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FOR IMMEDIATE RELEASECONTACT:James Francis, VP - IR
Jessica Batt, VP - IR
Date: May 8, 2025IR@maximus.com

Maximus Reports Fiscal Year 2025 Second Quarter Results
Further Raise to FY25 Revenue and Earnings Guidance
(Tysons, Va. - May 8, 2025) - Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three and six months ending March 31, 2025.
Highlights for the second quarter of fiscal year 2025 include:
•Revenue increased 1.0% to $1.36 billion, compared to $1.35 billion for the prior year period. Organic growth was 3.0% driven primarily by strong performance in the U.S. Federal Services Segment.
•Diluted earnings per share were $1.69 and adjusted diluted earnings per share were $2.01, compared to $1.31 and $1.57, 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 $5.25 billion and $5.4 billion. Adjusted EBITDA margin is expected to be approximately 11.7% and adjusted diluted earnings per share are expected to range between $6.30 and $6.60 per share for the full fiscal year 2025.
•A quarterly cash dividend of $0.30 per share is payable on May 31, 2025, to shareholders of record on May 15, 2025.
“We are proud of our teams across the business who are focused on mission-critical service delivery of important government programs,” said Bruce Caswell, President and Chief Executive Officer. “As a result, we delivered a robust quarter that enables a second consecutive guidance raise.”

Caswell added, “Our performance reflects the trust our customers place in Maximus as a partner in delivering outcomes that matter. At the Federal level, we believe our focus on technology innovation, including AI to modernize program delivery, aligns with Administration goals. At the state level, renewed flexibility to contract with private sector partners creates needed optionality for our customers. We remain focused on our goal of capitalizing on this unprecedented period across government service delivery."

Second Quarter Results
Revenue for the second quarter of fiscal year 2025 increased 1.0% to $1.36 billion, compared to $1.35 billion for the prior year period. Organic growth was 3.0% due primarily to strong performance in the U.S. Federal Services Segment and partially offset by the expected revenue and earnings normalization of the U.S. Services Segment following the prior year period's over-performance from Medicaid-related activities.
For the second quarter of fiscal year 2025, operating margin was 11.2% and the adjusted EBITDA margin was 13.7%. This compares to margins of 9.5% and 11.7%, respectively, for the prior year period. Diluted earnings per share were $1.69 and adjusted diluted earnings per share were $2.01. This compares to $1.31 and $1.57, respectively, for the prior year period.
U.S. Federal Services Segment
U.S. Federal Services Segment revenue for the second quarter of fiscal year 2025 increased 10.9% to $777.9 million, compared to $701.7 million reported for the prior year period. All growth was organic and originated from multiple sources across the segment, including clinical assessment volume from several different program areas.


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The segment operating margin for the second quarter of fiscal year 2025 was 15.3%, compared to 11.9% reported for the prior year period. Processing of higher clinical assessment volume across several different program areas benefited this quarter’s margin. The full-year fiscal 2025 margin for the U.S. Federal Services Segment is now expected to be between 12.5% and 13%.
U.S. Services Segment
U.S. Services Segment revenue for the second quarter of fiscal year 2025 decreased 9.0% to $442.4 million, compared to $486.1 million reported in the prior year period. Similar to the first quarter 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 second quarter of fiscal year 2025 was 12.2%, compared to 14.0% reported for the prior year. The higher margin in the prior year period was a direct benefit of the excess volumes that were temporary. Results this quarter reflected anticipated, sequential improvement over the first quarter of this year. The full-year fiscal 2025 margin expectation for the U.S. Services Segment is unchanged at approximately 11%.
Outside the U.S. Segment
Outside the U.S. Segment revenue for the second quarter of fiscal year 2025 decreased to $141.5 million, compared to $160.5 million reported in the prior year period. The segment revenue reduction was due to the multiple divestitures of employment services businesses in prior periods, and partially offset by positive organic growth of 4.6%.
The segment operating margin for the second quarter of fiscal year 2025 was 3.4%, compared to 0.4% in the prior year period. Profitability for the segment has improved in recent periods due to the previously divested businesses.
Sales and Pipeline
Year-to-date signed contract awards at March 31, 2025, totaled $2.92 billion, and contracts pending (awarded but unsigned) totaled $451 million. The book-to-bill ratio at March 31, 2025, was 0.8x as calculated on a trailing twelve-month basis.
The sales pipeline at March 31, 2025, totaled $41.2 billion, comprised of approximately $1.97 billion in proposals pending, $3.00 billion in proposals in preparation, and $36.3 billion in opportunities we are tracking. New work opportunities represent approximately 55% of the total sales pipeline.
Balance Sheet and Cash Flows
At March 31, 2025, cash and cash equivalents totaled $108 million, and gross debt was $1.51 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended March 31, 2025, as calculated on a trailing twelve month basis in accordance with our credit agreement, was 1.9x and has trended higher from increased purchases of Maximus common stock. This compares to 1.8x at December 31, 2024 and remains below the target net leverage range of 2x to 3x.
For the second quarter of fiscal year 2025, cash provided by operating activities totaled $42.7 million and free cash flow was $25.5 million. Operating cash flows were impacted primarily due to an increase DSO to 73 days at March 31, 2025, compared with 62 days at December 31, 2024. The primary driver of the increase is the result of a single contract with one of our U.S. state customers attributable to a delay in finalizing an extension. As we anticipate executing the extension during the second half of this fiscal year, our full fiscal year 2025 cash flow guidance is unchanged.
During the second quarter of fiscal year 2025, we purchased approximately 0.9 million shares for $72.8 million. The current Board of Directors authorization announced in December 2024 has $65.8 million available for future purchases.
On April 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 May 31, 2025, to shareholders of record on May 15, 2025.
Raising Fiscal Year 2025 Guidance
Maximus is raising revenue and earnings guidance for fiscal year 2025. Revenue guidance is increasing by $50 million, which is all organic, and now expected to range between $5.25 billion and $5.4 billion.
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The full year adjusted EBITDA margin, which excludes divestiture-related charges, improves by 50 basis points to approximately 11.7%, compared to prior guidance. Adjusted diluted earnings per share, which excludes expense for amortization of intangible assets and divestiture-related charges is expected to increase by $0.40 and is now expected to range between $6.30 and $6.60 per share for fiscal year 2025.
Free cash flow guidance of between $355 million and $385 million is unchanged for fiscal year 2025. Interest expense is now estimated to be $78 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, May 8, 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.
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. Our SEC reports are accessible on maximus.com.



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FY25 Guidance Reconciliation - Non-GAAP
($ in millions except per share items)Low EndHigh End
Operating income$439 $464 
Add: amortization of intangible assets92 92 
Add: depreciation & amortization of property, equipment and capitalized software41 41 
Add: divestiture-related charges39 39 
Adjusted EBITDA$611 $636 
Revenue$5,250 $5,400 
Adjusted EBITDA Margin11.6 %11.8 %
Diluted EPS$4.45 $4.75 
Add: effect of amortization of intangible assets on diluted EPS1.17 1.17 
Add: effect of divestiture-related charges on diluted EPS0.68 0.68 
Adjusted diluted EPS$6.30 $6.60 
Cash flows from operating activities$427 $457 
Remove: purchases of property and equipment and capitalized software costs(72)(72)
Free cash flow$355 $385 

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Maximus, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Three Months EndedFor the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
(in thousands, except per share amounts)
Revenue$1,361,786 $1,348,357 $2,764,461 $2,675,398 
Cost of revenue1,022,965 1,030,768 2,124,083 2,057,755 
Gross profit338,821 317,589 640,378 617,643 
Selling, general, and administrative expenses162,857 168,454 354,592 337,649 
Amortization of intangible assets22,996 21,641 46,031 44,990 
Operating income152,968 127,494 239,755 235,004 
Interest expense21,469 20,366 38,991 41,873 
Other income, net963 822 651 334 
Income before income taxes132,462 107,950 201,415 193,465 
Provision for income taxes35,893 27,440 63,650 48,807 
Net income$96,569 $80,510 $137,765 $144,658 
Earnings per share:
Basic$1.70 $1.31 $2.36 $2.36 
Diluted$1.69 $1.31 $2.35 $2.35 
Weighted average shares outstanding:
Basic56,892 61,371 58,330 61,330 
Diluted57,057 61,622 58,553 61,573 
Dividends declared per share$0.30 $0.30 $0.60 $0.60 







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Maximus, Inc.
Consolidated Balance Sheets
March 31, 2025September 30, 2024
(unaudited)
(in thousands)
Assets:
Cash and cash equivalents$108,059 $183,123 
Accounts receivable, net1,097,404 879,514 
Income taxes receivable3,491 5,282 
Prepaid expenses and other current assets119,313 132,625 
Total current assets1,328,267 1,200,544 
Property and equipment, net34,883 38,977 
Capitalized software, net210,980 187,677 
Operating lease right-of-use assets118,302 133,594 
Goodwill1,780,726 1,782,871 
Intangible assets, net584,229 630,569 
Deferred contract costs, net60,800 59,432 
Deferred compensation plan assets52,523 55,913 
Deferred income taxes10,035 14,801 
Other assets19,027 27,130 
Total assets$4,199,772 $4,131,508 
Liabilities and Shareholders' Equity:
Liabilities:
Accounts payable and accrued liabilities$306,445 $303,321 
Accrued compensation and benefits165,350 237,121 
Deferred revenue, current portion79,447 83,238 
Income taxes payable17,677 26,535 
Long-term debt, current portion47,055 40,139 
Operating lease liabilities, current portion38,788 47,656 
Other current liabilities66,475 69,519 
Total current liabilities721,237 807,529 
Deferred revenue, non-current portion36,431 45,077 
Deferred income taxes166,632 169,118 
Long-term debt, non-current portion1,445,746 1,091,954 
Deferred compensation plan liabilities, non-current portion52,321 57,599 
Operating lease liabilities, non-current portion88,487 97,221 
Other liabilities21,444 20,195 
Total liabilities2,532,298 2,288,693 
Shareholders' equity:
Common stock, no par value; 100,000 shares authorized; 56,349 and 60,352 shares issued and outstanding as of March 31, 2025, and September 30, 2024, respectively
616,315 598,304 
Accumulated other comprehensive loss(18,375)(32,460)
Retained earnings1,069,534 1,276,971 
Total shareholders' equity1,667,474 1,842,815 
Total liabilities and shareholders' equity$4,199,772 $4,131,508 
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Maximus, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months EndedFor the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
(in thousands)
Cash flows from operating activities:
Net income$96,569 $80,510 $137,765 $144,658 
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property, equipment, and capitalized software9,440 8,205 17,895 16,616 
Amortization of intangible assets22,996 21,641 46,031 44,990 
Amortization of debt issuance costs and debt discount672 601 1,310 1,202 
Deferred income taxes(2,747)(6,150)(590)(8,315)
Stock compensation expense12,623 8,697 19,575 18,124 
Divestiture-related charges1,002 — 39,343 1,018 
Change in assets and liabilities, net of effects of business combinations and divestitures:
Accounts receivable(131,428)(57,006)(234,882)(92,385)
Prepaid expenses and other current assets10,443 9,876 7,943 19,932 
Deferred contract costs(1,549)(2,712)(1,915)(3,600)
Accounts payable and accrued liabilities14,093 9,242 5,943 (6,301)
Accrued compensation and benefits45,035 56,836 (48,001)(10,556)
Deferred revenue(3,061)9,828 (11,293)10,705 
Income taxes(18,541)(8,940)(6,465)13,310 
Operating lease right-of-use assets and liabilities(14)703 (2,363)(385)
Other assets and liabilities(12,819)(843)(7,578)3,083 
Net cash provided by/(used in) operating activities42,714 130,488 (37,282)152,096 
Cash flows from investing activities:
Purchases of property and equipment and capitalized software(17,206)(25,300)(40,198)(47,547)
Asset acquisition— (18,006)— (18,006)
Proceeds from divestitures— 1,263 736 3,078 
Other(2,165)— (2,165)— 
Net cash used in investing activities(19,371)(42,043)(41,627)(62,475)
Cash flows from financing activities:
Cash dividends paid to Maximus shareholders(16,901)(18,309)(34,961)(36,608)
Purchases of Maximus common stock(77,850)— (306,443)— 
Tax withholding related to RSU vesting— — (16,441)(13,455)
Payments for contingent consideration— (5,349)— (8,168)
Payments for debt financing costs(1,658)— (1,658)— 
Proceeds from borrowings524,000 195,000 959,000 423,409 
Principal payments for debt(418,375)(298,129)(597,639)(464,787)
Other(282)3,918 (1,181)5,122 
Net cash provided by/(used in) financing activities8,934 (122,869)677 (94,487)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash791 (731)(1,593)1,115 
Net change in cash, cash equivalents, and restricted cash33,068 (35,155)(79,825)(3,751)
Cash, cash equivalents, and restricted cash, beginning of period122,870 153,495 235,763 122,091 
Cash, cash equivalents, and restricted cash, end of period$155,938 $118,340 $155,938 $118,340 
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Maximus, Inc.
Consolidated Results of Operations by Segment
(Unaudited)
 For the Three Months EndedFor the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
Amount% (1)Amount% (1)Amount% (1)Amount% (1)
(dollars in thousands)
Revenue:
U.S. Federal Services$777,927 $701,702 $1,558,582 $1,378,780 
U.S. Services442,350 486,115 894,600 975,960 
Outside the U.S.141,509 160,540 311,279 320,658 
Revenue$1,361,786 $1,348,357 $2,764,461 $2,675,398 
Gross profit:
U.S. Federal Services$202,058 26.0 %$163,337 23.3 %$375,373 24.1 %$319,999 23.2 %
U.S. Services111,770 25.3 %130,122 26.8 %206,774 23.1 %248,485 25.5 %
Outside the U.S.24,993 17.7 %24,130 15.0 %58,231 18.7 %49,159 15.3 %
Gross profit$338,821 24.9 %$317,589 23.6 %$640,378 23.2 %$617,643 23.1 %
Selling, general, and administrative expenses:
U.S. Federal Services$83,076 10.7 %$79,867 11.4 %$157,291 10.1 %$167,722 12.2 %
U.S. Services57,963 13.1 %62,201 12.8 %112,121 12.5 %114,501 11.7 %
Outside the U.S.20,197 14.3 %23,460 14.6 %45,315 14.6 %48,601 15.2 %
Divestiture-related charges (2)1,002 NM— NM39,343 NM1,018 NM
Other (3)619 NM2,926 NM522 NM5,807 NM
Selling, general, and administrative expenses$162,857 12.0 %$168,454 12.5 %$354,592 12.8 %$337,649 12.6 %
Operating income:
U.S. Federal Services$118,982 15.3 %$83,470 11.9 %$218,082 14.0 %$152,277 11.0 %
U.S. Services53,807 12.2 %67,921 14.0 %94,653 10.6 %133,984 13.7 %
Outside the U.S.4,796 3.4 %670 0.4 %12,916 4.1 %558 0.2 %
Amortization of intangible assets(22,996)NM(21,641)NM(46,031)NM(44,990)NM
Divestiture-related charges (2)(1,002)NM— NM(39,343)NM(1,018)NM
Other (3)(619)NM(2,926)NM(522)NM(5,807)NM
Operating income$152,968 11.2 %$127,494 9.5 %$239,755 8.7 %$235,004 8.8 %
        
(1)Percentage of respective segment revenue. 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 Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
(in thousands)
Net cash provided by/(used in) operating activities42,714 130,488 (37,282)152,096 
Purchases of property and equipment and capitalized software(17,206)(25,300)(40,198)(47,547)
Free cash flow (Non-GAAP)$25,508 $105,188 $(77,480)$104,549 

Maximus, Inc.
Non-GAAP Adjusted Results - Operating Income, Adjusted EBITDA, Net Income, and Diluted Earnings per Share
(Unaudited)
For the Three Months EndedFor the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
(dollars in thousands, except per share data)
Operating income$152,968 $127,494 $239,755 $235,004 
Add back: Amortization of intangible assets22,996 21,641 46,031 44,990 
Add back: Divestiture-related charges1,002 — 39,343 1,018 
Add back: Depreciation and amortization of property, equipment, and capitalized software 9,440 8,205 17,895 16,616 
Adjusted EBITDA (Non-GAAP)$186,406 $157,340 $343,024 $297,628 
Adjusted EBITDA margin (Non-GAAP)13.7 %11.7 %12.4 %11.1 %
Net income$96,569 $80,510 $137,765 $144,658 
Add back: Amortization of intangible assets, net of tax16,948 15,949 33,925 33,158 
Add back: Divestiture-related charges1,002 — 39,343 1,018 
Adjusted net income excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)$114,519 $96,459 $211,033 $178,834 
Diluted earnings per share$1.69 $1.31 $2.35 $2.35 
Add back: Effect of amortization of intangible assets on diluted earnings per share0.30 0.26 0.58 0.53 
Add back: Effect of divestiture-related charges on diluted earnings per share0.02 — 0.67 0.02 
Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related charges (Non-GAAP)$2.01 $1.57 $3.60 $2.90 
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