--- title: "ICF | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 437.5 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285623330.md" datetime: "2026-05-07T21:24:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285623330.md) - [en](https://longbridge.com/en/news/285623330.md) - [zh-HK](https://longbridge.com/zh-HK/news/285623330.md) --- # ICF | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 437.5 M Revenue: As of FY2026 Q1, the actual value is USD 437.5 M, missing the estimate of USD 448.63 M. EPS: As of FY2026 Q1, the actual value is USD 1.12, missing the estimate of USD 1.1967. EBIT: As of FY2026 Q1, the actual value is USD 41.57 M. ### Segment Revenue #### Revenue by Client Market (for the three months ended March 31, in thousands) - **Energy, Environment, Infrastructure, and Disaster Recovery:** Decreased by 2.7% to $232,310 (53% of total revenue) in 2026 from $238,716 (49% of total revenue) in 2025, primarily due to a $11.3 million reduction from U.S. federal government clients, partially offset by increases from commercial, international government, and U.S. state and local government clients . - **Health and Social Programs:** Decreased by 15.9% to $142,429 (33% of total revenue) in 2026 from $169,270 (35% of total revenue) in 2025, driven by decreases from U.S. federal government and U.S. state and local government clients, partially offset by increases from international government and commercial clients . - **Security and Other Civilian & Commercial:** Decreased by 21.2% to $62,761 (14% of total revenue) in 2026 from $79,632 (16% of total revenue) in 2025, due to decreases from U.S. federal government, commercial, and international government clients, partially offset by an increase from U.S. state and local government clients . - **Total Revenue:** Decreased by 10.3% to $437,500 in 2026 from $487,618 in 2025, primarily due to a $56.7 million reduction from U.S. federal government clients . #### Revenue by Client Type (for the three months ended March 31, in thousands) - **U.S. federal government:** $182,287 (42% of total revenue) in 2026, compared to $238,996 (49% of total revenue) in 2025 . - **U.S. state and local government:** $77,043 (18% of total revenue) in 2026, compared to $77,111 (16% of total revenue) in 2025 . - **International government:** $31,838 (7% of total revenue) in 2026, compared to $27,089 (5% of total revenue) in 2025 . - **Total Government:** $291,168 (67% of total revenue) in 2026, compared to $343,196 (70% of total revenue) in 2025 . - **Commercial:** $146,332 (33% of total revenue) in 2026, compared to $144,422 (30% of total revenue) in 2025 . #### Revenue by Contract Mix (for the three months ended March 31, in thousands) - **Time-and-materials:** $191,955 (44% of total revenue) in 2026, compared to $208,993 (43% of total revenue) in 2025 . - **Fixed-price:** $213,769 (49% of total revenue) in 2026, compared to $238,120 (49% of total revenue) in 2025 . - **Cost-based:** $31,776 (7% of total revenue) in 2026, compared to $40,505 (8% of total revenue) in 2025 . ### Operational Metrics (for the three months ended March 31, in thousands) - **Direct Costs:** Decreased by 10.5% to $270,637 in 2026 from $302,542 in 2025, with direct labor and related fringe benefit costs decreasing by 12.5% to $167,983 and subcontractor and other direct costs decreasing by 7.2% to $102,654 . - **Indirect and selling expenses:** Decreased by 9.9% to $118,827 in 2026 from $131,891 in 2025 . - **Depreciation and Amortization:** Total depreciation and amortization decreased by 10.9% to $13,180 in 2026 from $14,795 in 2025 . Amortization of intangible assets acquired in business combinations decreased by 19.7% to $7,609 in 2026 from $9,477 in 2025, mainly due to certain intangible assets becoming fully amortized . - **Operating Income:** Decreased by 9.2% to $34,856 in 2026 from $38,390 in 2025 . - **Interest, net:** Decreased by 8.6% to - $6,709 in 2026 from - $7,337 in 2025, primarily due to a lower average debt balance, with the average interest rate at 5.0% in 2026 compared to 5.7% in 2025 . - **Other expense:** Decreased by 28.0% to - $757 in 2026 from - $1,052 in 2025, mainly due to lower foreign currency expense, partially offset by losses from asset disposals . - **Income before Income Taxes:** Decreased by 8.7% to $27,390 in 2026 from $30,001 in 2025 . - **Provision for Income Taxes:** Increased by 118.0% to $6,868 in 2026 from $3,150 in 2025, resulting in an effective tax rate of 25.1% in 2026 compared to 10.5% in 2025 . - **Net Income:** Decreased by 23.6% to $20,522 in 2026 from $26,851 in 2025 . ### Cash Flow (for the three months ended March 31, in thousands) - **Net Cash Used in Operating Activities:** - $3,142 in 2026, an improvement of $29.9 million from - $33,034 in 2025, primarily due to higher cash collections and timing of vendor payments . - **Net Cash Used in Investing Activities:** - $2,830 in 2026, a decrease of $0.6 million from - $3,452 in 2025, due to lower capital expenditures . - **Net Cash Provided by Financing Activities:** $15,137 in 2026, a decrease of $25.9 million from $41,024 in 2025, mainly due to lower net borrowings, partially offset by reduced share repurchases . - **Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash:** - $232 in 2026, compared to $737 in 2025 . - **Net Change in Cash, Cash Equivalents, and Restricted Cash:** $8,933 in 2026, compared to $5,275 in 2025 . - **Cash, Cash Equivalents, and Restricted Cash, End of Period:** $65,257 in 2026, compared to $24,092 in 2025 . ### Unique Metrics - **Unfulfilled Performance Obligations (UPO):** As of March 31, 2026, the UPO was $0.2 billion . Of this, 46% is expected to be recognized as revenue by December 31, 2026, 64% by December 31, 2027, 86% by December 31, 2028, and the remainder by December 31, 2029 . - **Share Repurchases:** For the three months ended March 31, 2026, ICF International, Inc. repurchased 217,513 shares for $15,042 thousand under its share repurchase program, with an additional 47,669 shares repurchased for $3,524 thousand related to RSU and PSA vesting . As of March 31, 2026, $78.9 million of repurchase authority remained available . - **Dividends:** Total dividend payments were $2.6 million for the three months ended March 31, 2026, with a declared cash dividend of $0.14 per common share . - **Debt:** As of March 31, 2026, total debt was $439,184 thousand, including $200,250 thousand in Term Loan, $154,000 thousand in Delayed-Draw Term Loan, and $86,037 thousand in Revolving Credit . The company had $512.4 million of unused borrowing capacity under its $600.0 million revolving line of credit . On April 10, 2026, the Credit Facility was refinanced, extending its maturity date to April 10, 2031, increasing the term loan facility to $450 million, and maintaining a delayed draw term loan facility of $400 million . ### Future Outlook and Strategy ICF International, Inc. aims to enhance client relationships and pursue larger engagements across the program life cycle, while also completing and integrating strategic acquisitions . The company plans to build scale in its domain expertise, expand business with existing and new clients, and replicate its business model in selected geographies . It believes it is well-positioned to address long-term societal and natural resource issues and sees growth opportunities in fit-for-purpose technology solutions for government clients . ### Related Stocks - [ICFI.US](https://longbridge.com/en/quote/ICFI.US.md) ## Related News & Research - [Insider Confidence On Display: MICHAEL HANDEL VAN Acquires $491K In ICF International Stock](https://longbridge.com/en/news/286939487.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Correction: NextNRG to Host First Quarter 2026 Financial Results Conference Call on May 18, 2026 at 9:00 a.m. ET | NXXT Stock News](https://longbridge.com/en/news/286673001.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)