Revenue Recognition

3 Months Ended

Mar. 31, 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 March 31,
	2025					2024
	Dollars		Percent			Dollars		Percent
Client Markets:
Energy, environment, infrastructure, and disaster recovery	$	238,570		49	%	$	224,692		45	%
Health and social programs		169,023		35	%		190,892		39	%
Security and other civilian & commercial		80,025		16	%		78,852		16	%
Total	$	487,618		100	%	$	494,436		100	%

	Three Months Ended March 31,
	2025					2024
	Dollars		Percent			Dollars		Percent
Client Type:
U.S. federal government	$	239,620		49	%	$	274,195		55	%
U.S. state and local government		76,865		16	%		76,953		16	%
International government		27,075		5	%		25,263		5	%
Total Government		343,560		70	%		376,411		76	%
Commercial		144,058		30	%		118,025		24	%
Total	$	487,618		100	%	$	494,436		100	%

	Three Months Ended March 31,
	2025					2024
	Dollars		Percent			Dollars		Percent
Contract Mix:
Time-and-materials	$	209,046		43	%	$	206,153		42	%
Fixed-price		238,072		49	%		224,796		45	%
Cost-based		40,500		8	%		63,487		13	%
Total	$	487,618		100	%	$	494,436		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 March 31, 2025 and December 31, 2024:

	March 31, 2025			December 31, 2024
Contract assets	$	228,314		$	188,941
Contract liabilities		(27,407	)		(24,580	)
Net contract assets (liabilities)	$	200,907		$	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 both the three months ended March 31, 2025 and 2024, the Company recognized $12.8 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 March 31, 2025 and December 31, 2024, respectively. The UPO of $0.9 billion reflects the impact of approximately $0.3 billion related to the termination-for-convenience notifications the Company received pursuant to the executive orders issued by the Administration or actions by DOGE during the three months ended March 31, 2025.

The Company expects to recognize the remaining UPO as revenue of approximately 53% by December 31, 2025, 78% by December 31, 2026, and the remainder thereafter.

Subsequent to March 31, 2025 and through April 25, 2025, the Company received additional notices for termination-for-convenience. Had these termination-for-convenience occurred prior to March 31, 2025, the total UPO would have been reduced by approximately $12.0 million.