v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting The Company's chief operating decision maker is its chief executive officer, and he reviews segment revenues, gross profit and operating income for each segment. He also considers forecast-to-actual variances on a monthly basis for these financial measures when making decisions about allocating resources to the segments and uses these segment financial measures in the annual budget process. Virtually all of the Company's revenues are generated in the United States. Segment information is as follows (in millions):
Three Months Ended June 30, 2026Six Months Ended June 30, 2026
CommercialFederal GovernmentTotalCommercialFederal GovernmentTotal
Revenues$701.7 $305.3 $1,007.0 $1,377.2 $598.1 $1,975.3 
Costs of services476.8 245.6 722.4 943.1 481.0 1,424.1 
Gross profit224.9 59.7 284.6 434.1 117.1 551.2 
Segment depreciation and other amortization11.2 2.0 13.2 22.2 3.9 26.1 
Other segment expenses154.8 27.7 182.5 305.6 54.3 359.9 
Segment SG&A expenses166.0 29.7 195.7 327.8 58.2 386.0 
Amortization of intangible assets11.6 5.7 17.3 20.4 11.4 31.8 
Segment operating income47.3 24.3 71.6 85.9 47.5 133.4 
Corporate SG&A expenses30.5 64.6 
Operating income41.1 68.8 
Interest expense, net20.4 37.5 
Income before taxes20.7 31.3 
Provision for income taxes6.5 11.6 
Net income$14.2 $19.7 
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
CommercialFederal GovernmentTotalCommercialFederal GovernmentTotal
Revenues$708.1 $312.5 $1,020.6 $1,380.3 $608.6 $1,988.9 
Costs of services474.7 252.6 727.3 929.2 491.0 1,420.2 
Gross profit233.4 59.9 293.3 451.1 117.6 568.7 
Segment depreciation and other amortization9.0 1.5 10.5 18.0 3.0 21.0 
Other segment expenses149.3 28.6 177.9 295.3 58.3 353.6 
Segment SG&A expenses158.3 30.1 188.4 313.3 61.3 374.6 
Amortization of intangible assets10.5 6.4 16.9 18.3 12.9 31.2 
Segment operating income64.6 23.4 88.0 119.5 43.4 162.9 
Corporate SG&A expenses28.4 56.7 
Operating income59.6 106.2 
Interest expense, net18.2 33.6 
Income before taxes41.4 72.6 
Provision for income taxes12.1 22.4 
Net income$29.3 $50.2 
    
__________
Costs of services include an immaterial amount of depreciation expense.
Other segment expenses include compensation-related expenses, rent, marketing, and other general and administrative expenses.
Corporate SG&A expenses include compensation-related expenses, stock-based compensation, depreciation, acquisition, integration and strategic planning expenses, and public company expenses.
Disaggregation of Revenue
Commercial segment revenues by industry are as follows (in millions):
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Consumer and Industrial$230.8 $235.1 $454.8 $449.3 
Technology, Media, and Telecom144.7 137.0 282.9 270.2 
Financial Services132.5 135.8 259.3 270.2 
Healthcare116.9 118.0 233.0 225.4 
Business Services76.8 82.2 147.2 165.2 
$701.7 $708.1 $1,377.2 $1,380.3 
__________
The Company updated its revenue disaggregation for the Commercial Segment to reflect the evolution of the Company’s go-to market strategy, which is industry-focused. Prior‑period revenue disaggregation has been updated to conform to the current period presentation.

Federal Government Segment revenues by customer type are as follows (in millions):
Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Department of Defense and Intelligence Agencies$127.2 $136.2 $248.3 $265.1 
National Security94.2 87.3 178.8 161.4 
Federal Civilian51.3 57.8 105.9 119.8 
Other32.6 31.2 65.1 62.3 
$305.3 $312.5 $598.1 $608.6 
Approximately 90% of Commercial Segment revenue was generated from time-and-materials ("T&M") contracts, with the remainder generated from firm-fixed-price contracts. Federal Government Segment revenues by contract type are as follows (in millions):

Three Months EndedSix Months Ended
June 30,June 30,
2026202520262025
Firm-fixed-price$83.3 $86.0 $173.5 $176.0 
T&M115.6 128.1 221.6 254.2 
Cost reimbursable106.4 98.4 203.0 178.4 
$305.3 $312.5 $598.1 $608.6