Quarterly report [Sections 13 or 15(d)]

Business Segments

v3.25.2
Business Segments
 9 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results.
U.S. Federal Services
Our U.S. Federal Services Segment delivers solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. The segment also includes system and application development, Information Technology (IT) modernization, and maintenance services. Clinical services comprises appeals and assessments services, which includes managing the evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs (VA) and certain state-based assessments and appeals work that is part of the segment's heritage. Under Maximus Federal Technology Solutions (MFTS), the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies.
U.S. Services
Our U.S. Services Segment provides a variety of services, such as program operations, clinical services, employment services and technology solutions, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the programs under the Affordable Care Act (ACA), Medicaid, the Children's Health Insurance Program (CHIP), Temporary Assistance to Needy Families (TANF), and child support programs. Program operations include comprehensive program administration services for government clients. The services we provide vary from program to program and include: centralized multilingual customer contact centers and multichannel, digital self-service options to better serve citizens' needs; application assistance to beneficiaries to help them access benefits; person centered clinical assessment services; provider enrollment systems and related business process services; employment services including eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and selected educational and training services. Our consulting services include technical and financial consulting services, including Independent Verification and Validation (IV&V) services, program modernization consulting; and project management.
Outside the U.S.
Our Outside the U.S. Segment provides business process services (BPS) and technology solutions for international governments. These services include health and disability assessments, program administration for employment services, wellbeing solutions and other job seeker-related services, digitally-enabled customer services, and advanced technologies for modernization. We support programs and deliver services in various locations, including the United Kingdom, where we serve the Functional Assessment Services (FAS) contract, which replaced the Health Assessment Advisory Service (HAAS) contract, and the Restart employment program. In recent years, we have divested components of this segment including, in the first quarter of fiscal year 2025, our businesses in Australia and Korea.
Table 3.1: Results of Operations by Business Segment
  For the Three Months Ended For the Nine Months Ended
June 30, 2025 June 30, 2024 June 30, 2025 June 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. Services 439,818  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. Services 105,932  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. Services 60,975  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 —  NM 39,343  NM 1,018  NM
Other (3) 77  NM 906  NM 599  NM 6,712  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. Services 44,957  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. See "Note 6. Divestitures" for additional information.
(3)Other expenses include credits and costs that are not allocated to a particular segment.