MAXIMUS, INC. SEC 10-Q Report

MAXIMUS, INC., a leading provider of government services worldwide, has released its latest Form 10-Q report, showcasing robust financial and operational performance. The report highlights the company's continued growth and efficiency improvements across various segments, despite facing some operational challenges. Below is a detailed summary of the key financial and business highlights from the report.

Financial Highlights

• Revenue: $1,348.4 million, reflecting a 2.5% increase compared to the same period last year, driven by growth in clinical programs and broad contract portfolio expansion.
• Gross Profit: $359.5 million, representing a gross profit percentage of 26.7%, up from 25.3% in the prior year, indicating improved efficiency and performance.
• Operating Income: $165.7 million, with an operating margin of 12.3%, up from 10.8% in the previous year, highlighting enhanced operational efficiency.
• Net Income: $106.0 million, showing a significant increase from $89.8 million in the prior year, supported by improved gross profit and operating income.
• Diluted EPS: $1.86, compared to $1.46 in the previous year, reflecting the company's strong financial performance and effective cost management.

Business Highlights

• Revenue Segments: The U.S. Federal Services segment experienced revenue growth driven by clinical programs, including medical assessments and broad growth across its portfolio of contracts. The U.S. Services segment saw a decrease in revenue due to the normalization of Medicaid redetermination activities. The Outside the U.S. segment's revenue was impacted by the divestiture of operations in Australia and Korea, but organic growth was achieved in the United Kingdom and other volume-based arrangements.
• Geographical Performance: The U.S. Federal Services segment benefited from increased volumes and performance improvements in medical assessments, driven by the Honoring our PACT Act. The Outside the U.S. segment saw profitability improvements due to divestitures and organic growth in the United Kingdom.
• Future Outlook: The U.S. Federal Services segment anticipates a full-year operating margin of approximately 15% for fiscal year 2025. The U.S. Services segment expects a full-year operating margin of approximately 10.5%. The Outside the U.S. segment anticipates a full-year operating margin ranging between 3% and 5% for fiscal year 2025.
• Operational Challenges: The company experienced short-term delays in cash flow due to administrative delays in billing and contract approval with customers in the U.S. Federal and U.S. Services segments, leading to increased receivables balances and additional borrowings under the revolving credit facility.
• Operational Improvements: Significant progress has been made in resolving cash collection delays, with expectations to return to normal receivables levels by the end of the fourth quarter of the fiscal year.
• Strategic Divestitures: The company divested its businesses in Australia and Korea, which reduced revenue and costs but improved margins in the Outside the U.S. segment.
• Customer Segments: The U.S. Federal Services segment's growth was supported by medical assessment volumes and FEMA support, while the U.S. Services segment's revenue was affected by the resumption of Medicaid redetermination activities.

SEC Filing: MAXIMUS, INC. [ MMS ] - 10-Q - Aug. 07, 2025