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Revenue Recognition
 9 Months Ended
Sep. 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy, environment, infrastructure, and disaster recovery

 

$

246,239

 

 

 

53

%

 

$

237,056

 

 

 

46

%

 

$

732,182

 

 

 

51

%

 

$

694,940

 

 

 

46

%

Health and social programs

 

 

151,976

 

 

 

33

%

 

 

196,772

 

 

 

38

%

 

 

480,489

 

 

 

34

%

 

 

583,415

 

 

 

38

%

Security and other civilian & commercial

 

 

67,190

 

 

 

14

%

 

 

83,170

 

 

 

16

%

 

 

216,507

 

 

 

15

%

 

 

245,108

 

 

 

16

%

Total

 

$

465,405

 

 

 

100

%

 

$

516,998

 

 

 

100

%

 

$

1,429,178

 

 

 

100

%

 

$

1,523,463

 

 

 

100

%

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Client Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal government

 

$

198,042

 

 

 

43

%

 

$

281,970

 

 

 

55

%

 

$

641,240

 

 

 

45

%

 

$

830,070

 

 

 

55

%

U.S. state and local government

 

 

81,698

 

 

 

17

%

 

 

78,686

 

 

 

15

%

 

 

244,491

 

 

 

17

%

 

 

240,801

 

 

 

16

%

International government

 

 

29,021

 

 

 

6

%

 

 

26,817

 

 

 

5

%

 

 

85,369

 

 

 

6

%

 

 

80,760

 

 

 

5

%

Total Government

 

 

308,761

 

 

 

66

%

 

 

387,473

 

 

 

75

%

 

 

971,100

 

 

 

68

%

 

 

1,151,631

 

 

 

76

%

Commercial

 

 

156,644

 

 

 

34

%

 

 

129,525

 

 

 

25

%

 

 

458,078

 

 

 

32

%

 

 

371,832

 

 

 

24

%

Total

 

$

465,405

 

 

 

100

%

 

$

516,998

 

 

 

100

%

 

$

1,429,178

 

 

 

100

%

 

$

1,523,463

 

 

 

100

%

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

 

Dollars

 

 

Percent

 

Contract Mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time-and-materials

 

$

205,683

 

 

 

44

%

 

$

220,332

 

 

 

43

%

 

$

621,422

 

 

 

43

%

 

$

644,125

 

 

 

42

%

Fixed-price

 

 

226,781

 

 

 

49

%

 

 

236,770

 

 

 

46

%

 

 

703,321

 

 

 

49

%

 

 

696,910

 

 

 

46

%

Cost-based

 

 

32,941

 

 

 

7

%

 

 

59,896

 

 

 

11

%

 

 

104,435

 

 

 

8

%

 

 

182,428

 

 

 

12

%

Total

 

$

465,405

 

 

 

100

%

 

$

516,998

 

 

 

100

%

 

$

1,429,178

 

 

 

100

%

 

$

1,523,463

 

 

 

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 September 30, 2025 and December 31, 2024:

 

 

September 30, 2025

 

 

December 31, 2024

 

Contract assets

 

$

225,946

 

 

$

188,941

 

Contract liabilities (1)

 

 

(37,653

)

 

 

(24,580

)

Net contract assets (liabilities)

 

$

188,293

 

 

$

164,361

 
(1)
Contract liabilities as of September 30, 2025 include $3.0 million of long-term contract liabilities that is part of "Other long-term liabilities" on the Company's consolidated balance sheets.

 

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 nine months ended September 30, 2025 and 2024, the Company recognized $19.4 million and $17.1 million in revenue related to the contract liabilities balance at December 31, 2024 and 2023, respectively.

Unfulfilled Performance Obligations

Unfulfilled performance obligations (“UPO”) were $0.9 billion and $1.3 billion as of September 30, 2025 and December 31, 2024, respectively. During the nine months ended September 30, 2025, the Company received notices for termination-for-convenience pursuant to the executive orders issued by the Trump Administration or actions taken based on recommendations of the Department of Government Efficiency. The termination notices were received primarily in the first and second quarters of the 2025 fiscal year. As a result, the UPO as of September 30, 2025 reflects the impact of such actions totaling 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 14% by December 31, 2025, 79% by December 31, 2026, and the remainder thereafter.