ASGN Reports 7.7% Revenue Decline in Q1 2025, Net Income Falls to $20.9 Million

ASGN Incorporated reported its financial results for the first quarter of 2025, revealing a revenue decline of 7.7% year-over-year, totaling $968.3 million compared to $1.049 billion in the same period of 2024. The company's net income also decreased significantly, falling to $20.9 million, or $0.48 per diluted share, down from $38.1 million, or $0.81 per diluted share, in the prior year. The decline in revenue was attributed to a decrease in assignment revenues, which fell by 15.9% to $382.1 million, reflecting ongoing softness in segments sensitive to macroeconomic changes.

In terms of operational metrics, ASGN's gross profit for the quarter was $275.4 million, a decrease of 7.0% from $296.2 million in the previous year. The gross margin improved slightly to 28.4%, up from 28.2%, driven by a higher mix of consulting revenues. The Commercial Segment, which constitutes the majority of ASGN's business, saw consulting revenues increase by 4.7% to $290.1 million, while Federal Government Segment revenues decreased by 6.7% to $296.1 million, primarily due to the conclusion of certain programs and cost-cutting measures.

ASGN's balance sheet showed total assets of $3.698 billion as of March 31, 2025, an increase from $3.429 billion at the end of 2024. This growth was largely driven by the acquisition of TopBloc, LLC, a tech-enabled Workday consultancy, for $340 million, which added $245.9 million in goodwill. The company’s long-term debt rose to $1.283 billion, up from $1.034 billion, reflecting new borrowings to finance the acquisition. The company reported a working capital of $508.1 million and cash and cash equivalents of $107 million.

Looking ahead, ASGN anticipates that the integration of TopBloc will enhance its service offerings and market position, particularly in the commercial sector. The company remains focused on leveraging its consulting capabilities to drive growth, despite the current challenges in the assignment segment. Management expressed confidence in the company's ability to navigate market conditions and maintain operational efficiency, supported by a strong contract backlog in the Federal Government Segment, which stood at $3.166 billion as of March 31, 2025.