UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 10-K
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(Mark One)
| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the fiscal year ended June 30, 2026
OR
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to
Commission File Number 001-31400
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CACI International Inc
(Exact name of registrant as specified in its charter)
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| Delaware | 54-1345888 | ||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
12021 Sunset Hills Road, Reston, VA 20190
(Address of principal executive offices)
(703) 841-7800
(Registrant’s telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| Common Stock | CACI | New York Stock Exchange | ||||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x. No o.
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o. No x.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x. No o.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x. No o.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | x | Accelerated filer | o | |||||||||||
| Non-accelerated filer | o | Smaller reporting company | o | |||||||||||
| Emerging growth company | o | |||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. x.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. o.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o. No x.
The aggregate market value of common shares held by non-affiliates of the registrant on December 31, 2025 was $11,655,273,629, based upon the closing price of the registrant’s common shares as quoted on the New York Stock Exchange composite tape on such date.
As of July 27, 2026, there were 22,099,539 shares outstanding of CACI International Inc’s common stock, par value $0.10 per share.
DOCUMENTS INCORPORATED BY REFERENCE
Part III of this Form 10-K incorporates by reference certain information from the Registrant’s Proxy Statement to be filed with the Securities Exchange Commission (SEC) pursuant to Regulation 14A for the 2026 Annual Meeting of Stockholders.
INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS
Certain information included or incorporated by reference in this Annual Report on Form 10-K may not address historical facts and, therefore, could be interpreted to be “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including projections of financial performance; statements of plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to products or services; any statements regarding future economic conditions or performance; any statements of assumptions underlying any of the foregoing; and any other statements that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements may be characterized by terminology such as “believe,” “anticipate,” “expect,” “should,” “intend,” “plan,” “will,” “estimates,” “projects,” “strategy,” and similar expressions. These statements are based on assumptions and assessments made by the Company’s management in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties that include but are not limited to the factors set forth in “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K.
Any such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those envisaged by such forward-looking statements. The forward-looking statements included herein speak only as of the date of this Annual Report on Form 10-K. The Company disclaims any duty to update such forward-looking statements, all of which are expressly qualified by the foregoing.
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CACI International Inc
FORM 10-K
TABLE OF CONTENTS
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PART I
Item 1. Business
Overview
CACI International Inc (CACI), a Delaware corporation, is a holding company whose operations are conducted through subsidiaries primarily located in the U.S. and Europe. CACI was founded in 1962 as a simulation technology company and has grown into a leading provider of differentiated Technology and distinctive Expertise to customers in support of national security in the intelligence, defense, and federal civilian sectors, both domestically and internationally. Unless the context indicates otherwise, the terms “CACI,” the “Company,” “we,” “us,” and “our,” refer to CACI International Inc and its subsidiaries and joint ventures that are majority-owned or otherwise controlled by it. The term “the Registrant” refers to CACI International Inc only.
•Technology – CACI provides technology that addresses our customers’ most challenging needs. This includes agile software development using open modern architectures and DevSecOps; advanced data platforms, applications, and analytics augmented by Artificial Intelligence (AI), Enterprise Resource Planning systems, electromagnetic spectrum capabilities, space-based sensors and ground site processors, photonics, and network modernization. CACI invests ahead of customer need with research and development (R&D) to create unique and differentiated technology addressing critical national security needs.
•Expertise – CACI delivers talent with the specific technical and functional knowledge to support agency operations. Examples include individuals with talents such as software development, data and business analysis, operations support, naval architecture, engineering, life cycle support, intelligence and special operations support, and network exploitation analysis.
Our proven Technology and Expertise and strong record of program delivery have enabled us to compete for and secure new customers and contracts, win repeat business, and build and maintain long-term customer relationships. We seek competitive business opportunities and have built our operations to support major programs through a market-focused business development organization.
Our customers are primarily agencies and departments of the U.S. government as well as foreign governments and commercial enterprises. The demand for our Technology and Expertise is largely driven by the evolving national security and geopolitical environment, the increasingly complex network, systems, and information environments in which governments and businesses operate, and the ongoing need to stay current with emerging technology.
For additional discussion and analysis on recent business developments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this Annual Report on Form 10-K.
Our Markets
Domestic Operations
We provide our Technology and Expertise to our domestic customers in the following market areas:
•C3I – Ensuring information superiority by delivering multi-domain command, control, communications, and intelligence (C3I) technology and networks. Our software-defined signals intelligence and electronic warfare solutions enable coordinated decision superiority, secure communication, and actionable intelligence for operations across all domains for national security.
•Cyber – Providing full-spectrum cyber capabilities help customers prepare, defend, and sustain their enterprise and mission against cyber threats. Through our R&D efforts, we develop and deploy new technologies to conduct offensive and defensive operations, defend critical infrastructure, and maintain information dominance, while safeguarding U.S. national security against evolving cyber threats.
•Digital Solutions – Transforming how government does business. Using our agile-at-scale method and business process automation tools, we modernize enterprise and agency-unique applications, enterprise infrastructure, and business processes to enhance productivity and increase user satisfaction. We use data analytics and visualization to provide insights and outcomes that optimize our customers’ operations.
•Enterprise IT – Comprehensive solutions for modernizing and sustaining IT ecosystems, delivering secure, efficient, and integrated systems that optimize business operations, enhance data-driven decision making, ensure regulatory compliance, and maximize end-user experiences across all organizational levels and computing environments. We design, implement, protect, and manage secure enterprise IT solutions for approximately 50 federal agencies to optimize efficiency, enhance performance, and ensure end-user satisfaction.
•Mission and Engineering Support – Platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation services, and logistics engineering to help our customer achieve a decisive tactical edge. We deliver unique expertise that support activities integral to the execution of customer mission and the modernization and sustainment of mission platforms, payloads, and weapons systems.
•Space – Space domain awareness, sensing, intelligence production, and decision support capabilities to enable multi-domain operations. We are an industry leader in intelligence fusion, data analytics, and decision support as well as integrated logistics. We provide technology, people, and systems that sense, process, and deliver information to and from space along with the protection of these vital space assets using both offensive and defensive capabilities.
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•Spectrum Superiority – Design and development of software-defined, hardware enabled technologies that enables customers to sense, make sense, and take decisive action in the electromagnetic spectrum. We design and develop differentiated technology across the radio-frequency spectrum for intelligence, surveillance, reconnaissance, and electronic warfare and build specialized photonics, waveforms, and technology to enable secure communications across the battlefield.
Domestic Operations represented 96.8%, 97.0%, and 97.0% of our total revenues for the fiscal year ended June 30, 2026 (fiscal 2026), June 30, 2025 (fiscal 2025) and June 30, 2024 (fiscal 2024), respectively.
International Operations
Our International Operations are conducted primarily through our operating subsidiaries in Europe, CACI Limited and CACI BV, and account for substantially all revenues generated from international customers. Headquartered in London, our International Operations provide a diverse mix of IT services and proprietary data and software products, serving commercial and government customers throughout the U.K., continental Europe, and around the world.
International Operations represented 3.2%, 3.0%, and 3.0% of our total revenues for fiscal 2026, 2025, and 2024, respectively.
Competition
We operate in a highly competitive industry that includes many competitors, some of which are larger in size and have greater financial resources than we do. We obtain much of our business on the basis of proposals submitted in response to requests from potential and current customers, who generally receive proposals from other firms. Non-traditional players have entered the market and have established positions related to such areas as cloud computing, cyber, satellite operations, and business systems. Additionally, we face indirect competition from certain government agencies that perform services for themselves similar to those marketed by us. We know of no single competitor that is dominant in our fields of technology. We have a relatively small share of the addressable market for our Technology and Expertise and intend to achieve growth and increase market share both organically and through strategic acquisitions.
Strengths and Strategy
We primarily offer our entire range of Technology and Expertise to defense, intelligence, and civilian agencies of the U.S. government. We also contract through our International Operations to provide our offerings to governments of other nations. As with other government contractors, our business is subject to government customer funding decisions and actions that are beyond our control.
Our international commercial customer base consists primarily of large commercial and government enterprises in the U.K. This market is the primary target of a diverse mix of IT consultancy services and proprietary data and software products. Commercial bids are frequently negotiated as to terms and conditions for schedule, specifications, delivery, and payment.
In order to effectively perform on our existing customer contracts and secure new customer contracts within the U.S. government, we must maintain expert knowledge of agency policies, operations, and challenges. We combine this comprehensive knowledge with Technology and Expertise for our customers. Our capabilities provide us with opportunities either to compete directly for, or to support other bidders in competition for, multi-million dollar and multi-year award contracts from the U.S. government.
We have strategic business relationships with a number of companies across the industry. These strategic partners have business objectives compatible with ours and offer Technology and Expertise that complement ours. We intend to continue development of these kinds of relationships wherever they support our growth objectives.
Our marketing and new business development is conducted by many of our officers and managers including the Chief Executive Officer (CEO), executive officers, vice presidents, and division managers. We employ business development professionals who identify and qualify major contract opportunities, primarily in the federal government market.
Much of our business is won through submission of formal competitive bids. Government and commercial customers typically base their decisions regarding contract awards on their assessment of the quality of past performance, responsiveness to proposal requirements, price, and other factors. The terms, conditions, and form of contract of government bids, however, are in most cases specified by the customer. In situations in which the customer-imposed contract type or terms appear to expose us to inappropriate risk or do not offer us a sufficient financial return, we may negotiate alternate arrangements or opt not to bid for the work. Essentially all contracts with the U.S. government, and many contracts with other government entities, permit the government customer to terminate the contract at any time for the convenience of the government or for default by the contractor. Although we operate under the risk that such terminations may occur and have a material impact on operations, they have been rare and, generally, have not materially affected operations.
Our contracts and subcontracts are composed of a wide range of contract types, including fixed-price, cost reimbursement, time-and-materials, Indefinite Delivery/Indefinite Quantity (IDIQ), and Government Wide Acquisition Contracts (known as GWACS) such as General Services Administration (GSA) schedule contracts. By company policy, significant fixed-price contracts require the approval of at least two of executives.
For fiscal 2026, the top ten revenue-producing contracts, many of which consist of multiple task orders, accounted for 22.5% of our revenues, or $2.2 billion.
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Recent Acquisitions
During the past three fiscal years, we completed a total of eight acquisitions, including:
•During fiscal 2026, the Company completed two acquisitions that enhanced our ability to deliver advanced technology for our national security customers in the space domain and to provide specialist data and cloud migration services to government clients.
•During fiscal 2025, the Company completed three acquisitions that expanded our software-defined offerings, specialized technologies, and customer presence.
•During fiscal 2024, the Company completed three acquisitions that enhance our capabilities and customer relationships.
Seasonal Nature of Business
Our business is generally not seasonal. Variations in our business also may occur at the expiration of major contracts until such contracts are renewed or new business is obtained.
The U.S. government’s fiscal year ends on September 30 of each year. It is not uncommon for government agencies to award extra tasks or complete other contract actions in the weeks before the end of a fiscal year in order to avoid the loss of unexpended funds. Moreover, in years when the U.S. government does not complete the budget process for the next fiscal year before the end of September, government operations, whose appropriations legislation has not been signed into law, are funded under a continuing resolution (CR) that authorizes them to continue to operate but traditionally does not authorize new spending initiatives.
Human Capital
Our People
Our employees are our most valuable resource. We are in continuing competition for highly skilled professionals in all of our market areas. The success and growth of our business is significantly correlated with our ability to recruit, train, promote, and retain high quality people at all levels of the organization. As of June 30, 2026, we employed approximately 27,000 talented full and part-time employees that help make CACI a respected and recognized industry leader.
Our Culture
Our culture defines who we are, how we act, and what we believe to be the right way to conduct business. It is the driving force behind our success. Our culture unifies us as a company and strengthens our resolve to meet our customers’ – and our country’s – most critical missions. We believe that there are two pillars to our culture: Character and Innovation.
Character is demonstrated in our commitment to ethics and integrity as we expect all of our employees and independent contractors to comply with our high standards for the conduct of our business that are reflected in our policies and practices. We require all of our employees, including officers and directors, as well as independent contractors working on customer engagements, to execute and affirm to the code of ethics applicable to their activities annually. In addition, we require annual ethics and compliance training for all of our employees to provide them with the knowledge necessary to maintain our high standards of ethics and compliance.
Innovation is demonstrated in our dedication to advancement and excellence. Our Center for Research, Application, Development, Learning, and Engagement (CRADLE℠) is a state-of-the-art collaboration facility that provides customers with an enhanced engagement experience, built to foster innovation, creative designs, and unique solutions. The CRADLE℠ brings together customers, industry partners, academia, and CACI personnel to explore and discover new ways to solve complex problems and challenges.
Talent Acquisition, Development, and Retention
Our industry is ever-evolving, and those who are most successful evolve with it, continually learning and growing throughout their careers. To ensure we have the talent to meet the needs of our customers, we employ broad recruiting and outreach efforts, including partnerships with universities, the military, and professional organizations, resulting in an inclusive pool of the most qualified candidates.
We are able to retain our employees through our career mobility corporate culture, where we believe in growth at all levels. We encourage all employees to embrace a career growth mindset at CACI and strive to provide our employees with long-term professional advancement and a great workplace experience through professional development and a culture of mobility because our people drive our company.
CACI has conducted employee engagement surveys, and we rank above external benchmark companies in the areas of sustainable engagement, inclusion, teamwork, supervision, and empowerment. Specifically, our employees report that they have a personal sense of accomplishment in their work, they feel safe to speak up, and they have pride in CACI. These indicators of an exceptionally strong culture and work environment puts CACI in an extremely competitive position to attract and retain talent and reach our organizational growth objectives. We continue to invest in the areas that produce such high engagement – leadership education, career resources for employees, comprehensive onboarding for new employees, and formal and informal communications that create a two-way dialogue among employees and leaders.
We have a multilevel approach to developing our leaders, with cohort-style programs for first-line, mid-level, and executive leaders. These programs focus on leadership capabilities unique to each level of leadership and serve to increase self-awareness, strengthen skills, and expand networking for our leaders. Furthermore, we have a robust talent planning approach to identify potential future leaders, conduct rigorous assessments, and create actionable development plans to advance their readiness to take on our most senior roles as they evolve in our future.
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Employee Wellbeing
We value the social, physical, financial, and emotional well-being of our employees. We believe in curating environments and providing resources that support the CACI community’s well-being. We cultivate a culture that prioritizes wellness and encourages a healthy, balanced, and thriving lifestyle. It is our desire to provide our employees innovative and accessible resources that support them on their well-being journey to become their best selves. Our mission is to educate, support, and empower employees through the delivery of a comprehensive well-being program. Our well-being program includes Flexible Time Off, which allows employees to better balance their work and personal commitments by providing them the opportunity to take time off as needed without a set number of maximum days per year. In addition, CACI supports the financial wellness of our employees by providing unlimited access to fiduciary advice at no cost to the employee, as well as a full suite of tools and educational opportunities to enable our employees to meet their financial goals.
Patents, Trademarks, Trade Secrets and Licenses
Generally, our solutions and services are not substantially dependent upon obtaining or maintaining Intellectual Property (IP) protections, although our operations make use of such protections and benefit from them as discriminators in competition. The Company owns patents and claims copyright, trademark, and other proprietary rights in a variety of IP. We also maintain a number of trade secrets that contribute to our success and competitive distinction and endeavor to accord such trade secrets protection adequate to ensure their continuing availability to us.
Our proprietary information is protected through a combination of contractual arrangements with our employees and third parties and IP laws. From time to time, we are required to assert our rights against former employees or other third parties who attempt to misappropriate our proprietary and confidential information. Although we are not materially dependent on the protection of our IP, we take such matters seriously and pursue claims against such individuals to the extent necessary to adequately protect our rights.
It is important that we maintain access to software, data, and technology supplied by third parties, and we continue to enter into agreements that give us the right to distribute and receive income from third party software, data, and technology that serve our customers. The durations of such agreements are negotiated and vary according to the terms of the agreements.
Business Segments, Foreign Operations, and Major Customers
The Company reports operating results and financial data in two segments: Domestic Operations and International Operations. See “Note 18 – Business Segments” in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
Available Information
Our telephone number is (703) 841-7800, and our website can be accessed at www.caci.com. We make our web site content available for information purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Annual Report on Form 10-K.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are made available free of charge on our website at www.caci.com as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities Exchange Commission (SEC). Documents filed by us with the SEC can also be viewed at www.sec.gov.
Item 1A. Risk Factors
You should carefully consider the risks and uncertainties described below, together with the information included elsewhere in this Annual Report on Form 10-K and other documents we file with the SEC. The risks and uncertainties described below are those that we have identified as material but are not the only risks and uncertainties that we face. Our business is also subject to general risks and uncertainties, such as overall U.S. and non-U.S. economic and industry conditions including a global economic slowdown, geopolitical events, changes in laws or accounting rules, fluctuations in interest and exchange rates, terrorism, international conflicts, major health concerns including global pandemics, natural disasters, or other disruptions of expected economic and business conditions, that affect many other companies. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial also may impact our business operations and liquidity.
Risks Related to our Business and Industry
We generate substantially all of our revenues from contracts with the federal government. If the federal government significantly decreased or ceased doing business with us, our business, prospects, financial condition, and operating results would be materially and adversely affected.
The federal government is our primary customer, with revenues from federal government contracts, either as a prime contractor or a subcontractor, accounting for 95.6% and 95.7% of our total revenues in fiscal 2026 and 2025, respectively. Specifically, we generated 53.6% and 53.5% of our total revenues in fiscal 2026 and 2025, respectively, from contracts with agencies of the Department of War (DoW). We also generated 24.6% and 25.6% of our total revenues in fiscal 2026 and 2025, respectively, from contracts with the Intelligence Community (IC). We expect that federal government contracts will continue to be the primary source of our revenues for the foreseeable future. If we were suspended or debarred from contracting with the federal government or any significant agency in the IC or the DoW, if our reputation or relationship with government agencies was impaired, or if the government otherwise ceased doing business with us or significantly decreased the amount of business it does with us, our business, prospects, financial condition and operating results would be materially and adversely affected.
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Our business could be adversely affected by changes in spending levels or budgetary priorities of the federal government.
Because we derive substantially all of our revenues from contracts with the federal government, the success and development of our business will continue to depend on our successful participation in federal government contract programs. Actions taken by the federal government to address government budget deficits, the national debt, or prevailing economic conditions, including the use of continuing resolutions, delays or reductions in appropriations, or a federal government shutdown, may prevent us from performing on existing contracts, delay our ability to begin work on new awards, or require us to use our own funds to meet our customers’ desired delivery schedules. A lapse in appropriations, delays in the passage of annual budgets, or the use of continuing resolutions can postpone contract awards, slow program execution, interrupt customer decision making, or defer funding availability, even in periods where long-term spending levels remain stable. The duration, frequency, and severity of any such disruptions are unpredictable and could materially impact our financial results.
Additionally, the federal government may also change its budgeting in response to evolving national security, technology, economic, or policy considerations. A significant decline in expenditures for programs in our addressable markets, or a reallocation of funds toward missions or capabilities we do not directly support, or a change in federal government contracting policies could cause federal agencies to decrease purchases under existing contracts, terminate contracts for convenience, or choose not to exercise options and impact our ability to win new awards.
For further discussion, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this Annual Report on Form 10-K.
Federal government contracts contain termination rights and numerous other provisions that are unfavorable to us.
Federal government contracts contain provisions and are subject to laws and regulations that give the government rights and remedies, some of which are not typically found in commercial contracts, including allowing the government to:
•terminate contracts for convenience;
•cancel multi-year contracts and related orders if funds for contract performance for any subsequent year become unavailable;
•claim rights in systems and software developed by us;
•suspend or debar us from doing business with the federal government or with a governmental agency;
•impose fines and penalties and subject us to criminal prosecution; and
•control or prohibit the export of our data and technology.
If the government terminates a contract for convenience, we may recover only our incurred or committed costs, settlement expenses, and profit on work completed prior to the termination. If the government terminates a contract for default, we may be unable to recover even those amounts and instead may be liable for excess costs incurred by the government in procuring undelivered items and services from another source. Depending on the value of a contract, such termination could cause our actual results to differ materially and adversely from those anticipated.
Certain contracts also contain organizational conflict of interest (OCI) clauses that limit our ability to compete for or perform certain other contracts. OCIs arise any time we engage in activities that (i) make us unable or potentially unable to render impartial assistance or advice to the government; (ii) impair or might impair our objectivity in performing contract work; or (iii) provide us with an unfair competitive advantage. For example, when we work on the design of a particular system, we may be precluded from competing for the contract to develop and install that system. Depending upon the value of the matters affected, an OCI issue that precludes our participation in or performance of a program or contract could cause our actual results to differ materially and adversely from those anticipated.
As is common with government contractors, we have experienced and continue to experience occasional performance issues under certain of our contracts. Depending upon the value of the matters affected, a performance problem that impacts our performance of a program or contract could cause our actual results to differ materially and adversely from those anticipated and impair our prospects for future contract awards.
If we fail to establish and maintain important relationships with government entities and agencies, our ability to successfully bid for new business may be adversely affected.
To facilitate our ability to prepare bids for new business, we rely in part on establishing and maintaining relationships with officials of various government entities and agencies. These relationships enable us to provide informal input and advice to government entities and agencies prior to the development of a formal bid. We may be unable to successfully maintain our relationships with government entities and agencies, and any failure to do so may adversely affect our ability to bid successfully for new business and could cause our actual results to differ materially and adversely from those anticipated.
We derive significant revenues from contracts and task orders awarded through a competitive bidding process. If we are unable to consistently win new awards over any extended period, or if we face significant delays due to competitor protests, our business and prospects will be adversely affected.
Our contracts and task orders with the federal government are typically awarded through a competitive bidding process. We expect that much of the business that we will seek in the foreseeable future will continue to be awarded through competitive bidding.
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Budgetary pressures and changes in the procurement process have caused many government customers to increasingly purchase goods and services through IDIQ contracts, GSA schedule contracts and other government-wide acquisition contracts. These contracts, some of which are awarded to multiple contractors, have increased competition and pricing pressure, requiring that we make sustained post-award efforts to realize revenues under each such contract. In addition, in consideration of the practice of agencies awarding work under such contracts that is arguably outside the intended scope of the contracts, both the GSA and the DoW have initiated programs aimed to ensure that all work fits properly within the scope of the contract under which it is awarded. The net effect of such programs may reduce the number of bidding opportunities available to us. Moreover, even if we are highly qualified to work on a particular new contract, we might not be awarded business because of the federal government’s policy and practice of maintaining a diverse contracting base.
This competitive bidding process presents a number of risks, including the following:
•we bid on programs before the completion of their design, which may result in unforeseen technological difficulties and cost overruns;
•we expend substantial cost and managerial time and effort to prepare bids and proposals for contracts that we may not win; and
•we may be unable to estimate accurately the resources and cost structure that will be required to service any contract we win.
In addition to the challenges of the bidding process, our business could be adversely affected by our competitors protesting major contract awards. Defending against these challenges can result in significant expenses and any such protest or challenge could lead to the resubmission of bids on modified specifications, an unfavorable modification, or the termination, reduction, or complete loss of an awarded contract. Even an unsuccessful bid protest could delay the initiation, startup, and funding of the work under these contracts and may cause our actual results to differ materially and adversely from those anticipated.
If we are unable to win particular multi-year contracts, we may be prevented from providing to customers services that are purchased under those contracts for a number of years. If we are unable to consistently win new contract awards over any extended period, our business and prospects will be adversely affected and that could cause our actual results to differ materially and adversely from those anticipated. In addition, upon the expiration of a contract, if the customer requires further services of the type provided by the contract, there is frequently a competitive rebidding process. There can be no assurance that we will win any particular bid, or that we will be able to replace business lost upon expiration or completion of a contract, and the termination or non-renewal of any of our significant contracts could cause our actual results to differ materially and adversely from those anticipated.
Our business may suffer if we or our employees are unable to obtain the security clearances or other qualifications needed to perform services for our customers.
Many of our federal government contracts require us to have security clearances and employ personnel with specified levels of education, work experience, and security clearances. Depending on the level of clearance, security clearances can be difficult and time-consuming to obtain. If we or our employees lose or are unable to obtain necessary security clearances, we may not be able to win new business and our existing customers could terminate their contracts with us or decide not to renew them. To the extent we cannot obtain or maintain the required security clearances for our employees working on a particular contract, we may not generate the revenues anticipated from the contract which could cause our results to differ materially and adversely from those anticipated.
If our subcontractors fail to perform their contractual obligations, our performance as a prime contractor and our ability to obtain future business could be materially and adversely impacted and our actual results could differ materially and adversely from those anticipated.
Our performance of government contracts may involve the issuance of subcontracts to other companies upon which we rely to perform all or a portion of the work we are obligated to deliver to our customers. A failure by one or more of our subcontractors to satisfactorily deliver on a timely basis the agreed-upon supplies, perform the agreed-upon services, or appropriately manage their vendors may materially and adversely impact our ability to perform our obligations as a prime contractor.
A subcontractor’s performance deficiency could result in the government terminating our contract for default. A default termination could expose us to liability for excess costs of re-procurement by the government and could have a material adverse effect on our ability to compete for future contracts and task orders. Depending upon the level of problem experienced, such problems with subcontractors could cause our actual results to differ materially and adversely from those anticipated.
The federal government’s appropriation process and other factors may delay the collection of our receivables, and our business may be adversely affected if we cannot collect our receivables in a timely manner.
We depend on the timely collection of our receivables to generate cash flow, provide working capital, pay debt, and support ongoing business operations. If the federal government, any of our other customers, or any prime contractor for whom we are a subcontractor fails to pay or delays payment of their outstanding invoices for any reason, our financial condition and operating results could be materially and adversely affected.
The federal government may delay payment of invoices for several reasons, including lack of appropriated funds, delays in the budget or appropriations process, or other funding constraints. We are also subject to audits or oversight activities by the Defense Contract Audit Agency (DCAA) which has the authority to revoke our direct-billing privileges and contracting officers who may impose contractual withholdings, including those required under the Defense Federal Acquisition Regulations when a contractor’s business systems are found to have a material weakness. Prime contractors for whom we are a subcontractor may also experience cash-flow constraints or have limited financial resources, which increases the risk that payments due to us may be delayed or not paid in full.
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Difficulties collecting receivables for any reason can impair our ability to meet our financial obligations, increase our cost of capital, reduce our ability to invest in growth or new opportunities, and require us to obtain additional sources of liquidity on less favorable terms. If we are unable to collect receivables in the amounts or within the timeframes we expect, our actual results could differ materially and adversely from those anticipated, and our overall business performance could be negatively affected.
The federal government may change its procurement or other practices in a manner adverse to us.
The federal government may change its procurement practices, or adopt new contracting rules and regulations, as a result of an increased focus on affordability, efficiencies, business systems and recovery of costs. Any initiatives or changes to current procurement practices, including, but not limited to increased usage of fixed-price contracts, multiple-award contracts, small business set-aside contracts, new socio-economic requirements, or changes to the basis upon which it reimburses our compensation and other expenses or otherwise limit such reimbursements could have adverse effects on our business. In addition, although we continue to expand our portfolio of technology solutions, changes to service-based procurement practices may also adversely affect our performance. As new contracting methods could be costly or administratively difficult for us to satisfy, they could impair our ability to obtain new contracts or win re-competed contracts or adversely affect our future profit margin which could cause actual results to differ materially and adversely from those anticipated.
Specifically, certain federal agencies are increasingly using alternative or rapid acquisition pathways for emerging technologies, including flexible contracting approaches such as “other transaction authority” agreements. These acquisition methods differ from traditional FAR based processes and may involve requirements, such as participation by non‑traditional contractors or cost‑sharing obligations, that could limit our ability to qualify or compete effectively. If we are unable to adapt to these evolving procurement approaches or meet the associated eligibility, technical, or administrative requirements, we may be unable to pursue certain strategic opportunities in high‑growth areas. As a result, our ability to capture new awards, expand into developing mission areas, or achieve expected levels of performance and growth could be adversely affected.
Our contracts and administrative processes and systems are subject to audits and cost adjustments by the federal government, which could reduce our revenues, disrupt our business, or otherwise adversely affect our operating results.
Federal government agencies, including the DCAA and the Defense Contract Management Agency, routinely audit and investigate government contracts and government contractors’ administrative processes and systems. These agencies review our performance on contracts, pricing practices, cost structure, and compliance with applicable laws, regulations and standards. They also evaluate the adequacy of internal controls over our business systems, including our purchasing, accounting, estimating, earned value management, and government property systems. Any costs found to be improperly allocated or assigned to contracts will not be reimbursed, and any such costs already reimbursed must be refunded and certain penalties may be imposed. Moreover, if any of the administrative processes and systems are found not to comply with requirements, we may be subjected to increased government scrutiny and approval that could delay or otherwise adversely affect our ability to compete for or perform contracts or collect our revenues in a timely manner. Therefore, an unfavorable outcome of an audit by the DCAA or another government agency could cause actual results to differ materially and adversely from those anticipated. If a government investigation uncovers improper or illegal activities, we may be subject to civil and criminal penalties and administrative sanctions, including termination of contracts, forfeitures of profits, suspension of payments, fines, and suspension or debarment from doing business with the federal government. In addition, we could suffer serious reputational harm if allegations of impropriety were made against us. Each of these results could cause actual results to differ materially and adversely from those anticipated.
Failure to maintain strong relationships with other contractors could result in a decline in our revenues.
We derive substantial revenues from contracts in which we act as a subcontractor or from teaming arrangements in which we and other contractors bid on particular contracts or programs. As a subcontractor or teammate, we often lack control over fulfillment of a contract, and poor performance on the contract could impact our customer relationship, even when we perform as required. We expect to continue to depend on relationships with other contractors for a portion of our revenues in the foreseeable future. Moreover, our revenues and operating results could differ materially and adversely from those anticipated if any prime contractor or teammate chose to offer directly to the customer services of the type that we provide or if they team with other companies to provide those services.
We may not realize the full value of the contracts included in our backlog, which could cause our future revenues and operating results to differ materially from those anticipated.
Our total backlog consists of funded and unfunded amounts. Funded backlog represents the value of contracts for which funding has been appropriated less revenues previously recognized on these contracts. Unfunded backlog represents the estimated values that have the potential to be recognized into revenue from executed contracts for which funding has not yet been appropriated and unexercised contract options. Backlog is not a guarantee of future revenues, and the timing or amount of work ultimately performed may vary significantly from our estimates.
There are several reasons why our backlog may not convert into revenue as expected. Many of our federal government contracts include multi‑year performance periods that depend on annual Congressional appropriations, and unfunded work is subject to future funding decisions. A lack of appropriated funds, delays in the federal budget or appropriations process, or efforts to reduce federal spending could delay or preclude the government from funding work included in our backlog. In addition, the maximum contract value specified under a contract or task order is not necessarily indicative of the revenue we will ultimately realize under that contract. For example, we perform significant work under multiple-award and IDIQ contract vehicles that do not require the government to order a minimum amount of goods or services and under which agencies may choose to obtain support from other contractors.
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Changes in mission priorities, procurement strategies, or program execution may also result in reductions in scope, fewer task order awards, or lower-than-anticipated ordering levels.
Backlog may also not be collected if a customer reduces, delays, or cancels planned work; elects not to exercise contract options; or shifts work to other contractors. Our estimates of unfunded backlog may prove inaccurate, and the timing and amount of revenue ultimately realized may differ materially from our expectations. If we do not receive the anticipated funding, if the government does not order work at expected levels, or if we are unable to perform or retain the work included in our backlog, our future revenues, cash flows, and operating results could be materially and adversely affected.
Employee misconduct, including security breaches, could result in the loss of customers and our suspension or debarment from contracting with the federal government.
We may be unable to prevent our employees from engaging in misconduct, fraud or other improper activities that could adversely affect our business and reputation. Misconduct could include the failure to comply with federal government procurement regulations, regulations regarding the protection of classified information, and legislation regarding the pricing of labor and other costs in government contracts. Many of the systems we develop involve managing and protecting information involved in national security and other sensitive government functions. A security breach in one of these systems could prevent us from having access to such critically sensitive systems. Other examples of employee misconduct could include timecard fraud and violations of the Anti-Kickback Act. The precautions we take to prevent and detect this activity may not be effective, and we could face unknown risks or losses. As a result of employee misconduct, we could face fines and penalties, loss of security clearance, and suspension or debarment from contracting with the federal government, which could cause our actual results to differ materially and adversely from those anticipated.
Our failure to attract and retain qualified employees, including our senior management team, could adversely affect our business.
Our continued success depends to a substantial degree on our ability to recruit and retain the technically skilled personnel we need to serve our customers effectively. Our business involves the development of tailored solutions for our customers, a process that relies heavily upon the expertise and services of our employees. Accordingly, our employees are our most valuable resource. Competition for skilled personnel is intense, and technology companies often experience high attrition among their skilled employees. There is a shortage of people capable of filling these positions and they are likely to remain a limited resource for the foreseeable future. Recruiting and training these personnel require substantial resources. Our failure to attract and retain technical personnel could increase our costs of performing our contractual obligations, reduce our ability to efficiently satisfy our customers’ needs, limit our ability to win new business, and cause our actual results to differ materially and adversely from those anticipated. In addition to attracting and retaining qualified technical personnel, we believe that our success will depend on the continued employment of our senior management team and its ability to generate new business and execute projects successfully. Our senior management team is very important to our business because personal reputations and individual business relationships are a critical element of obtaining and maintaining customer engagements in our industry, particularly with agencies performing classified operations. The loss of any of our senior executives could cause us to lose customer relationships or new business opportunities, which could cause actual results to differ materially and adversely from those anticipated.
Our markets are highly competitive, and many of the companies we compete against have substantially greater resources.
The markets in which we operate include a large number of participants and are highly competitive. Many of our competitors may compete more effectively than we can because they are larger, better financed, and better known companies than we are. In order to stay competitive in our industry, we must also keep pace with changing technologies and customer preferences. If we are unable to differentiate our services from those of our competitors, our revenues may decline. In addition, our competitors have established relationships among themselves or with third parties to increase their ability to address customer needs. As a result, new competitors or alliances among competitors may emerge and compete more effectively than we can. There is also a significant industry trend towards consolidation, which may result in the emergence of companies which are better able to compete against us. The results of these competitive pressures could cause our actual results to differ materially and adversely from those anticipated.
Our quarterly revenues and operating results could be volatile due to the unpredictability of the federal government’s budgeting process and policy priorities.
Our quarterly revenues and operating results may fluctuate significantly and unpredictably in the future. In particular, if the federal government does not adopt, or delays adoption of, a budget for each fiscal year beginning on October 1, or fails to pass a CR, federal agencies may be forced to suspend our contracts and delay the award of new and follow-on contracts and orders due to a lack of funding. Further, the rate at which the federal government procures technology may be negatively affected following changes in presidential administrations and senior government officials. Therefore, period-to-period comparisons of our operating results may not be a good indication of our future performance.
Our quarterly operating results may not meet the expectations of securities analysts or investors, which in turn may have an adverse effect on the market price of our common stock.
An increase in the prices of goods and services could raise the costs associated with providing our services, diminish our ability to compete for new contracts or task orders and reduce customer buying power.
We may experience an increase in the costs in our supply and labor markets due to global inflationary pressures and other various geopolitical factors. We generate a portion of our revenues through various fixed-price and multi-year government contracts which anticipate moderate increases in costs over the term of the contract. With the current pace of inflation our standard approach to moderate annual price escalations in our bids for multi-year work may be insufficient to counter inflationary cost pressures.
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This could result in reduced profits, or even losses, as inflation increases, particularly for fixed-priced contracts and our longer-term multi-year contracts. In the competitive environment in which we operate as a government contractor, the lack of pricing leverage and ability to renegotiate long-term, multi-year contracts could reduce our profits, disrupt our business, or otherwise materially adversely affect our results of operations.
We may lose money or generate less than anticipated profits if we do not accurately estimate the cost of an engagement which is conducted on either a fixed-price or a time-and-materials basis.
Fixed-price contracts require us to price our contracts by predicting our expenditures in advance. In addition, some of our engagements obligate us to provide ongoing maintenance and other supporting or ancillary services on a fixed-price basis or with limitations on our ability to increase prices. Many of our engagements are also on a time-and-materials basis. While these types of contracts are generally subject to less uncertainty than fixed-price contracts, to the extent that our actual labor costs are higher than expected, our actual results could differ materially and adversely from those anticipated.
When making proposals for engagements on a fixed-price basis, we rely on our estimates of costs and timing for completing the projects. These estimates reflect our best judgment regarding our capability to complete the task efficiently. Any increased or unexpected costs or unanticipated delays in connection with the performance of fixed-price contracts, including delays caused by factors outside of our control, could make these contracts less profitable or unprofitable. From time to time, unexpected costs and unanticipated delays have caused us to incur losses on fixed-price contracts, primarily in connection with state government customers. On rare occasions, these losses have been significant. In the event that we encounter such problems in the future, our actual results could differ materially and adversely from those anticipated.
We use estimates in recognizing revenues, and changes in those estimates may adversely affect our financial results.
A significant portion of our revenue is recognized over time using a cost-input measure of progress, which requires us to make accurate estimates of total costs at completion and the fees to be earned on our contracts. Because of the technical complexity of the solutions and services we provide, as well as the extended duration of certain contracts, this estimation process is highly complex and requires significant management judgment. As contract performance progresses, we routinely adjust our initial estimates based on experience gained and newly available information, even when the scope of work under the performance obligation has not changed. If our underlying assumptions or estimates prove to be inaccurate, or if circumstances change, we may be required to make material adjustments to our revenue and profit margins. Such adjustments could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
Our earnings and margins may vary based on the mix of our contracts and programs.
We generate revenue from a mix of cost reimbursable, time-and-materials, and fixed-price contracts, of which profit margins vary. Our earnings and margins may therefore change materially and adversely depending on the relative mix of contract types, the costs incurred in their performance, the achievement of other performance objectives, and the stage of performance at which the right to receive fees, particularly under incentive and award fee contracts, is finally determined.
Risks Related to our Acquisitions
We may have difficulty identifying and executing acquisitions on favorable terms and therefore may grow at a slower rate than we historically have grown.
One of our key growth strategies has been to selectively pursue acquisitions. Through acquisitions, we have expanded our base of federal government customers, increased the range of solutions we offer to our customers, and deepened our penetration of existing markets and customers. We may encounter difficulty identifying and executing suitable acquisitions. To the extent that management is involved in identifying acquisition opportunities or integrating new acquisitions into our business, our management may be diverted from operating our core business. Without acquisitions, we may not grow as rapidly as we historically have grown, which could cause our actual results to differ materially and adversely from those anticipated. We may encounter other risks in executing our acquisition strategy, including:
•increased competition for acquisitions may increase the costs of our acquisitions;
•our failure to discover material liabilities during the due diligence process, including the failure of prior owners of any acquired businesses or their employees to comply with applicable laws or regulations, such as the Federal Acquisition Regulation and health, safety, and environmental laws, or their failure to fulfill their contractual obligations to the federal government or other customers; and
•acquisition financing may not be available on reasonable terms or at all.
Each of these types of risks could cause our actual results to differ materially and adversely from those anticipated.
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We may have difficulty integrating the operations of any companies we acquire, which could cause actual results to differ materially and adversely from what we anticipated.
The success of our acquisition strategy will depend upon our ability to continue to successfully integrate any businesses we may acquire in the future. The integration of these businesses into our operations may result in unforeseen operating difficulties, absorb significant management attention and require significant financial resources that would otherwise be available for the ongoing development of our business. These integration difficulties include the integration of personnel with disparate business backgrounds, the transition to new information systems, coordination of geographically dispersed organizations, loss of key employees of acquired companies, and reconciliation of different corporate cultures. For these or other reasons, we may be unable to retain key customers of acquired companies. Moreover, any acquired business may fail to generate the revenues or net income we expected or produce the efficiencies or cost-savings we anticipated. Any of these outcomes could cause our actual results to differ materially and adversely from those anticipated.
We have substantial investments in goodwill and intangible assets as a result of prior acquisitions, and changes in future business conditions could cause these investments to become impaired, requiring substantial write-downs that would reduce our operating income.
We evaluate the recoverability of goodwill amounts annually or when evidence of potential impairment exists. The annual impairment test is based on several factors requiring judgment. Principally, a decrease in expected reporting unit cash flows or changes in market conditions may indicate potential impairment of goodwill. We evaluate impairment for intangible assets with finite lives whenever events or changes in circumstances indicate that the carrying value may not be recoverable at the asset group level. If there is an impairment, we would be required to write down the amount of goodwill and intangible assets, which would be reflected as a charge against operating income.
Risks Related to our Indebtedness
Our debt instruments impose certain restrictions on our ability to take certain actions which may have an impact on our business, operating results, and financial condition.
We have several debt instruments, including a senior secured credit facility (the Credit Facility), senior secured term loans (Term Loan B and Term Loan B-2), and senior unsecured notes (2033 Notes and 2033 Notes-2). These debt instruments impose certain operating and financial restrictions on us and require us to meet certain financial covenants. These restrictions may significantly limit or prohibit us from engaging in certain transactions, including:
•incurring or guaranteeing certain amounts of additional debt;
•paying dividends or other distributions to our stockholders or redeeming, repurchasing, or retiring our capital stock in excess of specific limits;
•making certain investments, loans, and advances;
•granting liens or other security interests to third parties, creating liens to secure indebtedness, and exceeding specific levels of liens on our assets;
•issuing or selling equity in our subsidiaries;
•selling certain assets currently held by us, including certain sale and lease-back transactions;
•prepaying certain subordinated indebtedness;
•amending or modifying certain agreements, including those related to indebtedness; and
•engaging in certain mergers, consolidations, or acquisitions.
The failure to comply with any of these covenants would cause a default under our debt instruments through cross-default provisions. A default, if not waived, could cause our debt to become immediately due and payable. In such situations, we may not be able to repay our debt or borrow sufficient funds to refinance it, and even if new financing is available, it may not contain terms that are acceptable to us.
We have been in compliance with all covenants since inception of the Credit Facility, Term Loan B, Term Loan B-2, 2033 Notes, and 2033 Notes-2.
We may incur additional indebtedness, which could impact our ability to service our debts.
The Credit Facility consists of a $2,000.0 million revolving credit facility (the Revolving Facility) and a $1,250.0 million term loan facility (the Term Loan). The Revolving Facility has sub-facilities of $150.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. The Credit Facility has an accordion feature that may provide additional borrowings. As of June 30, 2026, $660.0 million was outstanding under the Revolving Facility. The terms of our debt allow us to incur additional indebtedness from other sources so long as we satisfy the respective covenants. If new debt is added to our current debt levels, the risks related to our ability to service that debt could increase.
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Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
Our business may not generate cash flow from operations sufficient to service our debt and make necessary capital expenditures. If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as selling assets, restructuring debt, or obtaining additional equity capital on terms that may be onerous or highly dilutive.
A change in control or fundamental change may adversely affect us.
The Credit Facility, Term Loan B, and Term Loan B-2 provide that certain change in control events will constitute a default. The 2033 Notes and 2033 Notes-2 provide that upon the occurrence of certain change in control events accompanied by a ratings decline, the Company may be required to repurchase outstanding notes, in whole or in part, at a redemption price of 101% plus accrued and unpaid interest to the date of redemption.
Risks Related to our Operations
We must comply with a variety of laws and regulations, and our failure to comply could cause our actual results to differ materially from those anticipated.
We must observe laws and regulations relating to the formation, administration and performance of federal government contracts which affect how we do business with our customers and may impose added costs on our operations. These laws and regulations continue to evolve, and the federal government regularly updates or expands compliance obligations in areas such as cybersecurity, supply‑chain integrity, industrial security, cost accounting, and ethical conduct. Keeping pace with these changes requires ongoing investment in compliance processes, monitoring systems, training, and internal controls, and increases the complexity and cost of maintaining compliance across our business.
For example, the Federal Acquisition Regulation and the industrial security regulations of the DoW and related laws include provisions that:
•allow our federal government customers to terminate or not renew our contracts if we come under foreign ownership, control, or influence;
•require us to divest work if an OCI related to such work cannot be mitigated to the government’s satisfaction;
•require us to disclose and certify cost and pricing data in connection with contract negotiations; and
•require us to prevent unauthorized access to classified information, covered defense information, and controlled unclassified information.
Our failure to comply with these or other laws and regulations could result in contract termination, loss of security clearances, suspension or debarment from contracting with the federal government, civil fines and damages criminal prosecution, or other penalties, any of which could cause our actual results to differ materially and adversely from those anticipated.
Disruptions in our supply chain, including shortages of materials, components, or qualified suppliers, could impair our ability to perform on contracts and increase our costs, which could adversely affect our operating results.
We work with a network of suppliers and subcontractors to provide materials, hardware, software, and other critical components necessary to perform on our contracts, and disruptions, including shortages of specialized parts, supplier capacity constraints, transportation delays, labor shortages, or the financial instability of key vendors, could impair our ability to meet customer requirements. Geopolitical developments, export control restrictions, sanctions, cybersecurity incidents affecting suppliers, changes in trade policy, and evolving federal requirements related to supply chain security may further restrict the availability of qualified suppliers or increase our costs. In addition, certain programs require cleared suppliers or domestically sourced materials, and disruptions affecting these vendors may delay performance or require costly requalification of alternatives. If we are unable to obtain necessary materials or services on a timely and cost effective basis, we may experience performance delays, incur additional costs, or be unable to meet contractual obligations, any of which could materially and adversely affect our revenues, operating results, and customer relationships.
Systems failures, including cybersecurity incidents and other operational disruptions, may disrupt our business and have an adverse effect on our operating results.
Cybersecurity and Unauthorized Access
We rely on the confidentiality, integrity, and availability of our information systems, the systems of our third-party service providers, and the systems we operate for customers. Cybersecurity incidents, including malware, ransomware, phishing campaigns, credential compromise, and other unauthorized intrusions, could result in the loss, corruption, or exposure of data or disruptions to our operations or those of our customers. Consistent with industry trends, we continue to experience attempts to gain unauthorized access to our systems and information. Although past incidents have not had a material adverse impact and we actively invest in detection, response, and mitigation capabilities, the nature of these threats continues to evolve, and we cannot predict the impact of any future event. A significant cybersecurity incident could result in operational delays, remediation costs, reputational harm, legal or regulatory exposure, or the loss of current or future business.
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Operational, Infrastructure, and Other Non-Cyber Systems Failures
Our operations depend on the performance and reliability of our internal networks, data centers, communication systems, critical facilities, and utilities. Systems failures, including software defects, hardware malfunctions, third‑party service outages, natural disasters, power disruptions, or other physical or environmental events, could interrupt our ability to perform on customer contracts or conduct normal business operations. Our property and business interruption insurance may be inadequate to compensate us for all resulting losses. In addition, the systems and networks we maintain for our customers, even when designed with redundancy and resiliency features, may also experience failures or service interruptions. If these systems fail or are disrupted, we could face claims for damages, contract termination, or loss of revenue. Any such event could cause our actual results to differ materially and adversely from those anticipated.
Customer systems failures could damage our reputation and adversely affect our operating results.
We develop, integrate, maintain, support, or use systems that handle classified and sensitive U.S. government information, including intelligence and national-security data. While we have programs designed to protect such information and comply with all relevant privacy and security requirements, the threats that our clients face have grown more frequent and sophisticated. A security breach or system failure in a system that we develop, integrate, maintain or otherwise support could result in a loss of revenues, remediation costs, claims for damages or contract termination and our errors and omissions liability insurance may be inadequate to compensate us for all the damages that we might incur. Any such event could also cause serious damage to our reputation and prevent us from having access to or being eligible for further work on such sensitive systems for U.S. government customers. In addition, in order to provide services to our customers, we often depend upon or use customer systems that are supported by the customer or third parties. Any security breach or system failure in such systems could result in an interruption of our customers’ operations, significant delays under a contract, and a material adverse effect on our results of operations.
Our operations involve several risks and hazards, including potential dangers to our employees and to third parties that are inherent in aspects of our federal business (e.g., counterterrorism training services). If these risks and hazards are not adequately insured, it could adversely affect our operating results.
Our federal business includes the maintenance of global networks and the provision of special operations services (e.g., counterterrorism training) that require us to dispatch employees to various countries around the world. These countries may be experiencing political upheaval or unrest, and in some cases war or terrorism. It is possible that certain of our employees will suffer injury or bodily harm, or be killed or kidnapped in the course of these deployments. We could also encounter unexpected costs for reasons beyond our control in connection with the repatriation of our employees. Any of these types of accidents or other incidents could involve significant potential claims of employees and third parties who are injured or killed or who may have wrongful death or similar claims against us.
We maintain insurance policies that mitigate against risk and potential liabilities related to our operations. This insurance is maintained in amounts that we believe are reasonable. Our insurance coverage may not be adequate to cover those claims or liabilities, however, and we may be forced to bear significant costs from an accident or incident. Substantial claims in excess of our related insurance coverage could cause our actual results to differ materially and adversely from those anticipated.
Our failure to adequately protect our confidential information and proprietary rights may harm our competitive position.
Our success depends, in part, upon our ability to protect our proprietary information. Although our employees are subject to confidentiality obligations, this protection may be inadequate to deter misappropriation of our proprietary information. In addition, we may be unable to detect unauthorized use of our proprietary information in order to take appropriate steps to enforce our rights. If we are unable to prevent third parties from infringing or misappropriating our proprietary information, our competitive position could be harmed and our actual results could differ materially and adversely from those anticipated.
We face additional risks which could harm our business because we have International Operations.
We conduct the majority of our International Operations in the U.K. and the Netherlands. Our International Operations are subject to risks associated with operating in a foreign country. These risks include fluctuations in the value of the British pound and the Euro, longer payment cycles, changes in foreign tax laws and regulations, and unexpected legislative, regulatory, economic or political developments.
In addition, differences in business practices, labor environments, data protection obligations, and legal or regulatory requirements may increase our cost of compliance or limit our ability to expand certain offerings abroad. Unexpected changes in local laws, government policies, or geopolitical conditions could delay program execution, result in increased operating expenses, or reduce the profitability of our international work. If any of these events occur, our actual results could differ materially and adversely from those anticipated.
Our integration of artificial intelligence and related technologies subjects us to operational and regulatory risks, and our failure to effectively manage these risks could have a material adverse effect on our financial results.
We use AI and machine learning technologies in certain solutions we provide to customers and in aspects of our internal operations, which requires robust governance, secure data environments, and continuous innovation. Due to the technical complexity of these emerging technologies and the highly sensitive nature of our national security and enterprise IT contracts, developing and deploying AI systems is highly complex and involves significant judgment.
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Adjustments to our technological approach, security protocols, and compliance frameworks are often required as AI capabilities rapidly evolve, new vulnerabilities or algorithmic biases are discovered, and government regulations, such as executive orders and agency specific directives, are established, even though the core objectives of the performance obligation may not have changed. Flaws in underlying algorithms, vulnerabilities to data poisoning, unpredictable system outputs, or a failure to adapt to evolving federal procurement standards could necessitate costly remediation efforts, result in a loss of competitive advantage, or damage our professional reputation. Such outcomes could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
In addition, competitive dynamics in the AI marketplace are evolving quickly. Rapid advancements by existing competitors, new entrants, or commercial technology firms may outpace our internal development efforts or reduce the value of certain offerings. We may also face challenges recruiting and retaining personnel with specialized skills needed to develop, test, secure, and maintain AI‑enabled systems. If we are unable to adapt to changes in AI technologies, comply with emerging regulatory requirements, or meet customer expectations for responsible and secure AI, our ability to deliver solutions, win new business, or achieve expected financial and operational results could be adversely affected.
Item 1B. Unresolved Staff Comments
None.
Item 1C. Cybersecurity
Risk Management and Strategy
CACI maintains a structured cybersecurity risk management and oversight program designed to mitigate risks to our systems and protect internal and customer data. We utilize diverse technologies, programs, and processes to continually assess, identify, and manage cybersecurity threats while embedding industry best practices across our information security operations.
Our cybersecurity program is integrated into our enterprise risk management framework. The program is primarily managed by our Chief Information Security Officer (CISO), who coordinates cross-functional internal and external resources. The CISO is responsible for establishing procedures to monitor potential cybersecurity risks, identify cybersecurity incidents, implement mitigation measures, report breaches, and maintain our overall information security infrastructure.
The CISO has extensive experience managing cybersecurity programs and technical risk and oversees prevention, detection, mitigation, and remediation efforts through regular reporting from our information security team, supplemented by specialized security technologies. We continuously monitor cybersecurity threats and evaluate our cybersecurity prevention measures through routine internal and independent audits, cybersecurity threat simulations, vulnerability assessments, and employee cybersecurity training. The program is designed to align with applicable industry standards, and we continuously invest in capabilities to protect our information assets.
As a government contractor, we align our cybersecurity program with National Institute of Standards and Technology frameworks and comply with applicable U.S. government cybersecurity regulations. Our information systems infrastructure is routinely assessed by government agencies, and our network undergoes independent, third-party penetration testing biannually.
We also manage cybersecurity-related supply chain risks by working closely with subcontractors and suppliers. We require these partners to comply with applicable legal regulations, implement specific information security controls, and fulfill incident reporting obligations. While we perform due diligence during onboarding and establish contractual safeguards, our practical ability to monitor third-party practices or completely prevent a compromise within vendor-controlled information systems, software, or networks remains inherently limited.
We maintain a formalized incident response plan to address potential cybersecurity events promptly and effectively. The CISO leads our Cybersecurity Incident Response Team, which coordinates the execution of this plan and associated response processes. Under these policies, cybersecurity events are evaluated, ranked by severity, and prioritized for escalation to our Executive Incident Assessment Committee. The response plan outlines specific procedures for containment, investigation, affected-party notification, and corrective actions to prevent future occurrences.
Board of Directors Oversight
Our Audit and Risk Committee (the Audit Committee) maintains oversight responsibility for cybersecurity risks and incidents, including compliance with regulatory requirements, cooperation with law enforcement, and the associated impacts on our financial and operational risk profiles. The Audit Committee receives regular briefings from management regarding cybersecurity matters, including our posture, prevailing trends, and specific risks, and is updated on any material cybersecurity incidents should they occur. The Audit Committee reports its findings or recommendations to the full Board of Directors, as appropriate.
Cybersecurity Threats
To date, we have not identified any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business operations or financial condition. While we have taken significant steps to manage cybersecurity risks, there can be no assurance that these measures will completely prevent all potential incidents. For additional discussion of our cybersecurity-related risks, see “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K.
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Item 2. Properties
Our corporate headquarters is located at 12021 Sunset Hills Road, Reston, Virginia. As of June 30, 2026, our U.S. footprint comprised 156 owned or leased properties, including offices, manufacturing plants, warehouses, laboratories, and other facilities, totaling 4.8 million square feet across 31 states and the District of Columbia. Outside the U.S., we leased office space at eight locations in four countries, containing an aggregate of 0.1 million square feet. We believe our facilities are in good condition and adequate for our current use. See “Note 10 – Leases” in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
Item 3. Legal Proceedings
Al Shimari, et al. v. L-3 Services, Inc. et al.
On June 30, 2008, Plaintiff Al Shimari filed a twenty-count complaint in the United States District Court for the Southern District of Ohio. Plaintiff Al Shimari is an Iraqi who claimed that he suffered significant physical injury and emotional distress while held at Abu Ghraib prison in Iraq. The lawsuit named CACI International Inc, CACI Premier Technology, Inc. and former CACI employee Timothy Dugan as Defendants, along with L-3 Services, Inc. The complaint alleged that the Defendants conspired with U.S. military personnel to engage in illegal treatment of Iraqi detainees. The complaint did not allege any interaction between Plaintiff Al Shimari and any CACI employee. Plaintiff Al Shimari sought, inter alia, compensatory damages, punitive damages, and attorney’s fees. On August 8, 2008, the court granted CACI’s motion to transfer the action to the United States District Court for the Eastern District of Virginia. Thereafter, an amended complaint was filed adding three plaintiffs. On September 12, 2008, Mr. Dugan was dismissed from the case without prejudice. On October 2, 2008, CACI filed a motion to dismiss the case. CACI also moved to stay discovery pending further proceedings. The court granted CACI’s motion to stay discovery. On March 18, 2009, the court granted in part and denied in part CACI’s motion to dismiss. On March 23, 2009, CACI filed a notice of appeal with respect to the March 18, 2009 decision. Plaintiffs filed a motion to strike CACI’s notice of appeal and a motion to lift the stay on discovery. The United States District Court for the Eastern District of Virginia denied both motions. On April 27, 2009, Plaintiffs filed a motion to dismiss the appeal in the United States Court of Appeals for the Fourth Circuit. The United States Court of Appeals for the Fourth Circuit deferred any ruling on Plaintiffs’ motion and issued a briefing schedule. Plaintiffs filed a notice of cross-appeal, which CACI moved to dismiss. The Court of Appeals dismissed the Plaintiffs’ cross-appeal. On October 26, 2010, the United States Court of Appeals for the Fourth Circuit heard oral argument in the appeal and took the matter under advisement. On September 21, 2011, the United States Court of Appeals for the Fourth Circuit reversed the decision of the United States District Court for the Eastern District of Virginia and remanded the action with instructions to dismiss the action. On October 5, 2011, Plaintiffs filed a petition for a rehearing en banc, which the Court of Appeals granted. The Court of Appeals also invited the United States to participate in the en banc rehearing of the appeal as amicus curiae. The United States participated in that capacity in the en banc rehearing. On January 27, 2012, the Court of Appeals, sitting en banc, heard oral argument. On May 11, 2012, the Court of Appeals, in an 11-3 decision, held that it lacked jurisdiction over the appeal and dismissed the appeal. The action returned to the district court for further proceedings.
On October 12, 2012, the district court conducted a status conference at which the court asked the parties to prepare and submit a plan for discovery in the action. The parties subsequently filed a joint discovery plan, which the court approved. The Court also lifted the stay of discovery, and reinstated the claims arising under the Alien Tort Statute (ATS) that the Court had previously dismissed. On December 26, 2012, Plaintiffs filed a Second Amended Complaint. Defendants moved to dismiss several counts of the Second Amended Complaint. On March 8, 2013, the Court dismissed the conspiracy claims in the Second Amended Complaint, and dismissed CACI International Inc from the action. Subsequently, the Court allowed Plaintiffs to file a Third Amended Complaint for the purpose of repleading the conspiracy claims. On March 28, 2013, Plaintiffs filed a Third Amended Complaint, and on April 15, 2013, Defendant CACI Premier Technology, Inc. moved to dismiss the conspiracy claims in the Third Amended Complaint.
On March 19, 2013, the Court granted a motion for reconsideration filed by Defendants with respect to the statute of limitations applicable to the common law tort claims of three of the four Plaintiffs, and dismissed those claims. Defendant CACI Premier Technology, Inc. also filed a motion for sanctions with respect to the failure of three of the four Plaintiffs to appear for depositions and medical examinations as ordered by the court. On April 12, 2013, the Court denied that motion but entered an order requiring the three Plaintiffs to appear for depositions and medical examinations no later than April 26, 2013 and stating that if the three Plaintiffs did not comply with the order their claims were subject to dismissal. Plaintiffs did not appear for depositions in the United States as of April 26, 2013. Defendant CACI Premier Technology, Inc. then renewed its motion for sanctions, seeking dismissal, for the three Plaintiffs’ violation of the Court order to appear for depositions and medical examinations. Defendant CACI Premier Technology, Inc. also filed a motion to dismiss the ATS claims of all four Plaintiffs for lack of jurisdiction in light of the U.S. Supreme Court’s April 17, 2013 decision in Kiobel v. Royal Dutch Petroleum, and a motion to dismiss the common law claims of the single Plaintiff with those claims on various grounds.
On June 26, 2013, the Court issued a Memorandum Opinion and Order granting Defendant CACI Premier Technology, Inc.’s motions with respect to Plaintiffs’ ATS claims and Plaintiffs’ common law claims, and dismissing the Third Amended Complaint without prejudice. The Court also denied all other pending motions, including Defendant CACI Premier Technology, Inc.’s motions for sanctions and to dismiss the conspiracy claims, as moot.
On July 24, 2013, Plaintiffs filed a Notice of Appeal of the district court’s June 26 decision.
On March 18, 2014, a three judge panel of the United States Court of Appeals for the Fourth Circuit held a hearing on Plaintiffs’ appeal and took the matters under advisement. On June 30, 2014, the three judge panel vacated the district court’s June 26, 2013 Order and remanded Plaintiffs’ claims for further proceeding.
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On remand, Defendant CACI Premier Technology, Inc. moved to dismiss Plaintiffs’ claims based upon the political question doctrine. On June 18, 2015, the Court issued an Order granting Defendant CACI Premier Technology, Inc.’s motion to dismiss, and on June 26, 2015 entered a final judgment in favor of Defendant CACI Premier Technology, Inc.
On July 23, 2015, Plaintiffs filed a Notice of Appeal of the district court’s June 2015 decision. On October 21, 2016, the Court of Appeals vacated and remanded the District Court’s judgment with instructions for the District Court to make further determinations regarding the political question doctrine. That same day, the District Court (Lee, J.) entered an Order recusing himself from further participation in the action. Subsequently, a new District Court judge (Brinkema, J.) was assigned to the action. The District Court conducted an initial status conference on December 16, 2016. On June 9, 2017, the District Court dismissed Plaintiff Rashid without prejudice from the action based upon his inability to participate. On July 19, 2017, CACI Premier Technology, Inc. filed a motion to dismiss the action on numerous legal grounds. The Court held a hearing on that motion on September 22, 2017, and denied the motion pending issuance of a written decision. On January 17, 2018, CACI filed a third-party complaint naming the United States and John Does 1-60, asserting claims for contribution, indemnification, exoneration and breach of contract in the event that CACI Premier Technology, Inc. is held liable to Plaintiffs, as Plaintiffs are seeking to hold CACI Premier Technology, Inc. liable on a co-conspirator theory and a theory of aiding and abetting. On February 21, 2018, the District Court issued a Memorandum Opinion and Order dismissing with prejudice the claims of direct abuse of the Plaintiffs by CACI personnel (Counts 1, 4 and 7 of the Third Amended Complaint) in response to the motion to dismiss filed by CACI on July 19, 2017, and denying the balance of the motion to dismiss. On March 14, 2018, the United States filed a motion to dismiss the third party complaint or, in the alternative, for summary judgment. On April 13, 2018, the Court held a hearing on the United States’ motion to dismiss and took the matter under advisement. The Court subsequently stayed the part of the action against John Does 1-60.
On April 13, 2018, the Plaintiffs filed a motion to reinstate Plaintiff Rashid, which CACI opposed. On April 20, 2018, the District Court granted that motion subject to Plaintiff Rashid appearing for a deposition. On May 21, 2018, CACI filed a motion to dismiss for lack of subject matter jurisdiction based on a recent Supreme Court decision. On June 25, 2018, the District Court denied that motion. On October 25, 2018, the District Court conducted a pre-trial conference at which the District Court addressed remaining discovery matters, the scheduling for dispositive motions that CACI intends to file, and set a date of April 23, 2019 for trial, if needed, to start. On December 20, 2018, CACI filed a motion for summary judgment and a motion to dismiss based on the state secrets privilege. On January 3, 2019, CACI filed a motion to dismiss for lack of subject matter jurisdiction. On February 15, 2019, the United States filed a motion for summary judgment with respect to CACI’s third-party complaint. On February 27, 2019, the District Court denied CACI’s motion for summary judgment and motions to dismiss for lack of subject matter jurisdiction and on the state secrets privilege. On February 28, 2019, CACI filed a motion seeking dismissal on grounds of derivative sovereign immunity.
On March 22, 2019, the District Court denied the United States’ motion to dismiss on grounds of sovereign immunity and CACI’s motion to dismiss on grounds of derivative sovereign immunity. The District Court also granted the United States’ motion for summary judgment with respect to CACI’s third-party complaint. On March 26, 2019, CACI filed a Notice of Appeal of the District Court’s March 22, 2019 decision. On April 2, 2019, the U.S. Court of Appeals for the Fourth Circuit issued an Accelerated Briefing Order for the appeal. On April 3, 2019, the District Court issued an Order cancelling the trial schedule and holding matters in abeyance pending disposition of the appeal. On July 10, 2019, the U.S. Court of Appeals for the Fourth Circuit heard oral argument in Spartanburg, South Carolina on CACI’s appeal. On August 23, 2019, the Court of Appeals issued an unpublished opinion dismissing the appeal. A majority of the panel that heard the appeal held that rulings denying derivative sovereign immunity are not immediately appealable even where they present pure questions of law. The panel also ruled, in the alternative, that even if such a ruling was immediately appealable, review was barred because there remained disputes of material fact with respect to CACI’s derivative sovereign immunity defenses. The Court of Appeals subsequently denied CACI’s request for rehearing en banc. CACI then filed a motion to stay issuance of the mandate pending the filing of a petition for a writ of certiorari. On October 11, 2019, the Court of Appeals, by a 2-1 vote, denied the motion to stay issuance of the mandate. CACI then filed an application to stay issuance of the mandate with Chief Justice Roberts in his capacity as Circuit Justice for the U.S. Court of Appeals for the Fourth Circuit. After CACI filed that application, the Court of Appeals issued the mandate on October 21, 2019, returning jurisdiction to the district court. On October 23, Chief Justice Roberts denied the stay application “without prejudice to applicants filing a new application after seeking relief in the district court.” CACI then filed a motion in the district court to stay the action pending filing and disposition of a petition for a writ of certiorari. On November 1, 2019, the district court granted CACI’s motion and issued an Order staying the action until further order of the court. On November 15, 2019, CACI filed a petition for a writ of certiorari in the U.S. Supreme Court. On January 27, 2020, the U.S. Supreme Court issued an Order inviting the Solicitor General to file a brief in the case expressing the views of the United States. On August 26, 2020, the Solicitor General filed a brief recommending that CACI’s petition for a writ of certiorari be held pending the Supreme Court’s disposition of Nestle USA, Inc. v. Doe, cert. granted, No. 19-416 (July 2, 2020), and Cargill, Inc. v. Doe, cert. granted, No. 19-453 (July 2, 2020). The United States’ brief recommended that if the Supreme Court’s decisions in Nestle and Cargill did not effectively eliminate the claims in Al Shimari, then the Supreme Court should grant CACI’s petition for a writ of certiorari. On June 17, 2021, the Supreme Court issued its decision in the Nestle and Cargill cases, holding that the allegations of domestic conduct in the cases were general corporate activity insufficient to establish subject matter jurisdiction. As a result, the Supreme Court remanded the cases for dismissal. On June 28, 2021, the Supreme Court denied CACI’s petition for a writ of certiorari.
On July 16, 2021, the District Court granted CACI’s consent motion to lift the stay of the action, and ordered the parties to submit status reports to the District Court by August 4, 2021. On July 23, 2021, CACI filed a motion to dismiss the action for lack of subject matter jurisdiction based on, among other things, the recent Supreme Court decision in the Nestle and Cargill cases. On August 4, 2021, the parties submitted status reports to the District Court.
On September 10, 2021, the Court conducted a hearing on CACI’s motion to dismiss for lack of subject matter jurisdiction and took the motion under advisement.
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The Court issued an Order directing the plaintiffs to provide the Court with a calculation of specific damages sought by each plaintiff. In response, plaintiffs advised the Court that, if the case is tried, they do not intend to request a specific amount of damages.
On October 1, 2021, the plaintiffs filed an estimate of compensatory damages between $6.0 million and $9.0 million ($2.0 million to $3.0 million per plaintiff) and an estimate of punitive damages between $23.5 million and $64.0 million.
On July 18, 2022, CACI filed a memorandum of supplemental authority in support of its motion to dismiss filed on July 23, 2021, asserting that a recent decision from the U.S. Court of Appeals for the Fourth Circuit regarding the test for extraterritoriality supported dismissal for lack of subject matter jurisdiction. Also on July 18, 2022, CACI filed a second motion to dismiss for lack of subject matter jurisdiction on the grounds that three decisions issued by the Supreme Court in June 2022 demonstrate that courts should not recognize claims under the ATS that arise out of the United States’ prosecution of war. On September 16, 2022, the District Court conducted a hearing on that motion and took the matter under advisement.
On July 31, 2023, the District Court denied the July 23, 2021 motion to dismiss and the July 18, 2022 motion to dismiss. On September 7, 2023, CACI filed a petition for a writ of mandamus with the U.S. Court of Appeals for the Fourth Circuit, asserting that the District Court had disregarded binding precedent and asking the Court of Appeals to dismiss the action for lack of subject matter jurisdiction. On September 13, 2023, the Court of Appeals issued an Order requiring the plaintiffs to respond to the petition. On September 25, 2023, the plaintiffs filed their response to CACI’s petition, opposing the relief sought. On October 2, 2023, the District Court entered an Order setting the case for a jury trial on April 15, 2024. On November 2, 2023, the Court of Appeals denied without opinion the petition for a writ of mandamus. Trial commenced on April 15, 2024. During trial, the plaintiffs abandoned their claim of war crimes. On May 9, 2024, the jury notified the District Court that it was deadlocked and could not reach a unanimous verdict on any claim. The District Court then dismissed the jury and declared a mistrial.
On May 16, 2024, plaintiffs filed a motion for a new trial, and CACI filed a motion for judgment as a matter of law. On June 14, 2024, the District Court granted plaintiffs’ motion, denied CACI’s motion, and proposed dates in October 2024 for a new trial. The District Court subsequently scheduled the new trial to start on October 30, 2024. A second trial commenced on October 30, 2024. At the conclusion of the presentation of the evidence, the District Court granted CACI’s motion to dismiss the aiding and abetting claims for lack of evidence. On November 12, 2024, the jury found for the plaintiffs on the sole claim remaining in the case, that CACI personnel had conspired with the military for the military to abuse the plaintiffs. The jury awarded compensatory damages of $3 million per plaintiff and punitive damages of $11 million per plaintiff. After the verdict was returned, the District Court disclosed a note sent by the jury on November 8, 2024, not at the time disclosed to counsel, asking if the jury could award punitive damages to a non-profit human rights organization, rather than to plaintiffs, dealing with abuses arising from Abu Ghraib.
On November 25, 2024, CACI filed a motion for judgment as a matter of law, asserting numerous grounds for setting aside the jury verdict and dismissing the action. On January 10, 2025, the District Court conducted a hearing on that motion and denied the motion. On January 10, 2025, CACI filed a Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit. The Court of Appeals established a briefing schedule, which concluded on July 25, 2025. The Court of Appeals heard oral argument on September 9, 2025. On March 12, 2026, the Court of Appeals, in a 2-1 decision, affirmed the judgment of the district court against CACI. On April 24, 2026, the Company filed a petition for rehearing or rehearing en banc and asked the Court of Appeals to stay action on that petition pending the Supreme Court’s expected decision in Cisco Systems, Inc. v. Doe, No. 24-856. On June 22, 2026, the Supreme Court issued its decision in the Cisco case. The Supreme Court held that federal courts may not imply any causes of action under the ATS other than perhaps the three law of nations violations recognized at the time of ATS’s enactment—violation of safe conducts, infringements of the rights of ambassadors, and piracy. Both claims of conspiracy on which the judgment against CACI below rests were judicially implied under the ATS. On June 23, 2026, CACI filed a notice with the Court of Appeals apprising the Court of the Cisco decision. In that filing, CACI took the position that Cisco categorically precludes judicially-implied ATS claims beyond the three specific judicially-implied claims that might remain viable under Cisco, a holding that bars the only two claims on which the judgment against CACI rests. Accordingly, CACI requested that the Court reverse the district court’s judgment and remand with instructions to dismiss Plaintiff’s claims for lack of jurisdiction.
On June 29, 2026, the Court of Appeals directed the parties to file supplemental briefs addressing their views on the effect of the Cisco decision. The parties subsequently filed briefs as directed. The matter is pending before the Court of Appeals.
Abbass, et al v. CACI Premier Technology, Inc. and CACI International Inc, Case No. 1:13CV1186-LMB/JFA (EDVA)
On September 20, 2013, fifty-five Plaintiffs filed a nine-count complaint in the United States District Court for the Eastern District of Virginia styled Abbass, et al. v. CACI Premier Technology, Inc., et al. Plaintiffs are Iraqi nationals who assert that their allegations are essentially the same as those of the plaintiffs in Al Shimari. Plaintiffs claim that they suffered significant physical injury and emotional distress while in U.S. custody in Iraq. The lawsuit names CACI International Inc and CACI Premier Technology, Inc. as Defendants. The complaint alleges that Defendants conspired with U.S. military personnel to engage in illegal treatment of Iraqi detainees. The complaint does not allege any interaction between Plaintiffs and any CACI employee. Plaintiffs’ claims are brought pursuant to the ATS and the Torture Victims Protection Act. Plaintiffs seek, inter alia, compensatory damages, punitive damages, and attorney’s fees.
Plaintiffs’ action was originally filed in 2009 in U.S. District Court for the District of Columbia, but was voluntarily dismissed without prejudice in September 2011 after the Supreme Court denied certiorari in Saleh v. Titan Corp. and Ibrahim v. Titan Corp., 580 F.3d 1 (D.C. Cir. 2009).
The CACI Defendants have moved to dismiss the complaint. Before deciding the motion to dismiss, the district court stayed the action pending a decision from the Court of Appeals in Al Shimari v. L-3 Services, Inc.
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We are vigorously defending the above-described legal proceedings, and based on our present knowledge of the facts, believe the lawsuits are completely without merit.
On September 13, 2021, the Court issued an Order directing plaintiffs’ counsel to file a report advising the Court of the status of each plaintiff, and indicating that any plaintiff whom counsel is unable to contact may be dismissed from the action. On October 4, 2021, plaintiffs’ counsel filed a memorandum stating that the action was brought by forty-six plaintiffs, and that plaintiffs’ counsel was in contact with many of the plaintiffs but needed additional time to provide the Court with a final report. On October 4, 2021, the Court entered an Order extending plaintiffs’ response to October 25, 2021. On October 25, 2021, plaintiffs’ counsel filed a memorandum stating that he was in communication with 46 plaintiffs or their representatives.
On June 21, 2024, CACI filed a motion to lift the stay. Plaintiffs filed an opposition to that motion on June 26, 2024. On June 28, 2024, the District Court denied CACI’s motion without prejudice. CACI subsequently filed a Notice of Appeal to the U.S. Court of Appeals for the Fourth Circuit, as well as a Petition for a Writ of Mandamus in the Court of Appeals, asking the Court of Appeals to issue an order requiring the District Court to lift the stay. The Court of Appeals denied the petition for a writ of mandamus, but subsequently issued a briefing schedule for CACI’s appeal.
Briefing on the appeal concluded on December 6, 2024. On January 10, 2025, the District Court indicated that it will not activate the Abbass action while the Al Shimari action is on appeal. As a result of that representation, on January 13, 2025, CACI moved to dismiss the appeal, a motion that the Plaintiffs did not oppose. On January 14, 2025, the Court of Appeals granted that motion and dismissed the appeal.
On July 9, 2026, CACI filed a motion to lift the stay so that CACI could file a motion to dismiss based on the Cisco decision noted above. The District Court denied that motion without prejudice, noting that the Court of Appeals had not yet determined Cisco’s effect on the Al Shimari action.
Item 4. Mine Safety Disclosures
Not Applicable.
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PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is listed on the New York Stock Exchange under the ticker symbol “CACI.”
We have never paid a cash dividend. Our present policy is to retain earnings to provide funds for the operation and expansion of our business. We do not intend to pay any cash dividends at this time. The Board of Directors will determine whether to pay dividends in the future based on conditions existing at that time, including our earnings, financial condition, and capital requirements, as well as economic and other conditions as the Board of Directors may deem relevant.
As of July 27, 2026, the number of stockholders of record of our common stock was 132. The number of stockholders of record is not representative of the number of beneficial stockholders due to the fact that many shares are held by depositories, brokers, or nominees.
The following table provides certain information with respect to our purchases of shares of CACI’s common stock during the three months ended June 30, 2026:
| Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs | Maximum number of shares that may yet be purchased under the plans or programs (1) | ||||||||||||||||||||||
| April 2026 | 7,486 | $ | 583.45 | 7,486 | 476,495 | |||||||||||||||||||||
| May 2026 | — | — | — | 476,495 | ||||||||||||||||||||||
| June 2026 | — | — | — | 476,495 | ||||||||||||||||||||||
| Total | 7,486 | $ | 583.45 | 7,486 | ||||||||||||||||||||||
______________________
(1) Number of shares determined based on the closing price of $463.26 as of June 30, 2026.
The following graph compares the cumulative five-year total return to shareholders on CACI’s common stock relative to the cumulative total returns of the Russell 1000 Index and the Dow Jones U.S. Computer Services Index. The graph assumes that the value of the investment in our common stock and in each of the indices (including reinvestment of dividends) was $100 on June 30, 2021 and tracks it through June 30, 2026.
| June 30, | |||||||||||||||||||||||||||||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | ||||||||||||||||||||||||||||||
| CACI | $ | 100.00 | $ | 110.45 | $ | 133.60 | $ | 168.60 | $ | 186.85 | $ | 181.59 | |||||||||||||||||||||||
| Russell 1000 Index | 100.00 | 86.96 | 103.80 | 128.59 | 148.73 | 181.49 | |||||||||||||||||||||||||||||
| Dow Jones U.S. Computer Services Index | 100.00 | 90.43 | 93.28 | 112.31 | 165.40 | 140.63 | |||||||||||||||||||||||||||||
The stock price performance included in this graph is not necessarily indicative of future stock price performance.
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Item 6. [Reserved]
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations is provided to enhance the understanding of, and should be read together with, our consolidated financial statements, and the Notes to those statements that appear elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Unless otherwise specifically noted, all years refer to our fiscal year which ends on June 30.
In this section, we discuss our financial condition, changes in financial condition, and results of our operations for fiscal 2026 compared to fiscal 2025. For a discussion and analysis comparing our results for fiscal 2025 to fiscal 2024, see our Annual Report on Form 10-K for fiscal 2025, filed with the SEC on August 7, 2025, under Part II, Item 7.
Overview
We are a leading provider of Technology and Expertise to customers in support of national security in the intelligence, defense, and federal civilian sectors, both domestically and internationally. The demand for our Technology and Expertise is largely driven by the evolving national security and geopolitical environment, the increasingly complex network, systems, and information environments in which governments and businesses operate, and the ongoing need to stay current with emerging technologies.
Some of our key initiatives include the following:
•Continue to grow organic revenues across our large, addressable market;
•Deliver strong profitability and robust cash flow;
•Differentiate ourselves through our investments, including our strategic mergers and acquisition program, allowing us to enhance our current capabilities and create new customer access points;
•Recruit, hire, train, and retain a world class workforce to execute on our growing backlog; and
•Continue our unwavering commitment to our customers while supporting the communities in which we work and live.
Budgetary Environment
We closely monitor U.S. federal budget, legislative, and contracting developments, and we adjust our business strategies to account for these trends. Although future levels of defense and non-defense spending are difficult to predict, we believe there continues to be bipartisan support for defense and national security programs, particularly given the heightened global threat environment.
While we view the current budget environment as constructive, the timing and passage of annual appropriations remain uncertain in any given government fiscal year (GFY). During periods when Congress has not enacted full-year appropriations, federal agencies operate under a CR. A CR typically authorizes agencies to continue operating at prior year funding levels and may restrict new program starts or delay contract awards.
The scope and duration of CRs can negatively affect our business by delaying new programs, contract awards, or other customer decisions. If a CR expires without the enactment of full-year appropriations or an extension via a new CR, the federal government must cease non-essential operations (a “government shutdown”), except where continuing activities are authorized by law. We evaluate our portfolio on an ongoing basis to identify areas potentially at risk from CRs or shutdowns and to develop appropriate contingency plans.
On May 2, 2025, the President submitted the GFY26 Presidential Budget Request (PBR), which proposed holding defense spending at the GFY25 enacted (full-year CR) level of $893 billion. On July 4, 2025, the President signed the One Big Beautiful Bill Act (OBBBA), a reconciliation bill providing additional mandatory funding outside the regular annual appropriations process. The OBBBA made immediately available approximately $156 billion in defense funding (including $25 billion for the Golden Dome initiative) and approximately $170 billion for border security and immigration. Because these funds were authorized through the reconciliation process, they remain available in GFY26 and beyond regardless of whether Congress enacts full-year appropriations, passes a CR, or enters a government shutdown.
On October 1, 2025, the federal government entered a shutdown. On November 12, 2025, the President signed a CR that ended the shutdown and restored government operations, extending funding for most agencies at GFY25 levels through January 30, 2026. Following the expiration of that CR, a partial shutdown occurred. On February 3, 2026, the President signed five of the six remaining GFY26 full-year appropriations bills, alongside a two-week CR for the Department of Homeland Security (DHS). The enacted defense appropriations bill provided full-year funding for the DoW with a topline of $838.7 billion, approximately $8.4 billion above the GFY26 PBR.
On February 14, 2026, the temporary funding for DHS expired, and the department entered a shutdown. Portions of DHS operations continued due to the availability of mandatory OBBBA funding. On April 30, 2026, Congress passed full-year GFY26 funding for DHS, excluding funding for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP), both of which continued to rely on OBBBA funding. On June 9, 2026, Congress passed the Secure America Act (Reconciliation 2.0), providing $70 billion primarily allocated to ICE and CBP. Because this funding was enacted through reconciliation, it remains available through September 30, 2029.
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On April 3, 2026, while the GFY26 appropriations process was still being finalized, the President submitted the GFY27 Presidential Budget Request (PBR). The GFY27 PBR proposes $1.15 trillion in discretionary defense spending, $350 billion in mandatory defense spending through a separate reconciliation bill, and $63 billion in discretionary spending for homeland security. Congress is currently evaluating the proposal through the annual congressional appropriations process.
See “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K for additional discussion of how changes in the federal budget and appropriations process may affect our operations.
Market Environment
We provide Technology and Expertise to government customers. We believe that the total addressable market for our offerings is sufficient to support the Company’s plans and is expected to continue to grow over the next several years. 78% of our revenue comes from DoW and IC customers, with additional revenue coming from federal civilian agencies and commercial and other customers.
We continue to align the Company’s capabilities with well-funded budget priorities and take steps to maintain a competitive cost structure in line with our expectations of future business opportunities. In light of these actions, as well as the budgetary environment discussed above, we believe we are well positioned to continue to win new business in our large addressable market. We believe that the following trends will influence the U.S. government’s spending in our addressable market:
•A stable-to-higher U.S. government budget environment, particularly in national security-related areas (defense, intelligence, and border security);
•Increased focus on cyber, space, and the electromagnetic spectrum as key domains for national security;
•Increasing focus on application of technologies to defend the homeland, such as counter missile and drone defense;
•Increased investments in advanced technologies, particularly software-based technologies, including AI;
•Increased spend on network and application modernization and enhancements to cyber security posture;
•Increasing focus on near-peer competitors and other nation state threats;
•Continued focus on counterterrorism, counterintelligence, and counter proliferation as key U.S. security concerns; and
•Increased demand for innovation and speed of delivery.
We believe that our customers’ use of lowest price/technically acceptable procurements, which contributed to pricing pressures in past years, has moderated, though price still remains an important factor in procurements. We also continue to see protests of major contract awards and delays in U.S. government procurement activities. In addition, many of our federal government contracts require us to employ personnel with security clearances, specific levels of education, and specific past work experience. Depending on the level of clearance, security clearances can be difficult and time-consuming to obtain, and competition for skilled personnel in the industry is intense. Additional factors that could affect U.S. government spending in our addressable market include changes in set-asides for small businesses and budgetary priorities.
Results of Operations
Our results of operations were as follows (dollars in thousands):
| Year ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||||||||
| Revenues | $ | 9,567,779 | $ | 8,627,824 | $ | 939,955 | 10.9 | % | |||||||||||||||
| Costs of revenues: | |||||||||||||||||||||||
| Direct costs | 6,390,886 | 5,835,558 | 555,328 | 9.5 | |||||||||||||||||||
| Indirect costs and selling expenses | 2,011,179 | 1,832,956 | 178,223 | 9.7 | |||||||||||||||||||
| Depreciation and amortization | 245,899 | 195,125 | 50,774 | 26.0 | |||||||||||||||||||
| Total costs of revenues | 8,647,964 | 7,863,639 | 784,325 | 10.0 | |||||||||||||||||||
| Income from operations | 919,815 | 764,185 | 155,630 | 20.4 | |||||||||||||||||||
| Interest expense and other, net | 215,454 | 158,844 | 56,610 | 35.6 | |||||||||||||||||||
| Income before income taxes | 704,361 | 605,341 | 99,020 | 16.4 | |||||||||||||||||||
| Income taxes | 168,553 | 105,511 | 63,042 | 59.7 | |||||||||||||||||||
| Net income | $ | 535,808 | $ | 499,830 | $ | 35,978 | 7.2 | % | |||||||||||||||
Revenues. The increase in revenues was primarily attributable to organic growth of 7.2%, including new contract awards and growth on existing programs.
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Revenues by customer type with related percentages of revenues were as follows (dollars in thousands):
| Year ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| DoW | $ | 5,133,759 | 53.6 | % | $ | 4,617,699 | 53.5 | % | |||||||||||||||
| IC | 2,351,801 | 24.6 | 2,209,238 | 25.6 | |||||||||||||||||||
| Federal civilian agencies | 1,660,934 | 17.4 | 1,433,013 | 16.6 | |||||||||||||||||||
| Commercial and other | 421,285 | 4.4 | 367,874 | 4.3 | |||||||||||||||||||
| Total | $ | 9,567,779 | 100.0 | % | $ | 8,627,824 | 100.0 | % | |||||||||||||||
•DoW revenues include Technology and Expertise provided to various DoW customers, excluding those defined as part of the IC.
•IC revenues include Technology and Expertise provided to the 18 intelligence customers defined as the IC by the Office of the Director of National Intelligence.
•Federal civilian agencies revenues include Technology and Expertise provided to non-DoW and non-IC agencies and departments of the U.S. federal government, including the Departments of Homeland Security, Justice, Agriculture, Health and Human Services, and State.
•Commercial and other revenues primarily include Technology and Expertise provided to U.S. state and local governments, commercial customers, and certain foreign governments and agencies through our international reportable segment.
Direct Costs. Direct costs include direct labor, subcontractor costs, materials, and other direct costs. The increase in direct costs was primarily attributable to the increase in revenues. As a percentage of revenues, total direct costs were 66.8% and 67.6% for fiscal 2026 and 2025, respectively.
Indirect Costs and Selling Expenses. The increase in indirect costs and selling expenses was primarily attributable to an increase in fringe benefit expenses and overhead costs associated with a larger labor base and an increase in acquisition related expenses. As a percentage of revenues, indirect costs and selling expenses were 21.0% and 21.2% for fiscal 2026 and 2025, respectively.
Depreciation and Amortization. The increase in depreciation and amortization was due to the amortization of intangible assets acquired in fiscal 2026 and the timing of intangible assets acquired in fiscal 2025.
Interest Expense and Other, Net. The increase in interest expense and other, net was primarily due to higher outstanding debt balances in the current year resulting from borrowings used to finance acquisitions.
Income Taxes. The Company’s effective income tax rate was 23.9% and 17.4% for fiscal 2026 and 2025, respectively. The effective tax rates for fiscal 2026 and 2025 were primarily driven by state income taxes offset by R&D tax credits. Additionally, the effective tax rate for fiscal 2025 benefited from a reduction in unrecognized tax benefits following resolution of a federal income tax audit. See “Note 15 – Income Taxes” in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
Contract Backlog
The Company’s backlog represents value on existing contracts that has the potential to be recognized into revenues as work is performed. The Company includes unexercised option years in its backlog and excludes the value of task orders that may be awarded under multiple award IDIQ vehicles until such task orders are issued.
The Company’s backlog as of period end is either funded or unfunded:
•Funded backlog represents contract value for which funding has been appropriated less revenues previously recognized on these contracts.
•Unfunded backlog represents estimated values that have the potential to be recognized into revenue from executed contracts for which funding has not been appropriated and unexercised contract options.
As of June 30, 2026, the Company had total backlog of $32.0 billion, compared with $31.4 billion a year ago, an increase of 1.9%. Funded backlog as of June 30, 2026 was $5.4 billion. The total backlog consists of remaining performance obligations plus unexercised options. See “Note 6 – Revenues” in Part II, Item 8 of this Annual Report on Form 10-K for additional information related to remaining performance obligations.
There is no assurance that all funded or potential contract value will result in revenues being recognized. The Company continues to monitor backlog as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, early terminations, or other factors. Based on this analysis, an adjustment to the period end balance may be required.
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Revenues by Contract Type
The Company generates revenues under three basic contract types:
•Cost-plus-fee contracts: This contract type provides for reimbursement of allowable direct expenses and allocable indirect expenses plus an additional negotiated fee. The fee component of the contract may include fixed fees, award fees, and incentive fees. Fixed fees are fees that are negotiated and fixed at the inception of the contract. In general, award fees are more subjective in performance criteria and are earned based on overall cost, schedule, and technical performance as measured against contractual requirements. Incentive fees have more objective cost or performance criteria and generally contain a formula based on the relationship of actual costs incurred to target costs.
•Fixed-price contracts: This contract type provides for a fixed-price for specified Technology and Expertise and is often used when there is more certainty regarding the estimated costs to complete the contractual statement of work. Since the contractor bears the risk of cost overruns, there is higher risk and generally potential profit associated with this contract type.
•Time-and-materials contracts: This contract type provides for a fixed hourly rate for defined contractual labor categories with reimbursement of billable material and other direct costs. For this contract type, the contractor bears the risk that its labor costs, and allocable indirect expenses are greater than the fixed hourly rate defined within the contract.
As discussed further in “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K, our earnings and margins may vary based on the mix of our contract types. We generated the following revenues by contract type for the periods presented (dollars in thousands):
| Year ended June 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Cost-plus-fee | $ | 5,361,366 | 56.0 | % | $ | 5,221,011 | 60.5 | % | |||||||||||||||
| Fixed-price | 2,901,065 | 30.4 | 2,271,602 | 26.3 | |||||||||||||||||||
| Time-and-materials | 1,305,348 | 13.6 | 1,135,211 | 13.2 | |||||||||||||||||||
| Total | $ | 9,567,779 | 100.0 | % | $ | 8,627,824 | 100.0 | % | |||||||||||||||
Effects of Inflation
During fiscal 2026, 56.0% of our revenues were generated under cost-plus-fee contracts, which automatically adjust revenues to cover costs that are affected by inflation. 13.6% of our revenues were generated under time-and-materials contracts, where we adjust labor rates periodically, as permitted. The remaining portion of our business is fixed-price and may span multiple years. We generally have been able to price our time-and-materials and fixed-price contracts in a manner that accommodates the rates of inflation experienced in recent years.
Liquidity and Capital Resources
Existing cash and cash equivalents and cash generated by operations are our primary sources of liquidity, as well as sales of receivables under our Master Accounts Receivable Purchase Agreement (MARPA) and available borrowings under our revolving credit facility (the Revolving Facility), which permits renewable borrowings of up to $2,000.0 million. The Revolving Facility also has sub-facilities of $150.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit.
The Company has a $3,250.0 million senior secured credit facility (the Credit Facility), which consists of the Revolving Facility and a $1,250.0 million term loan (the Term Loan). As of June 30, 2026, the Company had $1,340.0 million of undrawn capacity under the Revolving Facility and no borrowings on the swing line and stand-by letters of credit.
See “Note 7 – Sales of Receivables” and “Note 11 – Long-term Debt” in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
The following table summarizes cash flow information for the periods presented (in thousands):
| Year ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 886,710 | $ | 547,009 | |||||||
| Net cash used in investing activities | (2,734,234) | (1,758,943) | |||||||||
| Net cash provided by financing activities | 1,934,807 | 1,177,881 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,708) | 6,273 | |||||||||
| Net change in cash and cash equivalents | $ | 85,575 | $ | (27,780) | |||||||
Net cash provided by operating activities increased $339.7 million primarily due to higher net income, the deduction of domestic R&D costs pursuant to tax provisions enacted by the OBBBA, timing of customer collections, and other net favorable changes in other operating assets and liabilities.
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Net cash used in investing activities increased $975.3 million primarily due to higher cash used for acquisitions.
Net cash provided by financing activities increased $756.9 million primarily due to an increase in net borrowings under the Credit Facility, the Term Loan B-2, and the 2033 Notes-2 and a decrease in stock repurchase activity.
We believe that the combination of cash and cash equivalents, internally generated funds, and available bank borrowings will provide the required liquidity and capital resources necessary to fund on-going operations, customary capital expenditures, debt service obligations, and other working capital requirements over the next twelve months. We may in the future seek to borrow additional amounts under existing or new debt instruments. Over the longer term, our ability to generate sufficient cash flows from operations necessary to fulfill our long-term cash requirements will depend on our future financial performance. Our future financial performance will be affected by many factors outside of our control, including current worldwide economic conditions, financial market conditions, and regulatory factors.
Contractual Obligations
For a description of the Company’s contractual obligations related to debt, leases, and retirement plans refer to “Note 10 – Leases”, “Note 11 – Long-term Debt”, and “Note 17 – Retirement Plans” in Part II, Item 8 of this Annual Report on Form 10-K.
Commitments and Contingencies
We are subject to a number of reviews, investigations, claims, lawsuits, other uncertainties, and future obligations related to our business. For a discussion of these items, see “Note 19 – Legal Proceedings and Other Commitments and Contingencies” in Part II, Item 8 of this Annual Report on Form 10-K.
Critical Accounting Policies
The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and judgments that affect the amounts reported in those financial statements and accompanying notes. We consider the accounting policies and estimates addressed below to be the most important to our financial position and results of operations, either because of the significance of the financial statement item or because they require the exercise of significant judgment and/or use of significant estimates. Although we believe that the estimates are reasonable based on reasonably available facts, due to the inherent uncertainty involved in making those estimates, actual results reported in future periods may differ.
We believe the following accounting policies require significant judgment due to the complex nature of the underlying transactions.
Revenue Recognition
The Company generates almost all of our revenues from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services.
We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and collectability is probable. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires professional judgment as it may affect the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation.
When determining the total transaction price, the Company identifies both fixed and variable considerations within the contract. Variable consideration includes any amount within the transaction price that is not fixed such as award or incentive fees, performance penalties, unfunded contract value, or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenue. Throughout the performance period, we recognize as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. Our estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which we can calculate the final amount of award or incentive fee earned based on the receipt of the customers’ final performance score or the determination that more objective, contractually defined criteria have been fully satisfied, the Company will adjust our cumulative revenue recognized to date on the contract.
We generally recognize revenues over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on our services-type revenue arrangements. This continuous transfer of control for our U.S. government contracts is supported by the unilateral right of our customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For our services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. We use a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including costs incurred, labor hours expended, and time-elapsed measures for our fixed-price stand ready obligations. For certain contracts, primarily our cost-plus-fee and time-and-materials services-type revenue arrangements, we apply the right-to-invoice practical expedient in which revenues are recognized in direct proportion to our present right to consideration for progress towards the complete satisfaction of the performance obligation.
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When a performance obligation has a significant degree of interrelation or interdependence between one month’s activities and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion method. For these revenue arrangements, substantially all revenues are recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenues, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.
Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. Contract modifications that add distinct goods or services, resulting in an increase to the contract value that reflects the standalone selling price of those additions, are accounted for as separate contracts. When contract modifications include goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenues based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation.
Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and our knowledge of available funding for the contract or program.
Business Combinations
We record all tangible and intangible assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, with any excess purchase consideration recorded as goodwill. For contingent purchase consideration, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. The Company uses various valuation methods of income approach, including the relief-from-royalty method and the multi-period excess earnings method, to determine the fair value of acquired assets and liabilities assumed. The use of these methods requires management to make significant judgments which may include, among others, projections about future revenues, expenses, and cash flows, weighted-average cost of capital, discount rates, royalty rates, and expected long-term growth rates. During the measurement period, not to exceed one year from the acquisition date, we may adjust provisional amounts recorded to reflect new information subsequently obtained regarding facts and circumstances that existed as of the acquisition date.
Goodwill and Intangible Assets
Goodwill represents the excess of the fair value of consideration paid for an acquisition over the fair value of the net assets acquired as of the acquisition date. We recognize purchased intangible assets in connection with our business acquisitions at fair value on the acquisition date. Goodwill and intangible assets, net represent 72.4% and 70.7% of our total assets as of June 30, 2026 and June 30, 2025, respectively.
We evaluate goodwill for both of our reporting units for impairment at least annually on the first day of the fiscal fourth quarter, or whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation includes comparing the fair value of the relevant reporting unit to its respective carrying value, including goodwill, and utilizes both income and market approaches. The analysis relies on significant judgments and assumptions about expected future cash flows, weighted-average cost of capital, discount rates, expected long-term growth rates, and financial measures derived from observable market data of comparable public companies. During the fourth quarter of fiscal 2026, we completed our annual goodwill assessment and determined that each reporting unit’s fair value significantly exceeded its carrying value.
Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives, which is generally over periods ranging from one to twenty-six years. Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable at the asset group level.
Recently Adopted and Issued Accounting Pronouncements
See “Note 3 – Recent Accounting Pronouncements” in Part II, Item 8 of this Annual Report on Form 10-K for additional information.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The interest rates on the Credit Facility, the Term Loan B, and the Term Loan B-2 are affected by changes in market interest rates. The Company has the ability to manage these fluctuations in part through interest rate hedging alternatives in the form of interest rate swaps. The Company has entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $1,500.0 million related to a portion of its floating rate indebtedness. All remaining balances under the Credit Facility, the Term Loan B, and the Term Loan B-2 and any additional amounts that may be borrowed under the Revolving Facility are currently subject to interest rate fluctuations. With every one percent fluctuation in the applicable interest rate, interest expense on the Company’s variable rate debt for the twelve months ended June 30, 2026 would have fluctuated by $15.3 million.
3.2% and 3.0% of the Company’s total revenues in fiscal 2026 and 2025, respectively, were generated from our International Operations. The Company’s practice in International Operations is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency exchange rate fluctuations. To the extent that it is not feasible to negotiate the foreign currency, there is a risk that profits may be adversely affected by such exchange rate fluctuations. As of June 30, 2026, the Company held cash and cash equivalents denominated in pound sterling and euro in the U.K. and the Netherlands, with an aggregate U.S. dollar equivalent of $82.9 million. Although these balances are generally available to fund ordinary business operations without legal or other restrictions, a significant portion is not immediately available to fund U.S. operations unless repatriated. The Company’s intention is to reinvest earnings from our foreign subsidiaries. This allows the Company to better utilize cash resources on behalf of our foreign subsidiaries, thereby mitigating foreign currency conversion risks.
Item 8. Financial Statements and Supplementary Data
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm (PCAOB ID 238) | |||||
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Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of CACI International Inc
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of CACI International Inc and its subsidiaries (the “Company”) as of June 30, 2026 and 2025, and the related consolidated statements of operations, of comprehensive income, of shareholders’ equity and of cash flows for each of the three years in the period ended June 30, 2026, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
As described in Management’s Annual Report on Internal Control Over Financial Reporting, management has excluded certain elements of the internal control over financial reporting of ARKA Group L.P. (“ARKA”) from its assessment of internal control over financial reporting as of June 30, 2026, because it was acquired by the Company in a purchase business combination during 2026. Subsequent to the acquisition, certain elements of ARKA’s internal control over financial reporting and related processes were integrated into the Company’s existing systems and internal control over financial reporting. Those controls that were not integrated have been excluded from management’s assessment of the effectiveness of internal control over financial reporting as of June 30, 2026. We have also excluded these elements of the internal control over financial reporting of ARKA from our audit of the Company’s internal control over financial reporting. The excluded elements represent controls over 1.5% of consolidated assets and 1.0% of the consolidated revenues as of and for the year ended June 30, 2026.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
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Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Acquisition of ARKA - Valuation of Developed Technology and Customer Relationships
As described in Notes 2 and 4 to the consolidated financial statements, on March 9, 2026, the Company acquired ARKA for purchase consideration of approximately $2,642.7 million, net of cash acquired. Management recorded $1,145 million of intangible assets, of which $485 million relates to developed technology and $660 million relates to customer relationships. Management records intangible assets acquired at fair value as of the acquisition date. The developed technology was valued using the relief-from-royalty method (income approach). The use of this method requires management to make significant judgments about discount rates, royalty rates, future obsolescence of the technology, and projections of revenues. The customer relationships were valued using the multi-period excess earnings method (income approach). The use of this method requires management to make significant judgments about tax rates, discount rates, projections of revenues and expenses, and contributory asset charges.
The principal considerations for our determination that performing procedures relating to the valuation of the developed technology and customer relationships intangible assets acquired in the acquisition of ARKA is a critical audit matter are (i) the significant judgment by management when developing the fair value estimates of the developed technology and customer relationships intangible assets; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to projections of revenues, discount rate and royalty rates for the developed technology and projections of revenues and expenses, discount rate and contributory asset charges for the customer relationships; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management’s valuation of the developed technology and customer relationships intangible assets. These procedures also included, among others (i) reading the purchase agreement; (ii) testing management’s process for developing the fair value estimates of the developed technology and customer relationships intangible assets; (iii) evaluating the appropriateness of the relief-from-royalty and multi-period excess earnings methods used by management; (iv) testing the completeness and accuracy of the underlying data used in the relief-from-royalty and multi-period excess earnings methods; and (v) evaluating the reasonableness of the significant assumptions used by management related to projections of revenues, discount rate and royalty rates for developed technology and the projections of revenues and expenses discount rate and contributory asset charges for customer relationships. Evaluating management’s assumptions related to projections of revenues for developed technology and the projections of revenues and expenses for customer relationships involved considering (i) the current and past performance of the ARKA business; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the relief-from-royalty and multi-period excess earnings methods and (ii) the reasonableness of the discount rate and royalty rates assumptions for developed technology and the discount rate and contributory asset charges assumptions for customer relationships.
Revenue Recognized Over Time
As described in Notes 2 and 5 to the consolidated financial statements, the Company’s consolidated revenues for the year ended June 30, 2026 were $9.6 billion, of which a majority was recognized over time. The Company generally recognizes revenues over time throughout the performance period as the customer simultaneously receives and consumes the benefit provided. The Company accounts for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and collectability is probable. Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. The Company uses a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including costs incurred, labor hours expended, time-elapsed measures and right-to-invoice practical expedient. When a performance obligation has a significant degree of interrelation or interdependence between one month’s activities and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion method. For these revenue arrangements, substantially all revenues are recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. The cost-to-cost input method requires management to use professional judgment when assessing risks, estimating contract revenues and costs, estimating variable consideration, and making assumptions for schedule and technical issues. Management periodically reassesses the assumptions and updates the estimates as needed.
The principal consideration for our determination that performing procedures relating to revenue recognized over time is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.
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Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the estimates of contract revenues and related costs. These procedures also included, among others (i) obtaining and inspecting executed agreements for a selection of contracts to understand the performance obligations, method of revenue recognition, current progress towards completion, and whether contract modifications are part of the original performance obligation or a separate contract; (ii) for the contracts selected in item (i), evaluating the appropriateness of the over time revenue recognition input and output methods; (iii) testing, on a sample basis, the completeness and accuracy of costs incurred to date; and (iv) for the contracts selected in item (i) where the cost-to-cost input method was applied, (a) performing a retrospective comparison of incurred costs to prior costs incurred on the same contract or on similar completed contracts to evaluate the reasonableness of the total estimated costs at completion and (b) performing a retrospective comparison of estimated variable consideration to prior variable consideration on the same contract or on similar completed contracts to evaluate the reasonableness of the total estimated variable consideration.
/s/ PricewaterhouseCoopers LLP
Washington, District of Columbia
August 6, 2026
We have served as the Company’s auditor since 2022.
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CACI INTERNATIONAL INC
CONSOLIDATED BALANCE SHEETS
| June 30, | |||||||||||
| (in thousands, except per share data) | 2026 | 2025 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 191,756 | $ | 106,181 | |||||||
| Accounts receivable, net | 1,705,087 | 1,405,441 | |||||||||
| Prepaid expenses and other current assets | 364,502 | 268,323 | |||||||||
| Total current assets | 2,261,345 | 1,779,945 | |||||||||
| Goodwill | 6,484,456 | 5,021,805 | |||||||||
| Intangible assets, net | 2,072,991 | 1,091,276 | |||||||||
| Property, plant, and equipment, net | 397,161 | 212,035 | |||||||||
| Operating lease right-of-use assets | 381,980 | 343,944 | |||||||||
| Supplemental retirement savings plan assets | 104,878 | 101,024 | |||||||||
| Other assets | 116,833 | 97,569 | |||||||||
| Total assets | $ | 11,819,644 | $ | 8,647,598 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 46,750 | $ | 68,750 | |||||||
| Accounts payable | 521,669 | 381,574 | |||||||||
| Accrued compensation and benefits | 284,602 | 282,987 | |||||||||
| Other accrued expenses and current liabilities | 670,911 | 474,795 | |||||||||
| Total current liabilities | 1,523,932 | 1,208,106 | |||||||||
| Long-term debt, net of current portion | 4,854,759 | 2,849,190 | |||||||||
| Supplemental retirement savings plan obligations, net of current portion | 119,233 | 114,261 | |||||||||
| Deferred income taxes | 376,580 | 142,636 | |||||||||
| Operating lease liabilities | 431,769 | 377,080 | |||||||||
| Other liabilities | 50,674 | 62,380 | |||||||||
| Total liabilities | 7,356,947 | 4,753,653 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ equity: | |||||||||||
Preferred stock $0.10 par value, 10,000 shares authorized, no shares issued or outstanding | — | — | |||||||||
Common stock $0.10 par value, 80,000 shares authorized; 43,273 issued and 22,099 outstanding at June 30, 2026 and 43,168 issued and 21,992 outstanding at June 30, 2025 | 4,327 | 4,316 | |||||||||
| Additional paid-in capital | 696,451 | 652,327 | |||||||||
| Retained earnings | 5,396,178 | 4,860,370 | |||||||||
| Accumulated other comprehensive loss | (18,071) | (6,878) | |||||||||
Treasury stock, at cost (21,174 and 21,175 shares, respectively) | (1,616,188) | (1,616,190) | |||||||||
| Total shareholders’ equity | 4,462,697 | 3,893,945 | |||||||||
| Total liabilities and shareholders’ equity | $ | 11,819,644 | $ | 8,647,598 | |||||||
See Notes to Consolidated Financial Statements
32
CACI INTERNATIONAL INC
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year ended June 30, | |||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | 2024 | ||||||||||||||
| Revenues | $ | 9,567,779 | $ | 8,627,824 | $ | 7,659,832 | |||||||||||
| Costs of revenues: | |||||||||||||||||
| Direct costs | 6,390,886 | 5,835,558 | 5,147,540 | ||||||||||||||
| Indirect costs and selling expenses | 2,011,179 | 1,832,956 | 1,720,439 | ||||||||||||||
| Depreciation and amortization | 245,899 | 195,125 | 142,145 | ||||||||||||||
| Total costs of revenues | 8,647,964 | 7,863,639 | 7,010,124 | ||||||||||||||
| Income from operations | 919,815 | 764,185 | 649,708 | ||||||||||||||
| Interest expense and other, net | 215,454 | 158,844 | 105,059 | ||||||||||||||
| Income before income taxes | 704,361 | 605,341 | 544,649 | ||||||||||||||
| Income taxes | 168,553 | 105,511 | 124,725 | ||||||||||||||
| Net income | $ | 535,808 | $ | 499,830 | $ | 419,924 | |||||||||||
| Basic earnings per share | $ | 24.28 | $ | 22.47 | $ | 18.76 | |||||||||||
| Diluted earnings per share | $ | 24.16 | $ | 22.32 | $ | 18.60 | |||||||||||
| Weighted-average basic shares outstanding | 22,065 | 22,247 | 22,381 | ||||||||||||||
| Weighted-average diluted shares outstanding | 22,176 | 22,393 | 22,573 | ||||||||||||||
See Notes to Consolidated Financial Statements
33
CACI INTERNATIONAL INC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Year ended June 30, | |||||||||||||||||
| (in thousands) | 2026 | 2025 | 2024 | ||||||||||||||
| Net income | $ | 535,808 | $ | 499,830 | $ | 419,924 | |||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||
| Foreign currency translation adjustments | (11,389) | 24,244 | (326) | ||||||||||||||
| Change in fair value of interest rate swap agreements, net of tax | 164 | (18,513) | (7,453) | ||||||||||||||
| Effects of post-retirement adjustments, net of tax | 32 | (87) | 173 | ||||||||||||||
| Total other comprehensive (loss) income, net of tax | (11,193) | 5,644 | (7,606) | ||||||||||||||
| Comprehensive income | $ | 524,615 | $ | 505,474 | $ | 412,318 | |||||||||||
See Notes to Consolidated Financial Statements
34
CACI INTERNATIONAL INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year ended June 30, | |||||||||||||||||
| (in thousands) | 2026 | 2025 | 2024 | ||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
| Net income | $ | 535,808 | $ | 499,830 | $ | 419,924 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 245,899 | 195,125 | 142,145 | ||||||||||||||
| Amortization of deferred financing costs | 5,054 | 3,031 | 2,194 | ||||||||||||||
| Gain on divestiture of business | (7,280) | — | — | ||||||||||||||
| Stock-based compensation expense | 79,514 | 60,177 | 53,904 | ||||||||||||||
| Deferred income taxes | 145,387 | (27,060) | (49,763) | ||||||||||||||
| Changes in operating assets and liabilities, net of effect of business acquisitions: | |||||||||||||||||
| Accounts receivable, net | (198,983) | (269,215) | (127,878) | ||||||||||||||
| Prepaid expenses and other assets | (30,618) | 24,187 | 580 | ||||||||||||||
| Accounts payable and other accrued expenses | 181,226 | 125,914 | 125,173 | ||||||||||||||
| Accrued compensation and benefits | (8,748) | (49,005) | (58,352) | ||||||||||||||
| Income taxes | (71,255) | (4,862) | (27,227) | ||||||||||||||
| Operating lease liabilities, net | 8,748 | (6,015) | (6,007) | ||||||||||||||
| Long-term liabilities | 1,958 | (5,098) | 22,638 | ||||||||||||||
| Net cash provided by operating activities | 886,710 | 547,009 | 497,331 | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
| Capital expenditures | (106,653) | (65,603) | (63,686) | ||||||||||||||
| Acquisitions of businesses, net of cash acquired | (2,636,216) | (1,695,749) | (90,240) | ||||||||||||||
| Proceeds from divestiture of business | 8,477 | — | — | ||||||||||||||
| Other | 158 | 2,409 | 1,974 | ||||||||||||||
| Net cash used in investing activities | (2,734,234) | (1,758,943) | (151,952) | ||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
| Proceeds from borrowings | 5,804,251 | 8,209,000 | 3,102,000 | ||||||||||||||
| Principal payments on borrowings | (3,803,376) | (6,816,023) | (3,257,938) | ||||||||||||||
| Deferred financing costs | (22,360) | (22,227) | — | ||||||||||||||
| Proceeds from employee stock purchase plans | 14,390 | 13,697 | 11,290 | ||||||||||||||
| Repurchases of common stock | (17,082) | (168,563) | (161,487) | ||||||||||||||
| Payment of taxes for equity transactions | (34,161) | (38,003) | (20,760) | ||||||||||||||
| Other | (6,855) | — | — | ||||||||||||||
| Net cash provided by (used in) financing activities | 1,934,807 | 1,177,881 | (326,895) | ||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (1,708) | 6,273 | (299) | ||||||||||||||
| Net change in cash and cash equivalents | 85,575 | (27,780) | 18,185 | ||||||||||||||
| Cash and cash equivalents, beginning of year | 106,181 | 133,961 | 115,776 | ||||||||||||||
| Cash and cash equivalents, end of year | $ | 191,756 | $ | 106,181 | $ | 133,961 | |||||||||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||||
| Cash paid during the period for income taxes, net of refunds | $ | 93,169 | $ | 134,782 | $ | 182,800 | |||||||||||
| Cash paid during the period for interest | $ | 213,640 | $ | 145,040 | $ | 93,441 | |||||||||||
| Non-cash financing and investing activities: | |||||||||||||||||
| Accrued capital expenditures | $ | 336 | $ | 4,561 | $ | 2,043 | |||||||||||
| Landlord sponsored tenant incentives | $ | 11,294 | $ | 8,692 | $ | 13,706 | |||||||||||
See Notes to Consolidated Financial Statements
35
CACI INTERNATIONAL INC
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
| Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | 42,923 | $ | 4,292 | $ | 546,334 | $ | 3,940,616 | $ | (4,916) | 20,126 | $ | (1,261,992) | $ | 3,224,334 | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | 419,924 | — | — | — | 419,924 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 53,904 | — | — | — | — | 53,904 | |||||||||||||||||||||||||||||||||||||||
| Tax withholdings on restricted share vestings | 119 | 12 | (20,379) | — | — | — | — | (20,367) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | (7,606) | — | — | (7,606) | |||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | 50,951 | — | — | 649 | (214,064) | (163,113) | |||||||||||||||||||||||||||||||||||||||
| Treasury stock issued under stock purchase plans | — | — | 381 | — | — | (35) | 10,750 | 11,131 | |||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | 43,042 | $ | 4,304 | $ | 631,191 | $ | 4,360,540 | $ | (12,522) | 20,740 | $ | (1,465,306) | $ | 3,518,207 | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | 499,830 | — | — | — | 499,830 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 60,177 | — | — | — | — | 60,177 | |||||||||||||||||||||||||||||||||||||||
| Tax withholdings on restricted share vestings | 126 | 12 | (37,784) | — | — | — | — | (37,772) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | 5,644 | — | — | 5,644 | |||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | (1,300) | — | — | 471 | (164,583) | (165,883) | |||||||||||||||||||||||||||||||||||||||
| Treasury stock issued under stock purchase plans | — | — | 43 | — | — | (36) | 13,699 | 13,742 | |||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | 43,168 | $ | 4,316 | $ | 652,327 | $ | 4,860,370 | $ | (6,878) | 21,175 | $ | (1,616,190) | $ | 3,893,945 | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | 535,808 | — | — | — | 535,808 | |||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 79,514 | — | — | — | — | 79,514 | |||||||||||||||||||||||||||||||||||||||
| Tax withholdings on restricted share vestings | 105 | 11 | (33,935) | — | — | — | — | (33,924) | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | (11,193) | — | — | (11,193) | |||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | — | — | (1,805) | — | — | 30 | (14,390) | (16,195) | |||||||||||||||||||||||||||||||||||||||
| Treasury stock issued under stock purchase plans | — | — | 350 | — | — | (31) | 14,392 | 14,742 | |||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | 43,273 | $ | 4,327 | $ | 696,451 | $ | 5,396,178 | $ | (18,071) | 21,174 | $ | (1,616,188) | $ | 4,462,697 | |||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements
36
CACI INTERNATIONAL INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Nature of Operations and Basis of Presentation
CACI International Inc (collectively, with its consolidated subsidiaries, “CACI,” the “Company,” “we,” “us,” and “our”) is a leading provider of Technology and Expertise to customers in support of national security in the intelligence, defense, and federal civilian sectors, operating through two reportable segments: Domestic Operations and International Operations. The Company’s customers include agencies and departments of the United States (U.S.) government, various state and local government agencies, foreign governments, and commercial enterprises.
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the U.S. (GAAP) and include the accounts of CACI and our majority owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Note 2 – Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reported periods. The most significant of these estimates and assumptions relate to estimating contract revenues and costs, measuring progress against the Company’s performance obligations, assessing the fair value of acquired assets and liabilities accounted for through business acquisitions, valuing and determining the amortization periods for long-lived intangible assets, and assessing the recoverability of long-lived assets. Management evaluates its estimates on an ongoing basis using the most current and available information. However, actual results may differ significantly from estimates. Changes in estimates are recorded in the period in which they become known.
Business Combinations
The Company records all tangible and intangible assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, with any excess purchase consideration recorded as goodwill. For contingent purchase consideration, a liability is recognized at fair value as of the acquisition date with subsequent fair value adjustments recorded in operations. The Company uses various valuation methods of income approach, including the relief-from-royalty method and the multi-period excess earnings method, to determine the fair value of acquired assets and liabilities assumed. The use of these methods requires management to make significant judgments which may include, among others, projections about future revenues, expenses, and cash flows, weighted-average cost of capital, discount rates, royalty rates, and expected long-term growth rates. During the measurement period, not to exceed one year from the acquisition date, the Company may adjust provisional amounts recorded to reflect new information subsequently obtained regarding facts and circumstances that existed as of the acquisition date.
Acquisition and Integration Costs
Costs associated with legal, financial, and other professional advisors related to acquisitions as well as applicable integration costs are expensed as incurred.
Revenue Recognition
The Company generates almost all of our revenues from three different types of contractual arrangements with the U.S. government: cost-plus-fee, fixed-price, and time-and-materials contracts. Our contracts with the U.S. government are generally subject to the Federal Acquisition Regulation (FAR) and are competitively priced based on estimated costs of providing the contractual goods or services.
We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance, and collectability is probable. At contract inception, the Company determines whether the goods or services to be provided are to be accounted for as a single performance obligation or as multiple performance obligations. This evaluation requires professional judgment as it may affect the timing and pattern of revenue recognition. If multiple performance obligations are identified, we generally use the cost plus a margin approach to determine the relative standalone selling price of each performance obligation.
When determining the total transaction price, the Company identifies both fixed and variable considerations within the contract. Variable consideration includes any amount within the transaction price that is not fixed, such as: award or incentive fees; performance penalties; unfunded contract value; or other similar items. For our contracts with award or incentive fees, the Company estimates the total amount of award or incentive fee expected to be recognized into revenues. Throughout the performance period, the Company recognizes as revenue a constrained amount of variable consideration only to the extent that it is probable that a significant reversal of the cumulative amount recognized to date will not be required in a subsequent period. The Company’s estimate of variable consideration is periodically adjusted based on significant changes in relevant facts and circumstances. In the period in which the Company can calculate the final amount of award or incentive fee earned based on the receipt of the customers’ final performance score or the determination that more objective, contractually-defined criteria have been fully satisfied, the Company will adjust its cumulative revenue recognized to date on the contract.
37
The Company generally recognizes revenues over time throughout the performance period as the customer simultaneously receives and consumes the benefits provided on services-type revenue arrangements. This continuous transfer of control for U.S. government contracts is supported by the unilateral right of the customer to terminate the contract for a variety of reasons without having to provide justification for its decision. For services-type revenue arrangements in which there are a repetitive amount of services that are substantially the same from one month to the next, the Company applies the series guidance. The Company uses a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation, including costs incurred, labor hours expended, and time-elapsed measures for fixed-price stand ready obligations. For certain contracts, primarily cost-plus and time-and-materials services-type revenue arrangements, the Company applies the right-to-invoice practical expedient in which revenues are recognized in direct proportion to the Company’s present right to consideration for progress towards the complete satisfaction of the performance obligation.
When a performance obligation has a significant degree of interrelation or interdependence between one month’s activities and the next, when there is an award or incentive fee, or when there is a significant degree of customization or modification, the Company generally records revenue using a percentage of completion method. For these revenue arrangements, substantially all revenues are recognized over time using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. When estimates of total costs to be incurred on a contract exceed total revenue, a provision for the entire loss on the contract is recorded in the period in which the loss is determined.
Contract modifications are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. Contract modifications that add distinct goods or services and increase the contract value by an amount that reflects the standalone selling price are accounted for as separate contracts. When the contract modification includes goods or services that are not distinct from those already provided, the Company records a cumulative adjustment to revenues based on a remeasurement of progress towards the complete satisfaction of the not yet fully delivered performance obligation.
Based on the critical nature of our contractual performance obligations, the Company may proceed with work based on customer direction prior to the completion and signing of formal contract documents. The Company has a formal review process for approving any such work that considers previous experiences with the customer, communications with the customer regarding funding status, and the Company’s knowledge of available funding for the contract or program.
Costs of Revenues
Costs of revenues includes all direct contract costs such as labor, materials, subcontractor costs, and indirect costs that are allowable and allocable to contracts under federal procurement standards. Costs of revenues also includes expenses that are unallowable under applicable procurement standards and are not allocable to contracts for billing purposes. Such unallowable expenses do not directly generate revenues but are necessary for business operations.
Changes in Estimates on Contracts
The Company recognizes revenues on many of its fixed-price, award fee, and incentive fee arrangements over time primarily using a cost-to-cost input method based on the ratio of costs incurred to date to total estimated costs at completion. The process requires the Company to use professional judgment when assessing risks, estimating contract revenues and costs, estimating variable consideration, and making assumptions for schedule and technical issues. The Company periodically reassesses its assumptions and updates its estimates as needed.
Contract Balances
Contract assets include unbilled receivables in which our right to consideration is conditional on factors other than the passage of time. Contract assets exclude billed and billable receivables.
In addition, the costs to fulfill and obtain a contract are considered for capitalization based on contract specific facts and circumstances. The incremental costs to fulfill a contract (e.g., ramp up costs at the beginning of the period of performance) may be capitalized when costs are incurred prior to satisfying a performance obligation. The incremental costs of obtaining a contract (e.g., sales commissions) are capitalized as an asset when the Company expects to recover them either directly or indirectly through the revenue arrangement’s profit margins. These capitalized costs are subsequently expensed over the revenue arrangement’s period of performance. The Company has elected to apply the practical expedient to immediately expense the costs to obtain a contract when the performance obligation will be completed within twelve months of contract inception.
Contract assets are periodically reassessed based on reasonably available information as of the balance sheet date to ensure they do not exceed their net realizable value.
Contract liabilities primarily include advance payments received from a customer in excess of revenues that may be recognized as of the balance sheet date. The advance payment is subsequently recognized into revenues as the performance obligation is satisfied.
Remaining Performance Obligations
Remaining performance obligations (RPO) represent the expected revenues to be recognized on existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an indefinite delivery/indefinite quantity vehicle until such task orders are awarded. The RPO balance generally increases with the execution of new contracts and converts into revenues as contractual performance obligations are satisfied. The Company continues to monitor this balance as it is subject to change from execution of new contracts, contract modifications or extensions, government deobligations, or early terminations.
38
Cash and Cash Equivalents
The Company considers all investments with an original maturity of three months or less on their trade date to be cash equivalents. The Company classifies investments with an original maturity of more than three months but less than twelve months on their trade date as short-term marketable securities.
Receivables
Receivables include billed, billable, and unbilled receivables, substantially all of which are expected to be billed and collected generally within one year. When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded. Upon determination that a specific receivable is uncollectible, the receivable is written off against the allowance for expected credit losses. The Company’s allowance for expected credit losses was $7.6 million and $8.1 million as of June 30, 2026 and June 30, 2025, respectively.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to credit risk include accounts receivable and cash equivalents. Management believes that credit risk related to the Company’s accounts receivable is limited due to a large number of customers in differing segments and agencies of the U.S. government. Accounts receivable credit risk is also limited due to the creditworthiness of the U.S. government. Management believes the credit risk associated with the Company’s cash equivalents is limited due to the creditworthiness of the obligors of the investments underlying the cash equivalents. In addition, although the Company maintains cash balances at financial institutions that exceed federally insured limits, these balances are placed with high quality financial institutions.
Inventories
Inventories are stated at the lower of cost (average cost or first-in, first-out) or net realizable value and are included in prepaid expenses and other current assets on the consolidated balance sheets. The Company periodically assesses its current inventory balances and records a provision for damaged, deteriorated, excess, or obsolete inventory based on historical patterns and forecasted sales.
Goodwill and Intangible Assets
Goodwill represents the excess of the fair value of consideration paid for an acquisition over the fair value of the net assets acquired as of the acquisition date. The Company evaluates goodwill for both of its reporting units for impairment annually on the first day of the fiscal fourth quarter, or whenever events or circumstances indicate that the carrying value may not be recoverable. The evaluation includes a qualitative assessment or a quantitative assessment that compares the fair value of the relevant reporting unit to its respective carrying value, including goodwill, and utilizes both income and market approaches. The analysis relies on significant judgments and assumptions about expected future cash flows, weighted-average cost of capital, discount rates, expected long-term growth rates, and financial measures derived from observable market data of comparable public companies.
Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives, which is generally over periods ranging from to twenty-six years. Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable at the asset group level.
Property, Plant, and Equipment
Purchases of property, plant, and equipment are capitalized at cost. The Company depreciates or amortizes on a straight-line basis over the useful life: equipment and furniture over to eight years; buildings and building improvements up to 40 years; and leasehold improvements over the shorter of the remaining lease term or the improvements estimated useful life. Repairs and maintenance costs are expensed as incurred.
The Company evaluates its long-lived assets for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable and the carrying amount of the asset exceeds its estimated fair value at the asset group level.
External Software Development Costs
Costs incurred in creating software to be sold or licensed for external use are expensed as incurred until technological feasibility has been established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. Thereafter, all such software development costs are capitalized and subsequently reported at the lower of unamortized cost or estimated net realizable value. Capitalized costs are amortized on a straight-line basis over the remaining estimated economic life of the software.
Leases
The Company enters into contractual arrangements primarily for the use of real estate facilities, IT equipment, and certain other equipment. These arrangements contain a lease when the Company controls the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset. All of the Company’s leases are operating leases.
39
The Company records a right-of-use (ROU) asset and lease liability as of the lease commencement date equal to the present value of the remaining lease payments. Most of the Company’s leases do not provide an implicit rate that can be readily determined. Therefore, the Company uses a discount rate based on its incremental borrowing rate on the commencement date. The ROU asset is then adjusted for initial direct costs and certain lease incentives included in the contractual arrangement. The Company combines and accounts for lease and non-lease components as a single component for facility leases. The Company has elected the practical expedient to not recognize ROU assets and lease liabilities for short-term non-facility leases. Operating lease arrangements may contain options to extend the lease term or for early termination. The Company accounts for these options when exercise is reasonably certain. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets.
Operating lease expense is recognized on a straight-line basis over the lease term and is recorded primarily within indirect costs and selling expenses on the consolidated statements of operations. Variable lease expenses are recorded in the period they are incurred and are excluded from the ROU asset and lease liability.
Derivative Instruments Designated as Cash Flow Hedges
Derivative instruments are recorded on the consolidated balance sheets at fair value. Unrealized gains and losses on derivatives designated as cash flow hedges are reported in accumulated other comprehensive income (loss) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions.
The Company periodically uses derivative financial instruments as part of a strategy to manage exposure to market risks associated with interest rate volatility on its variable-rate borrowings. The Company has entered into several floating-to-fixed interest rate swap agreements to hedge a portion of the Company’s floating rate indebtedness, which are designated and accounted for as cash flow hedges. For additional information on the Company’s interest rate swap agreements, see “Note 11 – Long-term Debt”.
The fair value of interest rate swap agreements is determined using observable market inputs for the applicable benchmark reference rate and is classified within Level 2 of the fair value hierarchy. See “Note 12 – Fair Value Measurements”.
Earnings Per Share
Basic earnings per share excludes dilution and is computed by dividing income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock excluding anti-dilutive securities.
Stock-Based Compensation
We issue stock-based awards as compensation to employees and directors in the form of Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PRSUs). These awards are accounted for as equity awards. We recognize stock-based compensation expense net of estimated forfeitures on a straight-line basis over the underlying award’s requisite service period, as measured using the award’s grant date fair value. The grant date fair value is based on the closing market price of our common stock on the grant date. For PRSUs, we assess the probability of achieving the performance conditions at each reporting period and adjust compensation expense based on the number of shares we expect to issue.
Income Taxes
Income taxes are accounted for using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. Estimates of the realizability of deferred tax assets are based on the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies.
Liabilities for uncertain tax positions are recognized when it is more likely than not that a tax position will not be sustained upon examination and settlement with taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Income tax penalties and interest are included in income tax expense.
Foreign Currency
The assets and liabilities of the Company’s foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the weighted-average exchange rate during the period. The Company’s primary practice is to negotiate contracts in the same currency in which the predominant expenses are incurred, thereby mitigating the exposure to foreign currency fluctuations. The net translation gains and losses are recorded as accumulated other comprehensive income (loss) in shareholders’ equity. Foreign currency transaction gains and losses are recorded as incurred in indirect costs and selling expenses on the consolidated statements of operations.
40
Accumulated Other Comprehensive Income (Loss)
Changes in the components of accumulated other comprehensive loss (AOCL) are as follows:
| (in thousands) | Foreign currency translation adjustments | Interest rate swap cash flow hedges | Effects of post-retirement adjustments | Total | |||||||||||||||||||
| Balance at June 30, 2023 | $ | (36,908) | $ | 30,862 | $ | 1,130 | $ | (4,916) | |||||||||||||||
| Other comprehensive (loss) income | (326) | (9,973) | 232 | (10,067) | |||||||||||||||||||
| Income tax impact | — | 2,520 | (59) | 2,461 | |||||||||||||||||||
| Other comprehensive (loss) income, net of tax | (326) | (7,453) | 173 | (7,606) | |||||||||||||||||||
| Balance at June 30, 2024 | (37,234) | 23,409 | 1,303 | (12,522) | |||||||||||||||||||
| Other comprehensive income (loss) | 24,244 | (24,772) | (116) | (644) | |||||||||||||||||||
| Income tax impact | — | 6,259 | 29 | 6,288 | |||||||||||||||||||
| Other comprehensive income (loss), net of tax | 24,244 | (18,513) | (87) | 5,644 | |||||||||||||||||||
| Balance at June 30, 2025 | (12,990) | 4,896 | 1,216 | (6,878) | |||||||||||||||||||
| Other comprehensive (loss) income | (11,389) | 219 | 42 | (11,128) | |||||||||||||||||||
| Income tax impact | — | (55) | (10) | (65) | |||||||||||||||||||
| Other comprehensive (loss) income, net of tax | (11,389) | 164 | 32 | (11,193) | |||||||||||||||||||
| Balance at June 30, 2026 | $ | (24,379) | $ | 5,060 | $ | 1,248 | $ | (18,071) | |||||||||||||||
See “Note 11 – Long-term Debt” for the amounts reclassified from AOCL to earnings.
Commitments and Contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.
Note 3 – Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures, which requires disaggregated information about an entity’s effective tax rate reconciliation as well as information on income taxes paid. We adopted this pronouncement on a prospective basis in fiscal 2026. See “Note 15 – Income Taxes”.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, to enhance the transparency of certain expense disclosures. The ASU requires disclosure of specific types of expenses included in the expense captions of the consolidated statements of operations. The ASU will be effective beginning with our annual fiscal 2028 financial statements and may be adopted prospectively or retrospectively. We are currently evaluating the impacts of the new standard.
In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which amends certain aspects of the accounting for and disclosure of software costs under the Accounting Standards Codification (ASC) 350-40. The ASU will be effective beginning with our fiscal 2029 annual financial statements, including interim reporting periods within that year, and may be adopted prospectively or retrospectively. We are currently evaluating the impacts of the new standard.
Note 4 – Acquisitions
Fiscal 2026
ARKA Group L.P.
On March 9, 2026, CACI acquired all of the equity interests of ARKA Group L.P. (ARKA) for purchase consideration of $2,642.7 million, net of cash acquired, subject to post closing adjustments. This acquisition will enhance CACI’s ability to deliver advanced technology for its national security customers in the space domain. The Company funded the acquisition from increased borrowings and cash on hand.
As of June 30, 2026, the Company has not finalized the determination of fair values allocated to various assets and liabilities, and the purchase consideration allocation is subject to change as the Company continues to obtain and assess relevant information that existed as of the acquisition date.
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During fiscal 2026, the Company adjusted the preliminary purchase consideration allocation resulting in a $21.0 million net increase to goodwill. The primary measurement period adjustments included: $35.0 million net decrease to intangible assets; $25.0 million net increase to property and equipment; $11.0 million net decrease to unbilled accounts receivable. The adjusted preliminary allocation of the total estimated purchase consideration is as follows (in thousands):
| Accounts receivable, net | $ | 103,068 | ||||||
| Prepaid expenses and other current assets | 25,490 | |||||||
| Goodwill | 1,462,926 | |||||||
| Intangible assets, net | 1,145,000 | |||||||
| Property, plant, and equipment, net | 149,412 | |||||||
| Operating lease right-of-use assets | 24,846 | |||||||
| Other assets | 436 | |||||||
| Accounts payable | (15,061) | |||||||
| Accrued compensation and benefits | (11,531) | |||||||
| Other accrued expenses and current liabilities | (136,841) | |||||||
| Deferred income taxes | (85,120) | |||||||
| Operating lease liabilities | (19,959) | |||||||
| Total estimated consideration | $ | 2,642,666 | ||||||
The following table summarizes the preliminary fair value attributed to intangible assets as of June 30, 2026 and the related weighted-average useful lives as of the acquisition date (dollars in thousands):
| Fair value | Weighted-average useful lives (years) | |||||||||||||
| Customer relationships | $ | 660,000 | 13.5 | |||||||||||
| Developed technology | 485,000 | 20.9 | ||||||||||||
| Total | $ | 1,145,000 | 16.6 | |||||||||||
The fair value attributed to the intangible assets acquired was based on assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. The customer relationships intangible assets were valued using the excess earnings method (income approach) in which the value is derived from an estimation of the after-tax cash flows specifically attributable to the intangible asset being valued. Assumptions in this analysis included projections of revenues and expenses, tax rates, contributory asset charges, and discount rates. The developed technology asset was valued using the relief from royalty method (income approach) in which the value is derived by estimation of the after-tax royalty savings attributable to owning the developed technology asset. Assumptions in this analysis included projections of revenues, royalty rates representing costs avoided due to ownership of the developed technology asset, discount rates, and future obsolescence of the technology. Goodwill reflects benefits that are not separately identifiable from net tangible and intangible assets acquired, including new customers and platforms, technologies, and the assembled workforce. Of the value attributed to goodwill and intangible assets, $1,722.1 million is deductible for income tax purposes.
The Company entered into a commitment letter (the Commitment Letter), dated December 19, 2025, with Wells Fargo Bank, National Association, for a senior secured bridge loan facility in an aggregate principal amount of up to $1,300.0 million. The Commitment Letter remained undrawn and was terminated on March 9, 2026 upon consummation of the acquisition. Commitment fees incurred for the twelve months ended June 30, 2026 were $3.3 million.
Datalynx Limited
On February 17, 2026, CACI Limited acquired Datalynx Limited (Datalynx) for $10.7 million, net of cash acquired, which includes initial cash payments, deferred consideration, and a working capital payment. Datalynx provides specialist data and cloud migration services in mission-critical environments to government clients. The Company preliminarily recognized goodwill and intangible assets of $11.1 million and $3.5 million, respectively.
During fiscal 2026, combined post-acquisition revenues and net income for ARKA and Datalynx were $166.8 million and $17.4 million, respectively, including the impact of $26.0 million of intangible amortization. Pro forma results of operations for these acquisitions were determined to be not material relative to the Company’s consolidated results of operations. Total acquisition-related costs of $22.5 million were reported in indirect costs and selling expenses.
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Fiscal 2025
During fiscal 2025, the Company completed three acquisitions with an aggregate purchase consideration of $1,681.9 million, net of cash acquired, which includes initial cash payments, deferred consideration, and estimated contingent consideration. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $850.5 million to goodwill and $740.4 million to intangible assets. Total acquisition-related costs were $14.1 million for the twelve months ended June 30, 2025.
Fiscal 2024
During fiscal 2024, the Company completed three acquisitions with an aggregate purchase consideration of $108.6 million, net of cash acquired, which includes initial cash payments, deferred consideration, and estimated contingent consideration. The Company recognized fair values of the assets acquired and liabilities assumed and allocated $70.0 million to goodwill and $40.1 million to intangible assets.
Note 5 – Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the years ended June 30 are as follows (in thousands):
| Domestic | International | Total | |||||||||||||||
| Balance at June 30, 2024 | $ | 3,974,823 | $ | 180,021 | $ | 4,154,844 | |||||||||||
Goodwill acquired (1) | 798,885 | 50,139 | 849,024 | ||||||||||||||
| Foreign currency translation | (297) | 18,234 | 17,937 | ||||||||||||||
| Balance at June 30, 2025 | 4,773,411 | 248,394 | 5,021,805 | ||||||||||||||
Goodwill acquired (1) | 1,464,476 | 10,057 | 1,474,533 | ||||||||||||||
Goodwill divested (2) | — | (3,666) | (3,666) | ||||||||||||||
| Foreign currency translation | 857 | (9,073) | (8,216) | ||||||||||||||
| Balance at June 30, 2026 | $ | 6,238,744 | $ | 245,712 | $ | 6,484,456 | |||||||||||
______________________
(1) Includes goodwill initially allocated to new business combinations as well as measurement period adjustments, when applicable.
(2) We recognized a $7.3 million gain on the divestiture of a business which is reported in indirect costs and selling expenses on the consolidated statement of operations.
There were no impairments of goodwill during the periods presented.
Intangible Assets
Intangible assets, net consists of the following as of the dates presented (in thousands):
| June 30, 2026 | June 30, 2025 | ||||||||||||||||||||||||||||||||||
| Gross carrying value | Accumulated amortization | Net carrying value | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||||||||||||||||||||||
| Customer contracts and related customer relationships | $ | 1,725,053 | $ | (546,140) | $ | 1,178,913 | $ | 1,062,718 | $ | (432,520) | $ | 630,198 | |||||||||||||||||||||||
| Acquired technologies | 1,073,225 | (179,147) | 894,078 | 646,823 | (185,745) | 461,078 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 2,798,278 | $ | (725,287) | $ | 2,072,991 | $ | 1,709,541 | $ | (618,265) | $ | 1,091,276 | |||||||||||||||||||||||
Amortization expense was $168.3 million, $125.0 million, and $73.8 million for fiscal 2026, 2025, and 2024, respectively. Intangible assets with a gross carrying value of $61.1 million became fully amortized during fiscal 2026 and are no longer reflected in the table above as of June 30, 2026.
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As of June 30, 2026, the estimated annual amortization expense is as follows (in thousands):
| Fiscal year ending June 30, | |||||
| 2027 | $ | 216,608 | |||
| 2028 | 205,944 | ||||
| 2029 | 197,106 | ||||
| 2030 | 185,454 | ||||
| 2031 | 168,190 | ||||
| Thereafter | 1,099,689 | ||||
| Total | $ | 2,072,991 | |||
Note 6 – Revenues
Disaggregation of Revenues
The Company disaggregates revenues by contract type, customer type, prime vs. subcontractor, and whether the solution provided is primarily Technology or Expertise. These categories represent how the nature, amount, timing, and uncertainty of revenues and cash flows are affected.
Revenues by contract type are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Cost-plus-fee | $ | 5,361,366 | $ | — | $ | 5,361,366 | $ | 5,221,011 | $ | — | $ | 5,221,011 | $ | 4,654,689 | $ | — | $ | 4,654,689 | |||||||||||||||||||||||||||||||||||
| Fixed-price | 2,718,362 | 182,703 | 2,901,065 | 2,112,490 | 159,112 | 2,271,602 | 1,950,286 | 140,893 | 2,091,179 | ||||||||||||||||||||||||||||||||||||||||||||
| Time-and-materials | 1,180,560 | 124,788 | 1,305,348 | 1,036,860 | 98,351 | 1,135,211 | 827,770 | 86,194 | 913,964 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,260,288 | $ | 307,491 | $ | 9,567,779 | $ | 8,370,361 | $ | 257,463 | $ | 8,627,824 | $ | 7,432,745 | $ | 227,087 | $ | 7,659,832 | |||||||||||||||||||||||||||||||||||
Revenues by customer type are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Department of War | $ | 5,133,759 | $ | — | $ | 5,133,759 | $ | 4,617,699 | $ | — | $ | 4,617,699 | $ | 4,065,974 | $ | — | $ | 4,065,974 | |||||||||||||||||||||||||||||||||||
| Intelligence Community | 2,351,801 | — | 2,351,801 | 2,209,238 | — | 2,209,238 | 1,954,137 | — | 1,954,137 | ||||||||||||||||||||||||||||||||||||||||||||
| Federal civilian agencies | 1,660,934 | — | 1,660,934 | 1,433,013 | — | 1,433,013 | 1,266,320 | — | 1,266,320 | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and other | 113,794 | 307,491 | 421,285 | 110,411 | 257,463 | 367,874 | 146,314 | 227,087 | 373,401 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,260,288 | $ | 307,491 | $ | 9,567,779 | $ | 8,370,361 | $ | 257,463 | $ | 8,627,824 | $ | 7,432,745 | $ | 227,087 | $ | 7,659,832 | |||||||||||||||||||||||||||||||||||
Revenues by prime vs. subcontractor are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Prime contractor | $ | 8,347,308 | $ | 271,993 | $ | 8,619,301 | $ | 7,553,566 | $ | 230,342 | $ | 7,783,908 | $ | 6,649,114 | $ | 200,735 | $ | 6,849,849 | |||||||||||||||||||||||||||||||||||
| Subcontractor | 912,980 | 35,498 | 948,478 | 816,795 | 27,121 | 843,916 | 783,631 | 26,352 | 809,983 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,260,288 | $ | 307,491 | $ | 9,567,779 | $ | 8,370,361 | $ | 257,463 | $ | 8,627,824 | $ | 7,432,745 | $ | 227,087 | $ | 7,659,832 | |||||||||||||||||||||||||||||||||||
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Revenues by Technology or Expertise are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Technology | $ | 5,478,482 | $ | 104,640 | $ | 5,583,122 | $ | 4,655,816 | $ | 122,167 | $ | 4,777,983 | $ | 3,959,311 | $ | 143,532 | $ | 4,102,843 | |||||||||||||||||||||||||||||||||||
| Expertise | 3,781,806 | 202,851 | 3,984,657 | 3,714,545 | 135,296 | 3,849,841 | 3,473,434 | 83,555 | 3,556,989 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,260,288 | $ | 307,491 | $ | 9,567,779 | $ | 8,370,361 | $ | 257,463 | $ | 8,627,824 | $ | 7,432,745 | $ | 227,087 | $ | 7,659,832 | |||||||||||||||||||||||||||||||||||
Changes in Estimates
Aggregate net changes in estimates reflected an increase to income before income taxes of $25.3 million ($0.85 per diluted share), a decrease of $15.8 million ($0.53 per diluted share), and an increase of $25.0 million ($0.83 per diluted share) during fiscal 2026, 2025, and 2024, respectively. The Company uses its statutory tax rate when calculating the impact to diluted earnings per share.
Revenues recognized from previously satisfied performance obligations were $2.3 million, $0.2 million, $0.7 million for fiscal 2026, 2025, and 2024, respectively. The change in revenues generally relates to final true-up adjustments for estimated award or incentive fees in the period in which the customers’ final performance score was received or when it can be determined that more objective, contractually-defined criteria have been fully satisfied.
Remaining Performance Obligations
As of June 30, 2026, the Company had $12.8 billion of remaining performance obligations and expects to recognize 47% and 67% over the next 12 and 24 months, respectively, with the remainder to be recognized thereafter.
Contract Balances
Contract balances consist of the following (in thousands):
| Year ended June 30, | ||||||||||||||||||||
| Description of contract related balance | Financial statement classification | 2026 | 2025 | |||||||||||||||||
| Billed and billable receivables | Accounts receivable, net | $ | 1,259,138 | $ | 1,098,237 | |||||||||||||||
| Contract assets – current unbilled receivables | Accounts receivable, net | 445,949 | 307,204 | |||||||||||||||||
| Contract assets – current costs to obtain | Prepaid expenses and other current assets | 6,936 | 7,059 | |||||||||||||||||
| Contract assets – noncurrent unbilled receivables | Other assets | 17,159 | 14,694 | |||||||||||||||||
| Contract assets – noncurrent costs to obtain | Other assets | 13,972 | 13,897 | |||||||||||||||||
| Contract liabilities – current deferred revenue and other contract liabilities | Other accrued expenses and current liabilities | 294,059 | 190,400 | |||||||||||||||||
| Contract liabilities – noncurrent deferred revenue and other contract liabilities | Other liabilities | 2,952 | 6,014 | |||||||||||||||||
During fiscal 2026 and 2025, revenue recognized from amounts included in contract liabilities at the beginning of each period was $172.9 million and $122.5 million, respectively.
Note 7 – Sales of Receivables
On December 19, 2025, the Company amended its Master Accounts Receivable Purchase Agreement (MARPA) with MUFG Bank, Ltd. (Purchaser) for the sale of certain designated eligible U.S. government receivables. The amendment extended the term of the MARPA to December 18, 2026. Under the MARPA, the Company can sell eligible receivables, including certain billed and unbilled receivables up to a maximum amount of $350.0 million. The Company’s receivables are sold under the MARPA without recourse for any U.S. government credit risk.
The Company accounts for receivable transfers under the MARPA as sales under ASC 860, Transfers and Servicing, and derecognizes the sold receivables from its consolidated balance sheets. The fair value of the sold receivables approximated their book value due to their short-term nature.
The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value, and therefore, no servicing asset or liability related to these receivables was recognized as of June 30, 2026. Proceeds from the sold receivables are reflected within operating activities on the consolidated statements of cash flows.
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MARPA activity consists of the following (in thousands):
| As of and for the year ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Beginning balance | $ | 288,909 | $ | 250,000 | |||||||
| Sales of receivables | 3,881,281 | 3,902,102 | |||||||||
| Cash collections | (3,836,657) | (3,863,193) | |||||||||
Outstanding balance sold to Purchaser (1) | 333,533 | 288,909 | |||||||||
Cash collected, not remitted to Purchaser (2) | (110,127) | (96,391) | |||||||||
| Remaining sold receivables | $ | 223,406 | $ | 192,518 | |||||||
______________________
(1)During fiscal 2026 and 2025, the Company recorded net operating cash inflows from sold receivables of $44.6 million and $38.9 million, respectively.
(2)This balance is included in other accrued expenses and current liabilities on the consolidated balance sheets.
Note 8 – Inventories
Inventories, net consists of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Raw materials | $ | 128,489 | $ | 87,348 | |||||||
| Work in process | 27,216 | 21,285 | |||||||||
| Finished goods | 25,017 | 20,496 | |||||||||
| Total | $ | 180,722 | $ | 129,129 | |||||||
Inventories, net is included in prepaid expenses and other current assets on the consolidated balance sheets.
Note 9 – Property, Plant, and Equipment
Property, plant, and equipment, net consists of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Equipment and furniture | $ | 452,844 | $ | 354,263 | |||||||
| Land, building, and improvements | 423,341 | 290,657 | |||||||||
| Property, plant, and equipment | 876,185 | 644,920 | |||||||||
| Less accumulated depreciation and amortization | (479,024) | (432,885) | |||||||||
| Total property, plant, and equipment, net | $ | 397,161 | $ | 212,035 | |||||||
Depreciation and amortization expense was $77.6 million, $70.5 million, and $68.4 million in fiscal 2026, 2025, and 2024, respectively.
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Note 10 – Leases
All of the Company’s leases are operating leases. The current portion of operating lease liabilities is included in on the consolidated balance sheets. Operating lease ROU assets and liabilities consist of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating lease ROU assets | $ | 381,980 | $ | 343,944 | |||||||
| Operating lease liabilities, current | $ | 51,255 | $ | 40,009 | |||||||
| Operating lease liabilities | 431,769 | 377,080 | |||||||||
| Total operating lease liabilities | $ | 483,024 | $ | 417,089 | |||||||
The Company’s total lease cost is recorded primarily within indirect costs and selling expenses and has the following impact on the consolidated statements of operations (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Operating lease cost | $ | 93,319 | $ | 82,082 | $ | 82,441 | |||||||||||
| Short-term and variable lease cost | 20,736 | 17,831 | 17,390 | ||||||||||||||
| Sublease income | (1,105) | (1,121) | (366) | ||||||||||||||
| Total lease cost | $ | 112,950 | $ | 98,792 | $ | 99,465 | |||||||||||
The Company’s future minimum lease payments under non-cancelable operating leases as of June 30, 2026 are as follows (in thousands):
| Fiscal year ending June 30, | |||||
| 2027 | $ | 78,408 | |||
| 2028 | 88,180 | ||||
| 2029 | 82,693 | ||||
| 2030 | 70,382 | ||||
| 2031 | 61,140 | ||||
| Thereafter | 226,729 | ||||
| Total undiscounted lease payments | 607,532 | ||||
| Less: imputed interest | (124,508) | ||||
| Total discounted lease liabilities | $ | 483,024 | |||
The following table summarizes other supplemental operating lease information for the periods presented (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 75,710 | $ | 87,519 | $ | 87,969 | |||||||||||
ROU assets obtained in exchange for new operating lease obligations (1) | $ | 107,592 | $ | 106,469 | $ | 61,295 | |||||||||||
(1) Includes all non-cash changes arising from new or remeasured operating lease arrangements.
The weighted-average remaining lease terms as of June 30, 2026 and 2025 were 7.9 years and 7.1 years, respectively. As of June 30, 2026 and 2025, the weighted-average discount rates were 5.10% and 4.46%, respectively.
As of June 30, 2026, the Company had future lease payments of $32.2 million for facility leases that have not yet commenced. These leases have a weighted-average remaining lease term of 13.1 years.
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Note 11 – Long-term Debt
The following table summarizes the carrying amounts and terms of our long-term debt as of the dates presented (dollars in thousands):
| June 30, 2026 | June 30, 2025 | |||||||||||||||||||||||||||||||
| Maturity date | Stated interest rate | Effective interest rate | Outstanding balance | Outstanding balance | ||||||||||||||||||||||||||||
| Revolving Facility | November 2030 | 5.18% | 5.18% | $ | 660,000 | $ | 124,500 | |||||||||||||||||||||||||
| Term Loan | November 2030 | 4.87% | 4.94% | 1,234,375 | 1,071,875 | |||||||||||||||||||||||||||
| Term Loan B | October 2031 | 5.39% | 5.63% | 738,750 | 746,250 | |||||||||||||||||||||||||||
| Term Loan B-2 | March 2033 | 5.39% | 5.60% | 798,000 | — | |||||||||||||||||||||||||||
| 2033 Notes | June 2033 | 6.38% | 6.58% | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||
| 2033 Notes-2 | June 2033 | 6.38% | 6.10% | 500,000 | — | |||||||||||||||||||||||||||
| Principal amount of long-term debt | 4,931,125 | 2,942,625 | ||||||||||||||||||||||||||||||
| Less unamortized debt discount, premium, and issuance costs | (29,616) | (24,685) | ||||||||||||||||||||||||||||||
| Total long-term debt | 4,901,509 | 2,917,940 | ||||||||||||||||||||||||||||||
| Less current portion | (46,750) | (68,750) | ||||||||||||||||||||||||||||||
| Long-term debt, net of current portion | $ | 4,854,759 | $ | 2,849,190 | ||||||||||||||||||||||||||||
Credit Facility Agreement
On November 25, 2025, the Company amended its senior secured credit facility (the Credit Facility) primarily to extend the maturity date. As amended, the Company’s $3,250.0 million credit facility consists of a $2,000.0 million revolving credit facility (the Revolving Facility) and a $1,250.0 million term loan (the Term Loan). The Revolving Facility permits renewable borrowings and has sub-facilities of $150.0 million for same-day swing line loan borrowings and $25.0 million for stand-by letters of credit. The interest rates applicable to loans under the Credit Facility are floating interest rates that, at the Company’s option, equal a base rate or a Secured Overnight Financing Rate (SOFR) rate plus, in each case, an applicable margin based upon the Company’s consolidated total net leverage ratio. A majority of our assets serve as collateral under the Credit Facility. The Company pays a quarterly facility fee for the unused portion of the Revolving Facility. The Term Loan is a five-year term loan under which principal payments are due in quarterly installments of $7.8 million through December 31, 2027 and $15.6 million thereafter, with any remaining balance due at maturity. As of June 30, 2026, there were no borrowings on the swing line and stand-by letters of credit.
Term Loan B
On October 30, 2024, to provide additional financial flexibility, the Company completed a senior secured term loan (the Term Loan B) in an aggregate principal amount of $750.0 million. The Term Loan B is a seven-year loan, under which principal payments are due in quarterly installments of $1.9 million beginning March 2025 with any remaining balance due at maturity. The interest rates applicable to the loans under the Term Loan B are floating interest rates that, at the Company’s option, equal a base rate or a SOFR rate, plus, in each case, an applicable margin.
The Term Loan B requires the Company to comply with certain customary negative covenants that restrict or limit our ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, make loans or other investments, transfer or dispose of assets, declare dividends, redeem or repurchase capital stock or make other distributions in respect of capital stock, prepay certain subordinated indebtedness, and engage in mergers, acquisitions or other business combinations, in each case, except as expressly permitted under the agreement. The Term Loan B includes cross-default provisions with our other debt instruments.
Term Loan B-2
On March 9, 2026, to provide additional financial flexibility in connection with the ARKA acquisition, the Company amended the Term Loan B to provide for an additional tranche of senior secured term loan (the Term Loan B-2) in an aggregate principal amount of $800.0 million. The Term Loan B-2 is a seven-year term loan under which principal payments are due in quarterly installments of $2.0 million beginning June 2026 with any remaining balance due at maturity. The interest rate applicable to the Term Loan B-2 is a floating interest rate that, at the Company’s option, equals a base rate or a SOFR rate plus, in each case, an applicable margin. The obligations under the Term Loan B-2 are secured by the Company, in each case, subject to customary exceptions that are identical to the guarantees and collateral in respect of the Term Loan B. The Term Loan B-2 is subject to the same customary negative covenants as the Term Loan B. The Company deferred $9.1 million of debt issuance costs related to the Term Loan B-2, which are amortized to interest expense over the life of the Term Loan B-2 using the effective interest method.
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2033 Notes
On June 2, 2025, CACI issued 6.375% fixed-rate senior unsecured notes with an aggregate principal amount of $1,000.0 million (the 2033 Notes). Net proceeds from the issuance were $989.8 million, all of which were used to repay outstanding borrowings under the Revolving Facility. Debt issuance costs of $12.4 million are amortized to interest expense over the term of the 2033 Notes using the effective interest method. Interest is payable semi-annually in arrears, commencing on December 15, 2025. The principal is due in full at maturity. The 2033 Notes are subordinated to existing senior secured indebtedness, including the Credit Facility, the Term Loan B, and the Term Loan B-2.
Upon the occurrence of a change of control event accompanied by a ratings decline with respect to the 2033 Notes, each note holder may require the Company to repurchase the respective notes held, in whole or in part, at a redemption price of 101% of the related principal amount plus accrued and unpaid interest to the date of redemption.
The 2033 Notes include certain covenants restricting or limiting the Company’s ability to guarantee or incur additional indebtedness, grant liens or other security interests to third parties, and enter into sale and leaseback transactions. The 2033 Notes includes cross-default provisions with our other debt instruments.
2033 Notes-2
On March 12, 2026, the Company issued an additional $500.0 million of its senior unsecured notes (the 2033 Notes‑2), which form part of the same series as the Company’s 2033 Notes. The Company issued the 2033 Notes-2 at a premium and received $516.5 million in net proceeds, which were used to repay outstanding borrowings under the Revolving Facility. Interest is payable semi-annually in arrears, commencing on June 15, 2026. The principal is due in full at maturity. The terms and subordination of the 2033 Notes-2 are the same as the 2033 Notes. All premiums and debt issuance costs are amortized using the effective interest rate over the life of the loan.
The aggregate maturities of long-term debt as of June 30, 2026 are as follows (in thousands):
| Fiscal year ending June 30, | |||||
| 2027 | $ | 46,750 | |||
| 2028 | 62,375 | ||||
| 2029 | 78,000 | ||||
| 2030 | 78,000 | ||||
| 2031 | 1,706,750 | ||||
| Thereafter | 2,959,250 | ||||
| Principal amount of long-term debt | $ | 4,931,125 | |||
As of June 30, 2026, the Company was in compliance with all of its financial covenants related to all long-term debt.
Cash Flow Hedges
The Company’s interest rate swap cash flow hedges receive variable rate one-month term SOFR, and they consist of (dollars in thousands):
| As of June 30, 2026 | ||||||||||||||||||||
| Effective date | Notional amount | Paid fixed rate | Maturity date | |||||||||||||||||
| July 2019 | $ | 100,000 | 2.20% | July 2026 | ||||||||||||||||
| July 2022 | 50,000 | 1.69% | July 2027 | |||||||||||||||||
| October 2022 | 50,000 | 1.98% | October 2027 | |||||||||||||||||
| October 2022 | 50,000 | 2.74% | October 2028 | |||||||||||||||||
| January 2023 | 50,000 | 1.80% | January 2027 | |||||||||||||||||
| January 2023 | 50,000 | 2.14% | January 2027 | |||||||||||||||||
| January 2023 | 50,000 | 2.04% | January 2028 | |||||||||||||||||
| April 2023 | 200,000 | 3.71% | April 2027 | |||||||||||||||||
| April 2023 | 100,000 | 3.67% | April 2028 | |||||||||||||||||
| May 2026 | 300,000 | 3.79% | May 2028 | |||||||||||||||||
| May 2026 | 200,000 | 3.80% | May 2029 | |||||||||||||||||
| May 2026 | 300,000 | 3.81% | May 2030 | |||||||||||||||||
| Total notional amount | $ | 1,500,000 | ||||||||||||||||||
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The effect of the cash flow hedges on other comprehensive income (loss) and earnings for the periods presented was as follows (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Gain (loss) recognized in other comprehensive income before reclassifications | $ | 8,428 | $ | (7,202) | $ | 17,417 | |||||||||||
Amounts reclassified from AOCL to earnings (1) | (8,209) | (17,570) | (27,390) | ||||||||||||||
| Other comprehensive income (loss) | $ | 219 | $ | (24,772) | $ | (9,973) | |||||||||||
______________________
(1)Amounts reclassified from AOCL are included in interest expense and other, net on the consolidated statements of operations.
We expect to reclassify net gains of $6.2 million from AOCL to earnings during the next twelve months.
Note 12 – Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and categorizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data which requires development of assumptions that market participants would use in pricing the asset or liability (Level 3).
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts.
The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):
| Fair value hierarchy | As of June 30, | |||||||||||||||||||||||||
| Description of financial instrument | Financial statement classification | 2026 | 2025 | |||||||||||||||||||||||
| Interest rate swap agreements | Prepaid expenses and other current assets | Level 2 | $ | 1,230 | $ | 220 | ||||||||||||||||||||
| Interest rate swap agreements | Other assets | Level 2 | 7,545 | 9,839 | ||||||||||||||||||||||
| Interest rate swap agreements | Level 2 | — | 1,503 | |||||||||||||||||||||||
| Contingent consideration | Other accrued expenses and current liabilities | Level 3 | 7,764 | 3,678 | ||||||||||||||||||||||
| Contingent consideration | Other liabilities | Level 3 | 551 | 10,017 | ||||||||||||||||||||||
The outstanding principal amount of the Company’s long-term debt approximates its fair value at June 30, 2026. The fair value of the Company’s debt was estimated using Level 2 inputs based on market data on companies with a corporate rating similar to CACI’s that have recently priced credit facilities.
The Company’s interest rate swaps are considered over-the-counter derivatives where the Company pays a fixed rate and receives SOFR. The counterparties to all swap agreements are financial institutions. The fair value is an estimate of the amount that the Company would pay or receive as of a measurement date if the agreements were transferred to a third party or canceled. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.
The Company recognized contingent consideration liabilities in connection with certain acquisitions, representing potential earnout payments and other contingent payments. The fair values of these liabilities were determined using a valuation model, which included an assessment of the most likely outcome, assumptions related to projected earnings of the acquired company, and the application of a discount rate, when applicable. Fair value of contingent consideration is reassessed quarterly, including an analysis of the significant inputs used in the evaluation, as well as the accretion of the discount. The fair value of contingent consideration decreased $0.8 million and $8.5 million for fiscal 2026 and 2025, respectively. In fiscal 2026, the Company paid $4.2 million to settle contingent consideration obligations from prior acquisitions, which was classified as a financing cash outflow. Changes in the fair value of contingent consideration are reflected within indirect costs and selling expenses.
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Note 13 – Composition of Certain Financial Statement Captions
Accrued Compensation and Benefits
Accrued compensation and benefits consists of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Accrued salaries and withholdings | $ | 241,855 | $ | 216,399 | |||||||
| Accrued leave | 17,565 | 41,884 | |||||||||
| Other | 25,182 | 24,704 | |||||||||
| Total accrued compensation and benefits | $ | 284,602 | $ | 282,987 | |||||||
Other Accrued Expenses and Current Liabilities
Other accrued expenses and current liabilities consists of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Deferred revenue, current | $ | 294,059 | $ | 190,400 | |||||||
| Vendor obligations | 157,101 | 99,763 | |||||||||
| MARPA payable | 110,127 | 96,391 | |||||||||
| Operating lease liabilities, current | 51,255 | 40,009 | |||||||||
| Other | 58,369 | 48,232 | |||||||||
| Total other accrued expenses and current liabilities | $ | 670,911 | $ | 474,795 | |||||||
Other Liabilities
Other liabilities consists of the following (in thousands):
| As of June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Reserve for unrecognized tax benefits | $ | 31,315 | $ | 30,321 | |||||||
| Deferred and contingent acquisition consideration | 1,213 | 10,017 | |||||||||
| Accrued post-retirement obligations | 6,967 | 6,967 | |||||||||
| Deferred revenue, noncurrent | 2,952 | 6,014 | |||||||||
| Interest rate swap agreements | — | 1,503 | |||||||||
| Other | 8,227 | 7,558 | |||||||||
| Total other liabilities | $ | 50,674 | $ | 62,380 | |||||||
Accrued post-retirement obligations include projected liabilities for benefits the Company is obligated to provide under long-term care, group health, and executive life insurance plans, each of which is unfunded. Plan benefits are available to certain current and former executives, their eligible dependents, and other employees who are eligible as defined in the applicable plans. Post-retirement obligations also include accrued benefits under supplemental retirement benefit plans covering certain executives. The expense recorded under these plans were not material during fiscal 2026, 2025, and 2024.
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Note 14 – Earnings Per Share
Earnings per share and the weighted-average number of diluted shares are computed as follows (in thousands, except per share data):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Net income | $ | 535,808 | $ | 499,830 | $ | 419,924 | |||||||||||
| Weighted-average number of basic shares outstanding | 22,065 | 22,247 | 22,381 | ||||||||||||||
| Dilutive effect of equity awards | 111 | 146 | 192 | ||||||||||||||
| Weighted-average number of diluted shares outstanding | 22,176 | 22,393 | 22,573 | ||||||||||||||
| Basic earnings per share | $ | 24.28 | $ | 22.47 | $ | 18.76 | |||||||||||
| Diluted earnings per share | $ | 24.16 | $ | 22.32 | $ | 18.60 | |||||||||||
Share Repurchases
The Company has a share repurchase program that was authorized by the Board of Directors to repurchase up to $750.0 million of the Company’s common stock (the 2023 Repurchase Program).
There were no repurchases during fiscal 2026 under the 2023 Repurchase Program. During fiscal 2025 and fiscal 2024, CACI repurchased 0.4 million and 0.5 million shares of its outstanding common stock on the open market at an average share price of $344.35 and $318.99, including commissions paid, respectively.
As of June 30, 2026, the total remaining authorization for future common share repurchases under the 2023 Repurchase Program was $187.3 million.
Note 15 – Income Taxes
The domestic and foreign components of income before provision for income taxes are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Domestic | $ | 624,392 | $ | 534,394 | $ | 480,145 | |||||||||||
| Foreign | 79,969 | 70,947 | 64,504 | ||||||||||||||
| Income before income taxes | $ | 704,361 | $ | 605,341 | $ | 544,649 | |||||||||||
The components of income tax expense are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | (20,746) | $ | 82,647 | $ | 130,621 | |||||||||||
| State and local | 22,108 | 32,174 | 26,268 | ||||||||||||||
| Foreign | 21,804 | 17,750 | 17,599 | ||||||||||||||
| Total current | 23,166 | 132,571 | 174,488 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | 131,167 | (18,829) | (42,322) | ||||||||||||||
| State and local | 15,218 | (6,167) | (6,827) | ||||||||||||||
| Foreign | (998) | (2,064) | (614) | ||||||||||||||
| Total deferred | 145,387 | (27,060) | (49,763) | ||||||||||||||
| Total income tax expense | $ | 168,553 | $ | 105,511 | $ | 124,725 | |||||||||||
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Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0%, presented after prospectively adopting ASU 2023-09, as a result of the following (dollars in thousands):
| Year ended June 30, 2026 | |||||||||||
| $ | 147,916 | 21.0 | % | ||||||||
State and local taxes, net of federal benefit (1) | 28,669 | 4.1 | |||||||||
| Foreign tax effects | 2,121 | 0.3 | |||||||||
| Effect of cross-border tax laws | (1,449) | (0.2) | |||||||||
| Tax credits: | |||||||||||
| Research and development (R&D) credits | (10,744) | (1.6) | |||||||||
| Other tax credits | (1,302) | (0.2) | |||||||||
| Changes in valuation allowances | 3,157 | 0.4 | |||||||||
| Nontaxable or nondeductible items | 5,341 | 0.8 | |||||||||
| Changes in unrecognized tax benefits | (5,156) | (0.7) | |||||||||
| Total tax expense | $ | 168,553 | 23.9 | % | |||||||
(1) State taxes in Virginia and California make up the majority (greater than 50 percent) of the tax effect in this category.
Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0%, prior to the adoption of ASU 2023-09, as a result of the following (dollars in thousands):
| Year ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Expected tax expense computed at federal statutory rate | $ | 127,122 | $ | 114,376 | |||||||
| State and local taxes, net of federal benefit | 20,362 | 16,508 | |||||||||
| R&D tax credit, net | (14,073) | (12,604) | |||||||||
| Stock-based compensation | (6,221) | (2,385) | |||||||||
| Nonincludible and nondeductible items, net | 3,426 | 4,368 | |||||||||
| Remeasurement of deferred taxes | — | (1,150) | |||||||||
| Changes in unrecognized tax benefits | (23,161) | — | |||||||||
| Other | (1,944) | 5,612 | |||||||||
| Total income tax expense | $ | 105,511 | $ | 124,725 | |||||||
| Effective income tax rate | 17.4 | % | 22.9 | % | |||||||
The effective tax rates for fiscal 2026, 2025, and 2024 were primarily driven by state income taxes offset by R&D tax credits. Additionally, the effective tax rate for fiscal 2025 benefited from a reduction in unrecognized tax benefits following resolution of a federal income tax audit.
A reconciliation of income taxes paid, net of refunds received, is as follows (in thousands):
| Year ended June 30, 2026 | |||||
| Federal: | $ | 35,153 | |||
| State and Local: | |||||
| Virginia | 15,100 | ||||
| California | 6,000 | ||||
| All other | 15,005 | ||||
| Foreign: | |||||
| UK | 11,008 | ||||
| Germany | 8,619 | ||||
| All other | 2,284 | ||||
| Total income taxes paid, net of refunds received | $ | 93,169 | |||
The Company paid income taxes, net of refunds received, of $134.8 million and $182.8 million for the years ended June 30, 2025 and June 30, 2024, respectively.
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The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Deferred tax assets: | |||||||||||
| Operating lease liabilities | $ | 127,551 | $ | 110,068 | |||||||
| Reserves and accruals | 19,243 | 18,782 | |||||||||
| Capitalized R&D | 124,877 | 211,035 | |||||||||
| Credits and net operating loss carryovers | 14,521 | 11,191 | |||||||||
| Deferred compensation and post-retirement obligations | 36,592 | 34,650 | |||||||||
| Stock-based compensation | 15,761 | 13,076 | |||||||||
| Valuation allowance | (7,938) | (4,781) | |||||||||
| Total deferred tax assets | 330,607 | 394,021 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Goodwill and other intangible assets | (513,983) | (384,600) | |||||||||
| Property, plant, and equipment | (21,039) | (26,091) | |||||||||
| Operating lease right-of-use assets | (94,476) | (82,747) | |||||||||
| Deferred revenue | (54,930) | (21,967) | |||||||||
| Prepaid expenses | (12,827) | (11,209) | |||||||||
| Interest rate swaps | (2,117) | (2,063) | |||||||||
| Other | (5,004) | (7,062) | |||||||||
| Total deferred tax liabilities | (704,376) | (535,739) | |||||||||
| Net deferred tax liability | $ | (373,769) | $ | (141,718) | |||||||
The federal net operating loss carryovers have indefinite carryforward periods.
On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA, among other things, enacted a provision that allows immediate deduction of domestic R&D costs in the year incurred and accelerates recovery of previously capitalized R&D costs.
The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination for fiscal 2019-2020 in one state jurisdiction and fiscal 2022-2023 in another state. The Company does not expect the resolution of either state examination to have a material impact on its consolidated financial statements.
Changes in the Company’s liability for unrecognized tax benefits are shown in the table below (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| Beginning of year | $ | 30,163 | $ | 73,044 | $ | 153,860 | |||||||||||
| Additions based on prior year tax positions | 1,080 | — | 3,592 | ||||||||||||||
| Additions based on current year tax positions | 5,474 | 6,974 | 11,703 | ||||||||||||||
| Reductions based on prior year tax positions | (440) | (15,183) | (96,111) | ||||||||||||||
| Settlement with taxing authorities | (1,440) | (34,150) | — | ||||||||||||||
| Lapse of statute of limitations | (5,709) | (522) | — | ||||||||||||||
| End of year | $ | 29,128 | $ | 30,163 | $ | 73,044 | |||||||||||
| Unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ | 29,128 | $ | 30,163 | $ | 73,044 | |||||||||||
During fiscal 2025, the Company reduced its unrecognized tax benefits following resolution of the federal income tax audit. During fiscal 2024, the Company reduced its unrecognized tax benefit, primarily due to completing a detailed analysis of capitalized R&D costs which considered recent guidance issued by the IRS.
At June 30, 2026, the amount of accrued interest and penalties on our consolidated balance sheet was $2.3 million. The Company recognizes net interest and penalties as a component of income tax expense. Over the next 12 months, the Company does not expect a significant increase or decrease in the unrecognized tax benefits recorded at June 30, 2026. As of June 30, 2026, the entire balance of unrecognized tax benefits is included in deferred taxes and other liabilities.
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The Organisation for Economic Co-operation and Development has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2). While it is uncertain whether the U.S. will enact legislation to adopt Pillar 2, certain countries in which we operate have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. The Company does not expect Pillar 2 to have a material impact on its effective tax rate or its results of operation, financial position, and cash flows.
Note 16 – Stock-Based Compensation
Plan Summaries
The stock-based compensation plans approved by the stockholders of the Company are the 2025 Incentive Compensation Plan (the 2025 Plan), the Employee Stock Purchase Plan (ESPP), the Management Stock Purchase Plan (MSPP), and the Director Stock Purchase Plan (DSPP).
The 2025 Plan provides CACI employees and members of the Board of Directors the opportunity to receive various types of stock-based compensation awards, including RSUs and PRSUs. As of June 30, 2026, the total number of shares authorized for issuance under the 2025 Plan is 2.4 million. As of June 30, 2026, 0.8 million shares remain available for issuance.
As of June 30, 2026, we have outstanding RSUs and PRSUs under the 2025 Plan. Employee RSUs generally vest over a three-year service period in equal installments on each anniversary of the grant date. Directors receive an annual RSU grant as part of their compensation, which vests in four equal quarterly installments. Employee PRSUs cliff-vest at the end of the third fiscal year following the grant date, subject to minimum service requirements and the Company’s achievement of financial metrics. The number of shares issued may be up to 200% of the target number of shares.
Under the ESPP, eligible full-time employees may purchase shares of the Company’s common stock at a price equal to 95% of the closing price per share on the last trading day of the quarter. The ESPP is a qualified plan under Section 423 of the Internal Revenue Code and is considered non-compensatory for financial reporting purposes. The MSPP permits eligible employees subject to stock holding requirements to elect RSUs in lieu of up to 100% of their annual cash bonus at a discount to the closing price per share on the grant date. The discount is recognized as stock-based compensation expense ratably over the three-year vesting period. The DSPP allows directors to elect to receive RSUs at the market price of the Company’s common stock on the date of the award in lieu of up to 100% of their annual retainer fees. As of June 30, 2026, there are 1.5 million, 0.5 million, and 0.1 million shares authorized for issuance under the ESPP, MSPP and DSPP, respectively, and these plans are not material to our consolidated financial statements.
Expense and Related Tax Benefits Recognized
Stock-based compensation expense and related income tax benefits recognized under all plans are as follows (in thousands):
| Year ended June 30, | |||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||
| RSUs | $ | 59,217 | $ | 31,105 | $ | 30,355 | |||||||||||
| PRSUs | 20,297 | 29,072 | 23,549 | ||||||||||||||
| Stock-based compensation expense | $ | 79,514 | $ | 60,177 | $ | 53,904 | |||||||||||
| Income tax benefits recognized from stock-based compensation | $ | 25,331 | $ | 22,683 | $ | 16,486 | |||||||||||
RSUs
The following table summarizes the RSU activity for the year ended June 30, 2026:
| Number of shares | Weighted-average grant date fair value | ||||||||||
| Unvested at June 30, 2025 | 175,239 | $ | 383.18 | ||||||||
| Granted | 75,921 | 516.47 | |||||||||
| Vested | (94,402) | 338.14 | |||||||||
| Forfeited | (8,052) | 485.90 | |||||||||
| Unvested at June 30, 2026 | 148,706 | $ | 474.26 | ||||||||
The weighted-average grant date fair value of the RSUs granted in fiscal 2026, 2025, and 2024 was $516.47, $496.46, and $318.15, respectively. The total fair value of RSUs that vested during fiscal 2026, 2025, and 2024 was $49.2 million, $56.8 million, and $31.6 million, respectively. As of June 30, 2026, unrecognized compensation cost related to RSUs, net of estimated forfeitures, totaled $34.8 million and is expected to be recognized over a weighted-average period of 1.6 years.
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PRSUs
The following table summarizes the PRSU activity for the year ended June 30, 2026:
| Number of shares | Weighted-average grant date fair value | ||||||||||
| Unvested at June 30, 2025 | 141,703 | $ | 334.62 | ||||||||
Granted (1) | 31,200 | 515.42 | |||||||||
Adjustments (2) | 25,887 | 264.72 | |||||||||
Vested (3) | (76,009) | 266.73 | |||||||||
Forfeited (1) | (4,519) | 457.41 | |||||||||
| Unvested at June 30, 2026 | 118,262 | $ | 405.96 | ||||||||
______________________
(1) Presented at 100% of target number of shares.
(2) Reflects the change in number of shares vested compared to the number of shares that would have vested at target.
(3) Reflects the actual shares issued based on performance achieved.
For PRSUs granted, the actual number of shares issued upon vesting ranges from 0% to 200% of the target number of shares, based on achievement of the applicable performance goals. The weighted-average grant date fair value of the PRSUs granted in fiscal 2026, 2025, and 2024 was $515.42, $505.62, and $314.54, respectively. The total fair value of PRSUs that vested during fiscal 2026, 2025, and 2024 was $39.6 million, $43.7 million, and $26.9 million, respectively. As of June 30, 2026, unrecognized compensation cost related to PRSUs, net of estimated forfeitures, totaled $19.7 million and is expected to be recognized over a weighted-average period of 1.0 years.
Note 17 – Retirement Plans
The Company sponsors various defined contribution plans, in which most employees are eligible to participate. The total plan expense for fiscal 2026, 2025, and 2024 was $94.7 million, $84.4 million, and $78.7 million, respectively.
CACI $MART Plan
The Company offers the CACI $MART Plan, a defined contribution plan, to its eligible employees. The Company makes minimum matching contributions that vest after three years of continuous service. Contribution expense for the plan for fiscal 2026, 2025, and 2024 was $84.7 million, $74.7 million, and $65.8 million, respectively.
Supplemental Retirement Savings Plan
The Company maintains the CACI International Inc Group Executive Retirement Plan (the Supplemental Retirement Savings Plan). The Supplemental Retirement Savings Plan is a non-qualified defined contribution supplemental retirement savings plan for certain key employees whereby participants may elect to defer a portion of their compensation. The Company contributes 5% of participant annual compensation exceeding the limit as set forth in IRC 401(a)(17) (currently $360,000 per year) and may make additional discretionary contributions. These contributions vest over five-years from enrollment but vest immediately upon a change of control. Participant accounts are credited with the rate of return based on the investment options and asset allocations selected by the Participant. Distributions from the Supplemental Retirement Savings Plan are available upon retirement, termination, death, total disability, or through in-service withdrawals.
As of June 30, 2026 and 2025, Supplemental Retirement Savings Plan obligations due to participants totaled $130.7 million and $125.4 million, respectively, of which the current portion is included in accrued compensation and benefits. Supplemental Retirement Savings Plan expense for fiscal 2026, 2025, and 2024 was $7.0 million, $7.2 million, and $6.9 million, respectively.
We invest in corporate owned life insurance (COLI) products that are held in a Rabbi Trust to fund the Supplemental Retirement Savings Plan obligations. The COLI investments are recorded at cash surrender value and are presented as supplemental retirement savings plan assets on the consolidated financial statements. Gains and losses recognized on the COLI products are recorded in Indirect costs and selling expenses on the consolidated statements of operations. We recorded a net gain of $5.2 million for fiscal 2026, 2025, and 2024.
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Note 18 – Business Segments
The Company defines its operating segments based on the way the Chief Operating Decision Maker (CODM), identified as the Company’s Chief Executive Officer, manages operations for purposes of assessing performance and allocating resources. The CODM evaluates the performance of the Company’s operating segments based on segment revenue and income from operations.
The Company reports operating results and financial data in two segments: Domestic Operations and International Operations. Domestic Operations provide Technology and Expertise primarily to the U.S. federal government. International Operations provide Technology and Expertise primarily to international government and commercial customers.
Segment information for the periods presented is as follows (in thousands):
Year ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | Domestic | International | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 9,260,288 | $ | 307,491 | $ | 9,567,779 | $ | 8,370,361 | $ | 257,463 | $ | 8,627,824 | $ | 7,432,745 | $ | 227,087 | $ | 7,659,832 | |||||||||||||||||||||||||||||||||||
| Direct costs | 6,255,615 | 135,271 | 6,390,886 | 5,727,031 | 108,527 | 5,835,558 | 5,057,415 | 90,125 | 5,147,540 | ||||||||||||||||||||||||||||||||||||||||||||
| Indirect costs and selling expenses | 1,904,658 | 106,521 | 2,011,179 | 1,743,160 | 89,796 | 1,832,956 | 1,630,768 | 89,671 | 1,720,439 | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 240,142 | 5,757 | 245,899 | 190,618 | 4,507 | 195,125 | 138,548 | 3,597 | 142,145 | ||||||||||||||||||||||||||||||||||||||||||||
| Income from operations | 859,873 | 59,942 | 919,815 | 709,552 | 54,633 | 764,185 | 606,014 | 43,694 | 649,708 | ||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | 99,950 | 6,703 | 106,653 | 63,901 | 1,702 | 65,603 | 60,898 | 2,788 | 63,686 | ||||||||||||||||||||||||||||||||||||||||||||
Asset information by segment is not a key measure of performance.
During fiscal 2026, 2025, and 2024, 95.6%, 95.7%, and 95.1% of the Company’s total revenues, respectively, were generated from contracts with the U.S. government, either as a prime contractor or a subcontractor.
Note 19 – Legal Proceedings and Other Commitments and Contingencies
Legal Proceedings
The Company is involved in various claims, lawsuits, and administrative proceedings arising in the normal course of business, none of which, based on current information, are expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows.
On November 12, 2024, a jury reached a $42 million judgment against the Company in an ongoing civil suit alleging that the Company’s employees had conspired with the U.S. military, which led to acts of wrongdoing committed by the U.S. military against the plaintiffs. On November 25, 2024, the Company filed a motion for dismissal as a matter of law, enumerating numerous grounds. On January 10, 2025, the motion was denied, and the Company filed a notice of appeal to the U.S. Court of Appeals. The Court of Appeals established a briefing schedule, which concluded on July 25, 2025. The Court of Appeals heard oral argument on September 9, 2025. On March 12, 2026, the Court of Appeals, in a 2-1 decision, affirmed the judgment of the district court against CACI. The Company filed a petition for rehearing or rehearing en banc and asked the Court of Appeals to stay action on that petition pending the Supreme Court’s expected decision in Cisco Systems, Inc. v. Doe, No. 24-856. On June 22, 2026, the Supreme Court issued its decision in the Cisco case.
On June 23, 2026, CACI filed a notice with the Court of Appeals, apprising the Court of the Cisco decision, and requested that the Court reverse the district court’s judgment and remand with instructions to dismiss Plaintiff’s claims for lack of jurisdiction. On June 29, 2026, the Court of Appeals directed the parties to file supplemental briefs addressing their views on the effect of the Cisco decision, which were subsequently filed. The Company is vigorously defending the proceedings and continues to believe that the plaintiffs’ position is completely without merit. No amounts have been recognized in our consolidated financial statements.
Government Contracting
Payments to the Company on cost-plus-fee and time-and-materials contracts are subject to adjustment upon audit by the Defense Contract Audit Agency (DCAA) and other government agencies that do not utilize DCAA’s services. The DCAA has completed audits of the Company’s annual incurred cost proposals through fiscal 2024. The Company is still negotiating the results of prior years’ audits with the respective cognizant contracting officers and believes its reserves for such are adequate. Adjustments that may result from these audits and the audits not yet started are not expected to have a material effect on the Company’s financial position, results of operations, or cash flows. Additionally, the DCAA continually reviews the cost accounting and other practices of government contractors, including the Company. In the course of those reviews, cost accounting and other issues may be identified, discussed, and settled.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
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Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Management with the participation of our principal executive officer (our President, CEO, and Director) and our principal financial officer (our Executive Vice President, Chief Financial Officer (CFO), and Treasurer) evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a‑15(e) and 15d‑15(e) under the Securities Exchange Act of 1934 (Exchange Act), as of June 30, 2026. Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Inherent Limitations over Internal Controls
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (GAAP) and includes those policies and procedures that:
(1)Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer;
(2)Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and
(3)Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management’s Annual Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Subsequent to the acquisition of ARKA Group L.P. (ARKA) on March 9, 2026, certain elements of ARKA’s internal control over financial reporting and related processes were integrated into the Company’s existing systems and internal control over financial reporting. Those controls that were not integrated have been excluded from management’s assessment of the effectiveness of internal control over financial reporting as of June 30, 2026, in accordance with SEC guidance that an assessment of recently acquired businesses may be omitted in management’s report on internal control over financial reporting, provided the acquisition took place within twelve months of management’s evaluation. The excluded elements represent 1.5% and 1.0% of our consolidated assets and revenues as of and for the year ended June 30, 2026. We are in the process of integrating the excluded elements of ARKA into our overall internal control over financial reporting process.
Management and with the participation of our CEO and CFO, conducted an evaluation of the effectiveness of CACI’s internal control over financial reporting based on the framework and criteria established in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management has concluded that CACI’s internal control over financial reporting was effective as of June 30, 2026.
The Company’s independent registered public accounting firm, PricewaterhouseCoopers LLP, has issued an audit report on the Company’s internal control over financial reporting. See “Report of Independent Registered Public Accounting Firm” in Part II, Item 8 of this Annual Report on Form 10-K.
Changes in Internal Control Over Financial Reporting
There were no changes in internal control over financial reporting during the fourth quarter of fiscal 2026 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
Item 9B. Other Information
Disclosure of Trading Arrangements
During the fiscal quarter ended June 30, 2026, no directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not Applicable.
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PART III
The Information required by Items 10, 11, 12, 13 and 14 of Part III of Form 10-K has been omitted in reliance on General Instruction G(3) and is incorporated herein by reference to our proxy statement to be filed with the SEC pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended, as set forth below:
Item 10. Directors, Executive Officers and Corporate Governance
Except for the specific disclosures below, the information required by this Item 10 is included under the headings “Executive Officers,” “Corporate Governance” and “Insider Trading Policy and Procedures” in our 2026 Proxy Statement for the Annual Meeting of Shareholders (the 2026 Proxy Statement) to be held with respect to the fiscal year ended June 30, 2026 and is incorporated by reference.
Code of Ethics
We have adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions. That code, our Standards of Ethics and Business Conduct, is posted in the “Investors – Leadership & Governance – Governance Documents” section of our website at www.caci.com and a printed copy of such code will be furnished free of charge to any shareholder who requests a copy.
We intend to disclose any amendment to the Standards of Ethics and Business Conduct that relates to any element of the code of ethics definition enumerated in Item 406(b) of Regulation S-K, and any waiver from a provision of the Standards of Ethics and Business Conduct granted to any director, principal executive officer, principal financial officer, principal accounting officer, or any other executive officer of the Company, in the “Investors” section of our website at www.caci.com within four business days following the date of such amendment or waiver.
Corporate Governance Guidelines
We have adopted a set of corporate governance guidelines in accordance with the requirements of Section 303A of the New York Stock Exchange Listed Company Manual. Those guidelines can be found posted on our website at www.caci.com and a printed copy will be furnished free of charge to any shareholder who requests a copy.
Item 11. Executive Compensation
The information required by this Item 11 will be incorporated herein by reference to the 2026 Proxy Statement to be filed within 120 days after the end of the Company’s fiscal year.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by this Item 12 will be incorporated herein by reference to the 2026 Proxy Statement to be filed within 120 days after the end of the Company’s fiscal year.
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this Item 13 will be incorporated herein by reference to the 2026 Proxy Statement to be filed within 120 days after the end of the Company’s fiscal year.
Item 14. Principal Accountant Fees and Services
The information required by this Item 14 will be incorporated herein by reference to the 2026 Proxy Statement to be filed within 120 days after the end of the Company’s fiscal year.
59
PART IV
Item 15. Exhibits and Financial Statement Schedules
(a)The following documents are filed as part of this Annual Report:
(1)Financial Statements
(2)Financial Statements Schedules
All schedules have been omitted because they are not applicable, not required or the information has been otherwise supplied on the consolidated financial statements or notes to consolidated financial statements.
(3)Exhibits
| Filed with this Form 10-K | Incorporated by reference | |||||||||||||||||||||||||||||||
| Exhibit No. | Description | Form | Filing date | Exhibit No. | ||||||||||||||||||||||||||||
| 2.1 | 8-K | December 22, 2025 | 2.1 | |||||||||||||||||||||||||||||
| 3.1 | 8-K | March 21, 2017 | 3.1 | |||||||||||||||||||||||||||||
| 3.2 | 10-K | September 13, 2006 | 3.1 | |||||||||||||||||||||||||||||
| 4.1 | 8-K | March 12, 2026 | 4.3 | |||||||||||||||||||||||||||||
| 4.2 | 8-K | June 3, 2025 | 4.1 | |||||||||||||||||||||||||||||
| 4.3 | 10-K | August 14, 2020 | 4.1 | |||||||||||||||||||||||||||||
| 10.1 | 8-K | March 9, 2026 | 10.1 | |||||||||||||||||||||||||||||
| 10.2 | 8-K | November 5, 2024 | 10.1 | |||||||||||||||||||||||||||||
| 10.3 | 8-K | December 1, 2025 | 10.1 | |||||||||||||||||||||||||||||
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| Filed with this Form 10-K | Incorporated by reference | |||||||||||||||||||||||||||||||
| Exhibit No. | Description | Form | Filing date | Exhibit No. | ||||||||||||||||||||||||||||
| 10.4 | 8-K | December 29, 2025 | 10.1 | |||||||||||||||||||||||||||||
| 10.5 | 8-K | December 27, 2024 | 10.1 | |||||||||||||||||||||||||||||
| 10.6 | 8-K | December 27, 2023 | 10.1 | |||||||||||||||||||||||||||||
| 10.7 | 8-K | December 28, 2022 | 10.1 | |||||||||||||||||||||||||||||
| 10.8 | 8-K | December 29, 2021 | 10.1 | |||||||||||||||||||||||||||||
| 10.9 | 8-K | December 30, 2020 | 10.1 | |||||||||||||||||||||||||||||
| 10.10 | 8-K | December 31, 2019 | 10.1 | |||||||||||||||||||||||||||||
| 10.11 | 8-K | January 4, 2019 | 10.1 | |||||||||||||||||||||||||||||
| 10.12 | 8-K | January 4, 2019 | 10.2 | |||||||||||||||||||||||||||||
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| Filed with this Form 10-K | Incorporated by reference | |||||||||||||||||||||||||||||||
| Exhibit No. | Description | Form | Filing date | Exhibit No. | ||||||||||||||||||||||||||||
| 10.13 | S-8 | October 17, 2025 | 99.1 | |||||||||||||||||||||||||||||
| 10.14 | 10-Q | January 25, 2024 | 10.2 | |||||||||||||||||||||||||||||
| 10.15 | 10-Q | January 25, 2024 | 10.3 | |||||||||||||||||||||||||||||
| 10.16 | 8-K | October 3, 2022 | 10.1 | |||||||||||||||||||||||||||||
| 10.17 | 10-K | August 11, 2022 | 10.9 | |||||||||||||||||||||||||||||
| 10.18 | 10-K | August 11, 2022 | 10.13 | |||||||||||||||||||||||||||||
| 10.19 | 10-K | August 11, 2022 | 10.15 | |||||||||||||||||||||||||||||
| 10.20 | 10-K | August 14, 2020 | 10.30 | |||||||||||||||||||||||||||||
| 10.21 | 10-K | August 21, 2019 | 10.32 | |||||||||||||||||||||||||||||
| 10.22 | 10-K | August 21, 2019 | 10.33 | |||||||||||||||||||||||||||||
| 10.23 | 10-K | August 21, 2017 | 10.30 | |||||||||||||||||||||||||||||
| 10.24 | 10-Q | May 4, 2012 | 10.1 | |||||||||||||||||||||||||||||
| 10.25 | S-8 | February 6, 2012 | 10.15 | |||||||||||||||||||||||||||||
| 10.26 | 10-K | August 25, 2010 | 10.34 | |||||||||||||||||||||||||||||
| 10.27 | 10-K | August 27, 2008 | 10.5 | |||||||||||||||||||||||||||||
| 19.1 | 10-K | August 8, 2024 | 19.1 | |||||||||||||||||||||||||||||
| 21.1 | X | |||||||||||||||||||||||||||||||
| 23.1 | X | |||||||||||||||||||||||||||||||
| 31.1 | X | |||||||||||||||||||||||||||||||
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| Filed with this Form 10-K | Incorporated by reference | |||||||||||||||||||||||||||||||
| Exhibit No. | Description | Form | Filing date | Exhibit No. | ||||||||||||||||||||||||||||
| 31.2 | X | |||||||||||||||||||||||||||||||
| 32.1 | X | |||||||||||||||||||||||||||||||
| 32.2 | X | |||||||||||||||||||||||||||||||
| 97.1 | X | |||||||||||||||||||||||||||||||
| 101.INS | XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |||||||||||||||||||||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||||||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) | |||||||||||||||||||||||||||||||
______________________
*Denotes a management contract, compensatory plan, or arrangement.
Item 16. Form 10-K Summary
None.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized, on the 6th day of August 2026.
| CACI International Inc | ||||||||
| Registrant | ||||||||
Date: August 6, 2026 | By: | /s/ JOHN S. MENGUCCI | ||||||
John S. Mengucci President, Chief Executive Officer and Director (Principal Executive Officer) | ||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in capacities and on the dates indicated.
| Signatures | Title | Date | ||||||||||||
| /s/ JOHN S. MENGUCCI | President, Chief Executive Officer and Director (Principal Executive Officer) | August 6, 2026 | ||||||||||||
| John S. Mengucci | ||||||||||||||
| /s/ JEFFREY D. MACLAUCHLAN | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | August 6, 2026 | ||||||||||||
| Jeffrey D. MacLauchlan | ||||||||||||||
| /s/ ERIC F. BLAZER | Senior Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer) | August 6, 2026 | ||||||||||||
Eric F. Blazer | ||||||||||||||
| /s/ LISA S. DISBROW | Chair of the Board of Directors | August 6, 2026 | ||||||||||||
| Lisa S. Disbrow | ||||||||||||||
| /s/ MICHAEL M. GILDAY | Director | August 6, 2026 | ||||||||||||
| Michael M. Gilday | ||||||||||||||
| /s/ SUSAN M. GORDON | Director | August 6, 2026 | ||||||||||||
| Susan M. Gordon | ||||||||||||||
| /s/ DAVID F. KEFFER | Director | August 6, 2026 | ||||||||||||
| David F. Keffer | ||||||||||||||
| /s/ RYAN D. MCCARTHY | Director | August 6, 2026 | ||||||||||||
| Ryan D. McCarthy | ||||||||||||||
/s/ SCOTT C. MORRISON | Director | August 6, 2026 | ||||||||||||
Scott C. Morrison | ||||||||||||||
| /s/ PHILIP O. NOLAN | Director | August 6, 2026 | ||||||||||||
| Philip O. Nolan | ||||||||||||||
| /s/ DEBORA A. PLUNKETT | Director | August 6, 2026 | ||||||||||||
| Debora A. Plunkett | ||||||||||||||
/s/ STANTON D. SLOANE | Director | August 6, 2026 | ||||||||||||
Stanton D. Sloane | ||||||||||||||
/s/ CHARLES L. SZEWS | Director | August 6, 2026 | ||||||||||||
Charles L. Szews | ||||||||||||||
64
