# ICF International, Inc. (ICFI) Informational only - not investment advice. CIK: 0001362004 SIC: 8742 Services-Management Consulting Services SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 87](/major-group/87/) > [SIC 8742 Services-Management Consulting Services](/industry/8742/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1362004 Filing source: https://www.sec.gov/Archives/edgar/data/1362004/000119312526082536/icfi-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001193125-26-082536 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362004.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 1,872,851,000 USD | 2025 | verified | | Net income | 91,588,000 USD | 2025 | verified | | Assets | 2,050,171,000 USD | 2025 | verified | | Free cash flow | 120,211,000 USD | 2025 | computed | | Net margin | 4.89% | 2025 | computed | | Operating margin | 7.77% | 2025 | computed | | Revenue YoY | -7.27% | 2025 | computed | | ROE | 8.91% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | ICFI | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 4.9% | 4.6% | 54 | 14 | | Operating margin | 7.8% | 7.5% | 62 | 14 | | Revenue growth | -7.3% | 5.4% | 8 | 14 | | FCF margin | 6.4% | 9.3% | 31 | 14 | | ROE | 8.9% | 12.7% | 38 | 14 | | ROA | 4.5% | 5.4% | 46 | 14 | | Liabilities / equity | 0.99 | 1.34 | 8 | 14 | | Current ratio | 1.27 | 1.60 | 23 | 14 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 8742 Services-Management Consulting Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 1872851000 | USD | 2025 | 2026-02-27 | | Net income | 91588000 | USD | 2025 | 2026-02-27 | | Assets | 2050171000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362004.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 1,185,097,000 | 1,229,162,000 | 1,337,973,000 | 1,478,525,000 | 1,506,875,000 | 1,553,048,000 | 1,779,964,000 | 1,963,238,000 | 2,019,787,000 | 1,872,851,000 | | Net income | 46,584,000 | 62,876,000 | 61,400,000 | 68,938,000 | 54,959,000 | 71,132,000 | 64,243,000 | 82,612,000 | 110,170,000 | 91,588,000 | | Operating income | 82,793,000 | 82,418,000 | 92,272,000 | 101,393,000 | 89,109,000 | 110,936,000 | 108,762,000 | 132,320,000 | 165,842,000 | 145,465,000 | | Diluted EPS | 2.40 | 3.27 | 3.18 | 3.59 | 2.87 | 3.72 | 3.38 | 4.35 | 5.82 | 4.95 | | Operating cash flow | 80,057,000 | 117,191,000 | 74,670,000 | 91,440,000 | 173,145,000 | 110,205,000 | 162,206,000 | 152,383,000 | 171,544,000 | 141,870,000 | | Capital expenditures | 13,791,000 | 14,513,000 | 21,812,000 | 26,901,000 | 17,683,000 | 19,932,000 | 24,475,000 | 22,337,000 | 21,430,000 | 21,659,000 | | Dividends paid | | | 7,915,000 | 10,540,000 | 10,551,000 | 10,565,000 | 10,547,000 | 10,537,000 | 10,507,000 | 10,356,000 | | Assets | 1,085,571,000 | 1,110,255,000 | 1,213,862,000 | 1,396,034,000 | 1,667,290,000 | 1,849,534,000 | 2,092,258,000 | 2,011,772,000 | 2,066,353,000 | 2,050,171,000 | | Liabilities | 519,567,000 | 494,225,000 | 553,445,000 | 681,483,000 | 920,329,000 | 1,046,064,000 | 1,239,047,000 | 1,094,187,000 | 1,083,894,000 | 1,021,689,000 | | Stockholders' equity | 566,004,000 | 616,030,000 | 660,417,000 | 714,551,000 | 746,961,000 | 803,470,000 | 853,211,000 | 917,585,000 | 982,459,000 | 1,028,482,000 | | Cash and cash equivalents | 6,042,000 | 11,809,000 | 11,694,000 | 6,482,000 | 13,841,000 | 8,254,000 | 11,257,000 | 6,361,000 | 4,960,000 | 5,297,000 | | Free cash flow | 66,266,000 | 102,678,000 | 52,858,000 | 64,539,000 | 155,462,000 | 90,273,000 | 137,731,000 | 130,046,000 | 150,114,000 | 120,211,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 3.93% | 5.12% | 4.59% | 4.66% | 3.65% | 4.58% | 3.61% | 4.21% | 5.45% | 4.89% | | Operating margin | 6.99% | 6.71% | 6.90% | 6.86% | 5.91% | 7.14% | 6.11% | 6.74% | 8.21% | 7.77% | | Return on equity | 8.23% | 10.21% | 9.30% | 9.65% | 7.36% | 8.85% | 7.53% | 9.00% | 11.21% | 8.91% | | Return on assets | 4.29% | 5.66% | 5.06% | 4.94% | 3.30% | 3.85% | 3.07% | 4.11% | 5.33% | 4.47% | | Liabilities / equity | 0.92 | 0.80 | 0.84 | 0.95 | 1.23 | 1.30 | 1.45 | 1.19 | 1.10 | 0.99 | | Current ratio | 1.55 | 1.48 | 1.41 | 1.28 | 1.11 | 1.19 | 1.12 | 1.07 | 1.10 | 1.27 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362004.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 0.97 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 1.01 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.87 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 500,085,000 | 20,312,000 | 1.07 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 501,519,000 | 23,740,000 | 1.25 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 478,352,000 | 22,162,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | 27,317,000 | | reported discrete quarter | | 2024-Q1 | 2024-06-30 | 512,029,000 | | 1.36 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | 25,611,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 516,998,000 | | 1.73 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 496,324,000 | 24,563,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 487,618,000 | 26,851,000 | 1.44 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 26,851,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 476,155,000 | | 1.28 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | 23,661,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 465,405,000 | | 1.28 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 443,673,000 | 17,310,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 437,500,000 | 20,522,000 | 1.12 | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | 20,522,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 474,495,000 | | 1.49 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from ICFI's latest 10-K: [/company/ICFI/business/](/company/ICFI/business/). ## Risk Factors Verbatim Item 1A Risk Factors from ICFI's latest 10-K: [/company/ICFI/risk-factors/](/company/ICFI/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1362004/000119312526338422/icfi-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD-LOOKING STATEMENTS Some of the statements in this Quarterly Report on Form 10-Q (this “Quarterly Report”) constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will,” “would,” or similar words. You should read statements that contain these words carefully. Our forward-looking statements are based on the beliefs and assumptions of our management and the information available to our management at the time these disclosures were prepared. Although we believe the expectations reflected in these statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report. We undertake no obligation to update these forward-looking statements, even if our situation changes in the future. The terms “we,” “our,” “us,” and “the Company,” as used throughout this Quarterly Report, refer to ICF International, Inc. and its subsidiaries, unless otherwise indicated. 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 and local governments and the governments of U.S. territories. The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, and liquidity and capital resources. You should read this discussion in conjunction with our consolidated financial statements and the related notes contained elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026 (our “Annual Report”). OVERVIEW AND OUTLOOK We provide professional services and technology-based solutions, including management, technology, and policy consulting and implementation services. We help our clients conceive, develop, implement, and improve solutions that address complex business, natural resource, social, technological, and public safety issues. Our clients include U.S. federal, state, local and international governments or their agencies, as well as commercial entities. Our services primarily support clients that operate in these key markets: • Energy, Environment, Infrastructure, and Disaster Recovery; • Health and Social Programs; and • Security and Other Civilian & Commercial. We provide services to our diverse client base that deliver value throughout the entire life cycle of a policy, program, project, or initiative. Our primary services include: • Advisory Services; • Program Implementation Services; • Analytics Services; • Digital Services; and • Engagement Services. We believe that, in the long-term, demand for our services will continue to grow as government, industry, and other stakeholders seek to address critical long-term societal and natural resource issues due to heightened concerns about the environment and use of clean energy and energy efficiency, particularly as a result of increasing energy demand from data centers, cryptocurrency operations, and electrification of buildings and vehicles; health promotion, treatment, and cost control; the means by which healthcare can be delivered effectively on a cross-jurisdiction basis; natural disaster relief and rebuild efforts; and ongoing homeland security threats. In the wake of the major hurricanes that devastated communities in Texas, Florida, North Carolina, Louisiana, the U.S. Virgin Islands, and Puerto Rico, and the impact of wildfires in Hawaii, Oregon, and southern California, the affected areas remain in various stages of recovery efforts. We believe our prior and current experience with disaster relief and rebuild efforts, including after hurricanes (Katrina, Rita, Helene, and Milton) and Superstorm Sandy, and the wildfires in Oregon, put us in a favorable position to continue to provide recovery and housing assistance, and environmental and infrastructure solutions, including disaster mitigation, on behalf of federal departments and agencies, state, territorial, and local jurisdictions, and regional agencies. 19 As the federal government continues to sharpen its focus on efficiency, transparency, consolidation, and accountability, we see growth opportunities for our fit-for-purpose technology solutions. Our offerings are innovative, agile, scalable, and aligned with commercial best practices, delivering clear and measurable outcomes. By combining deep institutional knowledge of our clients’ markets and data with our proven expertise in artificial intelligence, open source, cloud-native, and commercially available off the shelf low-code and no-code platforms, we are able to deliver highly functional, cost-effective solutions that meet the evolving demands of our customers while driving greater value and impact for taxpayers. Our future results will depend on the success of our strategy to enhance our client relationships and seek larger engagements that span the entire program life cycle, and to complete and successfully integrate additional strategic acquisitions. We will continue to focus on building scale in our vertical and horizontal domain expertise, developing business with our existing clients as well as new customers, and replicating our business model in selective geographies. In doing so, we will continue to evaluate strategic acquisition opportunities that enhance our subject matter knowledge, broaden our service offerings, gain access to or expand customer relationships, and/or provide scale in specific geographies. Although we continue to see favorable long-term market opportunities, there are certain business challenges facing all government service providers. The very nature of opportunities arising out of disaster recovery means they can involve unusual challenges. Factors such as the overall stress on communities and people affected by disaster recovery situations, political complexities, challenges among involved government agencies, and a higher-than-normal risk of audits and investigations may result in a reduction to our revenue and profit and adversely affect cash flow; however, we believe we are well positioned to provide a broad range of services in support of initiatives that will continue to be priorities to the federal government, as well as to state and local and international governments and commercial clients. CRITICAL ACCOUNTING ESTIMATES AND POLICIES There have been no material changes to our critical accounting estimates and policies from those disclosed in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. RESULTS OF OPERATIONS The table below sets forth select line items of our unaudited consolidated statements of comprehensive income, the percentage of revenue for these select items, and the period-over-period rate of change and percentage of revenue for the periods indicated. Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 [[GREPCENT_TABLE]] [["","","Three Months Ended June 30,"],["","","Dollars","","","Percentages of Revenue","","","Year-to-Year Change"],["(dollars in thousands)","","2026","","","2025","","","2026","","","2025","","","Dollars","","","Percent"],["Revenue","","$","474,495","","","$","476,155","","","","100.0","%","","","100.0","%","","$","(1,660",")","","","(0.3","%)"],["Direct Costs:"],["Direct labor and related fringe benefit costs","","","176,491","","","","186,140","","","","37.2","%","","","39.1","%","","","(9,649",")","","","(5.2","%)"],["Subcontractor and other direct costs","","","121,365","","","","112,285","","","","25.6","%","","","23.6","%","","","9,080","","","","8.1","%"],["Total Direct Costs","","","297,856","","","","298,425","","","","62.8","%","","","62.7","%","","","(569",")","","","(0.2","%)"],["Operating Costs and Expenses:"],["Indirect and selling expenses","","","123,328","","","","123,017","","","","26.0","%","","","25.8","%","","","311","","","","0.3","%"],["Depreciation and Amortization:"],["Depreciation and amortization","","","5,815","","","","5,475","","","","1.2","%","","","1.1","%","","","340","","","","6.2","%"],["Amortization of intangible assets acquired in business combinations","","","7,609","","","","9,227","","","","1.6","%","","","1.9","%","","","(1,618",")","","","(17.5","%)"],["Total Depreciation and Amortization","","","13,424","","","","14,702","","","","2.8","%","","","3.0","%","","","(1,278",")","","","(8.7","%)"],["Total Operating Costs and Expenses","","","136,752","","","","137,719","","","","28.8","%","","","28.8","%","","","(967",")","","","(0.7","%)"],["Operating Income","","","39,887","","","","40,011","","","","8.4","%","","","8.5","%","","","(124",")","","","(0.3","%)"],["Interest, net","","","(6,765",")","","","(8,422",")","","","(1.4","%)","","","(1.8","%)","","","1,657","","","","(19.7","%)"],["Other expense","","","(342",")","","","(1,639",")","","","(0.1","%)","","","(0.3","%)","","","1,297","","","","(79.1","%)"],["Income before Income Taxes","","","32,780","","","","29,950","","","","6.9","%","","","6.4","%","","","2,830","","","","9.4","%"],["Provision for Income Taxes","","","5,832","","","","6,289","","","","1.2","%","","","1.3","%","","","(457",")","","","(7.3","%)"],["Net Income","","$","26,948","","","$","23,661","","","","5.7","%","","","5.1","%","","$","3,287","","","","13.9","%"]] [[/GREPCENT_TABLE]] 20 Revenue. Revenue for the three months ended June 30, 2026 was $474.5 million, which was comparable to the same period in 2025. The following were changes in revenue from our various client markets: • Energy, Environment, Infrastructure, and Disaster Recovery client market revenues increased $2.6 million, or 1.0%, due to increases of $6.1 million and $1.4 million from our commercial and international government clients, respectively, offset by decreases of $4.2 million and $0.8 million from our U.S. state and local government and U.S. federal government clients, respectively. • Health and Social Programs client market revenues were comparable to the prior year, with increases of $9.2 million, $4.6 million, and $1.8 million from our international government, commercial, and U.S. state and local government clients, respectively, offset by a decrease of $15.5 million from our U.S. federal government clients. • Security and Other Civilian & Commercial client market revenues decreased by $4.4 million, or 6.3%, due to decreases of $3.2 million, $1.5 million, and $0.3 million from our U.S. federal government, commercial, and international government clients, respectively, offset by an increase of $0.7 million from our U.S. state and local government clients. Revenue for the three months ended June 30, 2026 includes subcontractor and other direct costs, which increased $9.1 million, or 8.1%, compared to 2025 and totaled $121.4 million and $112.3 million for the three months ended June 30, 2026 and 2025, respectively, and the margin on such costs. Direct Costs. For the three months ended June 30, 2026 and 2025, direct costs totaled $297.9 million which was comparable to the same period in 2025. As a percentage of direct costs, direct labor and related fringe benefit costs were 59.3% and 62.4%, respectively, and subcontractor and other d [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1362004/000119312526082536/icfi-20251231.htm Complete FY 2025 MD&A: /company/ICFI/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with our consolidated financial statements and related notes included in Item 8.“Financial Statements and Supplementary Data” in this Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions, such as statements of our plans, objectives, expectations, and intentions. The cautionary statements made in this Annual Report on Form 10-K should be read as applying to all related forward-looking statements wherever they appear in this Annual Report on Form 10-K. Our actual results could differ materially from those anticipated in the forward-looking statements. Factors that could cause or contribute to our actual results differing materially from those anticipated include those discussed in Item 1A. “Risk Factors” and elsewhere in this Annual Report on Form 10-K. This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2024 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 28, 2025, and is incorporated by reference into this Management’s Discussion and Analysis of Financial Condition and Results of Operations. OVERVIEW AND OUTLOOK We provide professional services and technology-based solutions, including management, technology, and policy consulting and implementation services. We help our clients conceive, develop, implement, and improve solutions that address complex business, natural resource, social, technological, and public safety issues. Our services primarily support clients that operate in the following key markets: • Energy, Environment, Infrastructure, and Disaster Recovery; • Health and Social Programs; and • Security and Other Civilian & Commercial. We provide services to our diverse client base that deliver value throughout the entire life cycle of a policy, program, project, or initiative. Our primary services include: • Advisory Services; • Program Implementation Services; • Analytics Services; • Digital Services; and • Engagement Services. Our clients rely on us because we combine broad institutional knowledge with the deep subject‑matter expertise of our highly trained staff, working together in multidisciplinary teams. Many of our client relationships span decades, giving us a nuanced understanding of their objectives and needs. We serve both government and commercial clients. Our government work includes projects for federal, state, local, and international agencies, as well as subcontracted engagements performed for commercial clients whose end customers are government entities. 37 Our largest clients are U.S. federal government departments and agencies. Our federal government clients include every cabinet-level department, most significantly HHS, DoD, DoE, and DoT. Federal government clients generated approximately 43%, 54%, and 55% of our revenue in 2025, 2024, and 2023, respectively. The decrease in U.S. federal government revenue was primarily as a result of terminated contracts in 2025 due to the Administration’s changing priorities and the actions recommended by DOGE, as well as the disruption in the typical U.S. federal government procurement cycle. State and local government clients generated approximately 17%, 16%, and 16% of our revenue in each of 2025, 2024, and 2023, respectively. International government clients generated approximately 7%, 5%, and 5% of our revenue in 2025, 2024, and 2023, respectively. We also serve a variety of commercial clients worldwide, including: airlines, airports, electric and gas utilities, health care companies, banks and other financial services companies, transportation, non-profits/associations, manufacturing firms, retail chains, and distribution companies. Our commercial clients, which include clients outside the U.S., generated approximately 33%, 25%, and 24% of our revenue in 2025, 2024, and 2023, respectively. The increase in commercial revenue was primarily due to higher commercial energy business in 2025. We report operating results and financial data as a single segment based on the consolidated information used by our chief operating decision-maker in evaluating the financial performance of our business and allocating resources. Our single segment represents our core business: professional services to our broad array of clients. Although we describe our multiple service offerings to clients that operate in three markets to provide a better understanding of the scope and scale of our business, we do not manage our business or allocate our resources based on those service offerings or client markets. Rather, on a project-by-project basis, we assemble the best team from throughout the enterprise to deliver highly customized solutions that are tailored to meet the needs of each client. We believe that, in the long-term, demand for our services will continue to grow as government, industry, and other stakeholders seek to address critical long-term societal and natural resource issues due to heightened concerns about the environment and use of clean energy and energy efficiency; health promotion, treatment, and cost control; the means by which healthcare can be delivered effectively on a cross-jurisdiction basis; natural disaster relief and rebuild efforts; and ongoing homeland security threats. In the wake of the major hurricanes that devastated communities in Texas, Florida, North Carolina, Louisiana, the U.S. Virgin Islands, and Puerto Rico, and the impact of wildfires in Hawaii, Oregon, and southern California, the affected areas remain in various stages of evacuation, relief, and recovery efforts. We believe our prior and current experience with disaster relief and rebuild efforts, including after hurricanes Katrina and Rita and Superstorm Sandy, and the wildfires in Oregon, put us in a favorable position to continue to provide recovery and housing assistance, and environmental and infrastructure solutions, including disaster mitigation, on behalf of federal departments and agencies, state, territorial, and local jurisdictions, and regional agencies. 38 Our results of operations and cash flows may vary significantly from quarter to quarter depending on a number of factors, including, but not limited to: • Progress of contract performance; • Extraordinary economic events and natural disasters; • Number of billable days in a quarter; • Timing of client orders; • Timing of award fee notices; • Changes in the scope of contracts; • Variations in purchasing patterns under our contracts; • Changes in priorities, especially with the federal government; • Federal and state and local governments’ and other clients’ spending levels; • Federal government shutdowns; • Timing of billings to, and collection of payments from, clients; • Timing of receipt of invoices from, and payments to, employees and vendors; • Commencement, completion, and termination of contracts; • Strategic decisions, such as acquisitions, consolidations, divestments, spin-offs, joint ventures, strategic investments, and changes in business strategy; • Timing of significant costs and investments (such as bid and proposal costs and the costs involved in planning or making acquisitions); • Timing of events related to discrete tax items; • Our contract mix and use of subcontractors or the timing of other direct costs for which we may earn lower contract margin; • Changes in contract margin performance due to performance risks; • Additions to, and departures of, staff; • Changes in staff utilization; • Paid time off taken by our employees; • Level and cost of our debt; • Changes in accounting principles and policies; and/or • General market and economic conditions. Because a significant portion of our expenses (such as personnel, facilities, and related costs) are fixed in the short-term, contract performance and variation in the volume of activity, as well as in the number and volume of contracts commenced or completed during any year, may cause significant variations in operating results from year to year. We generally have been able to price our contracts in a manner that accommodates the rates of inflation experienced in recent years, although we cannot ensure that we will be able to do so in the future. 39 BUSINESS COMBINATIONS A key element of our growth strategy is to pursue acquisitions. During the previous three fiscal years, we completed the acquisitions summarized as follows: CMY Solutions, LLC – In May 2023, we acquired CMY, an engineering and automation solutions provider to utilities and organizations. Applied Energy Group – In December 2024, we acquired AEG, a leading energy technology and advisory services company. CRITICAL ACCOUNTING ESTIMATES AND POLICIES Our discussion of financial condition and results of operations is based on our consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The preparation of these consolidated financial statements requires us to make certain estimates, assumptions, and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses. If any of these estimates, assumptions or judgments prove to be incorrect, our reported results could be materially affected. Actual results may differ significantly from our estimates under different assumptions or conditions. We believe that the estimates, assumptions, and judgments involved in the accounting practices described below have the greatest potential impact on our financial statements and, therefore, consider them to be critical accounting policies. Significant accounting estimates are more fully described and discussed in “Note 2 - Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” of this Annual Report on Form 10-K. Revenue Recognition We generate our revenue by primarily providing services and technology-based solutions for clients. We enter into agreements with clients that create enforceable rights and obligations and for which it is probable that we will collect the consideration to which we will be entitled as services and solutions are provided to the client. Our contracts may be partially funded, often incrementally in annual amounts. We determine the transaction price based on the history of funding, the client’s need for the program, the length of time before funding is available, and the client’s intent and ability to fund and include the unfunded portion of the contract if it is probable that it will be funded based on these criteria. For contracts with multiple performance obligations and for customized solutions in which the pricing is based on specific negotiations with each client, we use a cost-plus margin approach to estimate the standalone selling price of each performance obligation. We generally recognize revenue over time as services and performance obligations are transferred to the 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, among other things, is dependent on the contract type selected by the client during contract negotiation and the nature of the services and solutions to be provided. For cost-based contracts, we recognize revenue as a single performance obligation based on contract costs incurred, as we become contractually entitled to reimbursement of the contract costs, plus [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/ICFI/mda/fy2025/ All MD&A years: /company/ICFI/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/ICFI/mda/fy2024/): filed 2025-02-28; accession 0000950170-25-029917 (https://www.sec.gov/Archives/edgar/data/1362004/000095017025029917/icfi-20241231.htm) - [FY 2023 MD&A](/company/ICFI/mda/fy2023/): filed 2024-02-28; accession 0000950170-24-021617 (https://www.sec.gov/Archives/edgar/data/1362004/000095017024021617/icfi-20231231.htm) - [FY 2022 MD&A](/company/ICFI/mda/fy2022/): filed 2023-03-01; accession 0000950170-23-005304 (https://www.sec.gov/Archives/edgar/data/1362004/000095017023005304/icfi-20221231.htm) - [FY 2021 MD&A](/company/ICFI/mda/fy2021/): filed 2022-02-25; accession 0001564590-22-006889 (https://www.sec.gov/Archives/edgar/data/1362004/000156459022006889/icfi-10k_20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 8742 Services-Management Consulting Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/ICFI.md · JSON record: /company/ICFI.json · verified financials: /company/ICFI/financials.json / /company/ICFI/financials.csv · machine TOC for the whole site: /llms.txt