MAXIMUS Inc (MMS)

Maximus (MMS) shares decline after revenue miss despite earnings beatMay 7, 2026 8:55 AM
IH Market News Maximus Inc. (NYSE:MMS) reported second-quarter fiscal 2026 results on Thursday that exceeded earnings expectations but missed Wall Street revenue forecasts, sending shares down 3.05% following the announcement.The government services contractor posted adjusted earnings of $2.07 per share, topping the analyst consensus estimate of $2.02 by $0.05. Revenue declines year-over-year Quarterly revenue totaled $1.31 billion, below analyst expectations of $1.37 billion and down 3.7% from $1.36 billion in the same period last year.The company said the year-over-year decline was largely due to the absence of natural disaster response work and temporary spikes in clinical service volumes that boosted results during the prior-year quarter. Company raises earnings outlook Despite weaker revenue, Maximus increased its full-year adjusted diluted earnings per share guidance by $0.20 to a range of $8.25 to $8.55.The midpoint of $8.40 is above the previous midpoint of $8.20.The company also raised its adjusted EBITDA margin outlook by 20 basis points to approximately 14.2%.However, Maximus maintained its full-year revenue forecast of $5.2 billion to $5.35 billion. The midpoint of $5.275 billion sits slightly below the analyst consensus estimate of $5.32 billion. AI and automation drive margin expansion “Our second consecutive earnings guidance increase reflects growing confidence in our ability to leverage in-house AI and other technology capabilities to improve efficiency and support margin expansion,” said Bruce Caswell, President and Chief Executive Officer.The company said improved profitability was supported by operational efficiencies and automation initiatives, including the use of AI-enabled tools across multiple program areas.Adjusted EBITDA margin expanded to 14.4%, compared with 13.7% in the prior-year quarter. Board approves new buyback program Maximus also announced that its Board of Directors approved a new $400 million share repurchase authorization.In addition, the company declared a quarterly dividend of $0.33 per share. More about Maximus Maximus provides government services and technology solutions focused on health, employment, and human services programs. The company works with federal, state, and local governments to administer public-sector operations, customer support, clinical services, and digital transformation initiatives.Maximus stock price Original: Maximus (MMS) shares decline after revenue miss despite earnings beat

Maximus Reports Fiscal Year 2026 Second Quarter ResultsMay 7, 2026 6:30 AM
Business Wire Raises earnings outlook and announces $400 million share repurchase program Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three and six months ended March 31, 2026. Highlights for the second quarter of fiscal year 2026 include: Revenue of $1.31 billion was consistent with our full fiscal year 2026 expectations, and compares to $1.36 billion for the prior year period. Diluted earnings per share were $1.80 and adjusted diluted earnings per share were $2.07, compared to $1.69 and $2.01, respectively, for the prior year period. We are raising our adjusted EBITDA margin expectation by 20 basis points to approximately 14.2% and raising our adjusted diluted earnings per share expectation by $0.20 to range between $8.25 and $8.55 per share for the full fiscal year 2026. We are reiterating previous fiscal year 2026 revenue and free cash flow guidance. Repurchases of Maximus common stock in the quarter totaled 1.4 million shares for $111 million, with an additional 0.6 million shares totaling $39.9 million repurchased through May 1, 2026. The Board of Directors authorized a refresh to the repurchase program for Maximus common stock up to an aggregate of $400 million. A quarterly cash dividend of $0.33 per share is payable on June 1, 2026, to shareholders of record on May 15, 2026. "Our second consecutive earnings guidance increase reflects growing confidence in our ability to leverage in-house AI and other technology capabilities to improve efficiency and support margin expansion. We continue to execute our capital deployment strategy, as highlighted by the refresh of our share repurchase authorization up to an aggregate of $400 million," said Bruce Caswell, President and Chief Executive Officer. Caswell continued, "Our state customers are gaining clarity and beginning to take action to help address challenges with Medicaid community engagement, SNAP administration, and unemployment insurance support services. We’re pleased to be playing a role in devising these solutions and expect momentum to continue to build." Second Quarter Results Revenue for the second quarter of fiscal year 2026 was $1.31 billion and on track with full fiscal year 2026 expectations. Prior year period revenue was $1.36 billion and benefited from natural disaster support work and temporary clinical volume surges in both domestic segments. For the second quarter of fiscal year 2026, operating margin was 11.4% and adjusted EBITDA margin was 14.4%. This compares to margins of 11.2% and 13.7%, respectively, for the prior year period. Diluted earnings per share were $1.80, and adjusted diluted earnings per share were $2.07. This compares to $1.69 and $2.01, respectively, for the prior year period. Consolidated earnings improved over the prior year period primarily due to efficiency gains through automation, including AI-enabled tools, across multiple program areas. The second quarter of fiscal year 2026 included a non-cash impairment charge that decreased the U.S. Services segment's operating income by $6.9 million, or $0.09 per share, and a discrete research & development tax benefit that reduced the income tax expense by $4.2 million, which equated to a $0.08 per share benefit. Both non-recurring items were excluded from adjusted EBITDA and had offsetting impacts on adjusted diluted earnings per share. U.S. Federal Services Segment U.S. Federal Services Segment revenue for the second quarter of fiscal year 2026 was $753 million. Prior year period revenue was $778 million and benefited from natural disaster support. We anticipated the absence of this work in our fiscal year 2026 guidance, and, excluding this support work, segment organic revenue growth was 1.5% over the prior year period. The segment operating margin for the second quarter of fiscal year 2026 was 17.6%, compared to 15.3% reported for the prior year period. Technology initiatives, including automation that enables greater volume processing without a commensurate increase in labor costs, were the primary driver of the improved margin and the increase to the segment’s full fiscal year margin expectation. The full fiscal year 2026 operating margin for the U.S. Federal Services Segment is expected to be approximately 17.5%. U.S. Services Segment U.S. Services Segment revenue for the second quarter of fiscal year 2026 was $416 million and on track to improve segment revenue growth anticipated by the end of the fiscal year. The prior year period segment revenue was $442 million. The segment operating margin for the second quarter of fiscal year 2026 was 9.3%, or 10.9% excluding the $6.9 million non-cash charge related to an asset impairment. The prior year period segment operating margin was 12.2%. The full fiscal year 2026 operating margin for the U.S. Services Segment is expected to be approximately 10.0% as a result of the non-cash charge this quarter. Outside the U.S. Segment Outside the U.S. Segment revenue for the second quarter of fiscal year 2026 was $137 million, compared to $142 million in the prior year period. Following previous reshaping actions, the segment now comprises the United Kingdom, Canada, and the Gulf Region, all of which are tracking opportunities that we believe have the potential to drive future growth. The segment realized an operating loss of $3.1 million for the second quarter of fiscal year 2026, compared to an operating profit of $4.8 million in the prior year period. We continue to anticipate future margin improvement over time in this segment, which is now expected to break even on a full fiscal year 2026 basis. Sales and Pipeline Year-to-date signed contract awards at March 31, 2026, totaled $913 million, and contracts pending (awarded but unsigned) totaled $322 million. The sales pipeline at March 31, 2026, totaled $56.8 billion, comprised of approximately $4.55 billion in proposals pending, $1.48 billion in proposals in preparation, and $50.7 billion in opportunities we are tracking. New work opportunities represent approximately 59% of the total sales pipeline, and U.S. Federal Services Segment opportunities represent approximately 58% of the total sales pipeline. Balance Sheet and Cash Flows At March 31, 2026, unrestricted cash and cash equivalents totaled $157 million, and gross debt was $1.55 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended March 31, 2026, as calculated on a trailing twelve-month basis in accordance with our credit agreement, was 1.8x. This is unchanged from the ratio at December 31, 2025, and remains below our target net leverage ratio of 2x to 3x. For the second quarter of fiscal year 2026, cash provided by operating activities totaled $190 million, and free cash flow was $179 million. DSO were 78 days at March 31, 2026, and unchanged from the DSO at December 31, 2025. We expect collections to increase in the second half of fiscal year 2026, which supports our full-year free cash flow guidance. During the second quarter of fiscal year 2026, we purchased approximately 1.4 million shares of Maximus common stock totaling $111 million. Subsequent to March 31, 2026, and through May 1, 2026, we purchased an additional 0.6 million shares totaling $39.9 million. The Board of Directors authorized a refresh to the repurchase program for Maximus common stock up to an aggregate of $400 million, which becomes effective May 11, 2026. On April 6, 2026, our Board of Directors declared a quarterly cash dividend of $0.33 for each share of our common stock outstanding. The dividend is payable on June 1, 2026, to shareholders of record on May 15, 2026. Fiscal Year 2026 Earnings Guidance Raise Maximus is raising fiscal year 2026 earnings guidance and reiterating revenue and free cash flow guidance. The full year adjusted EBITDA margin guidance improves by 20 basis points to approximately 14.2%, as compared to prior guidance. Guidance for adjusted diluted earnings per share increases by $0.20 and is now expected to range between $8.25 and $8.55 per share for fiscal year 2026. Revenue guidance is maintained between $5.2 billion and $5.35 billion, and free cash flow guidance is maintained between $450 million and $500 million for fiscal year 2026. Interest expense is estimated to be $84 million, and the full fiscal year tax rate is expected to range between 24.0% and 25.0% for fiscal year 2026. Conference Call and Webcast Information Maximus will host a conference call this morning, May 7, 2026, at 9:00 a.m. ET. The call is open to the public and available by webcast or by phone at: 877.407.8289 (Domestic) / +1.201.689.8341 (International) For those unable to listen to the live call, a recording of the webcast will be available on investor.maximus.com. About Maximus As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com. Non-GAAP Measures and Forward-Looking Statements This release contains non-GAAP measures and other indicators, including organic growth, free cash flow, diluted EPS adjusted for amortization of intangible assets and divestiture-related charges and gains, adjusted EBITDA, adjusted EBITDA margin, consolidated EBITDA (as defined by our Credit Agreement), and other non-GAAP measures. A description of these non-GAAP measures and details as to how they are calculated are included with our earnings presentation and forthcoming Form 10-Q. The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operations, revenue growth, operating income, or net income as measures of performance. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures presented by other companies. Included in this release are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "on track,” "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Forward-looking statements that are not historical facts, including statements about our confidence, strategies and initiatives, guidance and expectations about revenues, results of operations, profitability, future contracts, liquidity, market opportunities, market demand, acceptance of our products and service offerings, or acquisitions and divestitures, are forward-looking statements that involve risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 20, 2025, and subsequent filings with the Securities and Exchange Commission (SEC). Our SEC filings are accessible on maximus.com. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update the guidance herein or any other forward-looking statement as circumstances evolve.   FY26 Guidance Reconciliation - Non-GAAP ($ in millions except per share items) Low End   High End Net income $ 394     $ 411   Add: Interest expense / Other (income)   84       84   Add: Provision for income taxes   128       133   Add: Amortization of intangible assets   81       81   Add: Depreciation & amortization of property, equipment and capitalized software   54       54   Add: Capitalized software impairment charges   7       7   Add: Divestiture-related gains   (9 )     (9 ) Adjusted EBITDA $ 739     $ 761   Revenue $ 5,200     $ 5,350           Net income margin   7.6 %     7.7 % Adjusted EBITDA margin   14.2 %     14.2 %         Diluted EPS $ 7.27     $ 7.57   Add: effect of amortization of intangible assets on diluted EPS   1.10       1.10   Add: effect of divestiture-related gains on diluted EPS   (0.12 )     (0.12 ) Adjusted diluted EPS $ 8.25     $ 8.55           Cash flows from operating activities $ 485     $ 535   Remove: purchases of property and equipment and capitalized software costs   (35 )     (35 ) Free cash flow $ 450     $ 500   Maximus, Inc. Consolidated Statements of Operations (Unaudited)   For the Three Months Ended   For the Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025   (in thousands, except per share amounts) Revenue $ 1,305,967     $ 1,361,786     $ 2,651,013     $ 2,764,461   Cost of revenue   963,703       1,022,965       1,990,079       2,124,083   Gross profit   342,264       338,821       660,934       640,378   Selling, general, and administrative expenses   173,479       162,857       325,639       354,592   Amortization of intangible assets   20,298       22,996       40,598       46,031   Operating income   148,487       152,968       294,697       239,755   Interest expense   22,111       21,469       42,927       38,991   Other (income)/expense, net   (158 )     (963 )     (1,031 )     (651 ) Income before income taxes   126,534       132,462       252,801       201,415   Provision for income taxes   28,471       35,893       60,795       63,650   Net income $ 98,063     $ 96,569     $ 192,006     $ 137,765                   Earnings per share:               Basic $ 1.81     $ 1.70     $ 3.52     $ 2.36   Diluted $ 1.80     $ 1.69     $ 3.50     $ 2.35   Weighted average shares outstanding:               Basic   54,242       56,892       54,547       58,330   Diluted   54,585       57,057       54,925       58,553                   Dividends declared per share $ 0.33     $ 0.30     $ 0.63     $ 0.60   Maximus, Inc. Consolidated Balance Sheets   March 31, 2026   September 30, 2025   (unaudited)       (in thousands) Assets:       Cash and cash equivalents $ 157,452     $ 222,351   Accounts receivable, net   1,114,960       898,095   Income taxes receivable   64,792       3,904   Prepaid expenses and other current assets   171,644       128,574   Total current assets   1,508,848       1,252,924   Property and equipment, net   27,178       30,972   Capitalized software, net   202,583       214,260   Operating lease right-of-use assets   84,097       100,514   Goodwill   1,780,507       1,782,095   Intangible assets, net   497,342       538,266   Deferred contract costs, net   62,737       63,332   Deferred compensation plan assets   58,472       63,272   Deferred income taxes   7,590       11,491   Other assets   9,820       12,513   Total assets $ 4,239,174     $ 4,069,639   Liabilities and Shareholders' Equity:       Liabilities:       Accounts payable and accrued liabilities $ 281,984     $ 296,888   Accrued compensation and benefits   152,362       236,948   Deferred revenue, current portion   37,910       53,784   Income taxes payable   959       17,321   Long-term debt, current portion   63,930       52,680   Operating lease liabilities, current portion   35,400       38,605   Other current liabilities   109,142       68,937   Total current liabilities   681,687       765,163   Deferred revenue, non-current portion   37,662       43,757   Deferred income taxes   212,703       149,020   Long-term debt, non-current portion   1,471,816       1,281,593   Deferred compensation plan liabilities, non-current portion   58,171       62,145   Operating lease liabilities, non-current portion   56,640       71,289   Other liabilities   23,534       22,637   Total liabilities   2,542,213       2,395,604   Shareholders' equity:       Common stock, no par value; 100,000 shares authorized; 53,110 and 54,805 shares issued and outstanding as of March 31, 2026, and September 30, 2025, respectively   639,269       628,118   Accumulated other comprehensive loss   (21,055 )     (17,867 ) Retained earnings   1,078,747       1,063,784   Total shareholders' equity   1,696,961       1,674,035   Total liabilities and shareholders' equity $ 4,239,174     $ 4,069,639   Maximus, Inc. Consolidated Statements of Cash Flows (Unaudited)   For the Three Months Ended   For the Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025   (in thousands) Cash flows from operating activities:               Net income $ 98,063     $ 96,569     $ 192,006     $ 137,765   Adjustments to reconcile net income to cash flows from operations:               Depreciation and amortization of property, equipment, and capitalized software   12,328       9,440       25,217       17,895   Capitalized software impairment charges   6,914       —       6,914       —   Amortization of intangible assets   20,298       22,996       40,598       46,031   Amortization of debt issuance costs and debt discount   736       672       1,472       1,310   Deferred income taxes   39,917       (2,747 )     67,781       (590 ) Stock compensation expense   9,899       12,623       16,918       19,575   Divestiture-related charges/(gains)   —       1,002       (8,985 )     39,343   Change in assets and liabilities, net of effects of business combinations and divestitures:               Accounts receivable   30,710       (131,428 )     (222,665 )     (234,882 ) Prepaid expenses and other current assets   6,054       10,443       5,963       7,943   Deferred contract costs   3,740       (1,549 )     438       (1,915 ) Accounts payable and accrued liabilities   19,569       14,093       (14,238 )     5,943   Accrued compensation and benefits   27,269       45,035       (73,431 )     (48,001 ) Deferred revenue   (10,759 )     (3,061 )     (21,602 )     (11,293 ) Income taxes   (73,428 )     (18,541 )     (74,463 )     (6,465 ) Operating lease right-of-use assets and liabilities   (1,074 )     (14 )     (1,473 )     (2,363 ) Other assets and liabilities   (710 )     (12,819 )     4,674       (7,578 ) Net cash provided by/(used in) operating activities   189,526       42,714       (54,876 )     (37,282 ) Cash flows from investing activities:               Purchases of property and equipment and capitalized software   (10,509 )     (17,206 )     (16,772 )     (40,198 ) Proceeds from divestitures   —       —       12,895       736   Other   —       (2,165 )     —       (2,165 ) Net cash used in investing activities   (10,509 )     (19,371 )     (3,877 )     (41,627 ) Cash flows from financing activities:               Cash dividends paid to Maximus shareholders   (17,821 )     (16,901 )     (34,159 )     (34,961 ) Purchases of Maximus common stock   (114,440 )     (77,850 )     (155,002 )     (306,443 ) Tax withholding related to RSU vesting   —       —       (17,325 )     (16,441 ) Payments for debt financing costs   —       (1,658 )     —       (1,658 ) Proceeds from borrowings   300,000       524,000       665,000       959,000   Principal payments for debt   (332,500 )     (418,375 )     (465,000 )     (597,639 ) Other, including customer escrowed funds   51,484       (282 )     50,109       (1,181 ) Net cash (used in)/provided by financing activities   (113,277 )     8,934       43,623       677   Effect of exchange rate changes on cash, cash equivalents, and restricted cash   (568 )     791       (632 )     (1,593 ) Net change in cash, cash equivalents, and restricted cash   65,172       33,068       (15,762 )     (79,825 ) Cash, cash equivalents, and restricted cash, beginning of period   179,525       122,870       260,459       235,763   Cash, cash equivalents, and restricted cash, end of period $ 244,697     $ 155,938     $ 244,697     $ 155,938   Maximus, Inc. Consolidated Results of Operations by Segment (Unaudited)     For the Three Months Ended March 31, 2026 (dollars in thousands) U.S. Federal Services   % (1 )   U.S. Services   % (1 )   Outside the U.S.   % (1 )   Total Revenue $ 753,143       $ 415,754       $ 137,070         $ 1,305,967   Cost of revenue   527,698   70.1 %     315,245   75.8 %     120,760     88.1 %     963,703   Gross profit   225,445   29.9 %     100,509   24.2 %     16,310     11.9 %     342,264   Other segment items (2)   92,741   12.3 %     61,919   14.9 %     19,395     14.1 %     174,055   Segment operating income/(loss) $ 132,704   17.6 %   $ 38,590   9.3 %   $ (3,085 )   (2.3 )%     168,209   Other (4)                           576   Amortization of intangible assets                           (20,298 ) Operating income                         $ 148,487                                 For the Three Months Ended March 31, 2025 (dollars in thousands) U.S. Federal Services   % (1)   U.S. Services   % (1)   Outside the U.S.   % (1)   Total Revenue $ 777,927     1 $ 442,350       $ 141,509         $ 1,361,786   Cost of revenue   575,869   74.0 %     330,580   74.7 %     116,516     82.3 %     1,022,965   Gross profit   202,058   26.0 %     111,770   25.3 %     24,993     17.7 %     338,821   Other segment items (2)   83,076   10.7 %     57,963   13.1 %     20,197     14.3 %     161,236   Segment operating income $ 118,982   15.3 %   $ 53,807   12.2 %   $ 4,796     3.4 %     177,585   Divestiture-related gains/(charges) (3)                           (1,002 ) Other (4)                           (619 ) Amortization of intangible assets                           (22,996 ) Operating income                         $ 152,968     For the Six Months Ended March 31, 2026 (dollars in thousands) U.S. Federal Services   % (1)   U.S. Services   % (1)   Outside the U.S.   % (1)   Total Revenue $ 1,539,744     1 $ 831,002       $ 280,267         $ 2,651,013   Cost of revenue   1,099,364   71.4 %     646,099   77.7 %     244,616     87.3 %     1,990,079   Gross profit   440,380   28.6 %     184,903   22.3 %     35,651     12.7 %     660,934   Other segment items (2)   177,943   11.6 %     117,027   14.1 %     40,116     14.3 %     335,086   Segment operating income $ 262,437   17.0 %   $ 67,876   8.2 %   $ (4,465 )   (1.6 )%     325,848   Divestiture-related gains/(charges) (3)                           8,985   Other (4)                           462   Amortization of intangible assets                           (40,598 ) Operating income                         $ 294,697                                 For the Six Months Ended March 31, 2025 (dollars in thousands) U.S. Federal Services   % (1)   U.S. Services   % (1)   Outside the U.S.   % (1)   Total Revenue $ 1,558,582       $ 894,600       $ 311,279         $ 2,764,461   Cost of revenue   1,183,209   75.9 %     687,826   76.9 %     253,048     81.3 %     2,124,083   Gross profit   375,373   24.1 %     206,774   23.1 %     58,231     18.7 %     640,378   Other segment items (2)   157,291   10.1 %     112,121   12.5 %     45,315     14.6 %     314,727   Segment operating income $ 218,082   14.0 %   $ 94,653   10.6 %   $ 12,916     4.1 %     325,651   Divestiture-related gains/(charges) (3)                           (39,343 ) Other (4)                           (522 ) Amortization of intangible assets                           (46,031 ) Operating income                         $ 239,755     (1) Percentage of respective revenue, as applicable. (2) Other segment items are principally selling, general, and administrative expenses allocated to segments. (3) During fiscal years 2026 and 2025, we divested businesses from our U.S. Services and Outside the U.S. Segments, respectively. (4) Other expenses include credits and costs that are not allocated to a particular segment. Maximus, Inc. Consolidated Free Cash Flows - Non-GAAP (Unaudited)   For the Three Months Ended   For the Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025   (in thousands) Net cash provided by/(used in) operating activities   189,526       42,714       (54,876 )     (37,282 ) Purchases of property and equipment and capitalized software   (10,509 )     (17,206 )     (16,772 )     (40,198 ) Free cash flow (Non-GAAP) $ 179,017     $ 25,508     $ (71,648 )   $ (77,480 ) Maximus, Inc. Non-GAAP Adjusted Results - Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share (Unaudited)   For the Three Months Ended   For the Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025   (dollars in thousands, except per share data) Net income $ 98,063     $ 96,569     $ 192,006     $ 137,765   Provision for income taxes   28,471       35,893       60,795       63,650   Interest expense   22,111       21,469       42,927       38,991   Other (income)/expense, net   (158 )     (963 )     (1,031 )     (651 ) Amortization of intangible assets   20,298       22,996       40,598       46,031   Divestiture-related charges/(gains)   —       1,002       (8,985 )     39,343   Depreciation and amortization of property, equipment, and capitalized software   12,328       9,440       25,217       17,895   Capitalized software impairment charges   6,914       —       6,914       —   Adjusted EBITDA (Non-GAAP) $ 188,027     $ 186,406     $ 358,441     $ 343,024                   Net income margin (GAAP)*   7.5 %     7.1 %     7.2 %     5.0 % Adjusted EBITDA margin (Non-GAAP)*   14.4 %     13.7 %     13.5 %     12.4 %                 * Margins are calculated as a percentage of revenue                               Net income $ 98,063     $ 96,569     $ 192,006     $ 137,765   Add back: Amortization of intangible assets, net of tax   14,960       16,948       29,921       33,925   Add back: Divestiture-related charges/(gains), net of tax   —       1,002       (6,622 )     39,343   Adjusted net income excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP) $ 113,023     $ 114,519     $ 215,305     $ 211,033                   Diluted earnings per share $ 1.80     $ 1.69     $ 3.50     $ 2.35   Add back: Effect of amortization of intangible assets on diluted earnings per share   0.27       0.30       0.54       0.58   Add back: Effect of divestiture-related charges/(gains) on diluted earnings per share   —       0.02       (0.12 )     0.67   Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP) $ 2.07     $ 2.01     $ 3.92     $ 3.60     View source version on businesswire.com: https://www.businesswire.com/news/home/20260507878692/en/ James Francis, VP - IR
IR@maximus.com Original: Maximus Reports Fiscal Year 2026 Second Quarter Results

Elizabeth Moellering Named General Counsel and Corporate Secretary of MaximusApril 24, 2026 6:00 AM
Business Wire
Moellering has served as interim general counsel since February 2026


Maximus (NYSE: MMS), a leading provider of tech-enabled government services, today announced Elizabeth Moellering as the company’s new General Counsel and Corporate Secretary. In this role, she succeeds John Martinez, who departed the company earlier this year.


Since February of this year, Moellering has served as Interim General Counsel and Deputy General Counsel. She originally joined Maximus in 2024 as Head of Litigation, where she built a new, disciplined structure for managing legal disputes before taking on additional responsibilities.


“The role of General Counsel is important to helping Maximus fulfill our mission assisting governments in the delivery of essential citizen programs,” said Bruce Caswell, President and Chief Executive Officer, Maximus. “I am excited that Elizabeth has accepted this new role serving on our executive team. As we’ve worked together over the past few years, she has demonstrated strong judgment, collaborative leadership, and served as a trusted partner across our business.”


Prior to joining Maximus, Moellering handled complex litigation and investigations at Optum, served as a federal prosecutor focused on white-collar matters and child victim offenses, and practiced as a litigation associate at Skadden Arps. Her proven track record, deep legal expertise, and the strong relationships she has built across the legal team and the enterprise make her the right leader to serve as General Counsel at this time.


“I’m honored to lead the Maximus legal team at a pivotal time for government services,” said Moellering. “The accelerating adoption of AI and digital innovation is creating new opportunities to help our partners deliver better outcomes—more efficiently and at greater scale—for the millions of citizens they serve. With 50 years of excellence behind us, I’m excited to help Maximus advance our mission and accelerate what’s next.”


About Maximus


As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260424924799/en/
Investor Relations

IR@maximus.com


Media & Public Relations

media@maximus.com


Original: Elizabeth Moellering Named General Counsel and Corporate Secretary of Maximus

Maximus Declares Quarterly Cash Dividend of $0.33 per ShareApril 6, 2026 6:30 AM
Business Wire
Maximus (NYSE: MMS), a leading provider of government services, announced today that its Board of Directors has approved a quarterly cash dividend of $0.33 per share, payable on June 1, 2026, to shareholders of record on May 15, 2026.


About Maximus


As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.


Cautionary Note Regarding Forward-Looking Statements


Included in this press release are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any statements herein that are not historical facts, including statements about our dividend or future dividends, are forward-looking statements that are subject to risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 20, 2025.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260406126263/en/
Investor Relations

James Francis

IR@maximus.com


Media & Public Relations

media@maximus.com


Original: Maximus Declares Quarterly Cash Dividend of $0.33 per Share

Maximus Tops Q1 Earnings Forecasts While Tightening 2026 Revenue GuidanceFebruary 5, 2026 9:23 AM
IH Market News
Government services contractor Maximus, Inc. (NYSE:MMS) reported fiscal first-quarter 2026 adjusted earnings on Thursday that exceeded market expectations, although revenue came in below forecasts due to softer activity levels in its U.S. Services division.Shares of Maximus rose slightly, gaining 0.81% in after-hours trading following the announcement.For the quarter ending December 31, 2025, the company recorded adjusted earnings of $1.85 per share, outperforming analyst estimates of $1.75. Revenue totaled $1.35 billion, missing expectations of $1.44 billion and declining 4.1% from the same period a year earlier. The drop included about a 1.5% reduction linked to divestitures, with the remaining decrease stemming from underlying operational trends.“Q1 FY26 results were broadly in line with expectations contemplated in November guidance for FY26,” said David Mutryn, Chief Financial Officer. The company posted an adjusted EBITDA margin of 12.7%, improving from 11.2% in the prior-year quarter, supported by strong results within the U.S. Federal Services unit.The U.S. Federal Services segment, Maximus’ largest revenue contributor, delivered a slight 0.8% increase in sales to $786.6 million. The division also saw operating margin expand significantly to 16.5%, compared with 12.7% a year earlier. In contrast, revenue from the U.S. Services segment declined 8.2% to $415.2 million, reflecting reduced participation or demand across several programs.Maximus revised its fiscal 2026 outlook, tightening its revenue projection to a range of $5.2 billion to $5.35 billion, compared with the earlier guidance of $5.225 billion to $5.425 billion and below the analyst consensus of $5.47 billion. However, the company increased its adjusted EBITDA margin forecast to roughly 14.0% from 13.7%, while raising its adjusted EPS guidance to between $8.05 and $8.35 from the previous $7.95 to $8.25 range.“We continue to be ’customer zero,’ where we develop capabilities and experience that we believe are valuable to our customers,” said Bruce Caswell, President and CEO, pointing to the company’s artificial intelligence initiatives that have helped secure recent contract awards.Maximus added that the recent U.S. government shutdown had little direct impact on its financial results but did slow contract award activity within the U.S. Federal Services division, weighing on its quarterly book-to-bill ratio. The company expects that metric to strengthen in the remaining quarters of fiscal 2026.Maximus stock price

Original: Maximus Tops Q1 Earnings Forecasts While Tightening 2026 Revenue Guidance

Maximus Reports Fiscal Year 2026 First Quarter ResultsFebruary 5, 2026 6:30 AM
Business Wire
Earnings outlook raised on resilient performance and strong pipeline supports future outlook


Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three months ended December 31, 2025.


Highlights for the first quarter of fiscal year 2026 include:



Revenue of $1.35 billion compared to $1.40 billion for the prior year period, in line with expectations entering the quarter.



Diluted earnings per share were $1.70 and adjusted diluted earnings per share were $1.85, compared to $0.69 and $1.61, respectively, for the prior year period.



The company is narrowing revenue guidance and raising earnings guidance for fiscal year 2026. Full-year revenue is expected to range between $5.2 billion and $5.35 billion, reflecting a small divestiture completed in the quarter and updated new work assumptions. The company is raising the adjusted EBITDA margin expectation 30 basis points to approximately 14% and now expects adjusted diluted earnings per share to range between $8.05 and $8.35 per share for the full fiscal year 2026.



A quarterly cash dividend of $0.33 per share is payable on March 2, 2026, to shareholders of record on February 13, 2026.



"Our first quarter results reflect resilient execution and a portfolio focused on essential government programs. With a strong pipeline, expanding opportunities related to the Working Families Tax Cut Act, and continued progress in technology-enabled service delivery, we remain focused on delivering high-quality services for our government partners and the communities they serve," said Bruce Caswell, President and Chief Executive Officer.


Caswell continued, "We are expanding the use of automation, including AI, to augment how work is done, enhance citizen experience, and support productivity and margins. We are deploying these capabilities in production and expect them to contribute to improved outcomes and program performance over time."


First Quarter Results


Revenue for the first quarter of fiscal year 2026 decreased 4.1% to $1.35 billion, compared to $1.40 billion for the prior year period. Divestiture-related activity contributed to approximately 1.5% of the decline, and organic movements were primarily responsible for the remainder. These results were consistent with our expectations entering the quarter.


For the first quarter of fiscal year 2026, operating margin was 10.9% and adjusted EBITDA margin was 12.7%. This compares to margins of 6.2% and 11.2%, respectively, for the prior year period. Diluted earnings per share were $1.70, and adjusted diluted earnings per share were $1.85. This compares to $0.69 and $1.61, respectively, for the prior year period.


The improvement to consolidated earnings over the prior year period was attributable to a combination of stronger performance in the U.S. Federal Services Segment and divestiture-related activity, which is not reflected in the adjusted metrics. The first quarter of fiscal year 2025 included divestiture-related charges of approximately $38 million related to the sale of the Australian and South Korean businesses. The first quarter of fiscal year 2026 included a divestiture-related gain of $9 million from selling our child support business in the U.S. Services Segment.


U.S. Federal Services Segment


U.S. Federal Services Segment revenue for the first quarter of fiscal year 2026 increased 0.8% to $787 million, compared to $781 million reported for the prior year period. All growth was organic, and the prior year period benefited from unexpected volume growth on core programs along with high levels of natural disaster support, which did not recur in the current quarter.


The segment operating margin for the first quarter of fiscal year 2026 was 16.5%, compared to 12.7% reported for the prior year period. Stability of volumes across multiple program areas, combined with wider adoption of technology initiatives that enhanced the productivity of staff drove the improved margin. The full-year fiscal 2026 operating margin for the U.S. Federal Services Segment is now expected to range between 16.5% and 17%.


U.S. Services Segment


U.S. Services Segment revenue for the first quarter of fiscal year 2026 decreased 8.2% to $415 million, compared to $452 million in the prior year period. As contemplated in our total company guidance for fiscal year 2026, several programs are experiencing lower volumes or demand for engagement compared to prior years.


The segment operating margin for the first quarter of fiscal year 2026 was 7.1%, compared to 9.0% reported for the prior year period. Both periods had depressed margins compared to the remainder of their respective fiscal years, which was also contemplated in our total company guidance for fiscal year 2026. The full-year fiscal 2026 operating margin for the U.S. Services Segment is now expected to range between 10.5% and 11%.


Outside the U.S. Segment


Outside the U.S. Segment revenue for the first quarter of fiscal year 2026 decreased to $143 million, compared to $170 million in the prior year period. A majority of the revenue reduction was due to the divestiture of the Australian and South Korean employment services businesses in the prior year period, with additional reduction from slightly lower volumes on several programs.


The segment realized an operating loss of $1.4 million for the first quarter of fiscal year 2026, compared to an operating profit of $8.1 million in the prior year period. The loss resulted primarily from planned business development costs, while forecasted revenue tied to new work opportunities was delayed. We continue to expect margin improvement over time in this segment. The full-year fiscal 2026 operating margin for the Outside the U.S. Segment is now expected to range between 1% and 3%.


Sales and Pipeline


Year-to-date signed contract awards at December 31, 2025, totaled $246 million, and contracts pending (awarded but unsigned) totaled $699 million. The U.S. federal government shutdown within the quarter had a direct impact on award activity. The company views this as a timing dynamic rather than a structural change, with award activity expected to increase over the remaining quarters of fiscal 2026.


The sales pipeline at December 31, 2025, totaled $59.1 billion, comprised of approximately $3.82 billion in proposals pending, $2.36 billion in proposals in preparation, and $52.9 billion in opportunities we are tracking. New work opportunities represent approximately 59% of the total sales pipeline, and U.S. Federal Services Segment opportunities represent approximately 61% of the total sales pipeline.


Balance Sheet and Cash Flows


At December 31, 2025, unrestricted cash and cash equivalents totaled $138 million, and gross debt was $1.58 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended December 31, 2025, as calculated on a trailing twelve-month basis in accordance with our credit agreement, was 1.8x and trended higher from anticipated working capital needs within the quarter. This compares to 1.5x at September 30, 2025, and remains below our target net leverage ratio of 2x to 3x.


For the first quarter of fiscal year 2026, cash used in operating activities totaled $244 million, and free cash flow was an outflow of $251 million. The anticipated cash flow results reflect seasonality around cash payments and temporary delays of collections in the U.S. Federal Services Segment stemming from administrative delays. DSO were 78 days at December 31, 2025, compared with 62 days at September 30, 2025.


On January 6, 2026, our Board of Directors declared a quarterly cash dividend of $0.33 for each share of our common stock outstanding. The dividend is payable on March 2, 2026, to shareholders of record on February 13, 2026.


Fiscal Year 2026 Guidance Update


Maximus is raising fiscal year 2026 earnings guidance and narrowing the range for revenue guidance, while maintaining free cash flow guidance. Revenue is now expected to range between $5.2 billion and $5.35 billion, with $25 million of the change from prior guidance attributable to the divested U.S. Services Segment business.


The full year adjusted EBITDA margin guidance, which excludes divestiture-related gains, improves by 30 basis points to approximately 14%, compared to prior guidance. Guidance for adjusted diluted earnings per share, which excludes expense for amortization of intangible assets and divestiture-related gains, increases by $0.10 and is now expected to range between $8.05 and $8.35 per share for fiscal year 2026.


Free cash flow guidance is maintained with an expected range between $450 million and $500 million for fiscal year 2026. Interest expense is estimated to be $75 million, and the full-year tax rate is expected to range between 24.5% and 25.5% for fiscal year 2026.


Conference Call and Webcast Information


Maximus will host a conference call this morning, February 5, 2026, at 9:00 a.m. ET.


The call is open to the public and available by webcast or by phone at:


877.407.8289 (Domestic) / +1.201.689.8341 (International)


For those unable to listen to the live call, a recording of the webcast will be available on investor.maximus.com.


About Maximus


As a leading strategic partner to government, Maximus helps improve the delivery of public services amid complex technology, health, economic, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus provides tech-enabled services to government agencies, including innovative business process management and technology solutions, that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.


Non-GAAP Measures and Forward-Looking Statements


This release contains non-GAAP measures and other indicators, including organic growth, free cash flow, diluted EPS adjusted for amortization of intangible assets and divestiture-related charges and gains, adjusted EBITDA, adjusted EBITDA margin, consolidated EBITDA (as defined by our Credit Agreement), and other non-GAAP measures.


A description of these non-GAAP measures and details as to how they are calculated are included with our earnings presentation and forthcoming Form 10-Q.


The presentation of these non-GAAP numbers is not meant to be considered in isolation, nor as alternatives to cash flows from operations, revenue growth, operating income, or net income as measures of performance. These non-GAAP financial measures, as determined and presented by us, may not be comparable to related or similarly titled measures presented by other companies.


Included in this release are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek,“ “on track,” "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Forward-looking statements that are not historical facts, including statements about our confidence, strategies and initiatives, guidance and expectations about revenues, results of operations, profitability, future contracts, liquidity, market opportunities, market demand, acceptance of our products, or acquisitions and divestitures, are forward-looking statements that involve risks and uncertainties.


These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 20, 2025, and subsequent filings with the Securities and Exchange Commission (SEC). Our SEC filings are accessible on maximus.com.


Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update the guidance herein or any other forward-looking statement as circumstances evolve.




 






FY26 Guidance Reconciliation - Non-GAAP








($ in millions except per share items)






Low End






 






High End








Operating income






$






600






 






 






$






622






 








Add: amortization of intangible assets






 






81






 






 






 






81






 








Add: depreciation & amortization of property, equipment and capitalized software






 






55






 






 






 






55






 








Add: divestiture-related gains






 






(9






)






 






 






(9






)








Adjusted EBITDA






$






727






 






 






$






749






 








Revenue






$






5,200






 






 






$






5,350






 








Adjusted EBITDA Margin






 






14.0






%






 






 






14.0






%








 






 






 






 








Diluted EPS






$






7.09






 






 






$






7.39






 








Add: effect of amortization of intangible assets on diluted EPS






 






1.08






 






 






 






1.08






 








Add: effect of divestiture-related gains on diluted EPS






 






(0.12






)






 






 






(0.12






)








Adjusted diluted EPS






$






8.05






 






 






$






8.35






 








 






 






 






 








Cash flows from operating activities






$






485






 






 






$






535






 








Remove: purchases of property and equipment and capitalized software costs






 






(35






)






 






 






(35






)








Free cash flow






$






450






 






 






$






500






 









Maximus, Inc.




Consolidated Statements of Operations




(Unaudited)








 




For the Three Months Ended








 






December 31, 2025






 






December 31, 2024








 






(in thousands, except per share amounts)








Revenue






$






1,345,046






 






 






$






1,402,675








Cost of revenue






 






1,026,376






 






 






 






1,101,118








Gross profit






 






318,670






 






 






 






301,557








Selling, general, and administrative expenses






 






152,160






 






 






 






191,735








Amortization of intangible assets






 






20,300






 






 






 






23,035








Operating income






 






146,210






 






 






 






86,787








Interest expense






 






20,816






 






 






 






17,522








Other (income)/expense, net






 






(873






)






 






 






312








Income before income taxes






 






126,267






 






 






 






68,953








Provision for income taxes






 






32,324






 






 






 






27,757








Net income






$






93,943






 






 






$






41,196








 






 






 






 








Earnings per share:






 






 






 








Basic






$






1.71






 






 






$






0.69








Diluted






$






1.70






 






 






$






0.69








Weighted average shares outstanding:






 






 






 








Basic






 






54,842






 






 






 






59,733








Diluted






 






55,299






 






 






 






60,002








 






 






 






 








Dividends declared per share






$






0.30






 






 






$






0.30









Maximus, Inc.




Consolidated Balance Sheets










 




December 31, 2025






 






September 30, 2025








 






(unaudited)






 






 








 






(in thousands)








Assets:






 






 






 








Cash and cash equivalents






$






137,594






 






 






$






222,351






 








Accounts receivable, net






 






1,147,740






 






 






 






898,095






 








Income taxes receivable






 






5,305






 






 






 






3,904






 








Prepaid expenses and other current assets






 






132,569






 






 






 






128,574






 








Total current assets






 






1,423,208






 






 






 






1,252,924






 








Property and equipment, net






 






28,108






 






 






 






30,972






 








Capitalized software, net






 






210,503






 






 






 






214,260






 








Operating lease right-of-use assets






 






93,724






 






 






 






100,514






 








Goodwill






 






1,781,156






 






 






 






1,782,095






 








Intangible assets, net






 






517,916






 






 






 






538,266






 








Deferred contract costs, net






 






66,636






 






 






 






63,332






 








Deferred compensation plan assets






 






65,109






 






 






 






63,272






 








Deferred income taxes






 






11,755






 






 






 






11,491






 








Other assets






 






10,185






 






 






 






12,513






 








Total assets






$






4,208,300






 






 






$






4,069,639






 








Liabilities and Shareholders' Equity:






 






 






 








Liabilities:






 






 






 








Accounts payable and accrued liabilities






$






263,281






 






 






$






296,888






 








Accrued compensation and benefits






 






125,464






 






 






 






236,948






 








Deferred revenue, current portion






 






46,566






 






 






 






53,784






 








Income taxes payable






 






17,753






 






 






 






17,321






 








Long-term debt, current portion






 






58,305






 






 






 






52,680






 








Operating lease liabilities, current portion






 






37,484






 






 






 






38,605






 








Other current liabilities






 






59,193






 






 






 






68,937






 








Total current liabilities






 






608,046






 






 






 






765,163






 








Deferred revenue, non-current portion






 






39,958






 






 






 






43,757






 








Deferred income taxes






 






176,521






 






 






 






149,020






 








Long-term debt, non-current portion






 






1,509,205






 






 






 






1,281,593






 








Deferred compensation plan liabilities, non-current portion






 






67,447






 






 






 






62,145






 








Operating lease liabilities, non-current portion






 






65,268






 






 






 






71,289






 








Other liabilities






 






22,043






 






 






 






22,637






 








Total liabilities






 






2,488,488






 






 






 






2,395,604






 








Shareholders' equity:






 






 






 








Common stock, no par value; 100,000 shares authorized; 54,549 and 54,805 shares issued and outstanding as of December 31, 2025, and September 30, 2025, respectively






 






628,867






 






 






 






628,118






 








Accumulated other comprehensive loss






 






(19,026






)






 






 






(17,867






)








Retained earnings






 






1,109,971






 






 






 






1,063,784






 








Total shareholders' equity






 






1,719,812






 






 






 






1,674,035






 








Total liabilities and shareholders' equity






$






4,208,300






 






 






$






4,069,639






 









Maximus, Inc.




Consolidated Statements of Cash Flows




(Unaudited)








 



 






For the Three Months Ended








 






December 31, 2025






 






December 31, 2024








 






(in thousands)








Cash flows from operating activities:






 






 






 








Net income






$






93,943






 






 






$






41,196






 








Adjustments to reconcile net income to cash flows from operations:






 






 






 








Depreciation and amortization of property, equipment, and capitalized software






 






12,889






 






 






 






8,455






 








Amortization of intangible assets






 






20,300






 






 






 






23,035






 








Amortization of debt issuance costs and debt discount






 






736






 






 






 






638






 








Deferred income taxes






 






27,864






 






 






 






2,157






 








Stock compensation expense






 






7,019






 






 






 






6,952






 








Divestiture-related (gains)/charges






 






(8,985






)






 






 






38,341






 








Change in assets and liabilities, net of effects of business combinations and divestitures:






 






 






 








Accounts receivable






 






(253,375






)






 






 






(103,454






)








Prepaid expenses and other current assets






 






(91






)






 






 






(2,500






)








Deferred contract costs






 






(3,302






)






 






 






(366






)








Accounts payable and accrued liabilities






 






(33,807






)






 






 






(8,150






)








Accrued compensation and benefits






 






(100,700






)






 






 






(93,036






)








Deferred revenue






 






(10,843






)






 






 






(8,232






)








Income taxes






 






(1,035






)






 






 






12,076






 








Operating lease right-of-use assets and liabilities






 






(399






)






 






 






(2,349






)








Other assets and liabilities






 






5,384






 






 






 






5,241






 








Net cash used in operating activities






 






(244,402






)






 






 






(79,996






)








Cash flows from investing activities:






 






 






 








Purchases of property and equipment and capitalized software






 






(6,263






)






 






 






(22,992






)








Proceeds from divestitures






 






12,895






 






 






 






736






 








Net cash provided by/(used in) investing activities






 






6,632






 






 






 






(22,256






)








Cash flows from financing activities:






 






 






 








Cash dividends paid to Maximus shareholders






 






(16,338






)






 






 






(18,060






)








Purchases of Maximus common stock






 






(40,562






)






 






 






(228,593






)








Tax withholding related to RSU vesting






 






(17,325






)






 






 






(16,441






)








Proceeds from borrowings






 






365,000






 






 






 






435,000






 








Principal payments for debt






 






(132,500






)






 






 






(179,264






)








Other






 






(1,375






)






 






 






(899






)








Net cash provided by/(used in) financing activities






 






156,900






 






 






 






(8,257






)








Effect of exchange rate changes on cash, cash equivalents, and restricted cash






 






(64






)






 






 






(2,384






)








Net change in cash, cash equivalents, and restricted cash






 






(80,934






)






 






 






(112,893






)








Cash, cash equivalents, and restricted cash, beginning of period






 






260,459






 






 






 






235,763






 








Cash, cash equivalents, and restricted cash, end of period






$






179,525






 






 






$






122,870






 









Maximus, Inc.




Consolidated Results of Operations by Segment




(Unaudited)








 








 






For the Three Months Ended December 31, 2025








(dollars in thousands)






U.S. Federal

Services






 






% (1 )






 






U.S.

Services






 






% (1 )






 






Outside the

U.S.






 






% (1 )






 






Total








Revenue






$






786,601






 






 






 






$






415,248






 






 






 






$






143,197






 






 






 






 






$






1,345,046






 








Cost of revenue






 






571,666






 






72.7






%






 






 






330,854






 






79.7






%






 






 






123,856






 






 






86.5






%






 






 






1,026,376






 








Gross profit






 






214,935






 






27.3






%






 






 






84,394






 






20.3






%






 






 






19,341






 






 






13.5






%






 






 






318,670






 








Other segment items (2)






 






85,202






 






10.8






%






 






 






55,108






 






13.3






%






 






 






20,721






 






 






14.5






%






 






 






161,031






 








Segment operating income/(loss)






$






129,733






 






16.5






%






 






$






29,286






 






7.1






%






 






$






(1,380






)






 






(1.0






)%






 






 






157,639






 








Divestiture-related gains (3)






 






 






 






 






 






 






 






 






 






 






 






 






 






8,985






 








Other (4)






 






 






 






 






 






 






 






 






 






 






 






 






 






(114






)








Amortization of intangible assets






 






 






 






 






 






 






 






 






 






 






 






 






 






(20,300






)








Operating income






 






 






 






 






 






 






 






 






 






 






 






 






$






146,210






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






For the Three Months Ended December 31, 2024








(dollars in thousands)






U.S. Federal

Services






 






% (1)






 






U.S.

Services






 






% (1)






 






Outside the

U.S.






 






% (1)






 






Total








Revenue






$






780,655






 






 






1






$






452,250






 






 






 






$






169,770






 






 






 






 






$






1,402,675






 








Cost of revenue






 






607,340






 






77.8






%






 






 






357,246






 






79.0






%






 






 






136,532






 






 






80.4






%






 






 






1,101,118






 








Gross profit






 






173,315






 






22.2






%






 






 






95,004






 






21.0






%






 






 






33,238






 






 






19.6






%






 






 






301,557






 








Other segment items (2)






 






74,215






 






9.5






%






 






 






54,158






 






12.0






%






 






 






25,118






 






 






14.8






%






 






 






153,491






 








Segment operating income






$






99,100






 






12.7






%






 






$






40,846






 






9.0






%






 






$






8,120






 






 






4.8






%






 






 






148,066






 








Divestiture-related charges (3)






 






 






 






 






 






 






 






 






 






 






 






 






 






(38,341






)








Other (4)






 






 






 






 






 






 






 






 






 






 






 






 






 






97






 








Amortization of intangible assets






 






 






 






 






 






 






 






 






 






 






 






 






 






(23,035






)








Operating income






 






 






 






 






 






 






 






 






 






 






 






 






$






86,787






 








(1)


Percentage of respective revenue, as applicable.







(2)


Other segment items are principally selling, general, and administrative expenses allocated to segments.







(3)


During fiscal years 2026 and 2025, we divested businesses from our U.S. Services and Outside the U.S. Segments, respectively.







(4)


Other expenses include credits and costs that are not allocated to a particular segment.









Maximus, Inc.




Consolidated Free Cash Flows - Non-GAAP




(Unaudited)








 



 






For the Three Months Ended








 






December 31, 2025






 






December 31, 2024








 






(in thousands)








Net cash used in operating activities






 






(244,402






)






 






 






(79,996






)








Purchases of property and equipment and capitalized software






 






(6,263






)






 






 






(22,992






)








Free cash flow (Non-GAAP)






$






(250,665






)






 






$






(102,988






)









Maximus, Inc.




Non-GAAP Adjusted Results - Operating Income, Adjusted EBITDA, Net Income, and Diluted Earnings per Share




(Unaudited)








 




For the Three Months Ended








 






December 31, 2025






 






December 31, 2024








 






(dollars in thousands, except per share data)








Operating income






$






146,210






 






 






$






86,787






 








Add back: Amortization of intangible assets






 






20,300






 






 






 






23,035






 








Add back: Divestiture-related (gains)/charges






 






(8,985






)






 






 






38,341






 








Add back: Depreciation and amortization of property, equipment, and capitalized software






 






12,889






 






 






 






8,455






 








Adjusted EBITDA (Non-GAAP)






$






170,414






 






 






$






156,618






 








Adjusted EBITDA margin (Non-GAAP)







12.7






%








11.2






%








 






 






 






 








Net income






$






93,943






 






 






$






41,196






 








Add back: Amortization of intangible assets, net of tax






 






14,961






 






 






 






16,977






 








Add back: Divestiture-related (gains)/charges, net of tax






 






(6,624






)






 






 






38,341






 








Adjusted net income excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP)






$






102,280






 






 






$






96,514






 








 






 






 






 








Diluted earnings per share






$






1.70






 






 






$






0.69






 








Add back: Effect of amortization of intangible assets on diluted earnings per share






 






0.27






 






 






 






0.28






 








Add back: Effect of divestiture-related (gains)/charges on diluted earnings per share






 






(0.12






)






 






 






0.64






 








Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP)






$






1.85






 






 






$






1.61






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205866284/en/
James Francis, VP - IR

IR@maximus.com


Original: Maximus Reports Fiscal Year 2026 First Quarter Results