EFOR

EFOR (operating as ASGN per the 10-K) is a two-segment IT services business where the bull case — Commercial Consulting revenue up 14.4% to $1.29B — is being offset by a 13.8% collapse in Assignment staffing revenue ($1.50B) and a 3.3% decline in the Federal Government segment tied explicitly in the MD&A to 'the loss of certain contracts as a result of initiatives associated with DOGE.' Total revenue fell 2.9% to $3.98B, marking the fourth consecutive annual decline from the $4.58B FY2022 peak, and net income has now compressed from $410M (FY2021) to $114M (FY2025) — a 72% cumulative drop. Diluted EPS of $2.60 is down 32% YoY.

Margin quality is deteriorating where it matters: SG&A rose to 21.5% of revenue from 20.0%, eating the entire 30bp gross-margin gain in Commercial. Management flagged $26.5M of acquisition/integration/strategic charges (including $5.2M in 'strategic workforce optimization') plus a $4.4M software write-off — signals of a business actively restructuring. Federal gross margin dropped 70bp on low-margin software mix and DOGE-related contract losses. Operating margin compressed to 5.8% and ROE is a thin 6.3%. Meanwhile long-term debt grew 13.1% to $1.17B against $161M cash (down 21.4%), and weighted-average borrowings rose to $1.21B at 5.6% — the company is funding TopBloc-related goodwill and $170M of buybacks with debt, not cash generation (OCF down 18% to $328M).