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FOR IMMEDIATE RELEASECONTACT:James Francis, VP - IR
Jessica Batt, VP - IR
Date: August 7, 2025IR@maximus.com

Maximus Reports Fiscal Year 2025 Third Quarter Results
Third Consecutive Raise to FY25 Guidance
(Tysons, Va. - August 7, 2025) - Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three and nine months ending June 30, 2025.
Highlights for the third quarter of fiscal year 2025 include:
•Revenue increased 2.5% to $1.35 billion, compared to $1.31 billion for the prior year period. Organic growth was 4.3% driven primarily by strong performance in the U.S. Federal Services Segment.
•Diluted earnings per share were $1.86 and adjusted diluted earnings per share were $2.16, compared to $1.46 and $1.74, respectively, for the prior year period.
•The company is raising revenue and earnings guidance for fiscal year 2025. Full-year revenue is expected to range between $5.375 billion and $5.475 billion. Adjusted EBITDA margin is expected to be approximately 13% and adjusted diluted earnings per share are expected to range between $7.35 and $7.55 per share for the full fiscal year 2025.
•A quarterly cash dividend of $0.30 per share is payable on August 31, 2025, to shareholders of record on August 15, 2025.
“Our third quarter results reflect once again the resilience of our business model that is underpinned by consistent delivery at scale of critical government services,” said Bruce Caswell, President and Chief Executive Officer. “We are grateful to play a central role in supporting our customers' missions by delivering essential services efficiently and accountably."

Caswell added, “Over the 50 years that Maximus has served as a trusted and impartial delivery partner for government, we've consistently demonstrated adaptability as legislation and regulatory changes lead to new program imperatives and advanced technologies like AI reshape citizen services."

Third Quarter Results
Revenue for the third quarter of fiscal year 2025 increased 2.5% to $1.35 billion, compared to $1.31 billion for the prior year period. Organic growth was 4.3% primarily due to the U.S. Federal Services Segment and, to a lesser degree, contributions from the Outside the U.S. Segment. The U.S. Services Segment delivered expected results following the prior year period's over-performance from Medicaid-related activities.
For the third quarter of fiscal year 2025, operating margin was 12.3% and the adjusted EBITDA margin was 14.7%. This compares to margins of 10.8% and 13.1%, respectively, for the prior year period. Diluted earnings per share were $1.86 and adjusted diluted earnings per share were $2.16. This compares to $1.46 and $1.74, respectively, for the prior year period.
U.S. Federal Services Segment
U.S. Federal Services Segment revenue for the third quarter of fiscal year 2025 increased 11.4% to $761.2 million, compared to $683.3 million reported for the prior year period. All growth was organic and driven primarily by a trend across this fiscal year of elevated volumes on programs in the clinical portfolio.


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The segment operating margin for the third quarter of fiscal year 2025 was 18.1%, compared to 15.5% reported for the prior year period. Processing of elevated volume on behalf of our customers across several different program areas provided additional benefit to this quarter’s margin. The full-year fiscal 2025 operating margin for the U.S. Federal Services Segment is now expected to be approximately 15%.
U.S. Services Segment
U.S. Services Segment revenue for the third quarter of fiscal year 2025 decreased 6.9% to $439.8 million, compared to $472.3 million reported in the prior year period. Similar to the first two quarters of this year, the decrease resulted from the prior year period containing excess volumes from Medicaid-related activities, including the unwinding exercise that drove extra redeterminations.
The segment operating margin for the third quarter of fiscal year 2025 was 10.2%, compared to 13.0% reported for the prior year period. The higher margin in the prior year period was a direct benefit of the excess volumes that were temporary. The full-year fiscal 2025 operating margin for the U.S. Services Segment is now expected to be approximately 10.5%.
Outside the U.S. Segment
Outside the U.S. Segment revenue for the third quarter of fiscal year 2025 decreased to $147.4 million, compared to $159.3 million reported in the prior year period. The revenue reduction was due to the divestitures of multiple employment services businesses in prior periods, and partially offset by positive organic growth of 7.3%.
The segment operating margin for the third quarter of fiscal year 2025 was 4.0%, compared to an operating loss of 0.9% in the prior year period. A trend of improved profitability for the segment across this fiscal year continues following the divestitures of multiple employment services businesses.
Sales and Pipeline
Year-to-date signed contract awards at June 30, 2025, totaled $3.37 billion, and contracts pending (awarded but unsigned) totaled $1.44 billion. The book-to-bill ratio at June 30, 2025, was 0.8x as calculated on a trailing twelve-month basis.
The sales pipeline at June 30, 2025, totaled $44.7 billion, comprised of approximately $3.05 billion in proposals pending, $1.20 billion in proposals in preparation, and $40.4 billion in opportunities we are tracking. New work opportunities represent approximately 63% of the total sales pipeline.
Balance Sheet and Cash Flows
At June 30, 2025, unrestricted cash and cash equivalents totaled $59.8 million, and gross debt was $1.67 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended June 30, 2025, as calculated on a trailing twelve-month basis in accordance with our credit agreement, was 2.1x compared to 1.9x at March 31, 2025. The current debt ratio stands at the low end of our 2x to 3x target net leverage range and recent quarters of increased borrowings are due to a combination of Maximus common stock purchases and temporary working capital needs.
For the third quarter of fiscal year 2025, cash used in operating activities totaled $182.7 million and free cash flow was an outflow of $198.2 million. Operating cash flows were impacted primarily by payment delays on two large programs as contemplated in prior guidance in which Days Sales Outstanding (DSO) were estimated to peak in this quarter-ended June 30, 2025. DSO were 96 days at June 30, 2025, compared with 73 days at March 31, 2025. Subsequent to June 30, 2025, collections have improved substantially and are anticipated to continue through the end of this fiscal year. As a result, fiscal year 2025 guidance for free cash flow is increasing.
The current Board of Directors authorization announced in December 2024 has $65.8 million available for future purchases of Maximus common stock.
On July 5, 2025, our Board of Directors declared a quarterly cash dividend of $0.30 for each share of our common stock outstanding. The dividend is payable on August 31, 2025, to shareholders of record on August 15, 2025.
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Raising Fiscal Year 2025 Guidance
Maximus is raising revenue, earnings, and free cash flow guidance for fiscal year 2025. Revenue guidance is increasing by $100 million at the midpoint and is now expected to range between $5.375 billion and $5.475 billion.
The full year adjusted EBITDA margin guidance, which excludes divestiture-related charges, improves by 130 basis points to approximately 13%, compared to prior guidance. Guidance for adjusted diluted earnings per share, which excludes expense for amortization of intangible assets and divestiture-related charges, increases by $1.00 at the midpoint and is now expected to range between $7.35 and $7.55 per share for fiscal year 2025.
Free cash flow guidance increases by $10 million at the midpoint and is now expected to range between $370 million and $390 million for fiscal year 2025. Interest expense is now estimated to be $81 million for fiscal year 2025. The full year tax rate is still expected to range between 28% and 29% and the weighted average shares outstanding forecast of approximately 58 million shares is unchanged for fiscal year 2025.
Conference Call and Webcast Information
Maximus will host a conference call this morning, August 7, 2025, 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, environmental, 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 delivers innovative business process management, impactful consulting services, 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, operating income and EPS adjusted for amortization of intangible assets and divestiture-related charges, adjusted EBITDA, 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.
Statements that are not historical facts, including statements about our confidence and strategies, and our guidance and expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand, or acceptance of our products are forward-looking statements that involve risks and uncertainties.
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These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. The guidance is only effective as of the date given. We undertake no obligation to update the guidance herein as circumstances evolve. A Special Note Regarding Forward-Looking Statements is included within our forthcoming Form 10-Q and a summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the Securities and Exchange Commission (SEC) on November 21, 2024, as supplemented by the risk factor set forth in Part II, Item 1A "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC on May 8, 2025. Our SEC reports are accessible on maximus.com.



FY25 Guidance Reconciliation - Non-GAAP
($ in millions except per share items)Low EndHigh End
Operating income$527 $543 
Add: amortization of intangible assets92 92 
Add: depreciation & amortization of property, equipment and capitalized software41 41 
Add: divestiture-related charges39 39 
Adjusted EBITDA$699 $715 
Revenue$5,375 $5,475 
Adjusted EBITDA Margin13.0 %13.1 %
Diluted EPS$5.51 $5.71 
Add: effect of amortization of intangible assets on diluted EPS1.17 1.17 
Add: effect of divestiture-related charges on diluted EPS0.67 0.67 
Adjusted diluted EPS$7.35 $7.55 
Cash flows from operating activities$440 $460 
Remove: purchases of property and equipment and capitalized software costs(70)(70)
Free cash flow$370 $390 

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Maximus, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
(in thousands, except per share amounts)
Revenue$1,348,400 $1,314,929 $4,112,861 $3,990,327 
Cost of revenue988,887 982,615 3,112,970 3,040,370 
Gross profit359,513 332,314 999,891 949,957 
Selling, general, and administrative expenses170,831 167,033 525,423 504,682 
Amortization of intangible assets23,010 23,542 69,041 68,532 
Operating income165,672 141,739 405,427 376,743 
Interest expense22,657 20,555 61,648 62,428 
Other expense/(income), net48 809 (603)475 
Income before income taxes142,967 120,375 344,382 313,840 
Provision for income taxes36,986 30,623 100,636 79,430 
Net income$105,981 $89,752 $243,746 $234,410 
Earnings per share:
Basic$1.87 $1.47 $4.22 $3.83 
Diluted$1.86 $1.46 $4.20 $3.81 
Weighted average shares outstanding:
Basic56,683 61,079 57,776 61,233 
Diluted56,984 61,381 58,100 61,495 
Dividends declared per share$0.30 $0.30 $0.90 $0.90 







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Maximus, Inc.
Consolidated Balance Sheets
June 30, 2025September 30, 2024
(unaudited)
(in thousands)
Assets:
Cash and cash equivalents$59,777 $183,123 
Accounts receivable, net1,422,350 879,514 
Income taxes receivable5,661 5,282 
Prepaid expenses and other current assets117,243 132,625 
Total current assets1,605,031 1,200,544 
Property and equipment, net34,536 38,977 
Capitalized software, net217,433 187,677 
Operating lease right-of-use assets115,437 133,594 
Goodwill1,782,836 1,782,871 
Intangible assets, net561,566 630,569 
Deferred contract costs, net60,392 59,432 
Deferred compensation plan assets58,714 55,913 
Deferred income taxes11,059 14,801 
Other assets15,289 27,130 
Total assets$4,462,293 $4,131,508 
Liabilities and Shareholders' Equity:
Liabilities:
Accounts payable and accrued liabilities$281,994 $303,321 
Accrued compensation and benefits164,194 237,121 
Deferred revenue, current portion70,197 83,238 
Income taxes payable31,310 26,535 
Long-term debt, current portion48,263 40,139 
Operating lease liabilities, current portion39,882 47,656 
Other current liabilities70,311 69,519 
Total current liabilities706,151 807,529 
Deferred revenue, non-current portion48,990 45,077 
Deferred income taxes161,426 169,118 
Long-term debt, non-current portion1,608,982 1,091,954 
Deferred compensation plan liabilities, non-current portion58,736 57,599 
Operating lease liabilities, non-current portion83,390 97,221 
Other liabilities21,582 20,195 
Total liabilities2,689,257 2,288,693 
Shareholders' equity:
Common stock, no par value; 100,000 shares authorized; 56,350 and 60,352 shares issued and outstanding as of June 30, 2025, and September 30, 2024, respectively
627,496 598,304 
Accumulated other comprehensive loss(12,629)(32,460)
Retained earnings1,158,169 1,276,971 
Total shareholders' equity1,773,036 1,842,815 
Total liabilities and shareholders' equity$4,462,293 $4,131,508 
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Maximus, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
(in thousands)
Cash flows from operating activities:
Net income$105,981 $89,752 $243,746 $234,410 
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property, equipment, and capitalized software9,607 7,530 27,502 24,146 
Amortization of intangible assets23,010 23,542 69,041 68,532 
Amortization of debt issuance costs and debt discount736 1,697 2,046 2,899 
Deferred income taxes(5,239)4,545 (5,829)(3,770)
Stock compensation expense10,749 9,481 30,324 27,605 
Divestiture-related charges— — 39,343 1,018 
Change in assets and liabilities, net of effects of business combinations and divestitures:
Accounts receivable(318,415)65,857 (553,297)(26,528)
Prepaid expenses and other current assets1,398 (616)9,341 19,316 
Deferred contract costs1,059 (4,777)(856)(8,377)
Accounts payable and accrued liabilities(27,751)4,642 (21,808)(1,659)
Accrued compensation and benefits(2,368)(10,487)(50,369)(21,043)
Deferred revenue2,618 7,374 (8,675)18,079 
Income taxes12,090 (2,734)5,625 10,576 
Operating lease right-of-use assets and liabilities(1,145)(1,746)(3,508)(2,131)
Other assets and liabilities4,952 5,268 (2,626)8,351 
Net cash (used in)/provided by operating activities(182,718)199,328 (220,000)351,424 
Cash flows from investing activities:
Purchases of property and equipment and capitalized software(15,488)(34,690)(55,686)(82,237)
Asset acquisition— — — (18,006)
Proceeds from divestitures— — 736 3,078 
Other— — (2,165)— 
Net cash used in investing activities(15,488)(34,690)(57,115)(97,165)
Cash flows from financing activities:
Cash dividends paid to Maximus shareholders(16,904)(18,239)(51,865)(54,847)
Purchases of Maximus common stock— (47,275)(306,443)(47,275)
Tax withholding related to RSU vesting(10)— (16,451)(13,455)
Payments for contingent consideration— (2,809)— (10,977)
Payments for debt financing costs— (9,724)(1,658)(9,724)
Proceeds from borrowings376,208 426,757 1,335,208 850,166 
Principal payments for debt(212,535)(488,038)(810,174)(952,825)
Other(643)3,996 (1,824)9,118 
Net cash provided by/(used in) financing activities146,116 (135,332)146,793 (229,819)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash1,528 155 (65)1,270 
Net change in cash, cash equivalents, and restricted cash(50,562)29,461 (130,387)25,710 
Cash, cash equivalents, and restricted cash, beginning of period155,938 118,340 235,763 122,091 
Cash, cash equivalents, and restricted cash, end of period$105,376 $147,801 $105,376 $147,801 
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Maximus, Inc.
Consolidated Results of Operations by Segment
(Unaudited)
 For the Three Months EndedFor the Nine Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Amount% (1)Amount% (1)Amount% (1)Amount% (1)
(dollars in thousands)
Revenue:
U.S. Federal Services$761,174 $683,347 $2,319,756 $2,062,127 
U.S. Services439,818 472,298 1,334,418 1,448,258 
Outside the U.S.147,408 159,284 458,687 479,942 
Revenue$1,348,400 $1,314,929 $4,112,861 $3,990,327 
Gross profit:
U.S. Federal Services$226,134 29.7 %$186,075 27.2 %$601,507 25.9 %$506,074 24.5 %
U.S. Services105,932 24.1 %121,012 25.6 %312,706 23.4 %369,497 25.5 %
Outside the U.S.27,447 18.6 %25,227 15.8 %85,678 18.7 %74,386 15.5 %
Gross profit$359,513 26.7 %$332,314 25.3 %$999,891 24.3 %$949,957 23.8 %
Selling, general, and administrative expenses:
U.S. Federal Services$88,272 11.6 %$79,949 11.7 %$245,563 10.6 %$247,671 12.0 %
U.S. Services60,975 13.9 %59,531 12.6 %173,096 13.0 %174,032 12.0 %
Outside the U.S.21,507 14.6 %26,647 16.7 %66,822 14.6 %75,249 15.7 %
Divestiture-related charges (2)— NM— NM39,343 NM1,018 NM
Other (3)77 NM906 NM599 NM6,712 NM
Selling, general, and administrative expenses$170,831 12.7 %$167,033 12.7 %$525,423 12.8 %$504,682 12.6 %
Operating income:
U.S. Federal Services$137,862 18.1 %$106,126 15.5 %$355,944 15.3 %$258,403 12.5 %
U.S. Services44,957 10.2 %61,481 13.0 %139,610 10.5 %195,465 13.5 %
Outside the U.S.5,940 4.0 %(1,420)(0.9)%18,856 4.1 %(863)(0.2)%
Amortization of intangible assets(23,010)NM(23,542)NM(69,041)NM(68,532)NM
Divestiture-related charges (2)— NM— NM(39,343)NM(1,018)NM
Other (3)(77)NM(906)NM(599)NM(6,712)NM
Operating income$165,672 12.3 %$141,739 10.8 %$405,427 9.9 %$376,743 9.4 %
        
(1)Percentage of respective revenue, as applicable. Percentages not considered meaningful are marked "NM."
(2)During fiscal years 2025 and 2024, we have divested businesses from our Outside the U.S. Segment.
(3)Other expenses includes credits and costs that are not allocated to a particular segment.
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Maximus, Inc.
Consolidated Free Cash Flows - Non-GAAP
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
(in thousands)
Net cash (used in)/provided by operating activities(182,718)199,328 (220,000)351,424 
Purchases of property and equipment and capitalized software(15,488)(34,690)(55,686)(82,237)
Free cash flow (Non-GAAP)$(198,206)$164,638 $(275,686)$269,187 

Maximus, Inc.
Non-GAAP Adjusted Results - Operating Income, Adjusted EBITDA, Net Income, and Diluted Earnings per Share
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
(dollars in thousands, except per share data)
Operating income$165,672 $141,739 $405,427 $376,743 
Add back: Amortization of intangible assets23,010 23,542 69,041 68,532 
Add back: Divestiture-related charges— — 39,343 1,018 
Add back: Depreciation and amortization of property, equipment, and capitalized software 9,607 7,530 27,502 24,146 
Adjusted EBITDA (Non-GAAP)$198,289 $172,811 $541,313 $470,439 
Adjusted EBITDA margin (Non-GAAP)14.7 %13.1 %13.2 %11.8 %
Net income$105,981 $89,752 $243,746 $234,410 
Add back: Amortization of intangible assets, net of tax16,958 17,350 50,883 50,508 
Add back: Divestiture-related charges— — 39,343 1,018 
Adjusted net income excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)$122,939 $107,102 $333,972 $285,936 
Diluted earnings per share$1.86 $1.46 $4.20 $3.81 
Add back: Effect of amortization of intangible assets on diluted earnings per share0.30 0.28 0.88 0.82 
Add back: Effect of divestiture-related charges on diluted earnings per share— — 0.67 0.02 
Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)$2.16 $1.74 $5.75 $4.65 
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