v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

NOTE 6 – REVENUE RECOGNITION

Disaggregation of Revenue

The Company disaggregates revenue from clients into categories that depict how the nature, amount, and uncertainty of revenue and cash flows are affected by economic and business factors. Those categories are client market, client type, and contract mix.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy, environment, infrastructure, and disaster recovery

 

$

248,004

 

 

 

52

%

 

$

232,763

 

 

 

46

%

 

$

486,700

 

 

 

51

%

 

$

457,572

 

 

 

46

%

Health and social programs

 

 

159,068

 

 

 

33

%

 

 

196,164

 

 

 

38

%

 

 

327,966

 

 

 

34

%

 

 

386,939

 

 

 

38

%

Security and other civilian & commercial

 

 

69,083

 

 

 

15

%

 

 

83,102

 

 

 

16

%

 

 

149,107

 

 

 

15

%

 

 

161,954

 

 

 

16

%

Total

 

$

476,155

 

 

 

100

%

 

$

512,029

 

 

 

100

%

 

$

963,773

 

 

 

100

%

 

$

1,006,465

 

 

 

100

%

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal government

 

$

204,680

 

 

 

43

%

 

$

273,471

 

 

 

53

%

 

$

444,305

 

 

 

46

%

 

$

547,666

 

 

 

55

%

U.S. state and local government

 

 

85,650

 

 

 

18

%

 

 

84,786

 

 

 

17

%

 

 

162,492

 

 

 

17

%

 

 

161,739

 

 

 

16

%

International government

 

 

29,260

 

 

 

6

%

 

 

28,696

 

 

 

6

%

 

 

56,336

 

 

 

6

%

 

 

53,959

 

 

 

5

%

Total Government

 

 

319,590

 

 

 

67

%

 

 

386,953

 

 

 

76

%

 

 

663,133

 

 

 

69

%

 

 

763,364

 

 

 

76

%

Commercial

 

 

156,565

 

 

 

33

%

 

 

125,076

 

 

 

24

%

 

 

300,640

 

 

 

31

%

 

 

243,101

 

 

 

24

%

Total

 

$

476,155

 

 

 

100

%

 

$

512,029

 

 

 

100

%

 

$

963,773

 

 

 

100

%

 

$

1,006,465

 

 

 

100

%

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Contract Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time-and-materials

 

$

206,553

 

 

 

43

%

 

$

217,640

 

 

 

43

%

 

$

415,599

 

 

 

43

%

 

$

423,793

 

 

 

42

%

Fixed-price

 

 

238,239

 

 

 

50

%

 

 

235,344

 

 

 

46

%

 

 

476,306

 

 

 

49

%

 

 

460,140

 

 

 

46

%

Cost-based

 

 

31,363

 

 

 

7

%

 

 

59,045

 

 

 

11

%

 

 

71,868

 

 

 

8

%

 

 

122,532

 

 

 

12

%

Total

 

$

476,155

 

 

 

100

%

 

$

512,029

 

 

 

100

%

 

$

963,773

 

 

 

100

%

 

$

1,006,465

 

 

 

100

%

Contract Assets and Liabilities

Contract assets consist of unbilled receivables on contracts where revenue recognized exceeds the amount billed. Contract liabilities result from advance payments received on a contract or from billings in excess of revenue recognized.

The following table summarizes the contract assets and liabilities as of June 30, 2025 and December 31, 2024:

 

 

June 30, 2025

 

 

December 31, 2024

 

Contract assets

 

$

236,227

 

 

$

188,941

 

Contract liabilities

 

 

(23,913

)

 

 

(24,580

)

Net contract assets (liabilities)

 

$

212,314

 

 

$

164,361

 

 

The increase in net contract assets (liabilities) is primarily due to the timing difference between the performance of services and billings to customers. During the six months ended June 30, 2025 and 2024, the Company recognized $17.5 million and $15.2 million in revenue related to the contract liabilities balance at December 31, 2024 and 2023, respectively.

Unfulfilled Performance Obligations

Unfulfilled performance obligations (“UPO”) were $0.8 billion and $1.3 billion as of June 30, 2025 and December 31, 2024, respectively. During the six months ended June 30, 2025, the Company received termination-for-convenience notifications pursuant to the executive orders issued by the Trump Administration or actions taken based on recommendations of the Department of Government Efficiency. As a result, the UPO as of June 30, 2025 reflects the impact of approximately $0.3 billion of UPO previously reported as of December 31, 2024.

The Company expects to recognize the remaining UPO as revenue of approximately 38% by December 31, 2025, 78% by December 31, 2026, and the remainder thereafter.