Booz Allen Hamilton Holding Corporation (BAH): Business Model Canvas [Dec-2025 Updated]

As a former head analyst at BlackRock, I've seen countless defense contractors, but Booz Allen Hamilton Holding Corporation's fiscal year 2025 model is defintely worth a deep dive; it's less about traditional consulting and more about being a technology integrator for the US government. You can see the focus in the numbers: they closed FY25 with $12.0 billion in revenue, underpinned by a massive $37.0 billion contract backlog, showing deep client trust. The real story, though, is their pivot, evidenced by their AI business alone generating $800 million-a clear action based on their VoLT strategy. Keep reading to break down exactly how their 35,800 highly-cleared staff and proprietary tech translate into a $1.315 billion Adjusted EBITDA, and what that means for navigating the next wave of national security spending.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Key Partnerships

You're looking at how Booz Allen Hamilton Holding Corporation (BAH) builds its value by working with others, which is critical given their $12 billion in revenue for Fiscal Year 2025. The firm's strategy relies heavily on integrating external technology and expertise to maintain its position as the leading provider of AI services for the federal government.

Technology alliances with commercial firms like NVIDIA and C3 AI form the backbone of their advanced technology delivery. The collaboration with NVIDIA, for instance, is focused on launching America's first AI-native wireless stack for 6G, designed to handle data-heavy federal workloads. This partnership also involves developing physical artificial intelligence solutions, leveraging NVIDIA's AI-RAN architecture.

The strategic alliance with C3 AI centers on jointly taking C3 AI's enterprise AI applications to federal clients, accelerating digital transformation in areas like supply chain logistics and intelligence analysis. This leverages Booz Allen Hamilton's industry position, which, as of March 31, 2025, included approximately 35,800 employees globally.

The firm actively engages in co-creation and investment to source innovation. Booz Allen Hamilton has significantly bolstered its venture arm, increasing its total funding to $300 million to finance tech developments. This fund has supported 17 companies spanning cyber, AI, and space technologies.

This approach is about bringing the best from across the ecosystem, which includes:

• Silicon Valley startups
• Fortune 500 companies
• Specialized small-and-medium-sized companies
• Veteran, woman, and minority-owned businesses

Collaboration with the General Services Administration (GSA) on procurement reform is a direct strategic engagement. The CEO noted a productive relationship with the GSA aimed at accelerating the move toward outcome-based procurement and integrating Agentic AI capabilities across government processes.

The reliance on external support is evident in their large contract execution, though it carries risk. In January 2025, Booz Allen Hamilton agreed to a $15.9 million settlement related to a fraud scheme orchestrated by a subcontractor, QuantaDyn, though the Justice Department claimed no liability on the part of Booz Allen.

Booz Allen Hamilton Holding Corporation's partnership structure can be summarized with key financial and operational metrics:

Partnership Focus Area	Metric/Value	Context/Year
Total FY 2025 Revenue	$12.0 billion	Fiscal Year 2025
AI Business Growth	$800 million (approximate)	FY 2025 revenue from AI business
Record Backlog	$37.0 billion	End of Q4 FY2025
Venture Investment Fund Total	$300 million	To fund tech developments
AFRL Research Contract Value	$209.9 million (potential)	Task order for technology transition

Academic and research institutions for talent and innovation scouting are integrated through direct contract work. For example, Booz Allen Hamilton won a potential three-year, $209.9 million task order to support the Air Force Research Laboratory (AFRL) in advancing new technologies, specifically focusing on the transition and sustainment of systems into operational environments.

The firm's internal innovation engine, BrightLabs, works to incubate and prototype solutions across areas like quantum computing, digital twins, and AI-enabled software engineering and operations, often informed by direct client collaboration.

The integration of partner technology directly impacts performance metrics; for instance, solutions built on the NVIDIA Morpheus framework have shown data ingestion rates 300x faster than CPU-only nodes in specific cyber applications.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Key Activities

Delivering advanced technology solutions, especially AI and cybersecurity

Booz Allen Hamilton Holding Corporation uses its leading positions in Artificial Intelligence (AI) and the advanced technology ecosystem to accelerate administration priorities. The AI business grew over 30 percent year-over-year, reaching about $800 million in Fiscal Year 2025. The company expects its total cyber revenue for Fiscal Year 2025 to be between $2.5 and $2.8 billion, representing nearly a quarter of the projected total Fiscal Year 2025 revenue. The firm builds technology solutions using AI and cyber capabilities. The total revenue for the full Fiscal Year 2025 was $11.980 billion.

The Key Activities related to technology delivery can be summarized:

• AI Business Revenue (FY2025): $800 million
• Cyber Revenue Expectation (FY2025): $2.5 to $2.8 billion
• Full FY2025 Revenue: $11.980 billion
• FY2025 Adjusted EBITDA: $1.315 billion

Management consulting and systems integration for critical missions

The firm delivers outcomes with speed for America's most critical defense, civil, and national security priorities. The defense business revenue saw a 14 percent increase in Q4 FY2025 versus the prior year, and the intelligence business revenue increased 5 percent in the same period. The company's Q4 FY2025 revenue was $3 billion, a 7.3 percent increase year-over-year. The firm focuses on integrating technology with an enduring focus on clients' missions.

Executing the VoLT (Velocity, Leadership, and Technology) growth strategy

The VoLT strategy, unveiled in October 2021, is credited with continued growth. The company is focused on external technology scouting and scaling the production of innovative and emerging technologies for public sector use. The strategy emphasizes a move towards outcome-based contracting, which the CEO expects to accelerate. The company is positioned to match the velocity of change underway.

Recruiting and upskilling a specialized, high-clearance workforce

The firm employs approximately 35,800 people globally as of March 31, 2025. As of December 31, 2024, client staff headcount was approximately 6.0 percent higher than the end of the prior year period. The CEO cited hiring top professionals as a top operational priority.

Securing and managing a record contract backlog of $37.0 billion

Booz Allen Hamilton Holding Corporation ended the fourth quarter of Fiscal Year 2025 with a record backlog of $37 billion, which was up 15 percent from the prior-year period. The trailing 12-month book-to-bill ratio for the fourth quarter was 1.39x. The total backlog figure is a key measure of future revenue visibility.

Here's a look at the backlog progression across FY2025 reporting periods:

Reporting Period End Date	Total Backlog Amount	Year-over-Year Growth
December 31, 2024 (Q3 FY25)	$39.4 billion	14.8 percent
March 31, 2025 (Q4 FY25)	$37 billion	15 percent

The company also reported $255.2 million in operating income for Q1 FY2025. Free cash flow for the full FY 2025 was $911 million.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Key Resources

You're looking at the core assets that let Booz Allen Hamilton Holding Corporation execute its strategy, especially as the government sector pivots hard into advanced technology adoption. These aren't just line items on a balance sheet; they are the engines driving their service delivery.

The most visible resource is the human capital. Booz Allen Hamilton Holding Corporation had approximately 35,800 employees as of March 31, 2025, which is the end of their fiscal year 2025. To give you a sense of the growth velocity in that talent pool, the client staff headcount saw a 6.0 percent year-over-year increase in the third quarter of fiscal 2025. This massive pool is the delivery mechanism for their deep government domain expertise.

That expertise is proprietary, built over more than 110 years supporting the federal government, including through 20 presidential transitions. This institutional knowledge translates directly into their intellectual property. Booz Allen Hamilton Holding Corporation is positioned as a leading provider of both AI and cybersecurity services. They are actively funding this IP development, having beefed up their corporate venture arm to a total of $300 million dedicated to funding technology developments. The AI business specifically grew over 30 percent year-over-year, reaching about $800 million in revenue for FY25.

The financial strength backing these resources is substantial. You see this in their contract pipeline. As of the end of the fourth quarter of FY25, Booz Allen Hamilton Holding Corporation reported a record total contract backlog of $37.0 billion. This is the work they have under contract but haven't yet billed, which is a huge indicator of future revenue stability. For context, their total revenue for the full FY25 was $12.0 billion, and their adjusted EBITDA for that same period was $1.315 billion.

Finally, the nature of their client base-defense, civil, and national security-mandates a specific physical and security resource base. This includes secure facilities and clearances necessary for classified work, which is a non-transferable asset that creates a high barrier to entry for competitors.

Here's a quick look at some of those key resource metrics as of late FY25:

Resource Metric	Value/Amount	As Of/Context
Highly-Skilled Client Staff	35,800 employees	March 31, 2025
Total Contract Backlog	$37.0 billion	End of Q4 FY25
FY25 Total Revenue	$12.0 billion	Fiscal Year Ending March 31, 2025
AI Business Revenue	Approx. $800 million	FY25
Corporate Venture Fund Size	$300 million (Total)	For funding tech developments
Federal Government Support History	Over 110 years	Through 20 presidential transitions

Their ability to deploy this talent across critical technology domains is what matters most. You can see the focus areas clearly:

• Proprietary mission insights and deep government domain expertise
• Intellectual property in AI, digital engineering, and cyber platforms
• Secure facilities and clearances for classified work

If onboarding takes 14+ days, churn risk rises, but their scale suggests they manage that pipeline well. Finance: draft 13-week cash view by Friday.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Value Propositions

You're looking at the core promises Booz Allen Hamilton Holding Corporation (BAH) makes to its clients, which are clearly reflected in their financial performance as of late 2025. These aren't just mission statements; they are backed by real contract dollars and growth figures.

Mission transformation using advanced tech like Agentic AI

Booz Allen Hamilton Holding Corporation (BAH) is delivering on the promise of mission transformation, heavily leaning into artificial intelligence. Their AI business saw significant growth, increasing over 30% year-over-year in Fiscal Year 2025, reaching approximately $800 million in revenue for that segment alone. The firm has also been active in securing large, technology-focused awards; for instance, they secured a $490 million contract with the National Geospatial-Intelligence Agency (NGA) specifically to harness AI for analyzing satellite imagery. Furthermore, the company has invested heavily, noting a cumulative investment of $1.1 billion in AI contracts since Fiscal Year 2021. This focus on Agentic AI and other advanced tech is clearly translating into top-line growth, as overall FY 2025 revenue hit $12 billion.

Unflinching courage and ferocious integrity in national security

The value proposition rooted in unflinching courage and ferocious integrity is most visible in their national security work, which forms the bulk of their business. The company ended Fiscal Year 2025 with a record backlog of $37 billion, up 15% from the prior year, signaling deep client trust in high-stakes environments. A concrete example of this trust is the five-year, single-award task order to support countering weapons of mass destruction (CWMD), which carries a ceiling of $1.58 billion. This work requires applying advanced technology and tradecraft to critical intelligence missions for the Defense Intelligence Agency and the Defense Threat Reduction Agency. The firm's commitment to integrity is also reflected in its capital deployment strategy, returning $1.2 billion to stockholders in FY 2025 through dividends and repurchases, demonstrating financial discipline.

Speed and scale in deploying digital battlespace capabilities

Speed and scale are demonstrated by the firm's ability to secure and execute large, multi-year contracts that modernize warfighting capabilities. Beyond the CWMD contract, BAH secured a $315 million Air Force award for an advanced battle management system, directly supporting the deployment of digital battlespace capabilities. The overall scale of their operations is supported by a massive contract pipeline, evidenced by the $37 billion year-end backlog in FY 2025, which resulted in a trailing 12-month book-to-bill ratio of 1.39x. This ratio means they are booking new work at a rate significantly higher than the work they are completing, showing scale in demand capture.

Deep expertise in defense, intelligence, and civil government priorities

Booz Allen Hamilton Holding Corporation (BAH) serves the U.S. Government, which accounts for approximately 98% of its revenue. Their expertise is segmented across key federal priorities. Based on Fiscal Year 2024 figures, the distribution of this deep expertise was:

Customer Segment	FY 2024 Revenue Share	FY 2025 Q4 Revenue Growth (YoY)
Defense Clients	47%	14%
Intelligence Clients	17%	5%
Civil Clients	34%	Segment undergoing a 'resetting and restructuring'

While the Civil sector, which was 34% of revenue in FY 2024, is being restructured to match anticipated demand, the Defense and Intelligence segments are driving current growth, with Defense revenue up 14% and Intelligence up 5% in Q4 FY 2025.

Collective Ingenuity: combining consulting, data science, and engineering

Collective Ingenuity is the mechanism for delivering on the technical promises, blending different skillsets. This is quantified by the firm's overall financial health, which allows for sustained investment in talent and technology. For FY 2025, the firm generated $911 million in Free Cash Flow and $1.315 billion in Adjusted EBITDA, achieving an Adjusted EBITDA Margin on Revenue of 11.0%. This financial strength supports the human capital required for this blend of services. As of FY 2025, the total employee headcount was approximately 35,800, with a range cited between 31,409 and 33,995 employees across various categories. The firm returned $1.2 billion of capital to stockholders in FY 2025, including a quarterly dividend of $0.55 per share at one point, showing confidence in the ongoing value creation from their combined capabilities. The combination of consulting, data science, and engineering is what underpins the 12.4% total revenue growth seen in FY 2025.

Finance: draft 13-week cash view by Friday.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Customer Relationships

You're looking at how Booz Allen Hamilton Holding Corporation (BAH) locks in its most important clients, the US government agencies. It's less about transactional sales and more about deep integration, which is reflected in their financial structure.

Long-term, high-trust, embedded partnerships with senior government leaders

The relationship is built on sustained presence and mission continuity. This is evidenced by the sheer size of the committed future work. As of the end of Fiscal Year 2025, Booz Allen Hamilton Holding Corporation ended the period with a record backlog of $37 billion. Furthermore, the trailing twelve-month book-to-bill ratio at the end of Q4 FY2025 stood at 1.39x, indicating they are booking new work faster than they are completing and billing existing work, a strong sign of client confidence and demand for future services. Even in the first quarter of fiscal year 2026, the book-to-bill ratio remained high at 1.42x, pushing the record backlog to $38 billion.

The core business remains heavily concentrated with government entities, which necessitates these deep ties. For the full Fiscal Year 2025, total revenue reached $12.0 billion, broken down by customer type as follows:

Customer Type	FY2025 Revenue (Millions USD)
Defense	$5,943
Intelligence	$1,867
Civil	$4,170

This concentration means relationships are managed at the highest levels of these agencies.

Dedicated account teams for mission-critical, complex problem-solving

Booz Allen Hamilton Holding Corporation supports its embedded status with a large, growing workforce focused on client missions. As of March 31, 2025, the firm employed approximately 35,800 people globally. The focus on dedicated personnel is visible in headcount metrics; for the third quarter of Fiscal Year 2025, the company reported a 6.0 percent year-over-year growth in client staff headcount. These teams are deployed to solve the hardest problems, often involving significant technology development. For instance, in the first half of FY2025, the company won several awards exceeding $500 million each. A specific example of a complex, multi-year engagement is the five-year, $2.6 billion SSMARTT task order award.

Outcome-based contracting, moving away from pure staff augmentation

There is a clear strategic push to shift the relationship model from simply providing personnel to delivering measurable results. The President and CEO has noted expectations for a move toward more fixed-price and outcome-based contracts. The firm is actively engaging with the General Services Administration (GSA) to accelerate this move to outcome based procurement. This pivot is critical for future growth, as the CEO anticipates a more efficient government will buy more commercial technology and outcomes. While the exact contract mix percentage is not public, the strategic intent is clear: deliver speed to outcomes.

Continuous engagement to anticipate evolving national security needs

Anticipation is built into their investment strategy, which directly feeds into client relationship building by offering advanced capabilities. The company's Artificial Intelligence (AI) business, a key area for national security, grew over 30 percent year-over-year in FY 2025, reaching about $800 million in revenue for that fiscal year. This demonstrates continuous engagement in emerging, high-stakes technology areas. Furthermore, the firm has significantly backed its venture arm, adding $200 million to the initial $100 million fund to total $300 million to fund tech developments. This proactive investment signals readiness for the next wave of client needs.

Strategic advisory services for defintely complex challenges

The firm's advisory role is tied to its technology delivery, especially in modernization and defense. A recent example of a complex technology contract is the $315 million contract awarded in July 2025 to prototype a new Command and Control system for the U.S. Air Force. The full Fiscal Year 2025 revenue, excluding billable expenses (which better reflects core service revenue), was $8,200 million. The firm's ability to secure large, complex technology modernization contracts, such as the $2.6 billion SSMARTT task order, underscores the value placed on their strategic advisory and engineering services for the warfighter.

• FY2025 Total Revenue: $12.0 billion
• FY2025 Record Backlog: $37 billion
• AI Business Revenue (FY2025): Approximately $800 million
• Client Staff Headcount Growth (Q3 FY2025 YoY): 6.0 percent
• Quarterly Dividend (Q3 FY2025): Increased to $0.55 per share

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Channels

You're looking at how Booz Allen Hamilton Holding Corporation (BAH) gets its solutions and services into the hands of its government clients as of late 2025. It's a mix of deep embedding and leveraging massive, pre-negotiated government vehicles.

The core of the delivery channel is the direct engagement model, where Booz Allen Hamilton's teams work right inside client agencies. This is reflected heavily in the contract structure, which favors ongoing, flexible work arrangements over pure fixed-price bids.

Here's the quick math on how revenue was structured by contract type for the fiscal year ending March 31, 2025, and for the most recent reported quarter ending September 30, 2025:

Contract Type	FY Ended March 31, 2025 (Percentage of Total Revenue)	Three Months Ended September 30, 2025 (Percentage of Total Revenue)
Cost-Reimbursable	57%	59%
Time-and-Materials	N/A	22%
Fixed-Price	N/A	19%

The reliance on Cost-Reimbursable contracts, at 57% for the full fiscal year 2025, shows the channel is heavily weighted toward time and materials spent on client sites, which is the essence of embedded consulting and direct service delivery.

Large, multi-award government-wide acquisition contracts (GWACs) are critical for streamlined access across the federal landscape. Booz Allen Hamilton Holding Corporation is a key player on several of these vehicles:

• Alliant 2 GWAC: Features an $82.5B program ceiling, with orders potentially extending through June 30, 2033.
• CIO-SP3 Contract: Has an expiration date of April 29, 2026.
• GSA Multiple Award Schedule (MAS): One version was valid through September 30, 2025.

Task orders under indefinite delivery/indefinite quantity (IDIQ) contracts are the mechanism through which the GWACs are utilized. These task orders often represent the largest single contract wins. For example, Booz Allen Hamilton Holding Corporation secured a five-year, single-award task order with a ceiling of $1.58 billion to support countering weapons of mass destruction intelligence efforts, awarded in September 2024. Also, in April 2025, the company was awarded a task order with a ceiling of $743,100,023 for Air Force enterprise application modernization. Another significant win in July 2025 was a $315 million contract for rapid prototyping for the U.S. Air Force.

Booz Allen Ventures serves as a channel for bringing strategic technology into the business ecosystem. As of July 2025, Booz Allen Hamilton Holding Corporation tripled its commitment to the fund, bringing the total capital to $300 million, up from the initial $100 million when launched in 2022. The firm anticipates making 20-25 new investments over the next five years. As of July 2025, the portfolio included 17 portfolio companies, with the latest reported investment occurring on November 19, 2025, in Quindar.

Direct engagement with the Pentagon and intelligence community is evidenced by major contract awards focused on national security missions. The $1.58 billion CWMD task order directly supports the Defense Intelligence Agency and the Defense Threat Reduction Agency. The defense business segment recorded a 17 percent year-over-year increase in revenue for the second quarter of fiscal 2025. The total backlog for Booz Allen Hamilton Holding Corporation stood at $41.3 billion at the end of the second quarter of fiscal 2025.

Finance: draft 13-week cash view by Friday.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Customer Segments

You're looking at the core of Booz Allen Hamilton Holding Corporation's business, which is heavily concentrated on the US Federal Government. Honestly, when you see the numbers, it's clear where their bread is buttered.

For the full fiscal year 2025, Booz Allen Hamilton Holding Corporation reported total revenue of approximately $11.98 billion. The customer base is segmented by mission area, which directly translates to their financial reporting structure.

Here's the quick math on the primary government segments for FY2025:

Customer Segment	FY25 Revenue Amount	FY25 Revenue Percentage
US Department of Defense	$5.9 billion	49%
US Intelligence Community	$1.9 billion	16%
US Civil Government Agencies (Includes Global Commercial)	$4.2 billion	35%

What this estimate hides is that the Civil segment now lumps in Global Commercial Clients, a change reflected in the FY2025 reporting. Still, the reliance on the federal purse is substantial, with 98% of revenue coming from U.S. government contracts overall.

The specialized focus areas, particularly around technology modernization, represent significant, high-growth parts of this customer base:

• Agencies focused on cybersecurity modernization are a major target; Booz Allen Hamilton Holding Corporation projected its total cyber revenue for FY2025 to reach between $2.5 and $2.8 billion.
• This cybersecurity revenue was expected to represent nearly a quarter of the company's total projected FY2025 revenue.
• The Artificial Intelligence (AI) business saw substantial growth, reaching about $800 million in FY 2025.
• This AI business experienced growth of over 30% year-over-year in FY 2025.

Booz Allen Hamilton Holding Corporation supports a diverse base, including nearly all of the U.S. government's cabinet-level departments. The firm also serves select international government clients and commercial clients both domestically and internationally, though this is now consolidated within the Civil segment reporting. To service these critical missions, the company employed approximately 35,800 people as of late 2025, with 72% of those employees holding security clearances.

Finance: draft 13-week cash view by Friday.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Booz Allen Hamilton Holding Corporation's operations as of late 2025. For a services and technology firm like this, the people costs dominate everything else, but the structure of their debt and capital spending also plays a big role in the final bottom line.

Labor costs are, without question, the largest cost driver. Booz Allen Hamilton Holding Corporation employed approximately 35,800 individuals as of March 31, 2025. This massive workforce requires significant investment in salaries and benefits, which is the primary outflow for the company.

The company also allocates capital for its internal foundation. For fiscal year 2025, Capital expenditures for internal systems and technology were reported at approximately $110 million. This investment keeps their internal technology stack current, supporting their advanced technology solutions.

General and administrative expenses (G&A), which cover overhead like corporate staff, marketing, and facility costs, are a key area for cost management. For the full fiscal year 2025, G&A expenses totaled $1,246 million. Interestingly, operating income margins in FY2025 were positively impacted by a decrease in G&A, largely due to receiving $115 million in insurance recoveries related to a prior fiscal year settlement.

Financing costs are also a component of the structure. While the prompt mentioned a debt figure, the actual Long-term debt, net of the current portion, stood at $3,915 million (or $3.915B) as of March 31, 2025. The resulting annual Interest expense, net for the full fiscal year 2025 was $168 million.

Here's a quick look at some of the key expense and balance sheet items for the full fiscal year 2025:

Cost/Balance Component	FY2025 Amount (in millions)
General and Administrative Expenses	$1,246
Interest Expense, net	$168
Capital Expenditures	$110
Long-Term Debt (as of March 31, 2025)	$3,915

Finally, near-term adjustments are being made to align costs with market realities, specifically through a targeted cost reduction and headcount reset in the Civil business. This action involves laying off approximately 7% of the workforce, which equates to about 2,500 jobs, predominantly within the Civil segment. This move is a direct response to anticipated reduced demand and contract reviews in that sector, with forecasts suggesting a low double-digit revenue decline for the Civil business in fiscal year 2026.

The cost structure elements requiring immediate management focus include:

• Managing the high cost associated with the 35,800-person workforce.
• Aligning the Civil segment's cost base following the planned 7% headcount reduction.
• Servicing the $3,915 million in long-term debt.
• Ensuring the $110 million in capital expenditures drives productivity gains.

Finance: draft 13-week cash view by Friday.

Booz Allen Hamilton Holding Corporation (BAH) - Canvas Business Model: Revenue Streams

When you look at how Booz Allen Hamilton Holding Corporation (BAH) brings in money, it really boils down to the structure of their government service contracts. They don't just have one way they bill; it's a mix designed to balance risk and reward across their massive portfolio of work, mostly with the U.S. government.

The core of their revenue generation comes from a few key contract vehicles. You'll see a heavy reliance on contracts where the government pays for the time and materials used, plus a set cost-plus arrangement, which generally offers more predictable profit margins, especially in complex, evolving mission spaces. Still, they are pushing for more outcome-based work, which shows up in their fixed-price contracts. Honestly, the shift in this mix directly impacts their overall profitability profile for any given period.

Here's a look at the contract mix breakdown based on the latest available detailed figures, which gives you a good sense of the underlying revenue engine:

• Time-and-materials contracts accounted for about 25% of revenue in fiscal year 2023.
• Cost-reimbursable contracts, which are often the most protected from inflation, represented around 53% of revenue in fiscal year 2023.
• Fixed-price contracts, which carry greater financial risk but offer higher potential margins on cost savings, made up 22% of revenue in fiscal year 2023.

To be fair, the emphasis on outcome-based solutions means they are actively trying to grow that fixed-price portion, even if the historical data shows a different balance. Here's the quick math on their top-line performance and profitability for the most recently completed fiscal year:

Financial Metric	Amount for FY2025
Total Revenue	$12.0 billion
Adjusted EBITDA	$1.315 billion

The growth in specific, high-value areas is also a major revenue stream component you need to track. The focus on next-generation technology is clearly paying off in the top line.

• AI business revenue contributed approximately $800 million in FY25.

That AI contribution represents significant growth, showing that their strategic bets on advanced technology are translating directly into billable work and revenue. If onboarding takes 14+ days, churn risk rises, but here, the technology adoption rate seems to be accelerating demand.