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Our Business The solutions we provide to our federal customers continue to be a significant component of our business. We provide an essential governmental service, and believe our ability to provide flexible solutions and fulfill emergent needs of our federal customers would be very difficult and costly to replicate in the public sector.
Operating margin is thin at 9.89%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 12.7%, still solid. Free cash flow declined 73% despite revenue growth, conversion is weakening.
Free cash flow declined 73% versus the prior year, cash generation momentum has weakened. Net debt of $1.25B represents 23.6x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$2.34B
▲ +12.7% YoY
Net Income (TTM)
$129M
▲ +69.2% YoY
Op. Margin
10.33%
▲ +0.5pp YoY
ROIC
7.32%
▲ +0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$26M
▼ -73.4% YoY
Op. Cash Flow (TTM)
$164M
▼ -27.7% YoY
Net Debt
$1.19B
Cash & Equiv.
$210M
5Y CAGR: +3.0%
5Y CAGR: -23.1%
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