ICF International, Inc. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures. Based on an evaluation under the supervision and with the participation of the Company’s management, the principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, were effective as of December 31, 2025 to provide reasonable assurance that information required to be disclosed in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management’s Annual Report on Internal Control Over Financial Reporting. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined as of December 31, 2025 in Exchange Act Rules 13a-15(f) and 15d-15(f)). Management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting based on the criteria set forth in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ( “COSO” ). Based on the assessment, management has concluded that its internal control over financial reporting was effective as of December 31, 2025. The Company’s independent registered public accounting firm, Grant Thornton LLP , has issued an audit report on the Company’s internal control over financial reporting, which appears herein. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting, and the preparation of financial statements for external purposes in accordance with U.S. GAAP. The Company’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP; (iii) that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements. Changes in Internal Control Over Financial Reporting. There were no material changes in our internal control over financial reporting during the fourth quarter of 2025 which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. ITEM 9B. OTHE R INFORMATION During the three months ended December 31, 2025, none of our directors or officers entered into, modified , or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement ,” in each case, as defined in Item 408 of Regulation S-K. ITE M 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS None. 50 PART III ITEM 10. DIRECTORS, EXECUTIVE OF FICERS AND CORPORATE GOVERNANCE Insider Information and Securities Trading We have an Insider Information and Securities Trading policy and procedures (the “Policy”) governing the purchase, sale and/or other disposition of our securities by our directors, officers, and employees, or by us, that we believe are reasonably designed to promote compliance with insider trading laws, rules, and regulations, and listing standards applicable to us. A copy of the Policy was filed as Exhibit 19.0 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Other information required by this item will be included in our Proxy Statement for the 2026 Annual Meeting of Stockholders (the “2026 Proxy Statement”) and is incorporated herein by reference. ITEM 11. EXECUTI VE COMPENSATION The information required by this item will be included in the 2026 Proxy Statement and is incorporated herein by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OW NERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this item will be included in the 2026 Proxy Statement and is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this item will be included in the 2026 Proxy Statement and is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOU NTANT FEES AND SERVICES The information required by this item will be included in the 2026 Proxy Statement and is incorporated herein by reference. 51 PAR T IV ITEM 15. EXHIBITS AND FINA NCIAL STATEMENT SCHEDULES (1) Financial Statements Page Reports of Independent Registered Public Accounting Firm (PCAOB ID Number 248 ) F- 1 Consolidated Balance Sheets as of December 31, 2025 and 2024 F- 4 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023 F- 5 Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2025, 2024, and 2023 F- 6 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023 F- 7 Notes to Consolidated Financial Statements F- 8 (2) Financial Statement Schedules The financial statement schedule of the Registrant and its subsidiaries for fiscal years 2025, 2024, and 2023 required by Item 15(a) (Schedule II, Valuation and Qualifying Accounts) is included in Item 8 of this Annual Report on Form 10-K: Schedule II - Valuation and Qualifying Accounts F- 35 Schedules not filed have been omitted because they are not applicable, are not required or the information required to be set forth therein is included in the financial statements or notes thereto. (3) Exhibits The following exhibits are included with this report or incorporated herein by reference: Exhibit Number Exhibit 3.1 Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company ’ s Form 10-Q, filed August 3, 2017). 3.2 Amended and Restated Bylaws of ICF International, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, filed September 26, 2023). 4.1 Specimen common stock certificate (Incorporated by reference to Exhibit 4.1 to the Company’s Form S-1/A (File No. 333-134018), filed September 12, 2006). 4.2 See Exhibits 3.1 and 3.2 , above, for provisions of the Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws of the Company defining the rights of holders of common stock of the Company. 4.3 Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (Incorporated by reference to Exhibit 4.3 to the Company’s Form 10-K, filed February 25, 2022). 10.1 2006 Employee Stock Purchase Plan (Incorporated by reference to Exhibit 10.3 to the Company’s Form S-1 (File No. 333-134018), filed May 11, 2006). + 10.2 ICF International, Inc. Nonqualified Deferred Compensation Plan, as amended and restated as of January 1, 2012 (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-K, filed March 1, 2013). + 10.3 ICF International, Inc. Amended and Restated 2018 Omnibus Incentive Plan (Incorporated by reference to Exhibit A to the Company’s Definitive Proxy Statement for the 2023 Annual Meeting of Stockholders, filed April 21, 2023). + 10.4 Form of Restricted Stock Unit Award under the 2018 Omnibus Incentive Plan. (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed March 13, 2024). + 10.5 Form of Non-Employee Restricted Stock Unit Award under the 2018 Omnibus Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed June 27, 2018). + 10.6 Form of CEO Performance Share Award Agreement (Incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed June 1, 2018). + 52 10.7 Form of CEO Performance Share Award Agreement (Incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, filed March 13, 2024). + 10.8 Form of General Performance Share Award Agreement under the 2018 Omnibus Incentive Plan. (Incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, filed March 13, 2024). + 10.9 Form of Cash-Settled Restricted Stock Unit Award under the 2018 Omnibus Incentive Plan. (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed June 1, 2018). + 10.10 Restated Severance Protection Agreement between John Wasson and ICF International, Inc. dated October 1, 2019 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed October 1, 2019). + 10.11 Amended Severance Letter Agreement by and between the Company and John Wasson, dated December 12, 2008 (Incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K, filed December 18, 2008). + 10.12 Employment Terms by and between the Company and James C. Morgan, dated June 8, 2012 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q, filed August 6, 2012). + 10.13 Severance Benefit/Protection Agreement by and between the Company and James C. Morgan, dated June 8, 2012 (Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q, filed August 6, 2012). + 10.14 Severance Letter Agreement by and between the Company and Sergio J. Ostria, dated March 6, 2012 (Incorporated by reference to Exhibit 10.18 to the Company’s Form 10-K, filed on March 8, 2016). + 10.15 Amended and Restated Credit Agreement, dated May 6, 2022 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed May 6, 2022). 10.16 First Amendment to Amended and Restated Credit Agreement, dated May 17, 2023 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed May 19, 2023). 10.17 Second Amendment to Amended and Restated Credit Agreement, dated November 6, 2023 (Incorporated by reference to Exhibit 10.17 to the Company's Form 10-K dated February 28, 2024). 10.18 Lease Agreement between ICF Consulting Group, Inc. and CRS Plaza II, LLC, dated as of October 24, 2019 (Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, filed October 30, 2019). 19.1 Insider Trading Policy (Incorporated by reference to Exhibit 19.0 to the Company ’ s Form 10-K, filed February 28, 2025). 21.0 Subsidiaries of the Registrant.* 23.1 Consent of Grant Thornton LLP.* 31.1 Certificate of the Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a).* 31.2 Certificate of the Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a).* 32.1 Certifications of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 32.2 Certifications of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 97.0 Compensation Recovery Policy (Incorporated by reference to Exhibit 97.0 to the Company ’ s Form 10-K, filed February 28, 2024). 101 The following materials from the ICF International, Inc. Annual Report on Form 10-K for the year ended December 31, 2025 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Stockholders’ Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements. * 104 The cover page from the Company ’ s Annual Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL * Submitted electronically herewith . 53 + Indicates a management contract or compensatory plan or arrangement required to be filed as an exhibit. ITEM 16. FORM 10-K SUMMARY None. 54 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. February 27, 2026 ICF INTERNATIONAL, INC. By: /s/ JOHN WASSON John Wasson Chair and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ JOHN WASSON Chair, Chief Executive Officer, and Director (Principal Executive Officer) February 27, 2026 John Wasson /s/ BARRY BROADUS Chief Financial Officer (Principal Financial Officer) February 27, 2026 Barry Broadus /s/ RANJIT CHADHA Principal Accounting Officer February 27, 2026 Ranjit Chadha /s/ CAROLINE ANGOORLY Director February 27, 2026 Caroline Angoorly /s/ MARILYN CROUTHER Director February 27, 2026 Marilyn Crouther /s/ Dr. SRIKANT M. DATAR Director February 27, 2026 Dr. Srikant M. Datar /s/ RANDALL MEHL Director February 27, 2026 Randall Mehl /s/ SCOTT SALMIRS Director February 27, 2026 Scott Salmirs /s/ MICHAEL J. VAN HANDEL Director February 27, 2026 Michael Van Handel /s/ Dr. MICHELLE A. WILLIAMS Director February 27, 2026 Dr. Michelle A. Williams 55 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders ICF International, Inc. Opinion on the financial statements We have audited the accompanying consolidated balance sheets of ICF International, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed under Item 15(2) (collectively referred to as the “consolidated financial statements”) . In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated February 27, 2026 expressed an unqualified opinion. Basis for opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical audit matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition – estimates-at-completion As described further in note 2 to the consolidated financial statements, the Company recognizes revenue over time using a cost-input method on certain contracts in which costs incurred represents a reasonable measure of progress toward satisfaction of a performance obligation and transfer of control to a customer. Under the cost input method, revenue is recognized based on the proportion of total costs incurred to total estimated costs-at-completion (“EAC”). A performance obligation’s EAC includes all direct costs such as level of effort from internal staff and/or subcontractors and costs of materials, if any, needed to complete the tasks. The accounting for these contracts involves judgment, particularly as it relates to the process of estimating total costs to satisfy performance obligations. We identified the estimate of total costs to satisfy the performance obligation for contracts with revenue recognized using the cost-input method as a critical audit matter. The principal considerations for our determination that the total estimated costs to complete for such contracts is a critical audit matter are the significant management judgments involved in the initial creation and subsequent updates to the Company’s EAC and related estimated profit to be recognized, if any, which required challenging and subjective auditor judgment in the execution of our procedures. Our audit procedures related to the estimate of total costs to satisfy the performance obligation for contracts with revenue recognized using the cost-input method included the following, among others. F- 1 • Tested the design and operating effectiveness of controls related to management’s review of estimate-at-completion analyses and the significant assumptions underlying the estimated total costs to complete. • Tested management’s process for developing, revising, and calculating EAC for a selection of contracts, evaluated key inputs and assumptions by comparing them to relevant evidence, including contract documents, rate of cost incurred to date, subcontractor agreements, customer correspondence, documentation related to contractual milestones or other documentation, relevant to estimated costs to be incurred. • Performed a lookback analysis of certain contracts completed during the year ended December 31, 2025 and comparing the EAC to the estimate of costs throughout the contract life cycle to assess the Company’s ability to develop reasonable estimates. /s/ GRANT THORNTON LLP We have served as the Company’s auditor since 2000. Arlington, Virginia February 27, 2026 F- 2 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders ICF International, Inc. Opinion on internal control over financial reporting We have audited the internal control over financial reporting of ICF International, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2025, and our report dated February 27, 2026 expressed an unqualified opinion on those financial statements. Basis for opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying “Management’s Annual Report on Internal Control Over Financial Reporting.” Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ GRANT THORNTON LLP Arlington, Virginia February 27, 2026 F- 3 ICF INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED B ALANCE SHEETS (in thousands, except share amounts) December 31, 2025 December 31, 2024 ASSETS Current Assets: Cash and cash equivalents $ 5,297 $ 4,960 Restricted cash 47,984 13,857 Contract receivables, net 237,996 256,923 Contract assets 186,684 188,941 Prepaid expenses and other assets 18,390 21,133 Income tax receivable 18,087 6,260 Total Current Assets 514,438 492,074 Property and Equipment, net 58,357 66,503 Other Assets: Goodwill 1,252,207 1,248,855 Other intangible assets, net 81,555 111,701 Operating lease - right-of-use assets 106,274 115,531 Deferred tax assets — 1,603 Other assets 37,340 30,086 Total Assets $ 2,050,171 $ 2,066,353 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 123,524 $ 159,522 Contract liabilities 43,444 24,580 Operating lease liabilities 18,787 20,721 Finance lease liabilities 2,704 2,612 Accrued salaries and benefits 95,578 105,773 Accrued subcontractors and other direct costs 48,900 49,271 Accrued expenses and other current liabilities 71,340 86,701 Total Current Liabilities 404,277 449,180 Long-term Liabilities: Debt 401,355 411,743 Operating lease liabilities - non-current 139,935 155,935 Finance lease liabilities - non-current 8,558 11,261 Deferred income taxes 6,837 — Other long-term liabilities 60,727 55,775 Total Liabilities 1,021,689 1,083,894 Commitments and Contingencies (Note 17) Stockholders’ Equity: Preferred stock, par value $ .001 per share; 5,000,000 shares authorized; none issued — — Common stock, $ .001 par value; 70,000,000 shares authorized; 24,378,749 and 24,186,962 shares issued; and 18,247,837 and 18,666,290 shares outstanding at December 31, 2025 and 2024, respectively 24 24 Additional paid-in capital 465,779 443,463 Retained earnings 956,077 874,772 Treasury stock, 6,130,912 and 5,520,672 shares at December 31, 2025 and 2024, respectively ( 379,970 ) ( 320,054 ) Accumulated other comprehensive loss ( 13,428 ) ( 15,746 ) Total Stockholders’ Equity 1,028,482 982,459 Total Liabilities and Stockholders’ Equity $ 2,050,171 $ 2,066,353 The accompanying notes are an integral part of these statements. F- 4 ICF International, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income Years ended December 31, (in thousands, except per share amounts) 2025 2024 2023 Revenue $ 1,872,851 $ 2,019,787 $ 1,963,238 Direct costs 1,176,835 1,282,016 1,265,018 Operating costs and expenses: Indirect and selling expenses 492,404 518,453 505,162 Depreciation and amortization 58,147 53,476 60,738 Total operating costs and expenses 550,551 571,929 565,900 Operating income 145,465 165,842 132,320 Interest, net ( 30,833 ) ( 29,590 ) ( 39,681 ) Other (expense) income ( 2,639 ) 1,806 3,908 Income before income taxes 111,993 138,058 96,547 Provision for income taxes 20,405 27,888 13,935 Net income $ 91,588 $ 110,170 $ 82,612 Earnings per share: Basic $ 4.97 $ 5.88 $ 4.39 Diluted $ 4.95 $ 5.82 $ 4.35 Weighted-average common shares outstanding: Basic 18,414 18,747 18,802 Diluted 18,516 18,925 18,994 Cash dividends declared per common share 0.56 0.56 0.56 Other comprehensive income (loss), net of tax 2,318 ( 3,861 ) ( 3,752 ) Comprehensive income, net of tax $ 93,906 $ 106,309 $ 78,860 The accompanying notes are an integral part of these statements. F- 5 ICF International, Inc. and Subsidiaries Consolidated Statements of Stockholders’ Equity Common Stock Additional Paid-in Retained Treasury Stock Accumulated Other Comprehensive (in thousands) Shares Amount Capital Earnings Shares Amount Loss Total Balance at January 1, 2023 18,883 $ 23 $ 401,957 $ 703,030 4,906 $ ( 243,666 ) $ ( 8,133 ) $ 853,211 Net income — — — 82,612 — — — 82,612 Other comprehensive loss — — — — — — ( 3,752 ) ( 3,752 ) Equity compensation — — 14,861 — — — — 14,861 Exercise of stock options 8 — 279 — — — — 279 Issuance of shares pursuant to employee stock purchase plan and vesting of restricted stock units 185 1 4,405 — — — — 4,406 Net payments for stock buybacks ( 230 ) — — — 230 ( 23,489 ) — ( 23,489 ) Dividends declared — — — ( 10,543 ) — — — ( 10,543 ) Balance at December 31, 2023 18,846 $ 24 $ 421,502 $ 775,099 5,136 $ ( 267,155 ) $ ( 11,885 ) $ 917,585 Net income — — — 110,170 — — — 110,170 Other comprehensive loss — — — — — — ( 3,861 ) ( 3,861 ) Equity compensation — — 16,722 — — — — 16,722 Exercise of stock options 2 — 107 — — — — 107 Issuance of shares pursuant to employee stock purchase plan and vesting of restricted stock units 202 — 5,132 — — — — 5,132 Net payments for stock buybacks ( 384 ) — — — 384 ( 52,899 ) — ( 52,899 ) Dividends declared — — — ( 10,497 ) — — — ( 10,497 ) Balance at December 31, 2024 18,666 $ 24 $ 443,463 $ 874,772 5,520 $ ( 320,054 ) $ ( 15,746 ) $ 982,459 Net income — — — 91,588 — — — 91,588 Other comprehensive income — — — — — — 2,318 2,318 Equity compensation — — 17,686 — — — — 17,686 Issuance of shares pursuant to employee stock purchase plan and vesting of restricted stock units 192 — 4,630 — — — — 4,630 Net payments for stock buybacks ( 610 ) — — — 610 ( 59,916 ) — ( 59,916 ) Dividends declared — — — ( 10,283 ) — — — ( 10,283 ) Balance at December 31, 2025 18,248 $ 24 $ 465,779 $ 956,077 6,130 $ ( 379,970 ) $ ( 13,428 ) $ 1,028,482 The accompanying notes are an integral part of these statements. F- 6 ICF International, Inc. and Subsidiaries Consolidated Statem ents of Cash Flows Years ended December 31, (in thousands) 2025 2024 2023 Cash Flows from Operating Activities Net income $ 91,588 $ 110,170 $ 82,612 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses ( 429 ) 1,673 1,164 Deferred income taxes and unrecognized income tax benefits 5,078 ( 24,336 ) ( 17,634 ) Non-cash equity compensation 17,686 16,722 14,861 Depreciation and amortization 58,147 53,476 60,738 Gain on divestiture of a business — ( 2,009 ) ( 7,590 ) Other operating adjustments, net 2,325 4,647 8,294 Changes in operating assets and liabilities, net of the effect of acquisitions: Net contract assets and liabilities 25,369 14,668 ( 38,422 ) Contract receivables 22,031 ( 49,538 ) 20,939 Prepaid expenses and other assets 2,944 3,496 18,579 Operating lease assets and liabilities, net ( 8,366 ) ( 4,755 ) 3,544 Accounts payable ( 36,827 ) 24,152 ( 1,489 ) Accrued salaries and benefits ( 10,843 ) 18,048 2,175 Accrued subcontractors and other direct costs ( 1,952 ) 4,353 ( 269 ) Accrued expenses and other current liabilities ( 13,019 ) 8,361 ( 4,757 ) Income tax receivable and payable ( 11,694 ) ( 5,391 ) 9,277 Other liabilities ( 168 ) ( 2,193 ) 361 Net Cash Provided by Operating Activities 141,870 171,544 152,383 Cash Flows from Investing Activities Payments for purchase of property and equipment and capitalized software ( 21,659 ) ( 21,430 ) ( 22,337 ) Payments for business acquisitions, net of cash acquired — ( 55,007 ) ( 32,664 ) Proceeds from divestiture of a business — 1,985 51,328 Other investing, net 148 ( 353 ) — Net Cash Used in Investing Activities ( 21,511 ) ( 74,805 ) ( 3,673 ) Cash Flows from Financing Activities Advances from working capital facilities 1,348,036 1,227,926 1,245,198 Payments on working capital facilities ( 1,359,527 ) ( 1,247,791 ) ( 1,372,474 ) Proceeds from other short-term borrowings 20,206 62,080 48,532 Repayments of other short-term borrowings ( 24,768 ) ( 66,408 ) ( 41,653 ) Receipt of restricted contract funds — 1,251 7,672 Payment of restricted contract funds — ( 3,267 ) ( 8,084 ) Dividends paid ( 10,356 ) ( 10,507 ) ( 10,537 ) Net payments for stockholder issuances and share repurchases ( 55,286 ) ( 47,767 ) ( 19,083 ) Other financing, net ( 2,612 ) ( 2,415 ) ( 2,159 ) Net Cash Used in Financing Activities ( 84,307 ) ( 86,898 ) ( 152,588 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash 1,455 ( 473 ) 359 Net Change in Cash, Cash Equivalents, and Restricted Cash 37,507 9,368 ( 3,519 ) Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 18,817 9,449 12,968 Cash, Cash Equivalents, and Restricted Cash, End of Period $ 56,324 $ 18,817 $ 9,449 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 29,278 $ 30,046 $ 34,093 Non-cash investing and financing transactions: Tenant improvements funded by lessor $ — $ — $ 568 Acquisition of property and equipment through finance lease $ — $ — $ 337 The accompanying notes are an integral part of these statements. F- 7 ICF International, Inc. and Subsidiaries Notes to Consolidated Financial Statements (dollar amounts in tables in thousands, except share and per share data) NOTE 1 - BASIS OF PRESENTATION AND NATURE OF OPERATIONS Basis of Presentation The accompanying consolidated financial statements include the accounts of ICF International, Inc. (“ICFI”) and its principal subsidiary, ICF Consulting Group, Inc. (“Consulting,” and together with ICFI, the “Company”), and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). Consulting is a wholly owned subsidiary of ICFI. ICFI is a holding company with no operations or assets other than its investment in the common stock of Consulting. All other subsidiaries of the Company are wholly owned by Consulting. Intercompany transactions and balances have been eliminated. Software assets, which were previously included within “Property and equipment, net” and “Other assets” on the Company’s consolidated balance sheets, have been reclassified and consolidated under “Other intangible assets, net”. To conform to the current year’s presentation, $ 1.6 million and $ 21.8 million, as of December 31, 2024, have been reclassified from “Property and equipment, net” and “Other assets”, respectively, to “Other intangible assets, net”. Previously separate financial statement line items “Depreciation and amortization” and “Amortization of intangible assets” on the Company’s consolidated statements of comprehensive income have been combined under “Depreciation and amortization”. Nature of Operations The Company primarily provides consulting and technology services across several key domains: strategy and public policy, energy and environmental sustainability, and climate resilience; digital transformation including information technology (“IT”) modernization, cloud, cybersecurity, and data analytics; health and social programs such as public health and education; international development and capacity building; disaster management and recovery planning; transportation, aviation, and infrastructure; and marketing and strategic communications. These areas combine expertise in policy, technology, and program implementation to help organizations and governments address complex challenges and drive impactful outcomes. The Company’s customers are primarily U.S. federal government departments and agencies, U.S. state (including territories) and local government departments and agencies, international governments, and commercial clients worldwide. The terms “federal” or “federal government” refer to the U.S. federal government, and “state and local” or “state and local government” refer to U.S. state (including territories) and local governments, unless otherwise indicated. The Company, incorporated in Delaware, is headquartered in Reston, Virginia. It maintains additional offices throughout the world, including 49 offices in the U.S. and U.S. territories and 14 offices in key markets outside the U.S., including offices in the United Kingdom (“U.K.”), Belgium, Spain, India, and Canada. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include valuation and lives of tangible and intangible assets, impairment of long-lived assets, accrued liabilities, revenue recognition (including estimates of variable considerations in determining the total contract price and allocation of performance obligations), the remaining costs to complete fixed-price contracts, bonus and other incentive compensation, stock-based compensation, reserves for tax benefits and valuation allowances on deferred tax assets, provisions for income taxes, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ from management’s estimates. Revenue Recognition The Company enters into agreements with clients that create enforceable rights and obligations and for which it is probable that the Company will collect the consideration to which it will be entitled as services and solutions are transferred to the client. Except in certain narrowly defined situations, the Company’s contracts with its clients are written and revenue is generally not recognized on oral or implied arrangements. The Company recognizes revenue based on the consideration specified in the applicable agreement and excludes payments to customers and amounts collected on behalf of third parties. Accordingly, sales and similar taxes which are collected on behalf of third parties are excluded from the transaction price. F- 8 The Company evaluates whether two or more agreements should be accounted for as one single contract and whether combined or single agreements should be accounted for as more than one performance obligation. For most contracts, the client requires the Company to perform a number of tasks in providing an integrated output for which the client has contracted, and, hence, contracts of this type are tracked as having only one performance obligation since a substantial part of the Company’s promise is to ensure the individual tasks are incorporated into a combined output in accordance with contract requirements. When contracts have multiple performance obligations, the Company allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. The Company generally provides customized solutions in which the pricing is based on specific negotiations with each client, and, in these cases, the Company uses a cost-plus margin approach to estimate the standalone selling price of each performance obligation. Certain contracts contain award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. These variable amounts are generally awarded at the completion of a contractually stipulated performance assessment period based on the achievement of performance metrics, program milestones or cost targets, and the amount awarded may be subject to client discretion. Variable consideration is estimated primarily by using the most likely amount method based on our prior history in providing the services to the customer or, if no history exists, the variable consideration is constrained until the initial determination by the customer. Once the Company selects a method to estimate variable consideration, it applies that method consistently over the performance assessment periods with changes in estimates resulting in cumulative catch-up adjustments in the period. Estimates of variable consideration will be constrained only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The changes in estimates result in cumulative catch-up adjustments. The Company evaluates contractual arrangements to determine whether revenue should be recognized on a gross versus net basis. The Company’s assessment is based on the nature of the contractual obligation to the client. In most cases, the Company itself agrees to provide specified services to the client as a principal and revenue is recognized on a gross basis. In certain instances, the Company acts as an agent and merely arranges for another party to provide services to the client and revenue is recognized on a net basis in reflection of the fact that the Company does not control the goods or services provided to the client by the other party. Long-term contracts typically contain billing terms that provide for invoicing monthly or upon completion of milestones, and payment on a net 30 -day basis. Therefore, the timing of billings and cash receipts may differ from the timing of revenue recognition resulting in either contract assets or contract liabilities. Exceptions to monthly billing terms are to ensure that the Company performs satisfactorily rather than representing a significant financing component. For cost-based contracts, the Company’s performance is evaluated during a contractually-stipulated performance period and, while contract costs may be billed on a monthly basis, the Company is generally permitted to bill for incentive or award fees only after the completion of the performance assessment period, which may occur quarterly, semi-annually or annually, and after the client completes the performance assessment. Fixed-price contracts may provide for milestone billings based on the attainment of specific project objectives rather than for billing on a monthly basis. Moreover, contracts may require retention or hold backs that are paid at the end of the contract to ensure that the Company performs in accordance with requirements. The Company does not assess whether a contract contains a significant financing component if the Company expects, at contract inception, that the period between payment by the client and the transfer of promised services to the client will be one year or less. The Company generally recognizes revenue over time as control is transferred to a client, based on the extent of progress towards satisfaction of the performance obligation. The selection of the method used to measure progress requires judgment and is dependent, among other factors, on the contract type and the nature of the services provided. For time-and-materials contracts, the Company uses the right-to-invoice practical expedient to recognize revenue earned based on hours worked in contract performance at negotiated billing rates as the Company believes this amount is commensurate with the value transferred to the customer. Fixed-price level-of-effort contracts are substantially similar to time-and-materials contracts except that the Company is required to deliver a specified level of effort over a stated period of time. For these contracts, the Company determines the revenue earned using contract hours worked at negotiated bill rates as the Company delivers the contractually required workforce. For certain cost-based contracts that meet the criteria for the right-to-invoice practical expedient to be used as the Company believes this amount is commensurate with the value transferred to the customer, the Company recognizes revenue based on the amount to which the Company has a contractual right to invoice which is typically costs incurred plus contractually-stipulated fixed fees. Cost-based contracts may include variable consideration which is allocated to the distinct periods in which they relate to and recognized in that period. For series-services performance obligations, the Company measures progress using either a cost input measure, a time-elapsed output measure, or the right to invoice practical expedient. F- 9 For certain fixed-price contracts requiring the delivery of a product or service, the Company uses the percentage-of-completion method to estimate the amount of revenue, based on the ratio of actual costs incurred to total estimated costs, provided that costs incurred (an input method) represents a reasonable measure of progress towards the satisfaction of a performance obligation and transfer of control to the customer. This method provides a faithful depiction of the transfer of value to the client when the Company is satisfying a performance obligation that entails integration of tasks for a combined output, which requires the Company to coordinate the work of employees, subcontractors and delivery of other contract costs. Contract costs that are not reflective of the Company’s progress toward satisfying a performance obligation are not included in the calculation of the measure of progress. When this method is used, the changes in estimated costs to complete the obligations result in adjustments to revenue on a cumulative catch-up basis, which causes the effect of revised estimates for prior periods to be recognized in the current period. For the years ended December 31, 2025, 2024, and 2023, the Company recognized net favorable revenue adjustments of $ 8.1 million , $ 4.9 million , and $ 3.9 million , respectively. Changes in these estimates may routinely occur over contract performance for a variety of reasons, which include: changes in contract scope; changes in contract cost estimates due to unanticipated cost growth or reassessments of risks impacting costs; changes in estimated incentive or award fees; or performing better or worse than previously estimated. For certain fixed-price contracts in which the estimated cost to perform exceeds the consideration to be received, the Company accrues for the entire estimated loss during the period in which the loss is determined by recording additional direct contract costs. In some fixed-price service contracts, the Company performs services of a recurring nature, such as maintenance and other services of a “stand ready” nature. For these contracts, the Company has the right to consideration in an amount that corresponds directly with the value that the client has received. Therefore, the Company records revenue on a time-elapsed basis to reflect the transfer of control to the client throughout the contract. Contracts may be modified to reflect changes in contract specifications and requirements, and these changes may create new enforceable rights and obligations. Modifications that are for services that are not distinct from the existing agreement due to the significant integration service that the Company provides are accounted for as part of an existing performance obligation. The effect of these modifications on the transaction price and the Company’s measure of progress in fulfilling the performance obligation to which they relate is recognized as an adjustment to revenue on a cumulative catch-up basis. Revenue from modifications that create new, distinct performance obligations is recognized based on the Company’s progress in fulfilling the requirements of the new obligations. For performance obligations that are satisfied over time, the Company recognizes the cost to fulfill contracts when incurred, unless the costs are within the scope of another topic in which case the guidance of that topic is applied. The Company evaluates incremental costs of obtaining a contract and, if they are recoverable from the client and relate to a specific future contract, they are deferred and recognized over contract performance or the estimated life of the customer relationship if renewals are expected. The Company has elected to apply the practical expedient to recognize these costs when incurred if the amortization period is one year or less. Unfulfilled performance obligations (“UPO”) represent amounts expected to be earned on non-cancellable contracts or those that are cancellable, but the Company has determined to have substantive termination penalties. UPO does not include the value of negotiated, unexercised contract options, indefinite delivery/indefinite quantity and similar arrangements, which are considered as marketing offers. The Company’s operating cycle for long-term contracts may be greater than one year and is measured by the average time between the inception and completion of those contracts. Contract-related assets and liabilities are classified as current assets and current liabilities if the performance obligations are expected to be completed within one year. Cash and Cash Equivalents The Company considers cash on deposit and any highly liquid investments with original maturities of three months or less when purchased to be cash and cash equivalents. Restricted Cash Restricted cash represents cash that is restricted as to usage due to contractual restrictions. Contract Receivables, Net Contract receivables represent amounts billed and due from clients and billable when there is an unconditional right to the consideration in accordance with respective contractual terms. The amounts are stated at their net realizable value. The Company estimates an allowance for expected credit loss to reflect the amount of receivables that will not be collected. The Company considers a number of factors in estimating the amount of the allowance, including knowledge of a client’s financial condition, its historical collection experience, and other factors relevant to assessing the collectability of the receivables. The Company has elected to use the practical expedient that allows for the assumption that current conditions as of the balance sheet date will persist through the remaining life of the contract receivables when developing reasonable and supportable forecasts as part of estimating the allowance for expected credit losses. The Company writes off contract receivables when such amounts are determined to be uncollectible. F- 10 Property and Equipment Property and equipment are carried at cost and are depreciated using the straight-line method over their estimated useful lives, which range from two to seven years . Leasehold improvements are amortized on a straight-line basis over the shorter of the economic life of the improvement or the related lease term. Goodwill and Indefinite-Lived Assets Goodwill represents the excess of the purchase consideration over the fair value of net assets of businesses acquired. Goodwill and any intangible assets acquired in a business combination that are deemed to have an indefinite useful life are not amortized, but instead are reviewed for impairment annually, or more frequently if impairment indicators arise. The Company performs its annual goodwill impairment test as of October 1. As its business is highly integrated and all of its components have similar economic characteristics, the Company has concluded it has one aggregated reporting unit at the consolidated entity level and performs the assessment at that level. The Company has the option to perform a qualitative assessment that determines if it is more likely than not that the estimated fair value of goodwill is greater than its carrying value and, if so, the Company may conclude that there are no indicators of impairment. If the Company concludes that an indicator exists, a quantitative test is performed by comparing the reporting unit’s fair value to the carrying amount and recognizing the difference as an impairment loss. Impairment of Long-Lived Assets The Company reviews its long-lived assets, including property and equipment, operating lease right-of-use (“ROU”) assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts of the long-lived asset group may not be fully recoverable. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the long-lived asset group being evaluated, a loss is recognized for any excess of the carrying amount over the fair value of the asset group. There was no impairment loss related to operating facility lease right-of-use assets and leasehold improvements recorded for the year ended December 31, 2025; however, during the years ended December 31, 2024 and 2023, the Company recognized impai rment losses of $ 3.6 million and $ 6.8 million, respectively, related to operating facility lease right-of-use assets and leasehold improvements that it no longer used in ongoing operations. The impairment losses were included in indirect and selling expenses on the Company’s consolidated statements of comprehensive income. Leases The Company leases facilities and property and equipment. The Company determines if an arrangement is a lease at its inception and recognizes a right-of-use asset and obligation for all leases greater than twelve months based on the present value of the future minimum lease payments as of the commencement date, excluding any lease incentives and initial costs incurred to obtain the lease. Since most lease agreements do not provide an implicit rate, the Company uses its incremental borrowing rate as of the commencement date, based on publicly available yields adjusted for company-specific considerations and terms, in estimating the present value of future payments. Lease terms, for the purpose of determining each lease’s present value, include options to extend or terminate the lease if it is reasonably certain and economically reasonable that the Company will exercise that option. Lease costs from minimum lease payments are recognized on a straight-line basis over the lease term. The leases may contain both lease and non-lease components, which are generally accounted for separately. For office equipment leases (primarily copier leases), the Company elected to account for the lease and non-lease components as a single lease component and not recognize right-of-use assets and lease liabilities for leases with a term less than twelve months. Operating leases are included in operating lease right-of-use assets and operating lease liabilities (current and non-current) and finance leases are included in property and equipment, net and finance lease liabilities (current and non-current) on the consolidated balance sheets. Capitalized Software and Costs of Cloud Computing Arrangements The Company capitalizes certain costs to develop, enhance, and upgrade internal-use software. Capitalized costs include external subcontract costs and payroll costs for employees directly associated with such activities. Once completed, the software is amortized on a straight-line basis over their expected economic life, typically lasting three to five years . The amounts are included as part of “ Other intangible assets, net” on the consolidated balance sheets (see “Note 6 - Goodwill and Other Intangible Assets”). The Company also capitalizes costs related to the implementation costs of cloud computing arrangements that are service contracts, and the amounts are included as part of “Other assets” on the consolidated balance sheets. These costs are amortized over the term of the hosting arrangement. As of December 31, 2025 and 2024, capitalized costs of cloud computing arrangements, net of accumulated amortization, totaled $ 2.0 million and $ 2.8 million , respectively. F- 11 Stock-Based Compensation The Company recognizes stock-based compensation expense of awards given to employees and non-employee directors, including grants of stock options, restricted stock awards, restricted stock units (“RSUs”), and cash-settled restricted stock units (“CSRSUs”) on a straight-line basis over the requisite service period, which is generally the vesting period. The Company recognizes expenses for performance-based share awards (“PSAs”), which have both performance and service conditions, on a straight-line basis over a three-year performance period. Non-employee director awards are granted annually for board-related services and therefore expensed over the service period of one year . Stock-based compensation expense is based on the estimated fair value of the instruments on the grant date and the estimated number of shares the Company ultimately expects will vest. The Company estimates the rate of future forfeitures based on factors which include the historical forfeiture experience from the previous 10 years for each applicable employee class. In addition, the estimation of PSAs that will ultimately vest requires judgment based on the performance and market conditions that will be achieved over the performance period. Changes to these estimates are recorded as a cumulative adjustment in the period estimates are revised. The fair value of stock options, restricted stock awards, RSUs, PSAs, and non-employee director awards is estimated based on the fair value of a share of common stock at the grant date. The fair value of PSAs is also estimated using a Monte Carlo simulation model for the market-based performance period. CSRSUs are settled only in cash payments based on the fair value of the Company’s stock price at the vesting date, calculated by multiplying the number of CSRSUs vested by the Company’s closing stock price on the vesting date, subject to a maximum payment cap and a minimum payment floor. The Company treats these awards as liability-classified awards, and, therefore, accounts for them based on the closing price of the Company’s stock at the reporting date. Derivative Instruments Derivative instruments primarily include interest rate swaps. Derivative instruments designated as cash flow hedges are recorded on the consolidated balance sheets at fair value as of the reporting date and reclassified to earnings (to the same category as the item being hedged) in the period that the hedged instruments affect earnings, and the effective portion of the hedge is recorded in other comprehensive income (loss), net of tax, on the consolidated statements of comprehensive income and as part of cash flows from operating activities on the consolidated statements of cash flows. Management reviews the effectiveness of the hedges on a quarterly basis. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company evaluates its ability to benefit from all deferred tax assets and establishes valuation allowances for amounts it believes will more likely than not be realizable. For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken. Income tax positions that do not meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. Penalties, if probable and reasonably estimable, and interest expense related to uncertain tax positions are not recognized as a component of income tax expense but recorded separately in indirect expenses and interest expense, respectively. Treasury Shares Repurchased shares are accounted for as treasury stock under the cost method. Foreign Currency The financial positions and results of operations of the Company’s foreign subsidiaries, for which the functional currency is not the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. Assets and liabilities of the subsidiaries are translated at the exchange rate in effect at each balance sheet date. Income statement accounts are translated at the average rate of exchange prevailing during the period. Translation adjustments are reported in accumulated other comprehensive loss included in stockholders’ equity in the Company’s consolidated balance sheets. Other Comprehensive Income (Loss) Other comprehensive income (loss) includes foreign currency translation adjustments and the changes in fair value of interest rate swaps designated as cash flow hedges, net of taxes. F- 12 Business Combinations Acquisitions that meet the definition of a business in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, are recorded using the acquisition method of accounting. Except for contract assets and contract liabilities, the Company recognizes and measures identifiable assets acquired, liabilities assumed, contingent purchase considerations, and any non-controlling interest as of the acquisition date at their fair values. Contract assets and contract liabilities from acquired contracts are measured as if the Company had originated the contracts. Adjustments to contingent purchase considerations subsequent to the acquisition date are recorded as part of earnings in the same period of the adjustment. The valuation of intangible assets is determined by using either a market, income, or cost approach. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed and any non-controlling interest is recognized as goodwill. Costs related to acquisitions include professional fees for legal, financial, and other advisory services and are expensed in the period in which they are incurred. Direct Costs Direct costs exclude depreciation and amortization and amortization of intangible assets, which are presented separately on the consolidated statements of comprehensive income. Indirect and Selling Expense Indirect and selling expenses exclude depreciation and amortization, and amortization of intangible assets, which are presented separately on the consolidated statements of comprehensive income. Fair Value The Company measures and reports certain financial assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Generally, fair value is based on observable quoted market prices or derived from observable market data when such market prices or data are available. ASC 820 establishes a three-level hierarchy used to estimate fair value by which each level is categorized based on the priority of the inputs used to measure fair value: • Level 1: Quoted prices that are available in active markets for identical assets or liabilities; • Level 2: Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves that are observable at commonly quoted intervals, and implied volatilities); and inputs derived principally from or corroborated by observable market data by correlation or other means; and • Level 3: Uses inputs that are unobservable and require the Company to make certain assumptions and require significant estimation and judgment from management to use in pricing the fair value of the assets and liabilities. Certain financial instruments, including cash and cash equivalents, contract receivables, and accounts payable are carried at cost, which, due to their short maturities, approximates their fair values. The carrying value of the Company’s debt approximates the estimated fair value for debt with similar terms, interest rates, and remaining maturities currently available to companies with similar credit ratings (Level 2). Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, derivative financial instruments, and contract receivables. The majority of the Company’s cash transactions are processed through one U.S. commercial bank, and the accounts are insured up to $ 250,000 by the Federal Deposit Insurance Corporation. As of December 31, 2025 and 2024, the Company had $ 61.9 million and $ 9.3 million , respectively, of cash and restricted cash in its accounts that exceeded the insured limit. As of December 31, 2025 and 2024, the Company held approximately $ 4.5 million and $ 4.6 million , respectively, of cash and restricted cash in foreign bank accounts. The Company enters into derivative financial instruments with financial institutions that meet certain credit guidelines and limit its risks by continuously monitoring the credit rating of the institutions. F- 13 The Company’s receivables consist principally of amounts due from agencies and departments of the federal government, state and local governments, and international governments, as well as from commercial organizations. The credit risk, with respect to federal and other government clients, is limited due to the creditworthiness of the respective governmental entity. Receivables from commercial clients generally pose a greater credit risk, and, as a result, are subject to ongoing monitoring. The Company extends credit in the normal course of operations and does not require collateral from its clients. At December 31, 2025 , the Company had one client who accounted for 13.8 % of contract receivables, ne t, of which a portion of the outstanding invoices was paid subsequent to December 31, 2025 such that the contract receivables would have been below 10 % of contract receivables, net. At December 31, 2024, t here was no client that accounted for more than 10 % of contract receivables, net. Recent Accounting Pronouncements Accounting Pronouncements Adopted Financial Instruments - Credit Losses In July 2025, the FASB issued Accounting Standards Update (“ASU”) 2025-05: Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). Under ASU 2025-05, entities may elect a practical expedient method for estimating the allowance for expected credit losses which assumes that the conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses on current accounts receivable and contract assets. ASU 2025-05 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company early adopted the provisions of ASU 2025-05 during the third quarter of fiscal year 2025 and the adoption did not have any impact on the consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires greater disaggregation of income tax rate and amounts paid by entities. ASU 2023-09 specifically requires all entities to disclose, on an annual basis, disaggregated domestic and foreign pre-tax income or loss from continuing operations and the disaggregated income tax expense or benefit by federal, state, and foreign components, and a tabular rate reconciliation, using both percentages and reporting currency amounts, of eight specific categories as well as any individual reconciling items that are equal to or greater than 5% of a threshold computed by multiplying pretax income or loss from continuing operations by the applicable federal rate. Additionally, the amendments also require disclosure of income taxes paid disaggregated by federal, state, and foreign jurisdictions as well as any individual jurisdictions over 5% of the total income taxes paid. ASU 2023-09 is effective for the Company for the 2025 fiscal year, with early adoption permitted. The amendments may be adopted on a prospective or retrospective basis. The Company adopted the provisions of ASU 2023-09 on a retrospective basis and, aside from additional disclosures (see “Note 13 - Income Taxes”), the adoption did not have any impact on the consolidated financial statements. Accounting Pronouncements Not Yet Adopted Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures In November 2024, the FASB issued ASU 2024-03: Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires additional disaggregation of certain costs and expenses. ASU 2024-03 specifically requires all public entities to disclose within a tabular format the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities in each relevant expense caption as well as certain amounts that are already required to be disclosed under current U.S. GAAP. ASU 2024-03 also requires public entities to disclose a qualitative description of the composition of any amounts in relevant expense captions that are not separately disaggregated and the amount and definition of the entity’s selling expenses. ASU 2024-03 will be effective for the Company for the 2027 fiscal year and interim periods within the 2028 fiscal year, with early adoption permitted. The amendments may be adopted on a prospective or retrospective basis. The Company is currently evaluating the impact of the adoption of ASU 2024-03. Intangibles - Goodwill and Other - Internal-Use Software In September 2025, the FASB issued ASU 2025-06: Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”) which, among other things, removes the project development stage requirements and allows capitalization of internal-use software costs once (i) management has authorized and committed to funding the project and (ii) it is probable that the project will be completed and the software will be used as intended. ASU 2025-06 will be effective for the Company for the 2028 fiscal year, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments may be adopted on a prospective, retrospective, or modified basis. The Company is currently evaluating the impact of the adoption of ASU 2025-06. F- 14 NOTE 3 - RESTRICTED CASH The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the consolidated balance sheets at December 31, 2025 and 2024 to the total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows for the years ended December 31, 2025, 2024, and 2023: December 31, 2025 December 31, 2024 December 31, 2023 Cash and cash equivalents $ 5,297 $ 4,960 $ 6,361 Restricted cash (1) 51,027 13,857 3,088 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 56,324 $ 18,817 $ 9,449 (1) Restricted cash at December 31, 2025 includes $ 3.0 million of long-term restricted cash that is part of “ Other assets ” on the Company’ s consolidated balance sheets. Restricted cash is primarily related to the Company’s energy incentive business with public utility clients and restricted cash advances on certain programs. NOTE 4 - CONTRACT RECEIVABLES, NET Contract receivables, net consisted of the following as of December 31: 2025 2024 Billed and billable $ 241,129 $ 263,624 Allowance for expected credit losses ( 3,133 ) ( 6,701 ) Contract receivables, net $ 237,996 $ 256,923 The Company sells certain billed contract receivables in accordance with its Amended Master Receivables Purchase Agreement with MUFG Bank, Ltd. (“MUFG”) that are accounted for as sales under ASC 860, Transfers and Servicing (“ASC 860”). The receivables are sold without recourse and the Company does not retain any ongoing financial interest in the transferred receivables, other than providing servicing activities. The following is a reconciliation of billed contract receivables sold to MUFG, including billed contract receivables sold to MUFG and payments from customers collected on behalf of MUFG during the twelve months ended December 31, 2025 and 2024, and the balance of billed contract receivables not yet collected from customers as of December 31, 2025 and 2024, respectively: As of and for the Year Ended December 31, 2025 December 31, 2024 Beginning balance, billed contract receivables sold and not yet collected (1) $ 25,966 $ 21,302 Billed contract receivables sold during the period (2) 439,550 634,081 Collections from customers during the period (2) ( 427,310 ) ( 629,417 ) Ending balance, billed contract receivables sold and not yet collected (3) $ 38,206 $ 25,966 (1) The beginning balances represent billed contract receivables that were previously sold and derecognized by the Company but have not yet been collected from customers as of January 1, 2025 and 2024 , respectively. (2) For the twelve months ended December 31, 2025 and 2024, the Company recorded net inflows of $ 12.2 million and $ 4.7 million , respectively, in its cash flows from operating activities from the sale of billed contract receivables. (3) The ending balances represent billed contract receivables that were sold and derecognized by the Company but have not yet been collected from customers as of December 31, 2025 and 2024 , respectively. F- 15 The following is a reconciliation of cash collections from customers of billed contract receivables previously sold to MUFG, including collections from customers on behalf of MUFG of previously sold billed contract receivables and remittances of cash collections to MUFG during the twelve months ended December 31, 2025 and 2024, and the balance of cash collected but not yet remitted to MUFG as of December 31, 2025 and 2024, respectively: As of and for the Year Ended December 31, 2025 December 31, 2024 Beginning balance, cash collected but not yet remitted to MUFG (1) $ 23,339 $ 21,796 Collections from customers during the period (2) 427,310 629,417 Remittances to MUFG during the period (2) ( 446,809 ) ( 627,874 ) Ending balance, cash collected but not yet remitted to MUFG (3) $ 3,840 $ 23,339 (1) The beginning balances represent cash collected from customers on behalf of MUFG for billed contract receivables that were previously sold and derecognized by the Company but have not yet been remitted to MUFG as of January 1, 2025 and 2024 , respectively. (2) For the twelve months ended December 31, 2025 and 2024, the Company recorded a net outflow of $ 19.5 million and a net inflow of $ 1.5 million , respectively, in its cash flows from operating activities from the collection of billed contract receivables that were sold but not yet remitted to MUFG. (3) The ending balances are included as part of “Accrued expenses and other current liabilities” on the Company’s consolidated balance sheets. The aggregate impact of the sale of billed contract receivables on the Company’s operating cash flows was a net outflow of $ 7.3 million and a net inflow of $ 6.2 million for the twelve months ended December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, the amounts due to MUFG for cash collected and not yet remitted for certain billed contract receivables sold that did not qualify as sales under ASC 860 totaled $ 3.4 million and $ 7.9 million , respectively. These amounts are included as part of “Accrued expenses and other current liabilities” on the Company’s consolidated balance sheets, and included within cash flows from financing activities on the Company’s consolidated statements of cash flows. NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31: 2025 2024 Leasehold improvements $ 51,596 $ 53,096 Furniture and office equipment 26,143 28,182 Computer equipment 43,576 43,695 121,315 124,973 Accumulated depreciation and amortization ( 62,958 ) ( 58,470 ) Total property and equipment, net $ 58,357 $ 66,503 Depreciation and amortization expense of property and equipment for the years ended December 31, 2025, 2024, and 2023 totaled $ 14.9 million , $ 16.0 million , and $ 18.4 million , respectively. NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the fiscal years ended December 31 were as follows: 2025 2024 Balance as of January 1 $ 1,248,855 $ 1,219,476 Add: Goodwill resulting from business combinations 380 30,200 Effect of foreign currency translation 2,972 ( 821 ) Balance as of December 31 $ 1,252,207 $ 1,248,855 See “Note 15 - Acquisitions and Divestitures” for the details of the business combination and divestiture resulting in the changes in goodwill. F- 16 Other Intangible Assets Other intangible assets consists of (i) intangible assets with definite lives previously acquired through mergers and acquisitions, purchased software, and internally-developed software (completed and in the process of completion), and (ii) a domain name with an indefinite life. The intangible assets with definite lives are amortized over periods ranging from approximately 1 to 12 years. The customer-related intangible assets, which consist of customer contracts, backlog, and non-contractual customer relationships, are amortized based on estimated cash flows and respective estimated economic benefit of the assets or straight-line over the estimated lives. As of December 31, 2025, the weighted-average periods of amortization are as follows: Customer-related 5.3 years Software 5.0 years Developed technology 6.5 years Trade name 0.6 years Total amortizable intangible assets 5.3 years The carrying values of other intangible assets are as follows at December 31, 2025 and 2024: 2025 Gross Carrying Value Accumulated Amortization Net Carrying Value Customer-related $ 187,837 $ ( 143,674 ) $ 44,163 Software 36,925 ( 23,321 ) 13,604 Developed technology 8,902 ( 2,904 ) 5,998 Trade name 1,570 ( 1,570 ) — Total amortizable intangible assets 235,234 ( 171,469 ) 63,765 Software in development 17,696 — 17,696 Intangible with indefinite life 94 — 94 Total other intangible assets $ 253,024 $ ( 171,469 ) $ 81,555 2024 Gross Carrying Value Accumulated Amortization Net Carrying Value Customer-related $ 188,410 $ ( 108,215 ) $ 80,195 Software 27,318 ( 18,204 ) 9,114 Developed technology 8,902 ( 1,279 ) 7,623 Trade name 1,570 ( 1,220 ) 350 Total amortizable intangible assets 226,200 ( 128,918 ) 97,282 Software in development 14,325 — 14,325 Intangible with indefinite life 94 — 94 Total other intangible assets $ 240,619 $ ( 128,918 ) $ 111,701 Amortization expense of amortizable intangible assets for the years ended December 31, 2025, 2024, and 2023, totaled $ 43.2 million , $ 37.5 million , and $ 42.3 million , respectively. The estimated future amortization expense relating to amortizable other intangible assets is as follows: Year ending December 31, 2026 $ 27,412 2027 11,458 2028 9,283 2029 5,631 2030 5,030 Thereafter 4,951 Total $ 63,765 F- 17 NOTE 7 - LEASES The Company has operating and finance leases for facilities and equipment which have remaining terms ranging from 1 to 13 years . The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year . The leases may also include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in lease cost resulting from changes in these indices was included within variable lease cost. The Company’s lease cost is recognized on a straight-line basis over the lease term and is primarily included within indirect and selling expenses on the consolidated statements of comprehensive income. Lease cost consisted of the following: Year Ended December 31, 2025 2024 2023 Operating lease cost $ 18,654 $ 22,085 $ 25,037 Finance lease cost - amortization of right-of-use assets 2,040 2,040 2,040 Finance lease cost - interest 429 519 602 Short-term lease cost 961 724 669 Variable lease cost 488 289 222 Sublease income ( 621 ) — ( 28 ) Total lease cost $ 21,951 $ 25,657 $ 28,542 Future minimum lease payments under non-cancellable operating and finance leases as of December 31, 2025 were as follows: Operating Finance 2026 $ 23,857 $ 3,041 2027 19,254 3,041 2028 16,162 2,985 2029 13,873 2,967 2030 13,293 — Thereafter 105,094 — Total future minimum lease payments 191,533 12,034 Less: Interest ( 32,811 ) ( 772 ) Total lease liabilities $ 158,722 $ 11,262 Lease liabilities - current $ 18,787 $ 2,704 Lease liabilities - non-current 139,935 8,558 Total lease liabilities $ 158,722 $ 11,262 Other information related to operating and finance leases is as follows: Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 27,407 $ 27,267 Financing cash flows from finance leases $ 2,612 $ 2,522 Operating cash flows from finance leases $ 429 $ 519 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,544 $ 3,730 Weighted-average remaining lease term Operating leases 11.0 11.4 Finance leases 4.0 5.0 Weighted-average discount rate Operating leases 3.5 % 3.5 % Finance leases 3.4 % 3.4 % F- 18 NOTE 8 - DEBT On May 6, 2022, the Company entered into the Restated Credit Agreement with a group of lenders with (a) PNC Bank, National Association as the Administrative Agent and (b) PNC Capital Markets LLC, BOFA Securities, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC and Citizens Bank, N.A., as joint lead arrangers. The various facilities under the Restated Credit Agreement are referred to as the “Credit Facility”. The Restated Credit Agreement amended and restated the Company’s prior credit agreement (the “Existing Credit Agreement”) to, among other things: (a) maintain the existing $ 600 million revolving credit facility (together and inclusive of a $ 75 million swing line sublimit and $ 100 million sublimit for letters of credit); (b) increase the existing term loan facility from $ 200 million to $ 300 million; (c) provide for a new delayed draw term loan facility of $ 400 million; (d) maintain the existing incremental credit facility to make, subject to approval of the lenders making such loans, incremental term or revolving credit loan(s) in the aggregate principal amount of not more than $ 300 million; (e) increase the maximum Consolidated Leverage Ratio (as such term is defined in the Restated Credit Agreement) from 4.00 to 1.00 to 4.50 to 1.00 (with temporary increases to 5.00 to 1.00 for the three fiscal quarters following a “Material Permitted Acquisition”, as such term is defined in the Restated Credit Agreement); (f) maintain the minimum Consolidated Interest Coverage Ratio (as such term is defined in the Restated Credit Agreement) of 3.00 to 1.00; (g) increase the foreign currency debt limit in Euro and Sterling Pounds from $ 30 million equivalent to $ 200 million equivalent; (h) modify LIBOR based interest pricing conventions with SOFR based interest pricing conventions; (i) extend the maturity date of the Credit Facility until May 6, 2027 ; (j) incorporate various provisions and conventions encouraged by the Loan Syndication and Trade Association; and (k) modify certain definitions and certain covenants. Under the Restated Credit Agreement, the Company may, at its discretion, borrow funds under the Credit Facility at interest rates based on both term SOFR (i.e., 1-, 3-, or 6-month rates) and the Base Rate (as defined herein), plus their applicable margins. The Base Rate is a fluctuating rate of interest equal to the highest of (a) the Overnight Bank Funding Rate (as defined in the Restated Credit Agreement), plus 0.5 %, (b) the Prime Rate (as defined in the Restated Credit Agreement) and (c) the Daily Simple SOFR Rate (as defined in the Restated Credit Agreement) plus 1 %, all as then adjusted to include the Applicable Margin (as defined in the Restated Credit Agreement) as then in effect (and as determined pursuant to the then-current Consolidated Leverage Ratio). For the years ended December 31, 2025 and 2024, interest expense from debt facilities was $ 29.2 million and $ 31.8 million , respectively, and the average interest rate on borrowings under the Credit Facility was 5.6 % and 6.6 % , respectively. As a result of floating-to-fixed interest rate swaps (see “Note 10 - Derivative Instruments and Hedging Activities”), interest expense decreased by $ 1.2 million and $ 6.2 million for the years ended December 31, 2025 and 2024, respectively, and the average interest rate was 5.4 % and 5.3 % for the years ended December 31, 2025 and 2024, respectively. The Credit Facility is collateralized by substantially all the assets of the Company and its material domestic subsidiaries and requires that the Company remain in compliance with certain financial and non-financial covenants including, but not limited to the Consolidated Leverage Ratio and the Consolidated Interest Coverage Ratio. The Credit Facility also includes other terms and conditions, covenants, and other provisions of the Restated Credit Agreement that are materially consistent with the Existing Credit Agreement. As of December 31, 2025, the Company was in compliance with all covenants. As of December 31, 2025, the Company had unused borrowing capacity of $ 550.0 million from the available $ 600.0 million revolving line of credit. The unused borrowing capacity is inclusive of four outstanding letters of credit totaling $ 1.6 million . As of December 31, 2025 and 2024, debt consisted of the following: December 31, 2025 December 31, 2024 Average Interest Rate Outstanding Balance Average Interest Rate Outstanding Balance Term Loan $ 200,250 $ 200,250 Delayed-Draw Term Loan 154,000 156,750 Revolving Credit 48,484 57,225 Total before debt issuance costs 5.6 % 402,734 6.6 % 414,225 Unamortized debt issuance costs ( 1,379 ) ( 2,482 ) Total $ 401,355 $ 411,743 Future scheduled repayments of debt principal are as follows: Payments due by Term Loan Delayed-Draw Term Loan Revolving Credit Total December 31, 2026 $ — $ — $ — $ — May 6, 2027 (Maturity) 200,250 154,000 48,484 402,734 Total $ 200,250 $ 154,000 $ 48,484 $ 402,734 F- 19 Debt Issuance Cost The Company’s debt issuance costs are amortized over the term of indebtedness. Amortization of debt issuance costs totaling $ 1.1 million , $ 1.2 million , and $ 2.0 million was recorded for each of the years ended December 31, 2025, 2024, and 2023 , respectively, and was included as part of interest, net, on the Company’s consolidated statements of comprehensive income. NOTE 9 - 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 markets, client type, and contract mix. Client markets provide insight into the breadth of the Company’s expertise. In classifying revenue by client markets, the Company attributes revenue from a client to the market that the Company believes is the client’s primary market. The Company also classifies revenue by the type of client for which it does business, which is an indicator of the diversity of its client base. The Company attributes revenue generated as a subcontractor to the market or type of the ultimate client. For the years ended December 31, 2025, 2024, and 2023, the Company’s largest client was the Department of Health and Human Services with $ 415.5 million , $ 503.9 million , and $ 509.5 million of revenue, respectively. There was no other client with revenue greater than 5 % of total revenue for the years ended December 31, 2025, 2024, and 2023. Disaggregation by contract mix provides insight in terms of the degree of performance risk that the Company has assumed. Fixed-price contracts are considered to provide the highest amount of performance risk as the Company is required to deliver a scope of work or level of effort for a negotiated fixed price. Time-and-materials contracts require the Company to provide skilled employees for negotiated fixed hourly rates. Since the Company is not required to deliver a scope of work, but merely skilled employees, it considers these contracts to be less risky than a fixed-price agreement. Cost-based contracts are considered to provide the lowest amount of performance risk since the Company is generally reimbursed for all contract costs incurred in performance of contract deliverables with only the amount of incentive or award fees (if applicable) dependent on the achievement of negotiated performance requirements. The Company’s revenue by client market, client type, and contract mix are summarized below. Year ended December 31, 2025 2024 2023 Client Markets: Energy, environment, infrastructure, and disaster recovery $ 979,137 $ 934,399 $ 805,942 Health and social programs 620,731 765,139 814,789 Security and other civilian & commercial 272,983 320,249 342,507 Total $ 1,872,851 $ 2,019,787 $ 1,963,238 Year ended December 31, 2025 2024 2023 Client Type: U.S. federal government $ 809,073 $ 1,088,607 $ 1,084,047 U.S. state and local government 322,956 316,017 309,516 International government 119,131 110,680 103,446 Total Government 1,251,160 1,515,304 1,497,009 Commercial 621,691 504,483 466,229 Total $ 1,872,851 $ 2,019,787 $ 1,963,238 Year ended December 31, 2025 2024 2023 Contract Mix: Time-and-materials $ 802,013 $ 855,533 $ 811,911 Fixed-price 932,659 932,353 886,200 Cost-based 138,179 231,901 265,127 Total $ 1,872,851 $ 2,019,787 $ 1,963,238 F- 20 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 on contracts. The following table summarizes the contract balances as of December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 Change Contract assets $ 186,684 $ 188,941 $ ( 2,257 ) Contract liabilities (1) ( 46,487 ) ( 24,580 ) ( 21,907 ) Net contract assets (liabilities) $ 140,197 $ 164,361 $ ( 24,164 ) (1) Contract liabilities as of December 31, 2025 include $ 3.0 million of long-term contract liabilities that are part of “ Other long-term liabilities ” on the Company's consolidated balance sheets. The net contract assets (liabilities) as of December 31, 2025 decreased by $ 24.2 million as compared to December 31, 2024, primarily due to the timing difference between the performance of services and billings to and payments from customers. There were no material changes to contract balances due to impairments or credit losses during the period. During the years ended December 31, 2025 and 2024, the Company recognized $ 20.6 million and $ 17.6 million in revenue related to the contract liabilities balance at December 31, 2024 and 2023, respectively. Changes in Estimates on Contracts: For the years ended December 31, 2025, 2024, and 2023, the aggregate net changes in estimates on contracts accounted under the percentage-of-completion method reflected increases of $ 14.8 million , $ 12.7 million , and $ 7.9 million , respectively, to “Operating income” on the Company’s consolidated statements of comprehensive income. The impact of the changes on the Company’s diluted earnings per share was $ 0.65 , $ 0.54 , and $ 0.36 , respectively. The Company used its effective tax rates of 18.2 % , 20.2 % , and 14.4 % , respectively, to calculate the impact on net income. Revenue Adjustments from Previously Satisfied Performance Obligations: For the years ended December 31, 2025 and 2024, the Company recognized $ 4.8 million , and $ 1.6 million , respectively, of revenue from previously satisfied performance obligations. For the year ended December 31, 2023, the Company reduced revenue by $ 1.4 million from previously satisfied performance obligations. The adjustments were primarily due to changes in the transaction prices and final performance determination of certain awards. Unfulfilled Performance Obligations: The Company had $ 0.7 billion in UPO as of December 31, 2025, of which approximately 66 % relates to its contracts with U.S. federal government. During the year ended December 31, 2025, pursuant to the executive orders issued by the Administration or actions by the Department of Government Efficiency, the Company received notices for termination-for-convenience. The termination notices were received primarily in the first and second quarters of the 2025 fiscal year. The Company expects to recognize the remaining UPO as revenue of approximately 74 % by December 31, 2026 , 91 % by December 31, 2027 , and the remaining thereafter. NOTE 10 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses interest rate swap agreements (the “Swaps”) to manage its variable interest rate risk associated with its borrowings under the Credit Facility. The Company does not use such instruments for speculative or trading purposes. During the second and third quarters of the 2025 fiscal year, the Company executed a strategy that extended the term of the existing Swaps at a lower interest rate while maintaining the same overall notional value of each Swap. As a result of the amendment, $ 50.0 million will mature on February 28, 2030 , $ 25.0 million will mature on June 26, 2030 , and $ 100.0 million will mature on July 31, 2030 . The Company has designated the modified Swaps as cash flow hedges . See “Note 8 - Debt” for details on the impact of the Swap on the Company’s interest rates. See “Note 11 - Fair Value” for the fair value of these Swaps. For the years ended December 31, 2025 and 2024, the effect of the Swaps on the Company’s financial statements are as follows: Cash Flow Hedging Derivatives Total Gain (Loss) Recorded to AOCI Amount of (Gain) or Loss Reclassified from AOCI into Income Year Ended December 31, 2025 2024 2025 2024 Interest Rate Swaps $ ( 2,268 ) $ 5,996 $ ( 1,016 ) $ ( 6,244 ) F- 21 As of December 31, 2025, $ 0.6 million in unrealized losses from the Swaps are expected to be reclassified from AOCI into earnings within the next twelve months . NOTE 11 - FAIR VALUE Financial instruments measured at fair value on a recurring basis and their location within the accompanying consolidated financial statements are as follows: December 31, 2025 Level 1 Level 2 Level 3 Total Location on Balance Sheet Assets: Company-owned life insurance policies $ — $ 26,373 $ — $ 26,373 Other assets Liabilities: Interest swaps - current portion $ — $ 615 $ — $ 615 Accrued expenses and other current liabilities Interest swaps - long-term portion — 2,060 — 2,060 Other long-term liabilities December 31, 2024 Level 1 Level 2 Level 3 Total Location on Balance Sheet Assets: Interest rate swaps - current portion $ — $ 825 $ — $ 825 Prepaid expenses and other assets Interest rate swaps - long-term portion — 129 — 129 Other assets Company-owned life insurance policies — 23,174 — 23,174 Other assets Liabilities: Interest swaps - current portion $ — $ 15 $ — $ 15 Accrued expenses and other current liabilities Interest swaps - long-term portion — 153 — 153 Other long-term liabilities Financial and non-financial instruments measured or re-measured at fair value on a non-recurring basis after initial measurement include certain impaired right-of-use assets from operating leases (see “Note 19 - Exit Activities”) using the discounted cash flows method with Level 3 inputs as of the impairment dates. F- 22 NOTE 12 - STOCKHOLDERS ’ EQUITY Accumulated Other Comprehensive Loss Accumulated other comprehensive (loss) income included the following: Foreign Currency Translation Adjustments Changes in Fair Value of Interest Rate Hedge Agreements (1)(2) Total Accumulated other comprehensive (loss) income at January 1, 2023 $ ( 14,056 ) $ 5,923 $ ( 8,133 ) Current period other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications 4,158 ( 45 ) 4,113 Amounts reclassified from accumulated other comprehensive (loss) income — ( 6,982 ) ( 6,982 ) Effect of taxes ( 2,797 ) 1,914 ( 883 ) Total current period other comprehensive (loss) income 1,361 ( 5,113 ) ( 3,752 ) Accumulated other comprehensive (loss) income at December 31, 2023 ( 12,695 ) 810 ( 11,885 ) Current period other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications ( 3,884 ) 5,996 2,112 Amounts reclassified from accumulated other comprehensive (loss) income — ( 6,244 ) ( 6,244 ) Effect of taxes 196 75 271 Total current period other comprehensive (loss) income ( 3,688 ) ( 173 ) ( 3,861 ) Accumulated other comprehensive (loss) income at December 31, 2024 ( 16,383 ) 637 ( 15,746 ) Current period other comprehensive (loss) income: Other comprehensive (loss) income before reclassifications 8,788 ( 2,268 ) 6,520 Amounts reclassified from accumulated other comprehensive (loss) income (3) ( 4,094 ) ( 1,016 ) ( 5,110 ) Effect of taxes — 908 908 Total current period other comprehensive (loss) income 4,694 ( 2,376 ) 2,318 Accumulated other comprehensive (loss) income at December 31, 2025 $ ( 11,689 ) $ ( 1,739 ) $ ( 13,428 ) (1) Represents the change in fair value of interest rate hedge agreements designated as cash flow hedges. The fair value of the interest rate hedge agreements was recorded in other comprehensive income, net of tax, and will be reclassified to earnings when earnings are impacted by the hedged items, as interest payments are made on the debt. See additional details of the hedge agreements in “Note 10 - Derivative Instruments and Hedging Activities” . (2) The Company expects to reclassify $ 0.6 million in unrealized gains related to the Change in Fair Value of Interest Rate Hedge Agreement from accumulated other comprehensive loss into earnings during the next 12 months. (3) During the first quarter of 2025, the Company reclassified $ 4.1 million of effect of taxes related to Foreign Currency Translation Adjustments from accumulated other comprehensive (loss) income into earnings in connection with Section 987 (“IRC 987”) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). See “Note 13 - Income Taxes”. Share Repurchases The Company’s current approved share repurchase program allows for share repurchases in the aggregate up to $ 300.0 million under approved share repurchase plans pursuant to Rules 10b5-1 and 10b-18 und er the Exchange Act. The repurchase program and the authorized amount have no expiration date. On an annual basis, the Credit Facility (see “Note 8 - Debt”) pe rmits share repurchases of at least $ 25.0 million provided that the Company is not in default of its covenants, and higher amounts provided that the Company’s Consolidated Leverage Ratio, prior to and after giving effect to such repurchases, is 0.50 to 1.00 less than the then-applicable maximum Consolidated Leverage Ratio and subject to the Company having net liquidity of at least $ 100.0 million after giving effect to such repurchases. F- 23 Purchases under this program may be made from time to time at prevailing market prices in open market purchases or in privately negotiated transactions pursuant to Rule 10b-18 under the Exchange Act and in accordance with applicable insider trading and other securities laws and regulations. The purchases are funded from existing cash balances and/or borrowings, and the repurchased shares are held in treasury. The timing and extent to which the Company repurchases its shares will depend on market conditions and other corporate considerations in the Company’s sole discretion. For the years ended December 31, 2025 and 2024, the Company used $ 55.3 million to repurchase 563,988 shares at an average price of $ 98.08 per share and $ 44.4 million to repurchase 327,321 shares at an average price of $ 135.77 per share, respectively, under this program. As of December 31, 2025, approximately $ 94.0 million of authority remained available under the share repurchase plan. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”) under which one million shares have been authorized for issuance. The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions up to $ 25,000 per calendar year, per Internal Revenue Services rules, over six-month offering periods at a discount not to exceed 5 % of the market value on the date of each purchase period, and therefore the Company does not have any compensation expense related to the ESPP. For the years ended December 31, 2025 and 2024, employees purchased a total of 57,197 and 40,987 shares at an average purchase price of $ 80.96 and $ 125.20 , respectively. At December 31, 2025 and 2024, there were 450,648 and 507,845 shares remaining available for future issuance under this plan. NOTE 13 - INCOME TAXES For the years ended December 31, 2025, 2024, and 2023, domestic and foreign income before income taxes is as follows: 2025 2024 2023 Domestic $ 106,297 $ 134,068 $ 83,742 Foreign 5,696 3,990 12,805 Income before income taxes $ 111,993 $ 138,058 $ 96,547 Income tax expense consisted of the following for the years ended December 31: 2025 2024 2023 Current: Federal $ 6,188 $ 41,276 $ 28,108 State 11,046 16,851 10,380 Foreign 1,955 1,647 2,247 Total current 19,189 59,774 40,735 Deferred: Federal 4,937 ( 21,065 ) ( 20,279 ) State ( 3,519 ) ( 10,851 ) ( 6,915 ) Foreign ( 202 ) 30 394 Total deferred 1,216 ( 31,886 ) ( 26,800 ) Income tax expense $ 20,405 $ 27,888 $ 13,935 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and income tax purposes. F- 24 The Company’s provision for income taxes differs from the U.S. federal statutory tax rate of 21.0 % due to the following reconciling items: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent U.S. federal statutory tax rate $ 23,521 21.0 % $ 28,992 21.0 % $ 20,359 21.0 % State and local income taxes, net of federal income tax effect (1) 6,004 5.4 % 5,625 4.1 % 6,194 6.4 % Foreign tax effects: Puerto Rico: Foreign branch tax 1,320 1.2 % 1,384 1.0 % 1,396 1.4 % Other 1,417 1.3 % 2,140 1.5 % 1,435 1.5 % Effect of changes in tax laws or rates enacted in the current period (2) ( 4,458 ) ( 4.0 )% — — — — Effect of cross-border tax laws: Global intangible low-taxed income 97 0.1 % — — 319 0.3 % Tax credits: Research and development tax credits ( 10,356 ) ( 9.2 )% ( 14,934 ) ( 10.8 )% ( 15,055 ) ( 15.5 )% Foreign tax credits ( 3,874 ) ( 3.5 )% ( 3,120 ) ( 2.3 )% ( 2,941 ) ( 3.0 )% Other ( 73 ) ( 0.1 )% ( 526 ) ( 0.4 )% ( 22 ) — Changes in valuation allowances 1,803 1.6 % 2,281 1.7 % 1,929 2.0 % Nontaxable or nondeductible items: Share-based payments 409 0.4 % ( 2,376 ) ( 1.7 )% ( 1,075 ) ( 1.1 )% Capital loss (3) — — — — ( 3,690 ) ( 3.8 )% Worthless Stock deduction (4) ( 93 ) ( 0.1 )% — — ( 4,903 ) ( 5.1 )% Excess compensation 2,183 1.9 % 2,448 1.8 % 1,666 1.7 % Other ( 300 ) ( 0.3 )% 346 0.3 % ( 124 ) ( 0.1 )% Changes in unrecognized tax benefits 2,967 2.6 % 5,607 4.1 % 8,447 8.7 % Other: ( 162 ) ( 0.1 )% 21 — — — Effective tax $ 20,405 18.2 % $ 27,888 20.2 % $ 13,935 14.4 % (1) State taxes in Virginia, Maryland, and the District of Columbia make up the majority (greater than 50 percent) of the tax effect in this category. (2) The 2025 provision for income tax includes a benefit recognized in the first fiscal quarter of 2025 from tax planning implemented in connection with the “transitional rules” governing unrealized foreign exchange gains and losses derived from translation of the operations, assets and liabilities of non-U.S. qualified subsidiaries provided by recently finalized U.S. federal tax regulations under IRC 987. The regulations under IRC 987 are effective for the Company for tax years beginning after December 31, 2024, and require computation of a pre-transition foreign currency gain or loss to be included in the determination of future taxable income or loss and an analysis of the various elections available to taxpayers. Based on the Company’s current analysis of the regulations and the available election to amortize its pre-2025 cumulative unrealized foreign exchange gains and losses impacting U.S. taxation of foreign earnings under Subpart F of the Internal Revenue Code, the Company recognized a non-cash deferred income tax benefit of $ 4.5 million related to its election to amortize its pre-transition foreign currency losses against taxable income over ten years . (3) During 2023, the Company restructured the ownership of its Canadian entities for tax purposes, resulting in a 3.8 % decrease in the Company’s effective income tax rate for the year ended December 31, 2023. (4) During 2023, the Company liquidated one of its U.K. subsidiaries as part of the wind-down of its commercial marketing business, resulting in a reduction in the Company’s effective income tax rate of 5.1 % for the year ended December 31, 2023. F- 25 Income taxes paid, net of refunds received, consisted of the following: 2025 2024 2023 Federal $ 15,000 $ 34,500 $ 9,850 State and local Maryland 1,891 3,771 4,232 Virginia 1,785 4,000 1,855 District of Columbia 1,249 3,501 181 Other (1) 3,380 6,618 3,412 Total state and local 8,305 17,890 9,680 Foreign U.K. 1,417 1,646 275 Other (2) 3,353 4,771 3,413 Total foreign 4,770 6,417 3,688 Total income taxes paid, net of refunds $ 28,075 $ 58,807 $ 23,218 (1) Primarily includes taxes paid to California, New York, New Jersey, and Texas. (2) Primarily includes taxes paid to Belgium and Puerto Rico. The Company measures certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is 27.0 %. Deferred tax assets (liabilities) consisted of the following at December 31: 2025 2024 Deferred Tax Assets Allowance for expected credit losses $ 769 $ 1,648 Accrued paid time off 2,943 3,525 State net operating loss carryforward 436 456 Stock-based compensation 6,225 6,076 Deferred compensation 7,078 6,568 Foreign tax credits 8,757 8,151 State tax credits 1,776 1,923 Foreign exchange 2,603 4,345 Section 987 pretransition loss 4,012 — Research tax credits 6,120 — Foreign deferred 560 333 Accrued bonus 4,759 6,393 Capital loss 1,067 1,020 Facilities impairment 1,463 2,611 Capitalized research expenses 58,355 70,617 Depreciation 810 402 Accrued liabilities and other 513 1,364 Lease liabilities 49,253 54,263 157,499 169,695 Less: Valuation Allowance ( 11,044 ) ( 9,627 ) Total Deferred Tax Assets 146,455 160,068 Deferred Tax Liabilities Payroll taxes ( 878 ) ( 939 ) Unbilled revenue ( 741 ) ( 184 ) Amortization ( 107,154 ) ( 108,009 ) Deferred gain and other ( 2,418 ) ( 2,543 ) Lease assets - right-of-use ( 42,101 ) ( 46,790 ) Total Deferred Tax Liabilities ( 153,292 ) ( 158,465 ) Total Net Deferred Tax Assets (Liabilities) $ ( 6,837 ) $ 1,603 F- 26 The Company’s 2022, 2023, and 2024 tax years remain subject to examination by the Internal Revenue Service for federal tax purposes. Certain significant state and foreign tax jurisdictions are also either currently under examination or remain open under the statutes of limitation and subject to examination for the tax years from 2021, 2022, 2023, and 2024. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the “OB3 Act”). The OB3 Act made permanent changes to certain key elements of the Tax Cuts and Jobs Act of 2017 (the “TCJA”), including 100 % bonus depreciation, domestic research cost expensing, the business interest expense limitation, and the repeal of various clean energy tax credits. As a result, the OB3 Act impacted the Company’s income tax payables and deferred tax assets as of July 4, 2025, the date of enactment, via the reversal of approximately $ 32.0 million of deferred tax assets resulting from capitalized research expenses incurred through June 30, 2025. The reversal is reflected on the Company’s annual financial statements as of and for the year ended December 31, 2025. These capitalized research expenses are being recovered over their remaining useful lives as outlined in IRC 174A enacted via the OB3 Act. As of December 31, 2025 , the Company had gross state income tax credit carryforwards of approximately $ 1.7 million, which expire b etween 2025 and 2030 . A deferred tax asset of approximately $ 1.3 million, net of federal benefit, has been established related to these state income tax credit carryforwards as of December 31, 2025. The need to establish valuation allowances for deferred assets is based on a more-likely-than-not threshold that the benefit of such assets will be realized in future periods. Appropriate consideration has been given to all available evidence, including historical operating results, projections of taxable income, and tax planning alternatives. The Company concluded that a $ 0.4 million valuation allowance was required for tax attributes related to specified state jurisdictions, a $ 1.1 million valuation allowance was required for tax attributes related to capital loss carryforwards, a $ 0.7 million valuation allowance was required for certain equity-based compensation assets, and an additional $ 8.7 million valuation allowance was required against our U.S. foreign tax credit carryforwards. The total amount of unrecognized tax benefits as of December 31, 2025 and 2024 was $ 24.7 million and $ 25.8 million, respectively, which includes $ 18.2 million and $ 15.0 million, respectively, of tax positions that, if recognized, would impact the effective rate. The unrecognized tax benefits and the related accrued interest are part of other long-term liabilities on the Company’s consolidated balance sheets. The components of unrecognized tax benefits, excluding penalty and interest, are as follows at December 31: 2025 2024 Section 41 tax credit 17,980 15,042 Section 174 expense capitalization 6,479 10,798 India transfer pricing 231 — Total $ 24,690 $ 25,840 The unrecognized tax benefit reconciliation, excluding penalty and interest, is as follows: Unrecognized tax benefits at January 1, 2023 $ 145 Increase attributable to tax positions taken during a prior period 19,845 Increase attributable to tax positions taken during the current period 4,141 Unrecognized tax benefits at December 31, 2023 24,131 Decrease attributable to tax positions taken during a prior period ( 4,597 ) Increase attributable to tax positions taken during the current period 6,306 Unrecognized tax benefits at December 31, 2024 25,840 Decrease attributable to tax positions taken during a prior period ( 4,767 ) Increase attributable to tax positions taken during the current period 3,617 Unrecognized tax benefits at December 31, 2025 24,690 F- 27 NOTE 14 - STOCK-BASED COMPENSATION On June 1, 2023, the Company’s stockholders approved an amendment and restatement of the 2018 Omnibus Plan (the “2018 A&R Omnibus Plan”) which increased the number of shares available for issuance to 2,050,000 shares using stock options, stock appreciation rights, restricted stock, RSUs, performance units and PSAs, cash-based awards, and other stock-based awards to all key officers, key employees, and non-employee directors of the Company. As of December 31, 2025, the Company had approximately 785,433 shares available for grant under the A&R 2018 Omnibus Plan. Stock-based compensation expense is included as part of direct costs and indirect and selling expenses on the consolidated statements of comprehensive income. The total stock-based compensation expense for the years ended December 31, 2025, 2024, and 2023, the unrecognized compensation expense at December 31, 2025, and the weighted-average period to recognize the remaining unrecognized shares are as follows: Stock-Based Compensation Expense Recognized as of December 31, Unrecognized as of December 31, 2025 2024 2023 2025 Weighted Average Period to Recognize (years) Restricted Stock Units $ 11,256 $ 10,654 $ 9,413 $ 14,527 1.6 Cash-Settled Restricted Stock Units 4,291 8,341 8,061 6,015 1.6 Non-Employee Director Awards 1,019 972 1,029 476 0.4 Performance Shares 5,410 5,096 4,416 5,590 1.7 Total $ 21,976 $ 25,063 $ 22,919 $ 26,608 The stock-based compensation expense is deductible for income tax purposes. The income tax expense reflects adjustments for differences between the stock-based compensation expense and the actual compensation included in award recipient’s gross income. For the year ended December 31, 2025, the Company recognized an additional $ 0.4 million of shortfall tax expense related to stock-based compensation. For the years ended December 31, 2024 and 2023, the Company recognized windfall tax benefits of $ 2.4 million , and $ 1.1 million , respectively, related to stock-based compensation. Restricted Stock Units RSUs generally have a vesting term of three years . On vesting the employee is issued one share of stock for each RSU awarded. The fair value of shares vested was $ 9.7 million , $ 10.3 million , and $ 7.3 million for the years ended December 31, 2025, 2024, and 2023, respectively. A summary of the Company’s RSUs is presented below: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested RSUs at January 1, 2023 284,826 $ 88.23 Granted 89,388 $ 110.80 Vested ( 93,881 ) $ 78.05 Cancelled ( 21,815 ) $ 94.01 Non-vested RSUs at December 31, 2023 258,518 $ 99.25 Granted 86,428 $ 153.22 Vested ( 107,168 ) $ 95.65 Cancelled ( 26,807 ) $ 109.79 Non-vested RSUs at December 31, 2024 210,971 $ 121.86 Granted 149,102 $ 84.94 Vested ( 86,741 ) $ 111.40 Cancelled ( 10,453 ) $ 110.20 Non-vested RSUs at December 31, 2025 262,879 $ 104.83 $ 22,424 RSUs expected to vest in the future 242,730 $ 105.26 $ 20,705 F- 28 The aggregate intrinsic value in the preceding table is based on the Company’s closing stock price of $ 85.30 per share as of December 31, 2025. Cash-Settled Restricted Stock Units CSRSUs generally have a vesting term of three years . The fair value of CSRSUs vested and settled in cash for the years ended December 31, 2025, 2024, and 2023 was $ 6.4 million , $ 7.8 million and $ 7.9 million , respectively. A summary of the Company’s CSRSUs is presented below: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested CSRSUs at January 1, 2023 188,419 $ 87.28 Granted 70,742 $ 110.65 Vested ( 81,537 ) $ 76.26 Cancelled ( 19,040 ) $ 91.94 Non-vested CSRSUs at December 31, 2023 158,584 $ 102.82 Granted 38,653 $ 153.15 Vested ( 58,078 ) $ 99.30 Cancelled ( 9,424 ) $ 114.93 Non-vested CSRSUs at December 31, 2024 129,735 $ 118.51 Granted 76,306 $ 84.89 Vested ( 70,117 ) $ 108.54 Cancelled ( 10,327 ) $ 115.34 Non-vested CSRSUs at December 31, 2025 125,597 $ 103.91 $ 10,713 CSRSUs expected to vest in the future 113,255 $ 104.54 $ 9,661 The aggregate intrinsic value in the preceding table is based on the Company’s closing stock price of $ 85.30 per share as of December 31, 2025. Non-Employee Director Awards The Company grants awards of registered shares to its non-employee directors on an annual basis under the A&R Omnibus Plan. A summary of the non-employee director awards is presented below: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested RSUs at January 1, 2023 5,348 $ 94.79 Granted 8,211 $ 127.81 Vested ( 9,457 ) $ 109.14 Cancelled — $ — Non-vested RSUs at December 31, 2023 4,102 $ 127.81 Granted 6,618 $ 135.91 Vested ( 7,414 ) $ 131.43 Cancelled — $ — Non-vested RSUs at December 31, 2024 3,306 $ 135.91 Granted 12,484 $ 87.06 Vested ( 9,770 ) $ 103.53 Cancelled — $ — Non-vested RSUs at December 31, 2025 6,020 $ 87.16 $ 514 RSUs expected to vest in the future 6,020 $ 87.16 $ 514 The aggregate intrinsic value in the preceding table is based on the Company’s closing stock price of $ 85.30 per share as of December 31, 2025. F- 29 Performance Share Awards The Company’s performance-based share program (the “Program”) provides for the issuance of PSAs to its senior management. Under the Program, the PSAs that the participant will receive depends on the Company’s achievement of two performance goals during two performance periods. The performance goals under the Program are based on (i) the Company’s compounded annual growth rate in EPS (adjusted to exclude certain items specified in the award’s agreement) during a two-year performance period (the “Initial Period”) and (ii) the Company’s cumulative total shareholder return relative to its peer group (“rTSR”) during a performance period from the first day of the performance period (typically January 1 of the year awarded) to the last day of the third year of the performance period (typically December 31). The PSAs will only be eligible to vest following the expiration of the three-year performance period. The actual shares vested will be subject to both continued employment by the Company (barring certain exceptions allowing for partial performance periods) and actual financial measures achieved. The final number of shares of common stock that will be issued to each participant at the end of t he applicable performance period will be determined by multiplying the award by the product of two percentages: the first based on the Company’s EPS performance and the second based on the Company’s rTSR performance, subject to a minimum and maximum performance level. As of December 31, 2025 , shares granted during 2023, 2024, and 2025 are within year three , two , and one of the performance periods, respectively, and therefore have not fully vested. A total of 38,079 shares granted in 2022 vested during 2025 after meeting the performance goals. As of December 31, 2025, a total of 99,342 shares granted in 2023 and 2024 are expected to vest in the future based on estimated financial measures achieved in the Initial Period and rTSR performance. A summary of the Company’s PSAs is presented below: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Non-vested PSAs at January 1, 2023 120,687 $ 79.42 Granted 36,956 $ 115.67 Vested ( 45,141 ) $ 58.76 Cancelled ( 6,934 ) $ 61.49 Non-vested PSAs at December 31, 2023 105,568 $ 102.12 Granted 41,365 $ 143.97 Vested ( 46,630 ) $ 95.72 Cancelled ( 4,198 ) $ 114.91 Non-vested PSAs at December 31, 2024 96,105 $ 122.68 Granted 79,474 $ 77.34 Vested ( 38,079 ) $ 93.97 Cancelled — $ — Non-vested PSAs at December 31, 2025 137,500 $ 104.42 $ 11,729 PSAs expected to vest in the future 99,342 $ 101.00 $ 8,474 The aggregate intrinsic value in the preceding table is based on the Company’s closing stock price of $ 85.30 per share as of December 31, 2025. The fair value of the awards is estimated on the grant date using a Monte Carlo simulation model due to the market condition for the rTSR component. The fair value assumptions using the Monte Carlo simulation model for awards granted in 2025, 2024, and 2023 were: 2025 2024 2023 Dividend Yield 0.7 % 0.4 % 0.5 % Historical Volatility 32.5 % 29.3 % 33.6 % Risk-Free Rate of Returns 3.9 % 4.4 % 3.8 % NOTE 15 - ACQUISITIONS AND DIVESTITURES Acquisitions Applied Energy Group, Inc. On December 31, 2024 , the Company completed the acquisition of Applied Energy Group, Inc. (“AEG”), an energy technology and advisory services company , for $ 59.9 million in cash consideration. AEG provides a suite of integrated technology and advisory solutions to electric and gas utilities, state and local governments, and state energy offices nationwide which further enhance the Company’s service offering and client footprint. F- 30 As part of the allocation of the purchase consideration, the Company recorded the following: Net working capital $ 3,842 Property and equipment 55 Customer-related intangibles 20,000 Developed technology 5,000 Trade names and trademarks 350 Other, net 48 Goodwill 30,574 Purchase considerations $ 59,869 Net working capital includes restricted cash of $ 5.4 million, accounts receivable of $ 4.4 million, contract assets of $ 2.6 million, accrued expenses of $ 6.6 million, accounts payable of $ 1.3 million, and other assets and liabilities of $ 0.7 million. The allocation of the purchase consideration was finalized during the third quarter of the 2025 fiscal year. The estimated useful lives of acquired intangible assets are as follows: Customer-related intangibles 6.0 years Developed technology 4.0 years Trade names and trademarks 0.3 years The goodwill is attributable to the workforce of AEG and expected synergies with the Company. Goodwill has an indefinite life, and is deductible for income tax purposes. The pro-forma impact of the acquisition is not material to the Company’s results of operations. CMY Solutions, LLC On May 1, 2023 , the Company acquired CMY Solutions, LLC (“CMY”), a privately-held company that provides engineering and automation solutions to utilities and organizations, for $ 32.6 million in cash. The acquisition enhances the Company’s offerings in the field of power and energy advisory services. As part of the allocation of purchase consideration, the Company recorded the following: Net working capital $ 1,169 Customer-related intangibles 9,900 Trade names and trademarks 100 Goodwill 21,366 Purchase considerations $ 32,535 The estimated useful lives of acquired intangible assets are as follows: Customer-related intangibles 5 years Trade names and trademarks 1 year Goodwill has an indefinite life and is deductible for income tax purposes. The pro-forma impact of the acquisition is not material to the Company’s results of operations. Divestitures Commercial Marketing On September 12, 2023 , the Company completed the divesture of its U.S. commercial marketing business for $ 47.1 million in cash. The disposal of the commercial marketing business was not a major strategic shift that was significant to the Company’s operations and financial results. For the years ended December 31, 2024 and 2023, the Company recorded pre-tax gain of $ 2.0 million and $ 2.5 million, respectively, that are included within other income on the Company’s consolidated statements of comprehensive income. Mobile and SMS Messaging Aggregator Business On November 1, 2023, the Company completed the divesture of its Canadian mobile and Short Message Service (“SMS”) messaging aggregator business for $ 5.4 million in cash. The disposal of the mobile aggregation and SMS messaging aggregator business was not a major strategic shift that was significant to the Company’s operations and financial results. In connection with the sale, the Company recorded a pre-tax gain of $ 3.2 million that is included within other (expense) income on the Company’s consolidated statements of comprehensive income for the year ended December 31, 2023. F- 31 NOTE 16 - EARNINGS PER SHARE EPS is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents of stock options, RSUs, and PSAs were exercised or converted into stock. PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions: (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. As of December 31, 2025, the PSAs granted during the year ended December 31, 2023 and 2024 met the related performance conditions for the initial performance period and were included in the calculation of diluted EPS; however, the PSAs granted during the year ended December 31, 2025 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS. There were 32,629 , 518 , and 1,925 of potentially dilutive shares of stock awards that were excluded from the calculation of weighted-average diluted share computations for the years ended December 31, 2025, 2024, and 2023, respectively, because they were anti-dilutive. EPS, including the dilutive effect of stock awards for each period reported, is summarized below: 2025 2024 2023 Net Income $ 91,588 $ 110,170 $ 82,612 Weighted-average number of basic shares outstanding during the period 18,414 18,747 18,802 Dilutive effect of stock options, RSUs, and performance shares 102 178 192 Weighted-average number of diluted shares outstanding during the period 18,516 18,925 18,994 Basic earnings per share $ 4.97 $ 5.88 $ 4.39 Diluted earnings per share $ 4.95 $ 5.82 $ 4.35 NOTE 17 - COMMITMENTS AND CONTINGENCIES Letters of Credit and Guarantees At December 31, 2025 and 2024, the Company had open standby letters of credit totaling $ 1.6 million and $ 1.6 million , respectively, and guarantees of $ 7.0 million and $ 8.2 million issued by its banks. The letters of credit and guarantees were primarily for the Company’s facility leases and contract performance obligations. The open standby letters of credit reduce the Company’s unused borrowing capacity under its Credit Facility. Litigation and Claims The Company is involved in various legal matters and proceedings arising in the ordinary course of business. While these matters and proceedings cause it to incur costs, including, but not limited to, attorneys’ fees, the Company currently believes that any ultimate liability arising out of these matters and proceedings will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. NOTE 18 - EMPLOYEE BENEFIT PLANS Defined Contribution Plan Effective June 30, 1999, the Company established the ICF Consulting Group Retirement Savings Plan (the “Retirement Savings Plan”). The Retirement Savings Plan is a defined contribution profit sharing plan with a cash or deferred arrangement under Section 401(k) of the Internal Revenue Code. Participants are able to elect to defer up to 70 % of their compensation, subject to statutory limitations, and are entitled to receive 100 % employer matching contributions for the first 3 % and 50 % for the next 2 % of their compensation. The Company’s contribution expense for the years ended December 31, 2025, 2024, and 2023 was $ 26.1 million , $ 26.8 million , and $ 25.4 million , respectively. F- 32 Deferred Compensation Plan Certain key employees of the Company are eligible to defer a specified percentage of their cash compensation to a non-qualified deferred compensation plan. Eligible employees may elect to defer up to 80 % of their base salary and up to 100 % of performance bonuses, reduced by any amounts withheld for the payment of taxes or other deductions required by law. Participants are always 100 % vested in their account balances. The Company funds its deferred compensation liabilities by making cash contributions to a Rabbi Trust (the “Trust”) at the time the salary or bonus being deferred would otherwise be payable to the employee. As of December 31, 2025 and 2024, the deferred compensation liabilities to plan participants totaled $ 26.2 million and $ 24.3 million, respectively, which were materially funded by assets in the Trust. NOTE 19 - EXIT ACTIVITIES During the year ended December 31, 2023, the Company incurred and paid $ 2.5 million in retention and severance benefits related to the wind-down of its non-core commercial marketing and communication businesses in the U.K. and Belgium. The exit activity was completed as of December 31, 2023 . During the year ended December 31, 2023, the Company completed the divestitures of its non-core U.S. commercial marketing and Canadian mobile and SMS messaging aggregator businesses . As a result of these divestitures, the Company incurred and paid retention and severance benefits of $ 1.9 million for the year ended December 31, 2023, which was primarily recorded within direct costs. As a result of these wind-down and divestitures, the Company also recorded $ 3.0 million related to right-of-use operating leases, accrued $ 2.4 million for other facility-related exit cost, and recorded impairment of $ 0.9 million related to a customer-related intangible from a prior acquisition. NOTE 20 - SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company provides a broad array of professional services to its clients across several markets, primarily within the U.S. The Company operates as a single reportable and operating segment because the Chief Operating Decision Maker (the “CODM”) , which is the Chief Executive Officer, manages the business activities on a consolidated basis. Although the Company disaggregates its revenue by client market and client type, it does not manage its business or allocate resources based on client market or type. The CODM assesses performance of the segment based on consolidated net income that is reported on the Company’s consolidated statements of comprehensive income. The CODM uses consolidated net income to evaluate the Company’s performance against budgets and decide whether to use the profits to invest in the business, paydown debt, repurchase stock, pay dividends, or fund acquisitions. Asset information provided to the CODM is not used for the purpose of making decisions and assessing performance of the Company. The segment revenue, significant segment expenses, and segment profit are as follows: Year ended December 31, 2025 2024 2023 Revenue $ 1,872,851 $ 2,019,787 $ 1,963,238 Significant segment expenses: Direct labor & related fringe benefit costs 722,849 775,239 730,322 Subcontractors & other direct costs 453,986 506,777 534,696 Indirect and selling expenses 492,404 518,453 505,162 Depreciation and amortization 21,140 20,484 25,277 Amortization of intangible assets acquired in business combinations 37,007 32,992 35,461 Interest expense 31,268 29,878 39,952 Provision for income taxes 20,405 27,888 13,935 Other segment expense (income) (1) 2,204 ( 2,094 ) ( 4,179 ) Net Income $ 91,588 $ 110,170 $ 82,612 (1) Other segment expense (income) primarily includes interest income, gains/losses on foreign currency, and gains/losses on disposition of assets. F- 33 Other Segment Information and Geographic Data Revenue is attributed to the country where the contract is awarded by the client. There was no single foreign country that individually accounted for 10% or more of total revenue for the years ended December 31, 2025, 2024, and 2023 . The following table provides net revenue for the Company’s home country and foreign countries: Year ended December 31, 2025 2024 2023 Revenue: U.S. $ 1,713,828 $ 1,869,105 $ 1,832,562 Other countries 159,023 150,682 130,676 Total revenue $ 1,872,851 $ 2,019,787 $ 1,963,238 At December 31, 2025 and 2024 , tangible long-lived assets were primarily held in the U.S. There was no single foreign country that, individually, held more than 10% of the total long-lived assets. The following table provides tangible long-lived assets held in the Company’s home country and in foreign countries: December 31, 2025 2024 Long-lived assets: U.S. $ 55,670 $ 63,430 Other countries 2,687 3,073 Total long-lived assets $ 58,357 $ 66,503 NOTE 21 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at December 31: 2025 2024 Client advances and restricted funds $ 47,245 $ 32,350 Cash collected not yet remitted to purchaser of billed receivables 7,189 31,252 Other accrued expenses and current liabilities 16,906 23,099 Total accrued expenses and other current liabilities $ 71,340 $ 86,701 F- 34 Schedule II - Valuation and Qualifying Accounts Additions Description Beginning Balance Charged to costs and expenses Charged to other accounts Deductions Balance at end of period Year ended December 31, 2023 Deducted from asset accounts: Allowances for expected credit losses $ 6,112 $ 1,164 $ 45 $ ( 1,886 ) $ 5,435 Valuation allowance for deferred tax assets 7,607 2,060 — ( 646 ) 9,021 $ 13,719 $ 3,224 $ 45 $ ( 2,532 ) $ 14,456 Year ended December 31, 2024 Deducted from asset accounts: Allowances for expected credit losses $ 5,435 $ 1,673 $ ( 50 ) $ ( 357 ) $ 6,701 Valuation allowance for deferred tax assets 9,021 1,578 — ( 972 ) 9,627 $ 14,456 $ 3,251 $ ( 50 ) $ ( 1,329 ) $ 16,328 Year ended December 31, 2025 Deducted from asset accounts: Allowances for expected credit losses $ 6,701 $ ( 429 ) $ 43 $ ( 3,182 ) $ 3,133 Valuation allowance for deferred tax assets 9,627 1,438 — ( 21 ) 11,044 $ 16,328 $ 1,009 $ 43 $ ( 3,203 ) $ 14,177 F- 35