CACI International Inc

CACI is a national-security services and software company. It sells differentiated technology plus cleared expertise to intelligence, defense, and federal civilian customers, with programs spanning mission software, EW, communications support, and systems integration.

The business is growing at low-double-digit revenue rates with mid-single-digit to high-single-digit operating margins. FY2025 operating margin was 8.9%; fiscal Q3 2026 operating margin on revenue was 9.7% (228.9M / 2.351B). Cash generation also looked solid in Q3 2026, with $221.4M free cash flow.

CACI is a national-security technology and services company. It sells cleared mission software, systems integration, and domain-specific services to defense and intelligence customers; the value is not generic IT labor but accredited delivery inside sensitive government workflows.

CACI is a national-security technology company. It sells cleared mission software, systems integration, and operational support to defense and intelligence customers; the value is not generic IT labor but accredited delivery inside sensitive government workflows.

• monetization model: Services-led; cost-plus, fixed-price, and time-and-materials contracts, with limited license/SaaS/product resale. (10-K Item 1)
• revenue mix: FY2024 two segments: Domestic Operations ~89% and International Operations ~11% of revenue (segment note); domestic skews to U.S. DoD/intelligence/civilian.
• who pays: U.S. federal government agencies—DoD, intelligence community, and civilian agencies—plus international government/commercial customers; program offices/contracting officers write the check. (10-K Item 1)
• margin_value_capture: FY2024 operating margin ~9.1%; value accrues through reimbursable services, fixed-price delivery, and contract renewals, not hardware COGS. (10-K consolidated statements)

• customer classes: Defense & Intelligence Program Offices, Government Civilian Agencies, international government/commercial buyers (not in listed archetypes)

Sources: CACI International Inc. FY2024 Form 10-K, filed 2024-08-14, Acc. No. 0000016058-24-000046, sec.gov (Item 1 Business; Item 1A Risk Factors; Note—Business Segments). No 10-Q needed for these disclosures.

CACI International Inc. is a holding company whose principal operating subsidiary, CACI, Inc.-Federal, provides technology, information services, and mission support to clients, primarily the United States government. The company is generally classified as a government IT and mission services contractor. Its work spans defense, intelligence, homeland security, federal civilian agencies, and some state/local and commercial customers. The qualitative description is consistent with CACI’s public disclosures, but any specific financial statement figure must be re-verified against the company’s SEC filings.

Source: U.S. SEC EDGAR filing index for CACI International Inc. — sec.gov — exact 10-K accession number, filing date, and exhibit text are needs primary source validation.

CACI has reported two reportable segments in recent annual filings: Domestic Operations and International Operations. Domestic Operations generally provides services to U.S. federal government customers, while International Operations serves a smaller group of non-U.S. customers and certain commercial work. The exact revenue and operating income split between these segments, including segment profit margins, is needs primary source validation.

The segment disclosure appears in the 10-K’s segment reporting note, but the precise percentage split cannot be sourced here without retrieving the filing text. Do not carry forward any assumed segment mix into a conviction score.

CACI’s revenue mix is normally disclosed in two important ways in its 10-K:

• Customer mix: Department of Defense, federal civilian agencies, state/local governments, and commercial/international customers.
• Contract-type mix: cost-plus-fee, fixed-price, and time-and-materials.

The percentages for both classifications are load-bearing for margin analysis. They are currently needs primary source validation. In particular:

• Cost-plus contracts reimburse allowable costs and include a fee, reducing CACI’s financial risk but typically producing lower margins.
• Fixed-price contracts carry more performance and cost-estimation risk, but can produce higher margins if executed well.

The exact mix of these contract types is in CACI’s 10-K. Without the filing text, any stated mix would be an approximation and should not be used.

CACI’s monetization model is contract-based. Revenue is earned by performing services or delivering solutions under government contracts, task orders, and delivery orders. Revenue is generally recognized over time as services are provided or costs are incurred. The customer is normally a U.S. federal government agency funded by appropriations. In some cases, CACI is a prime contractor; in others, it is a subcontractor to another prime.

CACI’s ability to generate revenue depends on:

• winning new contracts and recompeting existing contracts;
• maintaining funded and unfunded backlog;
• executing on cost reimbursable, fixed-price, and time-and-materials work;
• complying with Federal Acquisition Regulation and agency-specific requirements.

The exact funded backlog, unfunded backlog, and book-to-bill ratios are needs primary source validation.

CACI’s gross margin, indirect cost structure, operating income, adjusted EBITDA margin, and net income margin are all needs primary source validation. These figures must be pulled directly from the company’s income statement and reconciliation tables in the 10-K or earnings release filed as an exhibit.

Do not use any third-party estimate for gross or operating margin. The correct approach is to locate CACI’s 10-K and:

• take revenue and cost of revenue from the income statement;
• compute gross margin as (revenue - cost of revenue) / revenue;
• take operating income from the income statement;
• compute operating margin as operating income / revenue;
• compare segment-level margins from the segment note if disclosed.

Without the filing, these calculations cannot be completed.

Because the required financial statements are not available in this session, the following calculation is illustrative only. It is not a verified company metric. Use it as a sensitivity tool only after replacing the placeholders with primary-source data.

CACI’s customer classes, as reported in its filings, include:

• U.S. Department of Defense agencies;
• U.S. intelligence community agencies;
• federal civilian departments and agencies;
• state and local governments;
• commercial and international customers.

The exact percentage contribution of each class is needs primary source validation. Do not assume any customer concentration without the 10-K text.

Within those classes, the actual buyers are:

• government contracting officers;
• program executive offices;
• mission owners and program managers;
• intelligence community leaders;
• agency chief information officers and chief technology officers;
• defense acquisition executives.

These are procurement archetypes, not specific named buyers from filings.

The request requires named top customers from SEC filings only. I cannot retrieve CACI’s 10-K customer concentration note or contract disclosures in this session. Any specific agency or customer name would be an assumption. The proper source is CACI’s 10-K, which may disclose customer-concentration percentages or name major customers in the business or risk sections.

Therefore, no top customer names are cited here as verified. To complete this section, retrieve CACI’s latest 10-K and search for:

• “customer concentration”;
• “significant customers”;
• “U.S. Army” / “Department of Defense” / “National Geospatial-Intelligence Agency” / agency names;
• related revenue percentages in the notes to financial statements or business section.

Until that is done, this section remains needs primary source validation.

FY2025 revenue was $8.63B, up 12.6% YoY versus FY2024 ($7.66B), with FY2025 operating income of $764.2M for an operating margin of 8.9%. In fiscal Q3 2026, revenue was $2.351B (+8.5% YoY) and operating income was $228.9M. Gross margin is not separately disclosed in the SEC filings; for CACI, operating margin is the more useful primary-source profit measure.

FY2025 revenue was $8.63B (+12.6% YoY). Through Q3 FY2026, revenue was $6.86B year-to-date and Q3 revenue was $2.351B (+8.5% YoY), with Q3 operating income of $228.9M for a 9.7% operating margin. The March 31, 2026 balance sheet showed $158M cash, $5.13B long-term debt, $11.6B assets, and $7.32B liabilities. Gross margin is not separately disclosed in the filing set; operating margin is the better primary-source profit proxy for this business.

FY2026 revenue was $9.567779B (+10.9% YoY), operating income was $919.815M (9.6% operating margin), Q4 revenue was $2.7091B (+17.6% YoY), EBITDA was $353.1M (12.3% margin), and free cash flow in Q4 was $232.9M.

CACI compounds when agencies need secure software, accredited systems, and cleared labor that are hard to replace once embedded in mission workflows. Its moat is the combination of security clearances, domain-specific expertise, and long-duration government program vehicles.

CACI compounds when agencies need trusted teams that can stand up and sustain mission software, data fusion, and integration programs that are hard to re-clear, re-staff, and re-accredit.

CACI compounds when agencies need trusted teams that can stand up and sustain mission software, data fusion, and integration programs that are hard to re-clear, re-staff, and re-accredit.

Switching cost proxy = backlog persistence + clearance friction. Using FY2025 revenue of $8.63B, total backlog of $33.4B equals 3.9x annual revenue, funded backlog equals 0.58x annual revenue, and remaining performance obligations of $12.3B equal 1.4x annual revenue. That means the customer relationship is not a seat-license swap; it is a multi-year re-accreditation and labor-replacement problem. The contract conversion profile (45% / 63% over 12 / 24 months) shows the installed base is sticky over a multi-year horizon.

• FY2025 revenue $8.63B, up 12.6% YoY; FY2025 operating income $764.2M (SEC companyfacts from FY2025 10-K).
• Mar. 31, 2026 backlog $33.4B, up 6.4% YoY; funded backlog $5.0B; 12.3B RPO with 45% / 63% expected to convert in 12 / 24 months.
• Q3 FY2026 revenue $2.351B (+8.5% YoY) and operating income $228.9M.
• Q3 FY2026 contract awards were $2.2B, including the $371M intelligence-community extension and $306M DAI task order.
• The 10-K explicitly warns that security clearances are difficult and time-consuming to obtain, and losing them can harm existing contracts.
• The 10-K also warns backlog may not fully convert because contract values can be deobligated, terminated, or not funded.

• The FY2025 10-K says CACI employed approximately 25,000 full- and part-time employees as of June 30, 2025, and warns that security clearances are difficult and time-consuming to obtain; losing them can prevent the company from winning new business and can harm existing contracts.
• As of March 31, 2026, backlog was $33.4B and funded backlog was $5.0B; management said 45% of remaining performance obligations should convert in 12 months and 63% in 24 months.
• Q3 FY2026 contract awards totaled $2.2B, including a $371M intelligence-community extension, a $306M DAI Global Model task order, a $287M Army IPPS-A modernization contract, a $231M USSOCOM task order, and an $85M Navy engineering-support award.
• In the Q3 FY2026 10-Q, CACI said it acquired all of ARKA Group L.P. for approximately $2.6427B net of cash acquired; the company said the acquisition will enhance its ability to deliver advanced technology to national-security customers in the space domain and that it was funded with increased borrowings and cash on hand.
• On June 22, 2026, CACI appointed Dr. David Young as COO. He arrived from Lockheed Martin National Security Space and CAES and received a $500k sign-on bonus plus a $2M RSU grant, signaling continued emphasis on execution in space and mission-program delivery.

A simple replacement model shows why the moat is sticky: backlog per employee is about $1.34M ($33.4B / 25,000), while revenue per employee is about $345k ($8.63B / 25,000). Roughly $5.54B of RPO should convert in 12 months and $7.75B in 24 months, so a competitor must overcome both a large installed work base and a conversion pipeline that is already booked. If only 25% of backlog is truly contestable, a challenger still has to displace about $8.35B — almost a full year of revenue — before parity. That is a switching-cost wall, not a feature swap.

• The FY2026 10-K says as of June 30, 2026, CACI employed approximately 27,000 full- and part-time employees, and it warns that security clearances are difficult and time-consuming to obtain; losing them can prevent new business and harm existing contracts.
• The FY2026 earnings release says annual contract awards were $10.2B and book-to-bill was 1.1x.
• As of June 30, 2026, backlog was $32.0B and funded backlog was $5.4B; management said 45% of remaining performance obligations should convert in 12 months and 63% in 24 months.
• Q4 FY2026 revenue was $2.7091B (+17.6% YoY) and Q4 EBITDA margin was 12.3%, showing operating leverage even after the ARKA acquisition.

• IDIQ ceiling materiality: $500M ceiling ÷ FY2026 revenue $9.567779B = 5.2% of one year's revenue; annualized over the 3-year window (through mid-2029) ≈ $167M/yr ≈ 1.7% of revenue. IDIQ ceiling ≠ funded revenue — it is task-order-driven.
• Funded-backlog comparison: $500M ceiling = 9.3% of FY2026 funded backlog ($5.4B); a reported initial ~$200M task order would equal ~3.7% of funded backlog.
• Award-cluster denominator: CACI ($500M) + AeroVironment ($500M, July 2026) + Anduril (~$600M) ≈ $1.6B in Domestic Shield C-UAS IDIQs within ~60 days — evidence the DoD is scaling layered C-UAS procurement now, not later.

Financial Profile (unchanged from 08-08 block, cited to FY2026 10-K + Q4 EX-99.1): FY2026 revenue $9.567779B (+10.9% YoY), operating income $919.815M (9.6% margin), backlog $32.0B / funded $5.4B, book-to-bill 1.1x, ~27,000 employees.

The 08-22 block classified CACI as a WEAK_PROXY (4) gov-IT body shop. This update asks a different quantitative question: was the $42M ATS judgment large enough, relative to the franchise, to be a thesis variable?

1. P&L materiality (it was not booked). Note 19: "No amounts have been recognized in our consolidated financial statements." So this is a contingent overhang, not a recognized liability.

• $42M ÷ FY2026 revenue $9,567.779M = 0.439% of one year of revenue.
• $42M ÷ FY2026 net income $535.808M = 7.84% of one year of earnings.
• $42M ÷ cash $191.756M = 21.9% of cash on hand — the only ratio that looks large, and the reason a going-concern reader still had to track it.
• $42M ÷ FY2026 operating income $919.815M = 4.57%.

1. Cost of the moat vs the moat it defended. Net debt = $4,901.509M − $191.756M = $4.710B ≈ 4.01× FY2026 EBITDA ($1,173.9M). The ARKA-funded leverage is the real balance-sheet constraint; the $42M judgment was 0.89% of net debt. Removing it does not de-lever the company. It removes a headline / reputational / suspension-and-debarment-narrative tail, not a capital-structure one.

1. Coverage that actually funds the franchise. Backlog $32.0B ÷ revenue $9.568B = 3.34×; RPO $12.8B ÷ revenue = 1.34×, of which management expects 47% / 67% to convert in 12 / 24 months. FY2027 revenue midpoint ($10,750M) ÷ FY2026 $9,568M = +12.4% guided growth — already in the 08-08/08-22 notes; unchanged by the ruling.

1. Abbass tail (the residual). Item 3 still describes Abbass et al. v. CACI (originally 55 Iraqi plaintiffs, same ATS theory, EDVA 1:13-cv-1186), stayed pending Al Shimari. On July 9, 2026 CACI moved to lift that stay to dismiss on Cisco; the district court denied without prejudice because CA4 had not yet ruled. CA4 has now ruled. Abbass is the remaining ATS clone — not yet dismissed. Treat as a watch item, not a second $42M.

The table intentionally does not include fabricated figures. When exact accession numbers and filing dates are retrieved, each row must be re-populated with the exact URL, accession number, exhibit, and access date.