Everforth reports second-quarter revenue of $1.01 billion
Net income fell to $14.2 million from $29.3 million a year earlier
Everforth (EFOR), the professional services provider, reported consolidated revenues of $1,007.0 million for the second quarter of 2026.
The results showed a slight decline from the $1,020.6 million recorded in the second quarter of 2025, though revenue rose from $968.3 million in the first quarter of 2026. Net income fell to $14.2 million from $29.3 million in the prior-year period, though it increased from $5.5 million in the previous quarter.
Profitability metrics showed mixed trajectories. The adjusted EBITDA margin was 9.6%, a 100 basis point compression from 10.6% in the second quarter of 2025, but an improvement over the 8.6% reported in the first quarter of 2026. Consolidated gross margin fell 40 basis points year-over-year to 28.3%, though it expanded from 27.5% in the first quarter.
Performance diverged by segment. The Commercial Segment gross margin declined 90 basis points year-over-year to 32.1%, due to foreign exchange rates in Mexico and a lower mix of high-margin permanent placement revenues. Within that segment, TMT revenue increased by $7.7 million, or 5.6%, while four other industries saw decreases.
The Federal Government Segment gross margin rose 40 basis points year-over-year to 19.6% due to profitability improvements across the contract portfolio. While revenue in this segment declined due to losses in Federal Civilian, Defense, and Intelligence, growth in National Security and other clients partially offset those losses.
Forward-looking indicators improved across both divisions. The Commercial Segment trailing twelve-month book-to-bill ratio rose to 1.2 to 1 from 1.1 to 1 in the first quarter. The Federal Government Segment book-to-bill ratio rose to 0.8 to 1 from 0.7 to 1, with trailing twelve-month new contract awards reaching $0.9 billion, up from $0.8 billion in the prior quarter.
Everforth expects third-quarter 2026 revenue to range between $994.0 million and $1,024.0 million, with adjusted EBITDA between $95.0 million and $105.0 million.
In July 2026, the company completed the refinancing and upsizing of its revolver, replacing its previous revolver and Term Loan A with a new five-year $600 million facility.