash used in investing activities was $293 million, primarily due to the Quinnox acquisition. The company’s long-term debt increased to $1.462 billion, up from $1.169 billion, as it utilized additional borrowings to finance its acquisition strategy.

Looking ahead, Everforth anticipates that the effects of the Department of Government Efficiency initiatives will diminish in the second quarter of 2026, potentially stabilizing revenues in the Federal Government Segment. The company remains focused on leveraging its recent acquisition to drive growth and improve profitability in the coming quarters. Management expressed confidence in the company's ability to meet its obligations and capitalize on market opportunities, supported by a robust liquidity position and available credit facilities.