ASGN Inc — Call Transcript 2026

Thank you all for joining. I'm Maggie Nolan. I'm the IT services analyst here at William Blair, who has the pleasure of covering Everforth. We are very excited to have you all here with us today. Thank you for joining us. We have Ted Hanson, the CEO, Marie Perry, the CFO, and Shiv Iyer, the President, and they're going to give a little presentation for us. Before that, I'm required to inform you that for a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. After the presentation, we'll do a little bit of Q&A in here, and then we actually move rooms. We'll be in breakout room Burnham B to continue the conversation there in a little bit less formal setting. Ted, I'll turn it over to you. Great. Thank you. Thank you, Maggie, for having us. It's always a great investment of time and energy to be here and meet with you and investors. For those of you who know us but don't recognize Everforth, we recently rebranded the company from ASGN to Everforth, and I'll speak about that in a few minutes. Safe harbor, which I won't read, I'll just refer you to. Who is Everforth at a glance? If you think about us, you've heard me say many times, think about IT, technology services, digital engineering at scale. A $4 billion business, 70% of which is serving large Fortune 1000 customers here in the U.S. The other 30% serving the most important and attractive federal government agencies, Department of Defense, intel, and national security agencies. More than $400 million in EBITDA. Great free cash flow characteristics, about 60%-65% conversion of EBITDA to free cash flow. A large, growing, and dynamic, and addressable market, to say the least. We're obviously very happy with the business, how it's positioned, and we'll talk about some of that in the ensuing slides. Our business has been on a journey. The legacy of the business as one of the largest IT staffing providers in the U.S. If you think about the last, I would say five to seven years, we've been organically pulled by our clients up the IT pyramid into providing more important, higher-end solutions beyond just our IT staffing footprint. We've done most of that organically. We've made some strategic acquisitions along the way to bring certain solution capabilities that are in high demand with our customers that we needed to be at scale with strong technology alliance partnerships, and I'll leave that for Shiv to talk about in a few minutes. Made a few divestitures of things that were not strategic or core related to our technology services mission. Last November, we had an investor day where we introduced the idea that we were going to rebrand the business and come to the market as one business, one brand, in an effort to do a couple things. One is realize the promise of revenue synergies. We have a lot of great solution offerings, but we were bringing them to our customers in a little bit of a fragmented way. This way, we can sit down with a customer, talk about a whole portfolio of solutions that would have formerly come from our individual brands. We also can be much more efficient, as you can imagine, supporting A+ brands and brand equity and building that brand equity in the marketplace is pretty expensive relative to just really getting behind one brand. Good for our customers, good for us on the revenue synergy side, and good for the P&L in terms of being more streamlined and really being able to forcefully back one brand. We also said while we do a lot of attractive things for customers, we were really going to invest around six areas that we thought were going to be high-demand areas for our customer, especially in the age of AI. Solution areas that had large addressable markets and also had great organic growth rates here for the long road, and again, we'll talk about that in a few minutes. I think you can see laid out here that this business has really been on a journey here over many years, which started with the pull of our customer, and now it's been supported by these enterprise customers along the way as we position solutions, both organically and by way of M&A to meet what their most important needs are. For those of you who have heard me talk before, you'll always hear me say that the gold nugget of this entire firm, beyond our people, is our enterprise account portfolio. These relationships have been built over years and decades, where we've built a certain trust and set of qualifications with the most important clients in each one of these industries. These enterprise accounts are also the largest spender on technology services, so obviously you want to face them up in order to get the most attractive opportunities. They're in all the commercial areas that you would assume would be the places to be: consumer, technology, financial services, healthcare, business services, and then on the federal government side, which is, as I mentioned, 30% of the business, we're also serving high-end solutions to Department of Defense, intelligence, and national security areas, which perfectly line up with where all the budget tailwinds are from the one big beautiful bill, and also where the mission is most critical in terms of client needing us to serve these opportunities up for them. Here, I'm going to turn it over to Shiv. Shiv's been with the business a year here, comes to us from Accenture, is a native here in Chicago, and I'm going to let him talk about our solution capabilities and also get into the AI opportunity. Sounds good. Thanks, Ted. Look, as Ted said, we've been on this journey of evolution from on the commercial side. We've always been a deeply technical engineering firm on the federal side. We've spent last year, as Ted said, taking a look at our gold nugget portfolio, putting more industry muscle behind it because that domain expertise, that understanding of the industries was critical as we serve our clients and move up the value chain. Equally critical for us was to identify the areas that we want to be really good at in terms of what we can be doing. What you see on this page is a representation of the solution areas that we're typically playing in, we want to play in, and expand in. It's a function of us looking collectively across the enterprise and saying, "What can we do really well for our customers?" I'll start on the right-hand side of the page. It's the topic du jour in the minds of every day you wake up and you hear that platforms are gone, but we don't believe that. We have a pretty thriving business. Chris Skinner sitting there, is going to be joining you later for Q&A, but we have an enterprise platforms business where we are a leading implementer of Workday. We do a lot of work on ServiceNow. We're building a Salesforce business. We also do some mid-market ERP with Infor, and we think these things are going to stay for a while. How they evolve, how they adapt, we will see, but we're right at the forefront plugged into that ecosystem. When it comes to cybersecurity, we are one of the leading providers of cybersecurity for the federal government. One of the largest contracts in the DoD for endpoint security is delivered by our ECS team, and we're now starting to pull that more and more into the commercial side of the business, including things like how do we get clients ready for quantum? We've built our own framework for post-quantum cryptography. How do you assess that? We've actually executed that for a couple of clients in the commercial sector and the hospitality sector. Experience. Now, this is one of those offerings that is emerging for us or one of those solution areas. It's built off of the DNA of our Creative team. We have a Creative Circle business, which was predominantly in the assignment space, but is deeply connected into marketing organizations in terms of how they're thinking about the evolution of customer journeys, commerce, all of those aspects. When we've connected that with the enablement of that with technology, we're already seeing this part of the business for us is actually growing high teens to low 20s. The pillar on application and digital engineering is an interesting one. It's the area where there's a lot of questions about what AI is going to do. Here's what I'll say on that part of the business for us. We've got a thriving business there, and we've been using AI to deliver. The one thing we don't have, which encumbers a lot of legacy players, is the base of the pyramid, because a lot of the work we do there, we've delivered through a contractor workforce. We don't have a workforce that is constantly needing to be reskilled, upskilled, and everything. The other thing that we've done in that space to bolster our addressable market at the enterprise level, if you think about that piece of the capability at the enterprise level, there's a lot of movement towards offshore providers that's happened in that space over the years. We were not playing in that market or basically precluded from it because we didn't really have a footprint. With the Quinnox acquisition, we now have roughly a 2,000-person footprint in India. The interesting thing is, it's an organization that has been delivering that work a little ahead of the curve using AI, using proprietary IP. Data and AI, we've built a good book of business around Snowflake, Databricks, some industry-specific IP and energy in other places. Cloud and infrastructure is a space where we're seeing a lot of work, and it's interesting work in the sense of it breaks into two buckets. The traditional work around refactoring, moving applications to the cloud, we're still seeing that for a lot of clients. There's this whole new set of work that is emerging for us with the hyperscalers, where they're asking us to do truly end-to-end managed services work in scaling up data centers, whether it be network operations, network set up, server operations, server management, and things of that nature. It's a very, very fast-growing area. As we've looked at this landscape, we've said we're going to be focused on certain things, like are we going to implement SAP for clients? Probably not. We want to be in areas where we see continued growth, high growth, and areas where we think we will have a right to win with some of the things we're doing. Okay. None of that is going to be possible in this day and age. If you think about client buying patterns that are happening, for everything that I put on the previous page, if you look at the overall IT services market and you think about how clients are buying. There're all these big, large managed services contracts which a lot of the tier ones play in. There's this big piece of the market, which is probably 45% of the addressable, or even 50% of the addressable market or more, which is the buying patterns have shifted. Clients are buying more and more from specialized, fast, nimble partners. Those partners are effectively tied at the hip to some of these software providers. If you think about Chris and his business, that's one great example of that. Our GlideFast business is another great example of that. We're building deep relationships with Salesforce. We are the number one provider for Elastic. In fact, we have more Elastic-certified engineers than Elastic themselves. They come to us when they need work for themselves. We're starting to move in some of these places very rapidly. What you see on the right-hand side of the page is we're also constantly looking for innovative partnerships with emerging providers. Right. Maisa is an offshoot from Microsoft, doing agentic work in manufacturing shop floors, because we think that's a space which requires deep engineering, so we're right there. We're doing this all the time as we think about expanding our partnership alliances. How do we amplify those? Everforth actually allows us to do this at a scale which we weren't doing before. We were talking to them as a federal business, as a commercial business. When you put these two things together, these partners are now looking at us going, "Man, you guys are a $4 billion business, and you have a very large enterprise account portfolio that's really, really attractive, and you can move at speed." AI. Look, I'm not going to belabor this page. I think there's probably 15 different versions of this page you can see anywhere, right. The reality is AI is here to stay. We're seeing a lot of demand across the spectrum. We're still, I believe, in the phase where clients haven't effectively moved from a lot of prove the value, let me experiment, even experiment in multiple domains, to really scaling enterprise-wide. We think that's where the big opportunities are. It is creating a lot of focus on governance and cybersecurity, right? As we talk about data governance, data and regulatory environments, how do you protect all of that? We talked about alliance partnerships, and our philosophy has been also to look at AI from our own business perspective. How do we use that as both a growth and a margin driver? I'll talk about that in a minute. We've talked about this at length. I'm just going to talk about what Sorry. I think I missed the pages. The last point on that page, which is the Customer Zero idea. We're doing a lot of things around Customer Zero. When we signed our 360 partnership with Salesforce, we're actually starting to use agents to enable our own team built on Agentforce, which we want to take the clients with them. We've built our own platform, which we haven't talked about much, but we're going to start talking about, called TotalSite, which really allows you to go from intake of AI use cases to AI operations with governance and other frameworks built into it. Right? It allows us to go to a client and talk about taking these use cases and starting to deploy them pretty rapidly for them in their environments. Really, if I were to summarize all of this, we have a unique business model, which really is tailor-made for this environment where technology is changing very, very fast. We can keep up with the pace of change and find the talent that is needed to deliver our client engagements. We already talked about the account portfolio. Over the years, we've demonstrated the ability to bring in companies, bring in solutions inorganically. We're building deep capabilities in AI, as I've talked about already with our partners. With that, I'm going to turn this over to Marie to bring us home. Well, I'm going to cover the capital allocation strategy. We get asked a lot about it. It is a key contribution to our business model. From a capital allocation strategy, first and foremost, we focus on organic growth. When I say organic growth, there's a couple areas that we focused on. Whether that be investing in assets and accelerators to basically expand our solution capabilities to upscale our teams. We have a center of excellence and an AI lab. Just continuing to build and strengthen our tech alliance partners. At the Investor and Analyst Day, we talked about our Salesforce alliance that we just got into. From a debt repayment perspective, this is really a near-term focus in our capital allocation strategy. We just completed the acquisition of Quinnox, historically, we have really had low levels of a debt profile, and we're able to, once we lever up, quickly lever back down with our free cash flow characteristics below our 2.5 net leverage target. From a share repurchase perspective, share repurchase for us is truly opportunistic. When we think about share repurchase, it really is in the realm of balancing our balance sheet flexibility with share repurchase. You'll see us play with share repurchase and debt paydown along with investing in growth. The last pillar that we have here is M&A. From a near-term perspective, again, with the acquisition of M&A, our focus is really delivering the performance of Quinnox, and also integrating Quinnox into the business. From a long-term perspective, we do believe M&A is one of the highest uses of our capital. It allows us to expand our solution capabilities. Also, we are an acquirer of choice, right? We have historically Shiv mentioned TopBloc with Chris, recent acquisitions, and also GlideFast is another recent acquisition that we just had. In the next slide, it really highlights our free cash flow. Ted mentioned this already. This is a hallmark of our business model. It literally allows us to invest in the business, again, from an organic or M&A perspective, and return capital back to shareholders. Literally, we have six years highlighted here, our free cash flow, and then our conversion to EBITDA. As you can see, the last three years, we are at 81%, 81%, and 68%. We have a target of 60%-65% conversion, we have exceeded that over the last five years. On the other side of the chart, you see our deployment. We've already talked about that from a capital allocation strategy. I just wanted to highlight the ability for us to generate this cash flow comes from many areas, right? We have a flexible cost structure. Our CapEx investment is minimal. We have a scalable labor model, so we use contingent resources. We're able to scale our cost of services with our revenues with a thin layer of bench, and we have discipline around our SG&A. A quick highlight of our balance sheet now. Oops. Should've went too far. Let's see if I can figure this one out. Oops. Going too fast. Going the wrong direction. I'll get it. I think you're moving forward, Marie. You want to go back. I know. All right. My apologies. Doing it? For the three-year target, so as referenced, we had an Investor Day, highlighted our three-year targets. From an organic growth perspective, we have a CAGR of 4%-6%. Of that 4%-6%, 5%-6% organic CAGR is really related to our commercial segment, with the majority of our growth coming from our commercial consulting area. On federal, our target reflects 3%-4%, which is at market on a CAGR basis. Literally from a growth perspective, we're expecting moderate growth in 2026, with an acceleration in 2027 and 2028, and this really represents the acceleration of our go-to-market strategy that we highlighted. That is from an organic perspective. When you think about the model and the generation of free cash flow, we are also able to generate additional revenue of $800 million-$900 million over that three-year via acquisition. From a margin perspective, the three-year model has 12.5%-13.5% adjusted EBITDA. That's a 200 basis point-300 basis point expansion. Over half of that improvement in EBITDA is driven by structural cost savings that we highlighted in Investor Day, which is net $80 million in savings. These savings are well underway, a portion of them will be recognized in 2026, with acceleration of those savings in the back half of the year in 2027 and 2028. Again, it's just important to note that the initiatives under these savings are associated with actions that are well underway. From a margin, the remaining of the margin expansion is really driven by business mix. You've heard us talk about our growth and high margin, high value business. Over that three-year period, we will also see margin expansion as we continue to accelerate into that. The last section on here is the $1 billion of free cash flow over that period. This last slide, we'll just leave it up here, but this really is our investment thesis. It summarizes everything that you've heard today, I'm going to actually turn it back over to Maggie. Very good. Thank you all for the presentation. Let's start with maybe the rebrand and how that's progressing. I'm curious how you've had to change your go-to-market approach under one brand. Are you seeing evidence of any of the cross-selling opportunities or larger scale engagements showing up in the pipeline yet? Right. The good thing, if you think about our business, is even though we were a parent company with multiple brands underneath, as we went to market, we were already in the background talking about how do we create synergies in the account portfolio and what have you. Sometimes it was more difficult because the customer viewed the brands as different businesses. Our teams were already coming together in that way. We didn't have any crossover issues in terms of who was selling an account or not. It was, we had already worked through that to a large degree. I think the other thing for our teams that they saw just naturally was that, let's take Creative Digital for a moment. As that business has matured, the need for all the technology underpinning for the Creative Digital customer experience is more critical today than it ever was. Naturally, it's a good example of how those teams were already coming together. I think culturally everybody was there. Of course, everyone loves their brand, but they see the higher opportunity of coming together as one business. Matter of fact, as we rolled this out, they've taken to it immediately and really have been able to exhibit what they already felt was that they work for one company and we're in this together. Yeah. Both win for our clients in greater ways and win for ourselves as Everforth. Ted, if I may just, Maggie, I can illustrate it with a real example. We just won a body of work for a client, which was about redesigning their entire web properties to enable a more seamless user journey. In the past, we would have approached that as saying, "Let's go do all the technical work." There's a lot of work at the front end of that to actually identify what those user journeys are, who are the people who are going to be using the properties, how are they going to be using them. That's the work that our Creative Digital team is used to doing with our marketing clients. We brought these teams together, we were able to solution it together, and what would have been a smaller piece of work obviously expanded for us, but it also allowed us to differentiate. It's not just about the synergies of expanding the size of the work, it's actually improving our win rates because we're differentiating ourselves by demonstrating a better understanding of the end-to-end problem we're solving for our clients. It's a good time to rebrand the company and reimagine the company in this way, just given all of the disruption that's coming from AI, certainly. I'm curious, we've talked a lot in the past about the strategy of pushing further into commercial consulting. There's obviously disruption in that space as well related to AI. Has it changed, in your point of view, kind of the long-term vision or the structural thesis for the company as you had it in the past mixing further into that commercial consulting? No, not at all. I actually think that our structural model is tailor-made for building the professional services company of the future. If you think about over the last year what's happened with all this disruption, right? The number one question that everybody's asking in this space is what's going to happen to all those legacy pyramids that have been driving work for clients. Structural advantage number one, we don't have that. What we've now done is acquired a footprint in India, which we didn't have, which now allows us to play in a different addressable market within our enterprise clients. We have the ability to scale that with AI first approaches versus having to reskill half a million people, which is a very different problem to have. We're already starting to talk to clients and saying, "Hey, look, you had 70 people doing this work before. We can do it with 25 people with AI." We don't have to worry about what the other 45 are going to do because we don't have the other 45. It allows us to create a scaled business in a very different way than what other companies would have done. It doesn't change our thesis at all. I actually think it's to our advantage. It amplifies our structural advantages a certain way. You continue to push further into consulting. There's a lot of confusion out there amongst your client base right now. What are you hearing? You had the slide up there that listed all the different partnerships. What are you hearing from customers on their perception of the impact of AI on enterprise software, and how does that impact your business? Well, look, I think Chris, after sessions, we can get Chris's $0.02 On this as well since he's not mic'd up. I think enterprise software solutions for the major platforms remain as important as ever. A lot of the AI that's going to make an impact on our customers is going to be delivered through those platforms. I think the conversation is starting to become a little more rational in that AI's not going to jump out of another box and just run around and get all of these things done. That it's going to take quality technology services and digital engineering firms like us to pull those things down into business processes and workflows and really wring out the promise of agentic AI within our customers' platforms. Very good. One more on strategy. I know we're up against the clock here, kind of 60 seconds or less. You referenced India as a delivery location. Can you give us an update on how the model is evolving in terms of the nearshore and offshore resources and where that can go from here? We see continued demand for resources at both ends of the spectrum. As we evolve our delivery model for the future, there's a distinct role that we see nearshore playing for us. There are certain clients who prefer time zone proximity but want to take advantage of the engineering talent that sits in Mexico and other parts of Latin America. There are clients who want the factor cost advantages of India. If you look at capability by capability, an example is in the experience capability, for example, there's a lot of demand for nearshore because those are agile teams which are constantly working. Whereas when it comes to the typical application modernization where you can do a lot of the back-end work, it's much more India-centric. Each of our capabilities, we're constantly evolving the mix based on what we see the clients wanting. Both are very much a part of the future and will continue to ebb and flow as the balance of our solutions evolves. Very good. We are out of time, so thank you, Marie, Ted, Shiv. Thank you. We'll continue in Burnham B. Thanks all.

Speaker 1: Thank you all for joining. I'm Maggie Nolan. I'm the IT services analyst here at William Blair, who has the pleasure of covering Everforth. We are very excited to have you all here with us today. Thank you for joining us. We have Ted Hanson, the CEO, Marie Perry, the CFO, and Shiv Iyer, the President, and they're going to give a little presentation for us. Before that, I'm required to inform you that for a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. After the presentation, we'll do a little bit of Q&A in here, and then we actually move rooms. We'll be in breakout room Burnham B to continue the conversation there in a little bit less formal setting. Ted, I'll turn it over to you. Thank you all for joining. thank you all for joining I'm Maggie Nolan. i'm maggie nolan I'm the IT services analyst here at William Blair, who has the pleasure of covering Everforth. i'm the it services analyst here at william blair who has the pleasure of covering everforth We are very excited to have you all here with us today. we are very excited to have you all here with us today Thank you for joining us. thank you for joining us We have Ted Hanson, the CEO, Marie Perry, the CFO, and Shiv Iyer, the President, and they're going to give a little presentation for us. we have ted hanson the ceo marie perry the cfo and shiv iyer the president and they're going to give a little presentation for us Before that, I'm required to inform you that for a complete list of research disclosures or potential conflicts of interest, please visit our website at williamblair.com. before that i'm required to inform you that for a complete list of research disclosures or potential conflicts of interest please visit our website at williamblair.com After the presentation, we'll do a little bit of Q&A in here, and then we actually move rooms. after the presentation we'll do a little bit of q&a in here and then we actually move rooms We'll be in breakout room Burnham B to continue the conversation there in a little bit less formal setting. we'll be in breakout room burnham b to continue the conversation there in a little bit less formal setting Ted, I'll turn it over to you. ted i'll turn it over to you

Speaker 4: Great. Great. great

Speaker 1: Thank you. Thank you. thank you

Speaker 4: Thank you, Maggie, for having us. It's always a great investment of time and energy to be here and meet with you and investors. For those of you who know us but don't recognize Everforth, we recently rebranded the company from ASGN to Everforth, and I'll speak about that in a few minutes. Safe harbor, which I won't read, I'll just refer you to. Who is Everforth at a glance? If you think about us, you've heard me say many times, think about IT, technology services, digital engineering at scale. A $4 billion business, 70% of which is serving large Fortune 1000 customers here in the U.S. The other 30% serving the most important and attractive federal government agencies, Department of Defense, intel, and national security agencies. More than $400 million in EBITDA. Great free cash flow characteristics, about 60%-65% conversion of EBITDA to free cash flow. Thank you, Maggie, for having us. thank you maggie for having us It's always a great investment of time and energy to be here and meet with you and investors. it's always a great investment of time and energy to be here and meet with you and investors For those of you who know us but don't recognize Everforth, we recently rebranded the company from ASGN to Everforth, and I'll speak about that in a few minutes. for those of you who know us but don't recognize everforth we recently rebranded the company from asgn to everforth and i'll speak about that in a few minutes Safe harbor, which I won't read, I'll just refer you to. safe harbor which i won't read i'll just refer you to Who is Everforth at a glance? who is everforth at a glance If you think about us, you've heard me say many times, think about IT, technology services, digital engineering at scale. if you think about us you've heard me say many times think about it technology services digital engineering at scale A $4 billion business, 70% of which is serving large Fortune 1000 customers here in the U.S. a $4 billion business 70% of which is serving large fortune 1000 customers here in the u.s The other 30% serving the most important and attractive federal government agencies, Department of Defense, intel, and national security agencies. the other 30% serving the most important and attractive federal government agencies department of defense intel and national security agencies More than $400 million in EBITDA. more than $400 million in ebitda Great free cash flow characteristics, about 60%-65% conversion of EBITDA to free cash flow. great free cash flow characteristics about 60%-65% conversion of ebitda to free cash flow A large, growing, and dynamic, and addressable market, to say the least. We're obviously very happy with the business, how it's positioned, and we'll talk about some of that in the ensuing slides. Our business has been on a journey. The legacy of the business as one of the largest IT staffing providers in the U.S. If you think about the last, I would say five to seven years, we've been organically pulled by our clients up the IT pyramid into providing more important, higher-end solutions beyond just our IT staffing footprint. We've done most of that organically. We've made some strategic acquisitions along the way to bring certain solution capabilities that are in high demand with our customers that we needed to be at scale with strong technology alliance partnerships, and I'll leave that for Shiv to talk about in a few minutes. A large, growing, and dynamic, and addressable market, to say the least. a large growing and dynamic and addressable market to say the least We're obviously very happy with the business, how it's positioned, and we'll talk about some of that in the ensuing slides. we're obviously very happy with the business how it's positioned and we'll talk about some of that in the ensuing slides Our business has been on a journey. our business has been on a journey The legacy of the business as one of the largest IT staffing providers in the U.S. the legacy of the business as one of the largest it staffing providers in the u.s If you think about the last, I would say five to seven years, we've been organically pulled by our clients up the IT pyramid into providing more important, higher-end solutions beyond just our IT staffing footprint. if you think about the last i would say five to seven years we've been organically pulled by our clients up the it pyramid into providing more important higher-end solutions beyond just our it staffing footprint We've done most of that organically. we've done most of that organically We've made some strategic acquisitions along the way to bring certain solution capabilities that are in high demand with our customers that we needed to be at scale with strong technology alliance partnerships, and I'll leave that for Shiv to talk about in a few minutes. we've made some strategic acquisitions along the way to bring certain solution capabilities that are in high demand with our customers that we needed to be at scale with strong technology alliance partnerships and i'll leave that for shiv to talk about in a few minutes Made a few divestitures of things that were not strategic or core related to our technology services mission. Last November, we had an investor day where we introduced the idea that we were going to rebrand the business and come to the market as one business, one brand, in an effort to do a couple things. One is realize the promise of revenue synergies. We have a lot of great solution offerings, but we were bringing them to our customers in a little bit of a fragmented way. This way, we can sit down with a customer, talk about a whole portfolio of solutions that would have formerly come from our individual brands. We also can be much more efficient, as you can imagine, supporting A+ brands and brand equity and building that brand equity in the marketplace is pretty expensive relative to just really getting behind one brand. Made a few divestitures of things that were not strategic or core related to our technology services mission. made a few divestitures of things that were not strategic or core related to our technology services mission Last November, we had an investor day where we introduced the idea that we were going to rebrand the business and come to the market as one business, one brand, in an effort to do a couple things. last november we had an investor day where we introduced the idea that we were going to rebrand the business and come to the market as one business one brand in an effort to do a couple things One is realize the promise of revenue synergies. one is realize the promise of revenue synergies We have a lot of great solution offerings, but we were bringing them to our customers in a little bit of a fragmented way. we have a lot of great solution offerings but we were bringing them to our customers in a little bit of a fragmented way This way, we can sit down with a customer, talk about a whole portfolio of solutions that would have formerly come from our individual brands. this way we can sit down with a customer talk about a whole portfolio of solutions that would have formerly come from our individual brands We also can be much more efficient, as you can imagine, supporting A+ brands and brand equity and building that brand equity in the marketplace is pretty expensive relative to just really getting behind one brand. we also can be much more efficient as you can imagine supporting a+ brands and brand equity and building that brand equity in the marketplace is pretty expensive relative to just really getting behind one brand Good for our customers, good for us on the revenue synergy side, and good for the P&L in terms of being more streamlined and really being able to forcefully back one brand. We also said while we do a lot of attractive things for customers, we were really going to invest around six areas that we thought were going to be high-demand areas for our customer, especially in the age of AI. Solution areas that had large addressable markets and also had great organic growth rates here for the long road, and again, we'll talk about that in a few minutes. Good for our customers, good for us on the revenue synergy side, and good for the P&L in terms of being more streamlined and really being able to forcefully back one brand. good for our customers good for us on the revenue synergy side and good for the p&l in terms of being more streamlined and really being able to forcefully back one brand We also said while we do a lot of attractive things for customers, we were really going to invest around six areas that we thought were going to be high-demand areas for our customer, especially in the age of AI. we also said while we do a lot of attractive things for customers we were really going to invest around six areas that we thought were going to be high-demand areas for our customer especially in the age of ai Solution areas that had large addressable markets and also had great organic growth rates here for the long road, and again, we'll talk about that in a few minutes. solution areas that had large addressable markets and also had great organic growth rates here for the long road and again we'll talk about that in a few minutes I think you can see laid out here that this business has really been on a journey here over many years, which started with the pull of our customer, and now it's been supported by these enterprise customers along the way as we position solutions, both organically and by way of M&A to meet what their most important needs are. For those of you who have heard me talk before, you'll always hear me say that the gold nugget of this entire firm, beyond our people, is our enterprise account portfolio. These relationships have been built over years and decades, where we've built a certain trust and set of qualifications with the most important clients in each one of these industries. These enterprise accounts are also the largest spender on technology services, so obviously you want to face them up in order to get the most attractive opportunities. I think you can see laid out here that this business has really been on a journey here over many years, which started with the pull of our customer, and now it's been supported by these enterprise customers along the way as we position solutions, both organically and by way of M&A to meet what their most important needs are. i think you can see laid out here that this business has really been on a journey here over many years which started with the pull of our customer and now it's been supported by these enterprise customers along the way as we position solutions both organically and by way of m&a to meet what their most important needs are For those of you who have heard me talk before, you'll always hear me say that the gold nugget of this entire firm, beyond our people, is our enterprise account portfolio. for those of you who have heard me talk before you'll always hear me say that the gold nugget of this entire firm beyond our people is our enterprise account portfolio These relationships have been built over years and decades, where we've built a certain trust and set of qualifications with the most important clients in each one of these industries. these relationships have been built over years and decades where we've built a certain trust and set of qualifications with the most important clients in each one of these industries These enterprise accounts are also the largest spender on technology services, so obviously you want to face them up in order to get the most attractive opportunities. these enterprise accounts are also the largest spender on technology services so obviously you want to face them up in order to get the most attractive opportunities They're in all the commercial areas that you would assume would be the places to be: consumer, technology, financial services, healthcare, business services, and then on the federal government side, which is, as I mentioned, 30% of the business, we're also serving high-end solutions to Department of Defense, intelligence, and national security areas, which perfectly line up with where all the budget tailwinds are from the one big beautiful bill, and also where the mission is most critical in terms of client needing us to serve these opportunities up for them. Here, I'm going to turn it over to Shiv. Shiv's been with the business a year here, comes to us from Accenture, is a native here in Chicago, and I'm going to let him talk about our solution capabilities and also get into the AI opportunity. They're in all the commercial areas that you would assume would be the places to be: consumer, technology, financial services, healthcare, business services, and then on the federal government side, which is, as I mentioned, 30% of the business, we're also serving high-end solutions to Department of Defense, intelligence, and national security areas, which perfectly line up with where all the budget tailwinds are from the one big beautiful bill, and also where the mission is most critical in terms of client needing us to serve these opportunities up for them. they're in all the commercial areas that you would assume would be the places to be consumer technology financial services healthcare business services and then on the federal government side which is as i mentioned 30% of the business we're also serving high-end solutions to department of defense intelligence and national security areas which perfectly line up with where all the budget tailwinds are from the one big beautiful bill and also where the mission is most critical in terms of client needing us to serve these opportunities up for them Here, I'm going to turn it over to Shiv. here i'm going to turn it over to shiv Shiv's been with the business a year here, comes to us from Accenture, is a native here in Chicago, and I'm going to let him talk about our solution capabilities and also get into the AI opportunity. shiv's been with the business a year here comes to us from accenture is a native here in chicago and i'm going to let him talk about our solution capabilities and also get into the ai opportunity

Speaker 3: Sounds good. Thanks, Ted. Look, as Ted said, we've been on this journey of evolution from on the commercial side. We've always been a deeply technical engineering firm on the federal side. We've spent last year, as Ted said, taking a look at our gold nugget portfolio, putting more industry muscle behind it because that domain expertise, that understanding of the industries was critical as we serve our clients and move up the value chain. Equally critical for us was to identify the areas that we want to be really good at in terms of what we can be doing. What you see on this page is a representation of the solution areas that we're typically playing in, we want to play in, and expand in. Sounds good. sounds good Thanks, Ted. thanks ted Look, as Ted said, we've been on this journey of evolution from on the commercial side. look as ted said we've been on this journey of evolution from on the commercial side We've always been a deeply technical engineering firm on the federal side. we've always been a deeply technical engineering firm on the federal side We've spent last year, as Ted said, taking a look at our gold nugget portfolio, putting more industry muscle behind it because that domain expertise, that understanding of the industries was critical as we serve our clients and move up the value chain. we've spent last year as ted said taking a look at our gold nugget portfolio putting more industry muscle behind it because that domain expertise that understanding of the industries was critical as we serve our clients and move up the value chain Equally critical for us was to identify the areas that we want to be really good at in terms of what we can be doing. equally critical for us was to identify the areas that we want to be really good at in terms of what we can be doing What you see on this page is a representation of the solution areas that we're typically playing in, we want to play in, and expand in. what you see on this page is a representation of the solution areas that we're typically playing in we want to play in and expand in It's a function of us looking collectively across the enterprise and saying, "What can we do really well for our customers?" I'll start on the right-hand side of the page. It's the topic du jour in the minds of every day you wake up and you hear that platforms are gone, but we don't believe that. We have a pretty thriving business. Chris Skinner sitting there, is going to be joining you later for Q&A, but we have an enterprise platforms business where we are a leading implementer of Workday. We do a lot of work on ServiceNow. We're building a Salesforce business. We also do some mid-market ERP with Infor, and we think these things are going to stay for a while. How they evolve, how they adapt, we will see, but we're right at the forefront plugged into that ecosystem. It's a function of us looking collectively across the enterprise and saying, "What can we do really well for our customers?" I'll start on the right-hand side of the page. it's a function of us looking collectively across the enterprise and saying "what can we do really well for our customers?" i'll start on the right-hand side of the page It's the topic du jour in the minds of every day you wake up and you hear that platforms are gone, but we don't believe that. it's the topic du jour in the minds of every day you wake up and you hear that platforms are gone but we don't believe that We have a pretty thriving business. we have a pretty thriving business Chris Skinner sitting there, is going to be joining you later for Q&A, but we have an enterprise platforms business where we are a leading implementer of Workday. chris skinner sitting there is going to be joining you later for q&a but we have an enterprise platforms business where we are a leading implementer of workday We do a lot of work on ServiceNow. we do a lot of work on servicenow We're building a Salesforce business. we're building a salesforce business We also do some mid-market ERP with Infor, and we think these things are going to stay for a while. we also do some mid-market erp with infor and we think these things are going to stay for a while How they evolve, how they adapt, we will see, but we're right at the forefront plugged into that ecosystem. how they evolve how they adapt we will see but we're right at the forefront plugged into that ecosystem When it comes to cybersecurity, we are one of the leading providers of cybersecurity for the federal government. One of the largest contracts in the DoD for endpoint security is delivered by our ECS team, and we're now starting to pull that more and more into the commercial side of the business, including things like how do we get clients ready for quantum? We've built our own framework for post-quantum cryptography. How do you assess that? We've actually executed that for a couple of clients in the commercial sector and the hospitality sector. Experience. Now, this is one of those offerings that is emerging for us or one of those solution areas. It's built off of the DNA of our Creative team. When it comes to cybersecurity, we are one of the leading providers of cybersecurity for the federal government. when it comes to cybersecurity we are one of the leading providers of cybersecurity for the federal government One of the largest contracts in the DoD for endpoint security is delivered by our ECS team, and we're now starting to pull that more and more into the commercial side of the business, including things like how do we get clients ready for quantum? one of the largest contracts in the dod for endpoint security is delivered by our ecs team and we're now starting to pull that more and more into the commercial side of the business including things like how do we get clients ready for quantum We've built our own framework for post-quantum cryptography. we've built our own framework for post-quantum cryptography How do you assess that? how do you assess that We've actually executed that for a couple of clients in the commercial sector and the hospitality sector. we've actually executed that for a couple of clients in the commercial sector and the hospitality sector Experience. experience Now, this is one of those offerings that is emerging for us or one of those solution areas. now this is one of those offerings that is emerging for us or one of those solution areas It's built off of the DNA of our Creative team. it's built off of the dna of our creative team We have a Creative Circle business, which was predominantly in the assignment space, but is deeply connected into marketing organizations in terms of how they're thinking about the evolution of customer journeys, commerce, all of those aspects. When we've connected that with the enablement of that with technology, we're already seeing this part of the business for us is actually growing high teens to low 20s. The pillar on application and digital engineering is an interesting one. It's the area where there's a lot of questions about what AI is going to do. Here's what I'll say on that part of the business for us. We've got a thriving business there, and we've been using AI to deliver. We have a Creative Circle business, which was predominantly in the assignment space, but is deeply connected into marketing organizations in terms of how they're thinking about the evolution of customer journeys, commerce, all of those aspects. we have a creative circle business which was predominantly in the assignment space but is deeply connected into marketing organizations in terms of how they're thinking about the evolution of customer journeys commerce all of those aspects When we've connected that with the enablement of that with technology, we're already seeing this part of the business for us is actually growing high teens to low 20s. when we've connected that with the enablement of that with technology we're already seeing this part of the business for us is actually growing high teens to low 20s The pillar on application and digital engineering is an interesting one. the pillar on application and digital engineering is an interesting one It's the area where there's a lot of questions about what AI is going to do. it's the area where there's a lot of questions about what ai is going to do Here's what I'll say on that part of the business for us. here's what i'll say on that part of the business for us We've got a thriving business there, and we've been using AI to deliver. we've got a thriving business there and we've been using ai to deliver The one thing we don't have, which encumbers a lot of legacy players, is the base of the pyramid, because a lot of the work we do there, we've delivered through a contractor workforce. We don't have a workforce that is constantly needing to be reskilled, upskilled, and everything. The other thing that we've done in that space to bolster our addressable market at the enterprise level, if you think about that piece of the capability at the enterprise level, there's a lot of movement towards offshore providers that's happened in that space over the years. We were not playing in that market or basically precluded from it because we didn't really have a footprint. With the Quinnox acquisition, we now have roughly a 2,000-person footprint in India. The one thing we don't have, which encumbers a lot of legacy players, is the base of the pyramid, because a lot of the work we do there, we've delivered through a contractor workforce. the one thing we don't have which encumbers a lot of legacy players is the base of the pyramid because a lot of the work we do there we've delivered through a contractor workforce We don't have a workforce that is constantly needing to be reskilled, upskilled, and everything. we don't have a workforce that is constantly needing to be reskilled upskilled and everything The other thing that we've done in that space to bolster our addressable market at the enterprise level, if you think about that piece of the capability at the enterprise level, there's a lot of movement towards offshore providers that's happened in that space over the years. the other thing that we've done in that space to bolster our addressable market at the enterprise level if you think about that piece of the capability at the enterprise level there's a lot of movement towards offshore providers that's happened in that space over the years We were not playing in that market or basically precluded from it because we didn't really have a footprint. we were not playing in that market or basically precluded from it because we didn't really have a footprint With the Quinnox acquisition, we now have roughly a 2,000-person footprint in India. with the quinnox acquisition we now have roughly a 2,000-person footprint in india The interesting thing is, it's an organization that has been delivering that work a little ahead of the curve using AI, using proprietary IP. Data and AI, we've built a good book of business around Snowflake, Databricks, some industry-specific IP and energy in other places. Cloud and infrastructure is a space where we're seeing a lot of work, and it's interesting work in the sense of it breaks into two buckets. The traditional work around refactoring, moving applications to the cloud, we're still seeing that for a lot of clients. There's this whole new set of work that is emerging for us with the hyperscalers, where they're asking us to do truly end-to-end managed services work in scaling up data centers, whether it be network operations, network set up, server operations, server management, and things of that nature. It's a very, very fast-growing area. The interesting thing is, it's an organization that has been delivering that work a little ahead of the curve using AI, using proprietary IP. the interesting thing is it's an organization that has been delivering that work a little ahead of the curve using ai using proprietary ip Data and AI, we've built a good book of business around Snowflake, Databricks, some industry-specific IP and energy in other places. data and ai we've built a good book of business around snowflake databricks some industry-specific ip and energy in other places Cloud and infrastructure is a space where we're seeing a lot of work, and it's interesting work in the sense of it breaks into two buckets. cloud and infrastructure is a space where we're seeing a lot of work and it's interesting work in the sense of it breaks into two buckets The traditional work around refactoring, moving applications to the cloud, we're still seeing that for a lot of clients. the traditional work around refactoring moving applications to the cloud we're still seeing that for a lot of clients There's this whole new set of work that is emerging for us with the hyperscalers, where they're asking us to do truly end-to-end managed services work in scaling up data centers, whether it be network operations, network set up, server operations, server management, and things of that nature. there's this whole new set of work that is emerging for us with the hyperscalers where they're asking us to do truly end-to-end managed services work in scaling up data centers whether it be network operations network set up server operations server management and things of that nature It's a very, very fast-growing area. it's a very very fast-growing area As we've looked at this landscape, we've said we're going to be focused on certain things, like are we going to implement SAP for clients? Probably not. We want to be in areas where we see continued growth, high growth, and areas where we think we will have a right to win with some of the things we're doing. Okay. None of that is going to be possible in this day and age. If you think about client buying patterns that are happening, for everything that I put on the previous page, if you look at the overall IT services market and you think about how clients are buying. There're all these big, large managed services contracts which a lot of the tier ones play in. As we've looked at this landscape, we've said we're going to be focused on certain things, like are we going to implement SAP for clients? as we've looked at this landscape we've said we're going to be focused on certain things like are we going to implement sap for clients Probably not. probably not We want to be in areas where we see continued growth, high growth, and areas where we think we will have a right to win with some of the things we're doing. we want to be in areas where we see continued growth high growth and areas where we think we will have a right to win with some of the things we're doing Okay. okay None of that is going to be possible in this day and age. none of that is going to be possible in this day and age If you think about client buying patterns that are happening, for everything that I put on the previous page, if you look at the overall IT services market and you think about how clients are buying. There're all these big, large managed services contracts which a lot of the tier ones play in. if you think about client buying patterns that are happening for everything that i put on the previous page if you look at the overall it services market and you think about how clients are buying. there're all these big large managed services contracts which a lot of the tier ones play in There's this big piece of the market, which is probably 45% of the addressable, or even 50% of the addressable market or more, which is the buying patterns have shifted. Clients are buying more and more from specialized, fast, nimble partners. Those partners are effectively tied at the hip to some of these software providers. If you think about Chris and his business, that's one great example of that. Our GlideFast business is another great example of that. We're building deep relationships with Salesforce. We are the number one provider for Elastic. In fact, we have more Elastic-certified engineers than Elastic themselves. They come to us when they need work for themselves. We're starting to move in some of these places very rapidly. What you see on the right-hand side of the page is we're also constantly looking for innovative partnerships with emerging providers. There's this big piece of the market, which is probably 45% of the addressable, or even 50% of the addressable market or more, which is the buying patterns have shifted. there's this big piece of the market which is probably 45% of the addressable or even 50% of the addressable market or more which is the buying patterns have shifted Clients are buying more and more from specialized, fast, nimble partners. clients are buying more and more from specialized fast nimble partners Those partners are effectively tied at the hip to some of these software providers. those partners are effectively tied at the hip to some of these software providers If you think about Chris and his business, that's one great example of that. if you think about chris and his business that's one great example of that Our GlideFast business is another great example of that. our glidefast business is another great example of that We're building deep relationships with Salesforce. we're building deep relationships with salesforce We are the number one provider for Elastic. we are the number one provider for elastic In fact, we have more Elastic-certified engineers than Elastic themselves. in fact we have more elastic-certified engineers than elastic themselves They come to us when they need work for themselves. they come to us when they need work for themselves We're starting to move in some of these places very rapidly. we're starting to move in some of these places very rapidly What you see on the right-hand side of the page is we're also constantly looking for innovative partnerships with emerging providers. what you see on the right-hand side of the page is we're also constantly looking for innovative partnerships with emerging providers Right. Maisa is an offshoot from Microsoft, doing agentic work in manufacturing shop floors, because we think that's a space which requires deep engineering, so we're right there. We're doing this all the time as we think about expanding our partnership alliances. How do we amplify those? Everforth actually allows us to do this at a scale which we weren't doing before. We were talking to them as a federal business, as a commercial business. When you put these two things together, these partners are now looking at us going, "Man, you guys are a $4 billion business, and you have a very large enterprise account portfolio that's really, really attractive, and you can move at speed." AI. Look, I'm not going to belabor this page. I think there's probably 15 different versions of this page you can see anywhere, right. Right. right Maisa is an offshoot from Microsoft, doing agentic work in manufacturing shop floors, because we think that's a space which requires deep engineering, so we're right there. maisa is an offshoot from microsoft doing agentic work in manufacturing shop floors because we think that's a space which requires deep engineering so we're right there We're doing this all the time as we think about expanding our partnership alliances. we're doing this all the time as we think about expanding our partnership alliances How do we amplify those? how do we amplify those Everforth actually allows us to do this at a scale which we weren't doing before. everforth actually allows us to do this at a scale which we weren't doing before We were talking to them as a federal business, as a commercial business. we were talking to them as a federal business as a commercial business When you put these two things together, these partners are now looking at us going, "Man, you guys are a $4 billion business, and you have a very large enterprise account portfolio that's really, really attractive, and you can move at speed." AI. when you put these two things together these partners are now looking at us going "man you guys are a $4 billion business and you have a very large enterprise account portfolio that's really really attractive and you can move at speed." ai Look, I'm not going to belabor this page. look i'm not going to belabor this page I think there's probably 15 different versions of this page you can see anywhere, right. i think there's probably 15 different versions of this page you can see anywhere right The reality is AI is here to stay. We're seeing a lot of demand across the spectrum. We're still, I believe, in the phase where clients haven't effectively moved from a lot of prove the value, let me experiment, even experiment in multiple domains, to really scaling enterprise-wide. We think that's where the big opportunities are. It is creating a lot of focus on governance and cybersecurity, right? As we talk about data governance, data and regulatory environments, how do you protect all of that? We talked about alliance partnerships, and our philosophy has been also to look at AI from our own business perspective. How do we use that as both a growth and a margin driver? I'll talk about that in a minute. We've talked about this at length. I'm just going to talk about what Sorry. The reality is AI is here to stay. the reality is ai is here to stay We're seeing a lot of demand across the spectrum. we're seeing a lot of demand across the spectrum We're still, I believe, in the phase where clients haven't effectively moved from a lot of prove the value, let me experiment, even experiment in multiple domains, to really scaling enterprise-wide. we're still i believe in the phase where clients haven't effectively moved from a lot of prove the value let me experiment even experiment in multiple domains to really scaling enterprise-wide We think that's where the big opportunities are. we think that's where the big opportunities are It is creating a lot of focus on governance and cybersecurity, right? it is creating a lot of focus on governance and cybersecurity right As we talk about data governance, data and regulatory environments, how do you protect all of that? as we talk about data governance data and regulatory environments how do you protect all of that We talked about alliance partnerships, and our philosophy has been also to look at AI from our own business perspective. we talked about alliance partnerships and our philosophy has been also to look at ai from our own business perspective How do we use that as both a growth and a margin driver? how do we use that as both a growth and a margin driver I'll talk about that in a minute. i'll talk about that in a minute We've talked about this at length. we've talked about this at length I'm just going to talk about what Sorry. i'm just going to talk about what sorry I think I missed the pages. The last point on that page, which is the Customer Zero idea. We're doing a lot of things around Customer Zero. When we signed our 360 partnership with Salesforce, we're actually starting to use agents to enable our own team built on Agentforce, which we want to take the clients with them. We've built our own platform, which we haven't talked about much, but we're going to start talking about, called TotalSite, which really allows you to go from intake of AI use cases to AI operations with governance and other frameworks built into it. Right? It allows us to go to a client and talk about taking these use cases and starting to deploy them pretty rapidly for them in their environments. I think I missed the pages. i think i missed the pages The last point on that page, which is the Customer Zero idea. the last point on that page which is the customer zero idea We're doing a lot of things around Customer Zero. we're doing a lot of things around customer zero When we signed our 360 partnership with Salesforce, we're actually starting to use agents to enable our own team built on Agentforce, which we want to take the clients with them. when we signed our 360 partnership with salesforce we're actually starting to use agents to enable our own team built on agentforce which we want to take the clients with them We've built our own platform, which we haven't talked about much, but we're going to start talking about, called TotalSite, which really allows you to go from intake of AI use cases to AI operations with governance and other frameworks built into it. we've built our own platform which we haven't talked about much but we're going to start talking about called totalsite which really allows you to go from intake of ai use cases to ai operations with governance and other frameworks built into it Right? right It allows us to go to a client and talk about taking these use cases and starting to deploy them pretty rapidly for them in their environments. it allows us to go to a client and talk about taking these use cases and starting to deploy them pretty rapidly for them in their environments Really, if I were to summarize all of this, we have a unique business model, which really is tailor-made for this environment where technology is changing very, very fast. We can keep up with the pace of change and find the talent that is needed to deliver our client engagements. We already talked about the account portfolio. Over the years, we've demonstrated the ability to bring in companies, bring in solutions inorganically. We're building deep capabilities in AI, as I've talked about already with our partners. With that, I'm going to turn this over to Marie to bring us home. Really, if I were to summarize all of this, we have a unique business model, which really is tailor-made for this environment where technology is changing very, very fast. really if i were to summarize all of this we have a unique business model which really is tailor-made for this environment where technology is changing very very fast We can keep up with the pace of change and find the talent that is needed to deliver our client engagements. we can keep up with the pace of change and find the talent that is needed to deliver our client engagements We already talked about the account portfolio. we already talked about the account portfolio Over the years, we've demonstrated the ability to bring in companies, bring in solutions inorganically. over the years we've demonstrated the ability to bring in companies bring in solutions inorganically We're building deep capabilities in AI, as I've talked about already with our partners. we're building deep capabilities in ai as i've talked about already with our partners With that, I'm going to turn this over to Marie to bring us home. with that i'm going to turn this over to marie to bring us home

Speaker 2: Well, I'm going to cover the capital allocation strategy. We get asked a lot about it. It is a key contribution to our business model. From a capital allocation strategy, first and foremost, we focus on organic growth. When I say organic growth, there's a couple areas that we focused on. Whether that be investing in assets and accelerators to basically expand our solution capabilities to upscale our teams. We have a center of excellence and an AI lab. Just continuing to build and strengthen our tech alliance partners. At the Investor and Analyst Day, we talked about our Salesforce alliance that we just got into. From a debt repayment perspective, this is really a near-term focus in our capital allocation strategy. Well, I'm going to cover the capital allocation strategy. well i'm going to cover the capital allocation strategy We get asked a lot about it. we get asked a lot about it It is a key contribution to our business model. it is a key contribution to our business model From a capital allocation strategy, first and foremost, we focus on organic growth. from a capital allocation strategy first and foremost we focus on organic growth When I say organic growth, there's a couple areas that we focused on. when i say organic growth there's a couple areas that we focused on Whether that be investing in assets and accelerators to basically expand our solution capabilities to upscale our teams. whether that be investing in assets and accelerators to basically expand our solution capabilities to upscale our teams We have a center of excellence and an AI lab. we have a center of excellence and an ai lab Just continuing to build and strengthen our tech alliance partners. just continuing to build and strengthen our tech alliance partners At the Investor and Analyst Day, we talked about our Salesforce alliance that we just got into. at the investor and analyst day we talked about our salesforce alliance that we just got into From a debt repayment perspective, this is really a near-term focus in our capital allocation strategy. from a debt repayment perspective this is really a near-term focus in our capital allocation strategy We just completed the acquisition of Quinnox, historically, we have really had low levels of a debt profile, and we're able to, once we lever up, quickly lever back down with our free cash flow characteristics below our 2.5 net leverage target. From a share repurchase perspective, share repurchase for us is truly opportunistic. When we think about share repurchase, it really is in the realm of balancing our balance sheet flexibility with share repurchase. You'll see us play with share repurchase and debt paydown along with investing in growth. The last pillar that we have here is M&A. From a near-term perspective, again, with the acquisition of M&A, our focus is really delivering the performance of Quinnox, and also integrating Quinnox into the business. From a long-term perspective, we do believe M&A is one of the highest uses of our capital. We just completed the acquisition of Quinnox, historically, we have really had low levels of a debt profile, and we're able to, once we lever up, quickly lever back down with our free cash flow characteristics below our 2.5 net leverage target. we just completed the acquisition of quinnox historically we have really had low levels of a debt profile and we're able to once we lever up quickly lever back down with our free cash flow characteristics below our 2.5 net leverage target From a share repurchase perspective, share repurchase for us is truly opportunistic. from a share repurchase perspective share repurchase for us is truly opportunistic When we think about share repurchase, it really is in the realm of balancing our balance sheet flexibility with share repurchase. when we think about share repurchase it really is in the realm of balancing our balance sheet flexibility with share repurchase You'll see us play with share repurchase and debt paydown along with investing in growth. you'll see us play with share repurchase and debt paydown along with investing in growth The last pillar that we have here is M&A. the last pillar that we have here is m&a From a near-term perspective, again, with the acquisition of M&A, our focus is really delivering the performance of Quinnox, and also integrating Quinnox into the business. from a near-term perspective, again with the acquisition of m&a our focus is really delivering the performance of quinnox and also integrating quinnox into the business From a long-term perspective, we do believe M&A is one of the highest uses of our capital. from a long-term perspective we do believe m&a is one of the highest uses of our capital It allows us to expand our solution capabilities. Also, we are an acquirer of choice, right? We have historically Shiv mentioned TopBloc with Chris, recent acquisitions, and also GlideFast is another recent acquisition that we just had. In the next slide, it really highlights our free cash flow. Ted mentioned this already. This is a hallmark of our business model. It literally allows us to invest in the business, again, from an organic or M&A perspective, and return capital back to shareholders. Literally, we have six years highlighted here, our free cash flow, and then our conversion to EBITDA. As you can see, the last three years, we are at 81%, 81%, and 68%. We have a target of 60%-65% conversion, we have exceeded that over the last five years. It allows us to expand our solution capabilities. it allows us to expand our solution capabilities Also, we are an acquirer of choice, right? also we are an acquirer of choice right We have historically Shiv mentioned TopBloc with Chris, recent acquisitions, and also GlideFast is another recent acquisition that we just had. we have historically shiv mentioned topbloc with chris recent acquisitions and also glidefast is another recent acquisition that we just had In the next slide, it really highlights our free cash flow. in the next slide it really highlights our free cash flow Ted mentioned this already. ted mentioned this already This is a hallmark of our business model. this is a hallmark of our business model It literally allows us to invest in the business, again, from an organic or M&A perspective, and return capital back to shareholders. it literally allows us to invest in the business again from an organic or m&a perspective and return capital back to shareholders Literally, we have six years highlighted here, our free cash flow, and then our conversion to EBITDA. literally we have six years highlighted here our free cash flow and then our conversion to ebitda As you can see, the last three years, we are at 81%, 81%, and 68%. as you can see the last three years we are at 81% 81% and 68% We have a target of 60%-65% conversion, we have exceeded that over the last five years. we have a target of 60%-65% conversion we have exceeded that over the last five years On the other side of the chart, you see our deployment. We've already talked about that from a capital allocation strategy. I just wanted to highlight the ability for us to generate this cash flow comes from many areas, right? We have a flexible cost structure. Our CapEx investment is minimal. We have a scalable labor model, so we use contingent resources. We're able to scale our cost of services with our revenues with a thin layer of bench, and we have discipline around our SG&A. A quick highlight of our balance sheet now. Oops. Should've went too far. Let's see if I can figure this one out. Oops. Going too fast. Going the wrong direction. I'll get it. On the other side of the chart, you see our deployment. on the other side of the chart you see our deployment We've already talked about that from a capital allocation strategy. we've already talked about that from a capital allocation strategy I just wanted to highlight the ability for us to generate this cash flow comes from many areas, right? i just wanted to highlight the ability for us to generate this cash flow comes from many areas right We have a flexible cost structure. we have a flexible cost structure Our CapEx investment is minimal. our capex investment is minimal We have a scalable labor model, so we use contingent resources. we have a scalable labor model so we use contingent resources We're able to scale our cost of services with our revenues with a thin layer of bench, and we have discipline around our SG&A. we're able to scale our cost of services with our revenues with a thin layer of bench and we have discipline around our sg&a A quick highlight of our balance sheet now. a quick highlight of our balance sheet now Oops. oops Should've went too far. should've went too far Let's see if I can figure this one out. let's see if i can figure this one out Oops. oops Going too fast. going too fast Going the wrong direction. going the wrong direction I'll get it. i'll get it

Speaker 4: I think you're moving forward, Marie. You want to go back. I think you're moving forward, Marie. i think you're moving forward marie You want to go back. you want to go back

Speaker 2: I know. All right. My apologies. Doing it? For the three-year target, so as referenced, we had an Investor Day, highlighted our three-year targets. From an organic growth perspective, we have a CAGR of 4%-6%. Of that 4%-6%, 5%-6% organic CAGR is really related to our commercial segment, with the majority of our growth coming from our commercial consulting area. On federal, our target reflects 3%-4%, which is at market on a CAGR basis. Literally from a growth perspective, we're expecting moderate growth in 2026, with an acceleration in 2027 and 2028, and this really represents the acceleration of our go-to-market strategy that we highlighted. That is from an organic perspective. I know. i know All right. all right My apologies. my apologies Doing it? doing it For the three-year target, so as referenced, we had an Investor Day, highlighted our three-year targets. for the three-year target so as referenced we had an investor day highlighted our three-year targets From an organic growth perspective, we have a CAGR of 4%-6%. from an organic growth perspective we have a cagr of 4%-6% Of that 4%-6%, 5%-6% organic CAGR is really related to our commercial segment, with the majority of our growth coming from our commercial consulting area. of that 4%-6% 5%-6% organic cagr is really related to our commercial segment with the majority of our growth coming from our commercial consulting area On federal, our target reflects 3%-4%, which is at market on a CAGR basis. on federal our target reflects 3%-4% which is at market on a cagr basis Literally from a growth perspective, we're expecting moderate growth in 2026, with an acceleration in 2027 and 2028, and this really represents the acceleration of our go-to-market strategy that we highlighted. literally from a growth perspective we're expecting moderate growth in 2026 with an acceleration in 2027 and 2028 and this really represents the acceleration of our go-to-market strategy that we highlighted That is from an organic perspective. that is from an organic perspective When you think about the model and the generation of free cash flow, we are also able to generate additional revenue of $800 million-$900 million over that three-year via acquisition. From a margin perspective, the three-year model has 12.5%-13.5% adjusted EBITDA. That's a 200 basis point-300 basis point expansion. Over half of that improvement in EBITDA is driven by structural cost savings that we highlighted in Investor Day, which is net $80 million in savings. These savings are well underway, a portion of them will be recognized in 2026, with acceleration of those savings in the back half of the year in 2027 and 2028. Again, it's just important to note that the initiatives under these savings are associated with actions that are well underway. When you think about the model and the generation of free cash flow, we are also able to generate additional revenue of $800 million-$900 million over that three-year via acquisition. when you think about the model and the generation of free cash flow we are also able to generate additional revenue of $800 million-$900 million over that three-year via acquisition From a margin perspective, the three-year model has 12.5%-13.5% adjusted EBITDA. from a margin perspective the three-year model has 12.5%-13.5% adjusted ebitda That's a 200 basis point -300 basis point expansion. that's a 200 basis point -300 basis point expansion Over half of that improvement in EBITDA is driven by structural cost savings that we highlighted in Investor Day, which is net $80 million in savings. over half of that improvement in ebitda is driven by structural cost savings that we highlighted in investor day which is net $80 million in savings These savings are well underway, a portion of them will be recognized in 2026, with acceleration of those savings in the back half of the year in 2027 and 2028. these savings are well underway a portion of them will be recognized in 2026 with acceleration of those savings in the back half of the year in 2027 and 2028 Again, it's just important to note that the initiatives under these savings are associated with actions that are well underway. again it's just important to note that the initiatives under these savings are associated with actions that are well underway From a margin, the remaining of the margin expansion is really driven by business mix. You've heard us talk about our growth and high margin, high value business. Over that three-year period, we will also see margin expansion as we continue to accelerate into that. The last section on here is the $1 billion of free cash flow over that period. This last slide, we'll just leave it up here, but this really is our investment thesis. It summarizes everything that you've heard today, I'm going to actually turn it back over to Maggie. From a margin, the remaining of the margin expansion is really driven by business mix. from a margin the remaining of the margin expansion is really driven by business mix You've heard us talk about our growth and high margin, high value business. you've heard us talk about our growth and high margin high value business Over that three-year period, we will also see margin expansion as we continue to accelerate into that. over that three-year period we will also see margin expansion as we continue to accelerate into that The last section on here is the $1 billion of free cash flow over that period. the last section on here is the $1 billion of free cash flow over that period This last slide, we'll just leave it up here, but this really is our investment thesis. this last slide we'll just leave it up here but this really is our investment thesis It summarizes everything that you've heard today, I'm going to actually turn it back over to Maggie. it summarizes everything that you've heard today i'm going to actually turn it back over to maggie

Speaker 1: Very good. Thank you all for the presentation. Let's start with maybe the rebrand and how that's progressing. I'm curious how you've had to change your go-to-market approach under one brand. Are you seeing evidence of any of the cross-selling opportunities or larger scale engagements showing up in the pipeline yet? Very good. very good Thank you all for the presentation. thank you all for the presentation Let's start with maybe the rebrand and how that's progressing. let's start with maybe the rebrand and how that's progressing I'm curious how you've had to change your go-to-market approach under one brand. i'm curious how you've had to change your go-to-market approach under one brand Are you seeing evidence of any of the cross-selling opportunities or larger scale engagements showing up in the pipeline yet? are you seeing evidence of any of the cross-selling opportunities or larger scale engagements showing up in the pipeline yet

Speaker 4: Right. The good thing, if you think about our business, is even though we were a parent company with multiple brands underneath, as we went to market, we were already in the background talking about how do we create synergies in the account portfolio and what have you. Sometimes it was more difficult because the customer viewed the brands as different businesses. Our teams were already coming together in that way. We didn't have any crossover issues in terms of who was selling an account or not. It was, we had already worked through that to a large degree. Right. right The good thing, if you think about our business, is even though we were a parent company with multiple brands underneath, as we went to market, we were already in the background talking about how do we create synergies in the account portfolio and what have you. the good thing if you think about our business is even though we were a parent company with multiple brands underneath as we went to market we were already in the background talking about how do we create synergies in the account portfolio and what have you Sometimes it was more difficult because the customer viewed the brands as different businesses. sometimes it was more difficult because the customer viewed the brands as different businesses Our teams were already coming together in that way. our teams were already coming together in that way We didn't have any crossover issues in terms of who was selling an account or not. It was, we had already worked through that to a large degree. we didn't have any crossover issues in terms of who was selling an account or not. it was we had already worked through that to a large degree I think the other thing for our teams that they saw just naturally was that, let's take Creative Digital for a moment. As that business has matured, the need for all the technology underpinning for the Creative Digital customer experience is more critical today than it ever was. Naturally, it's a good example of how those teams were already coming together. I think culturally everybody was there. Of course, everyone loves their brand, but they see the higher opportunity of coming together as one business. Matter of fact, as we rolled this out, they've taken to it immediately and really have been able to exhibit what they already felt was that they work for one company and we're in this together. I think the other thing for our teams that they saw just naturally was that, let's take Creative Digital for a moment. i think the other thing for our teams that they saw just naturally was that let's take creative digital for a moment As that business has matured, the need for all the technology underpinning for the Creative Digital customer experience is more critical today than it ever was. as that business has matured the need for all the technology underpinning for the creative digital customer experience is more critical today than it ever was Naturally, it's a good example of how those teams were already coming together. naturally it's a good example of how those teams were already coming together I think culturally everybody was there. i think culturally everybody was there Of course, everyone loves their brand, but they see the higher opportunity of coming together as one business. of course everyone loves their brand but they see the higher opportunity of coming together as one business Matter of fact, as we rolled this out, they've taken to it immediately and really have been able to exhibit what they already felt was that they work for one company and we're in this together. matter of fact as we rolled this out they've taken to it immediately and really have been able to exhibit what they already felt was that they work for one company and we're in this together

Speaker 3: Yeah. Yeah. yeah

Speaker 4: Both win for our clients in greater ways and win for ourselves as Everforth. Both win for our clients in greater ways and win for ourselves as Everforth. both win for our clients in greater ways and win for ourselves as everforth

Speaker 3: Ted, if I may just, Maggie, I can illustrate it with a real example. We just won a body of work for a client, which was about redesigning their entire web properties to enable a more seamless user journey. In the past, we would have approached that as saying, "Let's go do all the technical work." There's a lot of work at the front end of that to actually identify what those user journeys are, who are the people who are going to be using the properties, how are they going to be using them. That's the work that our Creative Digital team is used to doing with our marketing clients. We brought these teams together, we were able to solution it together, and what would have been a smaller piece of work obviously expanded for us, but it also allowed us to differentiate. Ted, if I may just, Maggie, I can illustrate it with a real example. ted if i may just maggie i can illustrate it with a real example We just won a body of work for a client, which was about redesigning their entire web properties to enable a more seamless user journey. we just won a body of work for a client which was about redesigning their entire web properties to enable a more seamless user journey In the past, we would have approached that as saying, "Let's go do all the technical work." There's a lot of work at the front end of that to actually identify what those user journeys are, who are the people who are going to be using the properties, how are they going to be using them. in the past we would have approached that as saying "let's go do all the technical work." there's a lot of work at the front end of that to actually identify what those user journeys are who are the people who are going to be using the properties how are they going to be using them That's the work that our Creative Digital team is used to doing with our marketing clients. that's the work that our creative digital team is used to doing with our marketing clients We brought these teams together, we were able to solution it together, and what would have been a smaller piece of work obviously expanded for us, but it also allowed us to differentiate. we brought these teams together we were able to solution it together and what would have been a smaller piece of work obviously expanded for us but it also allowed us to differentiate It's not just about the synergies of expanding the size of the work, it's actually improving our win rates because we're differentiating ourselves by demonstrating a better understanding of the end-to-end problem we're solving for our clients. It's not just about the synergies of expanding the size of the work, it's actually improving our win rates because we're differentiating ourselves by demonstrating a better understanding of the end-to-end problem we're solving for our clients. it's not just about the synergies of expanding the size of the work it's actually improving our win rates because we're differentiating ourselves by demonstrating a better understanding of the end-to-end problem we're solving for our clients

Speaker 1: It's a good time to rebrand the company and reimagine the company in this way, just given all of the disruption that's coming from AI, certainly. I'm curious, we've talked a lot in the past about the strategy of pushing further into commercial consulting. There's obviously disruption in that space as well related to AI. Has it changed, in your point of view, kind of the long-term vision or the structural thesis for the company as you had it in the past mixing further into that commercial consulting? It's a good time to rebrand the company and reimagine the company in this way, just given all of the disruption that's coming from AI, certainly. it's a good time to rebrand the company and reimagine the company in this way just given all of the disruption that's coming from ai certainly I'm curious, we've talked a lot in the past about the strategy of pushing further into commercial consulting. i'm curious we've talked a lot in the past about the strategy of pushing further into commercial consulting There's obviously disruption in that space as well related to AI. there's obviously disruption in that space as well related to ai Has it changed, in your point of view, kind of the long-term vision or the structural thesis for the company as you had it in the past mixing further into that commercial consulting? has it changed in your point of view kind of the long-term vision or the structural thesis for the company as you had it in the past mixing further into that commercial consulting

Speaker 3: No, not at all. I actually think that our structural model is tailor-made for building the professional services company of the future. If you think about over the last year what's happened with all this disruption, right? The number one question that everybody's asking in this space is what's going to happen to all those legacy pyramids that have been driving work for clients. Structural advantage number one, we don't have that. What we've now done is acquired a footprint in India, which we didn't have, which now allows us to play in a different addressable market within our enterprise clients. We have the ability to scale that with AI first approaches versus having to reskill half a million people, which is a very different problem to have. No, not at all. no not at all I actually think that our structural model is tailor-made for building the professional services company of the future. i actually think that our structural model is tailor-made for building the professional services company of the future If you think about over the last year what's happened with all this disruption, right? if you think about over the last year what's happened with all this disruption right The number one question that everybody's asking in this space is what's going to happen to all those legacy pyramids that have been driving work for clients. the number one question that everybody's asking in this space is what's going to happen to all those legacy pyramids that have been driving work for clients Structural advantage number one, we don't have that. structural advantage number one we don't have that What we've now done is acquired a footprint in India, which we didn't have, which now allows us to play in a different addressable market within our enterprise clients. what we've now done is acquired a footprint in india which we didn't have which now allows us to play in a different addressable market within our enterprise clients We have the ability to scale that with AI first approaches versus having to reskill half a million people, which is a very different problem to have. we have the ability to scale that with ai first approaches versus having to reskill half a million people which is a very different problem to have We're already starting to talk to clients and saying, "Hey, look, you had 70 people doing this work before. We can do it with 25 people with AI." We don't have to worry about what the other 45 are going to do because we don't have the other 45. It allows us to create a scaled business in a very different way than what other companies would have done. It doesn't change our thesis at all. I actually think it's to our advantage. It amplifies our structural advantages a certain way. We're already starting to talk to clients and saying, "Hey, look, you had 70 people doing this work before. we're already starting to talk to clients and saying "hey look you had 70 people doing this work before We can do it with 25 people with AI." We don't have to worry about what the other 45 are going to do because we don't have the other 45. we can do it with 25 people with ai." we don't have to worry about what the other 45 are going to do because we don't have the other 45 It allows us to create a scaled business in a very different way than what other companies would have done. it allows us to create a scaled business in a very different way than what other companies would have done It doesn't change our thesis at all. it doesn't change our thesis at all I actually think it's to our advantage. i actually think it's to our advantage It amplifies our structural advantages a certain way. it amplifies our structural advantages a certain way

Speaker 1: You continue to push further into consulting. There's a lot of confusion out there amongst your client base right now. What are you hearing? You had the slide up there that listed all the different partnerships. What are you hearing from customers on their perception of the impact of AI on enterprise software, and how does that impact your business? You continue to push further into consulting. you continue to push further into consulting There's a lot of confusion out there amongst your client base right now. there's a lot of confusion out there amongst your client base right now What are you hearing? what are you hearing You had the slide up there that listed all the different partnerships. you had the slide up there that listed all the different partnerships What are you hearing from customers on their perception of the impact of AI on enterprise software, and how does that impact your business? what are you hearing from customers on their perception of the impact of ai on enterprise software and how does that impact your business

Speaker 4: Well, look, I think Chris, after sessions, we can get Chris's $0.02 On this as well since he's not mic'd up. I think enterprise software solutions for the major platforms remain as important as ever. A lot of the AI that's going to make an impact on our customers is going to be delivered through those platforms. I think the conversation is starting to become a little more rational in that AI's not going to jump out of another box and just run around and get all of these things done. That it's going to take quality technology services and digital engineering firms like us to pull those things down into business processes and workflows and really wring out the promise of agentic AI within our customers' platforms. Well, look, I think Chris, after sessions, we can get Chris's $0.02 On this as well since he's not mic'd up. well look i think chris after sessions we can get chris's $0.02 on this as well since he's not mic'd up I think enterprise software solutions for the major platforms remain as important as ever. i think enterprise software solutions for the major platforms remain as important as ever A lot of the AI that's going to make an impact on our customers is going to be delivered through those platforms. a lot of the ai that's going to make an impact on our customers is going to be delivered through those platforms I think the conversation is starting to become a little more rational in that AI's not going to jump out of another box and just run around and get all of these things done. i think the conversation is starting to become a little more rational in that ai's not going to jump out of another box and just run around and get all of these things done That it's going to take quality technology services and digital engineering firms like us to pull those things down into business processes and workflows and really wring out the promise of agentic AI within our customers' platforms. that it's going to take quality technology services and digital engineering firms like us to pull those things down into business processes and workflows and really wring out the promise of agentic ai within our customers' platforms

Speaker 1: Very good. One more on strategy. I know we're up against the clock here, kind of 60 seconds or less. You referenced India as a delivery location. Can you give us an update on how the model is evolving in terms of the nearshore and offshore resources and where that can go from here? Very good. very good One more on strategy. one more on strategy I know we're up against the clock here, kind of 60 seconds or less. i know we're up against the clock here kind of 60 seconds or less You referenced India as a delivery location. you referenced india as a delivery location Can you give us an update on how the model is evolving in terms of the nearshore and offshore resources and where that can go from here? can you give us an update on how the model is evolving in terms of the nearshore and offshore resources and where that can go from here

Speaker 3: We see continued demand for resources at both ends of the spectrum. As we evolve our delivery model for the future, there's a distinct role that we see nearshore playing for us. There are certain clients who prefer time zone proximity but want to take advantage of the engineering talent that sits in Mexico and other parts of Latin America. There are clients who want the factor cost advantages of India. If you look at capability by capability, an example is in the experience capability, for example, there's a lot of demand for nearshore because those are agile teams which are constantly working. Whereas when it comes to the typical application modernization where you can do a lot of the back-end work, it's much more India-centric. Each of our capabilities, we're constantly evolving the mix based on what we see the clients wanting. We see continued demand for resources at both ends of the spectrum. we see continued demand for resources at both ends of the spectrum As we evolve our delivery model for the future, there's a distinct role that we see nearshore playing for us. as we evolve our delivery model for the future there's a distinct role that we see nearshore playing for us There are certain clients who prefer time zone proximity but want to take advantage of the engineering talent that sits in Mexico and other parts of Latin America. there are certain clients who prefer time zone proximity but want to take advantage of the engineering talent that sits in mexico and other parts of latin america There are clients who want the factor cost advantages of India. there are clients who want the factor cost advantages of india If you look at capability by capability, an example is in the experience capability, for example, there's a lot of demand for nearshore because those are agile teams which are constantly working. if you look at capability by capability an example is in the experience capability for example there's a lot of demand for nearshore because those are agile teams which are constantly working Whereas when it comes to the typical application modernization where you can do a lot of the back-end work, it's much more India-centric. whereas when it comes to the typical application modernization where you can do a lot of the back-end work it's much more india-centric Each of our capabilities, we're constantly evolving the mix based on what we see the clients wanting. each of our capabilities we're constantly evolving the mix based on what we see the clients wanting Both are very much a part of the future and will continue to ebb and flow as the balance of our solutions evolves. Both are very much a part of the future and will continue to ebb and flow as the balance of our solutions evolves. both are very much a part of the future and will continue to ebb and flow as the balance of our solutions evolves

Speaker 1: Very good. We are out of time, so thank you, Marie, Ted, Shiv. Very good. very good We are out of time, so thank you, Marie, Ted, Shiv. we are out of time so thank you marie ted shiv

Speaker 3: Thank you. Thank you. thank you

Speaker 1: We'll continue in Burnham B. Thanks all. We'll continue in Burnham B. we'll continue in burnham b Thanks all. thanks all