Parsons 10-Q Details $82M Loss-Contract Hit, Held-for-Sale Programs and New $65M Receivables Facility
PSN sits 35% above its 52-week low of $36.26.
Summary
Parsons' Q3 10-Q backs up this morning's EBITDA beat but reveals $82.1 million of loss-contract catch-up charges, two Federal programs marked held for sale, and a revolver now drawn $116 million with cash down to $297 million.
Key Events · Earnings and Guidance · PSN
-
Loss Contracts Drive Nine-Month Profit Drop
Nine-month operating income fell to $200.8 million from $312.8 million, including $82.1 million of cumulative catch-up reductions on two loss-position Federal Solutions contracts and a $20.4 million equity loss on a Critical Infrastructure joint venture.
-
Two Federal Programs Marked Held for Sale
Two Remote Programs in Federal Solutions are classified as held for sale with $21.0 million of assets against $57.4 million of liabilities; management expects the sale and novation to close by the end of 2026.
-
Liquidity Tightens as Revolver Is Drawn
Cash fell to $297.0 million from $466.4 million at December 31, 2025, and $116.0 million is now outstanding on the revolver versus zero at year-end; total debt rose to $1.357 billion from $1.238 billion.
-
New $65M Receivables Purchase Facility
Parsons signed a Master Receivables Purchase Agreement with JPMorgan Chase for up to $65 million of eligible U.S. government trade receivables, with $19.6 million sold as of September 30, 2026.
Analysis · PSN · Technology
The headline Q3 numbers were already out this morning, but the full 10-Q shows where the year went sideways. Nine-month operating income fell to $200.8 million from $312.8 million, dragged by a $20.4 million equity loss on a Critical Infrastructure joint venture and $82.1 million of cumulative catch-up charges on two loss-position Federal Solutions contracts that Parsons is now trying to hand off to a third party. Those two Remote Programs sit on the balance sheet as held for sale ($21.0 million of assets against $57.4 million of liabilities), with a sale and novation targeted by year-end 2026 — a clean-up that could remove the drag but also carries execution risk. Liquidity is thinner than at year-end: cash is down to $297.0 million from $466.4 million, the revolver is drawn $116.0 million versus zero, and Parsons added a $65 million JPMorgan receivables purchase facility, of which $19.6 million was sold. None of this changes the beat on adjusted EBITDA, but it sharpens how much of the profit quality depends on the loss contracts going away.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.5% of the 1494 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.03%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PSN was trading at $48.95 on NYSE in the Technology sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $36.26 to $88.00. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.