Quarterly report pursuant to Section 13 or 15(d)

Business Segments

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Business Segments
 6 Months Ended
Mar. 31, 2024
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.
U.S. Federal Services
Our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. This segment also includes appeals and assessments services, system and application development, Information Technology ("IT") modernization, and maintenance services. Certain state-based assessments and appeals work that is part of the segment's heritage continues to be managed within this segment. Under Technology Consulting Services ("TCS"), 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. The segment continues to expand its clinical solutions through Veteran's Evaluation Services ("VES"), a Maximus company, that manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs ("VA").
U.S. Services
Our U.S. Services Segment provides a variety of business process services ("BPS"), such as program administration, assessments, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the Affordable Care Act ("ACA"), Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Previously, this segment suffered from reduced operating leverage resulting from the pause in Medicaid redeterminations during the COVID-19 pandemic, which resumed in fiscal year 2023.
Outside the U.S.
Our Outside the U.S. Segment provides BPS for international governments, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service and the recently awarded replacement contract to start in 2024, Functional Assessment Services, and Restart; and Australia, including Workforce Australia, and other employment support and job seeker services worldwide.
Table 3: Results of Operation by Business Segment
  For the Three Months Ended For the Six Months Ended
March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023
Amount % (1) Amount % (1) Amount % (1) Amount % (1)
(dollars in thousands)
Revenue:        
U.S. Federal Services $ 701,702  $ 584,075  $ 1,378,780  $ 1,202,242 
U.S. Services 486,115  449,703  975,960  889,181 
Outside the U.S. 160,540  173,074  320,658  364,675 
Revenue $ 1,348,357  $ 1,206,852  $ 2,675,398  $ 2,456,098 
Gross profit:
U.S. Federal Services $ 163,337  23.3  % $ 122,874  21.0  % $ 319,999  23.2  % $ 245,568  20.4  %
U.S. Services 130,122  26.8  % 86,016  19.1  % 248,485  25.5  % 169,614  19.1  %
Outside the U.S. 24,130  15.0  % 19,713  11.4  % 49,159  15.3  % 58,168  16.0  %
Gross profit $ 317,589  23.6  % $ 228,603  18.9  % $ 617,643  23.1  % $ 473,350  19.3  %
Selling, general, and administrative expenses:  
U.S. Federal Services $ 79,867  11.4  % $ 75,050  12.8  % $ 167,722  12.2  % $ 146,699  12.2  %
U.S. Services 62,201  12.8  % 43,415  9.7  % 114,501  11.7  % 89,257  10.0  %
Outside the U.S. 23,460  14.6  % 23,425  13.5  % 48,601  15.2  % 51,814  14.2  %
Divestiture-related charges (2) —  NM 883  NM 1,018  NM 883  NM
Other (3) 2,926  NM (325) NM 5,807  NM 247  NM
Selling, general, and administrative expenses $ 168,454  12.5  % $ 142,448  11.8  % $ 337,649  12.6  % $ 288,900  11.8  %
Operating income/(loss):  
U.S. Federal Services $ 83,470  11.9  % $ 47,824  8.2  % $ 152,277  11.0  % $ 98,869  8.2  %
U.S. Services 67,921  14.0  % 42,601  9.5  % 133,984  13.7  % 80,357  9.0  %
Outside the U.S. 670  0.4  % (3,712) (2.1) % 558  0.2  % 6,354  1.7  %
Amortization of intangible assets (21,641) NM (23,650) NM (44,990) NM (47,168) NM
Divestiture-related charges (2) —  NM (883) NM (1,018) NM (883) NM
Other (3) (2,926) NM 325  NM (5,807) NM (247) NM
Operating income $ 127,494  9.5  % $ 62,505  5.2  % $ 235,004  8.8  % $ 137,282  5.6  %
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(2)We have sold businesses in both fiscal years 2023 and 2024. Refer to "Note 7. Acquisitions and Divestitures" for more details.
(3)Other expenses includes credits and costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed.