Question · Q3 2025
Kevin Steinske asked about the current mix of digital transformation projects in the education segment, specifically whether demand is leaning more towards student lifecycle systems or traditional ERP implementations. He also inquired about the sequential step-down in the consulting utilization rate, its causes, and the prospects for future improvement and margin contribution.
Answer
CEO Mark Hussey stated that the current demand in education digital transformation is primarily for core ERP, financials, and HCM full-suite implementations, with less emphasis on the student side. CFO John Kelly added that these ERP projects are critical for establishing a solid data and technology infrastructure, which is foundational for future AI and automation investments. John Kelly confirmed that the lower utilization rate was due to ramped-up headcount additions to support current and future demand, indicating an investment mode. He expects utilization to return to the upper 70% range long-term, though some pressure might persist for another quarter or two during team build-out.