Maximus Hits 50-Year Mark, Fuels Growth with Federal & Health Tech

TL;DR

**MMS is a solid long-term play, leveraging its deep government ties and AI investments to secure essential public service contracts.**

AI Summary

MAXIMUS, INC. (MMS) reported a robust fiscal year 2025, with its U.S. Federal Services segment generating 56% of total revenue and the U.S. Services segment contributing 32%. The company, celebrating its 50th anniversary, continues to be a leading provider of tech-enabled services to government agencies, serving over 100 million citizens across the U.S., U.K., Canada, and the Middle East. Strategic priorities include tech-enabled customer service, focusing on the future of health with expanded clinical capabilities, and advancing technological modernization through AI and machine learning. Key services include operating large health insurance eligibility programs, clinical assessments, and advanced technology solutions like cybersecurity and cloud infrastructure. The company's market value of outstanding voting stock held by non-affiliates was $3,801,184,315 as of March 31, 2025, with 54,461,507 shares of common stock outstanding as of November 12, 2025. Risks include the ability to successfully compete for contracts, manage growth, and the impact of government budgetary changes.

Why It Matters

Maximus's continued dominance in government tech-enabled services, particularly in health and federal programs, signifies stability for investors in a sector with increasing demand and constrained government budgets. Its focus on AI and machine learning in clinical services and technological modernization positions it competitively against rivals like General Dynamics IT and Deloitte. For employees, the emphasis on being an 'employer of choice' and investing in development suggests a stable and growth-oriented work environment. Customers, primarily government agencies and citizens, benefit from improved efficiency and access to critical public services, impacting millions of lives through programs like Medicare and Medicaid.

Risk Assessment

Risk Level: medium — The company faces a medium risk level due to its heavy reliance on government contracts, with a small number of U.S. federal agencies providing the majority of the U.S. Federal Services segment's revenue (56% of total revenue in fiscal year 2025). This concentration creates vulnerability to government budgetary changes, contract recompetes, or terminations on short notice, as highlighted in the 'Risk Factors' section.

Analyst Insight

Investors should consider MAXIMUS (MMS) for long-term portfolio stability, given its entrenched position in critical government services and strategic investments in AI and clinical capabilities. Monitor government spending trends and contract renewal cycles, especially for its large federal and state health programs, as these are key revenue drivers.

Financial Highlights

debt To Equity

X.X

revenue

$3.80B

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$X

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+X%

Revenue Breakdown

Key Numbers

• $3.80B — Market Value of Non-Affiliate Voting Stock (As of March 31, 2025, indicating significant public float.)
• 54.46M — Shares of Common Stock Outstanding (As of November 12, 2025, reflecting the company's equity structure.)
• 56% — U.S. Federal Services Revenue Contribution (Percentage of total revenue generated by this segment in fiscal year 2025, highlighting its importance.)
• 32% — U.S. Services Revenue Contribution (Percentage of total revenue generated by this segment in fiscal year 2025, showing its significant role.)
• 1975 — Year of Establishment (Maximus's founding year, marking its 50th anniversary in 2025.)
• 100M+ — Citizens Served (Number of American, U.K., Canadian, and Middle Eastern citizens served by Maximus.)

Key Players & Entities

• MAXIMUS, INC. (company) — Registrant and leading provider of tech-enabled services
• U.S. Federal Services (company) — Segment generating 56% of total revenue in fiscal year 2025
• U.S. Services (company) — Segment generating 32% of total revenue in fiscal year 2025
• Centers for Medicare and Medicaid Service (CMS) (regulator) — Customer for Contact Center Operations (CCO) and 1-800-MEDICARE
• U.S. Department of Veteran Affairs (VA) (regulator) — Customer for medical disability examinations (MDE) contracts
• General Dynamics Information Technology (company) — Primary competitor in U.S. Federal Services Segment
• Deloitte (company) — Primary competitor in U.S. Federal Services Segment
• New York Stock Exchange (regulator) — Exchange where MMS Common Stock is registered
• Virginia (regulator) — State of incorporation for Maximus
• Bloomberg (company) — Publisher of this analysis

FAQ

Risk Factors

• Competition for Government Contracts [high — market]: Maximus operates in a highly competitive environment, relying heavily on its ability to win and retain contracts with government agencies. Success is contingent on demonstrating value, technological capability, and cost-effectiveness against numerous competitors.
• Government Budgetary Changes [high — financial]: The company's revenue is significantly tied to government spending. Changes in government budgets, appropriations, and policy priorities can directly impact contract awards, renewals, and the scope of existing programs, posing a substantial financial risk.
• Managing Growth and Program Execution [medium — operational]: Maximus's ability to scale its operations and effectively manage the delivery of complex, tech-enabled services to over 100 million citizens is crucial. Failure to manage growth or execute programs efficiently could lead to performance issues and reputational damage.
• Evolving Regulatory Landscape [medium — regulatory]: As a provider of government services, particularly in health and human services, Maximus must navigate a complex and evolving regulatory environment. Changes in legislation or compliance requirements could necessitate significant operational adjustments and investments.
• Cybersecurity Threats [high — operational]: The company handles sensitive citizen data and operates critical government IT infrastructure. A significant cybersecurity breach could lead to substantial financial losses, regulatory penalties, and severe damage to its reputation and client trust.

Industry Context

Maximus operates in the government services sector, characterized by increasing demand for efficient, technology-driven solutions to manage complex public programs. Key trends include government modernization efforts, a focus on citizen-centric service delivery, and the integration of AI and machine learning to improve outcomes. The competitive landscape includes both large, established players and smaller, specialized firms vying for government contracts.

Regulatory Implications

Maximus's operations are subject to extensive government regulations, particularly concerning data privacy, security, and program compliance. Adherence to standards like FedRAMP and evolving healthcare regulations is critical. Non-compliance or changes in regulatory frameworks could lead to penalties, contract termination, or increased operational costs.

What Investors Should Do

1. Monitor U.S. Federal and U.S. Services segment performance
2. Evaluate competitive positioning in contract bids
3. Assess impact of government budget cycles and policy shifts
4. Track investments in technology and AI/ML capabilities

Key Dates

• 1975-01-01: Company Establishment — Marks the founding of Maximus, highlighting its long history and 50 years of experience in providing government services.
• 2025-03-31: Market Value of Non-Affiliate Voting Stock — Indicates a substantial public float of $3.80 billion, reflecting investor confidence and market capitalization.
• 2025-11-12: Shares of Common Stock Outstanding — With 54.46 million shares outstanding, this provides a key metric for per-share calculations and understanding the company's equity structure.

Glossary

Tech-Enabled Services

Services that leverage technology, such as AI, machine learning, and cloud platforms, to improve efficiency, accuracy, and citizen experience in government program delivery. (This is Maximus's core business model, differentiating it by integrating technology into public service operations.)

FedRAMP

Federal Risk and Authorization Management Program, a U.S. government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. (Maximus's Total Experience Management platform being FedRAMP secure is a critical differentiator for securing federal contracts.)

Health Insurance Eligibility and Enrollment Programs

Government programs that determine an individual's eligibility for health insurance and manage the enrollment process, often involving complex data processing and citizen interaction. (This is a key service area for Maximus, indicating significant expertise in managing large-scale health-related government functions.)

Clinical Services

Services provided by healthcare professionals, such as assessments, appeals, and independent medical reviews, often supporting government health programs. (Represents an expansion of Maximus's capabilities beyond pure technology and administration into health-focused assessments.)

Year-Over-Year Comparison

While specific comparative figures are not detailed in this excerpt, the 10-K highlights Maximus's continued strong performance in fiscal year 2025, with its U.S. Federal Services and U.S. Services segments driving the majority of revenue. The company's strategic focus on technology, health services, and AI/ML suggests ongoing adaptation to market demands. New risks may have emerged related to the increasing sophistication of cybersecurity threats and the dynamic nature of government technology modernization initiatives.

Filing Documents

• mms-20250930.htm (10-K) — 1926KB
• a1012-formofrestrictedstoc.htm (EX-10.12) — 113KB
• a1013-formofperformancexba.htm (EX-10.13) — 148KB
• a211-mmsx2025x09x30xxex211.htm (EX-21.1) — 16KB
• a231-mmsx2025x09x30xxex23x.htm (EX-23.1) — 2KB
• a232-mmsx2025x09x30xxex23x.htm (EX-23.2) — 4KB
• a311-mmsx2025x09x30xxex31x1.htm (EX-31.1) — 11KB
• a312-mmsx2025x09x30xxex31x2.htm (EX-31.2) — 11KB
• a321-mmsx2025x09x30xxex32x1.htm (EX-32.1) — 6KB
• a322-mmsx2025x09x30xxex32x2.htm (EX-32.2) — 5KB
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• mms-20250930_g1.jpg (GRAPHIC) — 18KB
• mms-20250930_g2.jpg (GRAPHIC) — 152KB
• 0001032220-25-000053.txt ( ) — 11272KB
• mms-20250930.xsd (EX-101.SCH) — 53KB
• mms-20250930_cal.xml (EX-101.CAL) — 114KB
• mms-20250930_def.xml (EX-101.DEF) — 286KB
• mms-20250930_lab.xml (EX-101.LAB) — 803KB
• mms-20250930_pre.xml (EX-101.PRE) — 573KB
• mms-20250930_htm.xml (XML) — 1682KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 30 Item 4. Mine Safety Disclosures 30 Part II. 31 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31 Item 6. [Reserved] 32 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Business Overview 33 Financial Overview 33 Results of Operations 34 Backlog 39 Liquidity and Capital Resources 39 Critical Accounting Policies and Estimates 44 Non-GAAP and Other Measures 45 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 48 Report of Independent Registered Public Accounting Fir m (PCAOB ID: 185 ) 48 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 50 Consolidated Statements of Operations 51 Consolidated Statements of Comprehensive Income 52 Consolidated Balance Sheets 53 Consolidated Statements of Cash Flows 54 Consolidated Statements of Changes in Shareholders' Equity 55 Notes to the Consolidated Financial Statements 56 1. Organization 56 2. Significant Accounting Policies 56 3. Business Segments 62 4. Revenue Recognition 64 5. Earnings Per Share 66 6. Debt and Derivatives 67 7. Acquisitions and Divestitures 69 8. Goodwill and Intangible Asset s 70 9. Fair Value Measurements 71 10. Leases 73 11. Income Taxes 73 12. Equity 76 13. Cash and Cash Equivalents and Restricted Cash 77 2 Table of Contents Table of Contents to 2025 Form 10-K (continued) 14. Other Items 77 15. Commitments and Contingencies 79 16. Employee Benefit Plans and Deferred Compensation 80 17. Subsequent Event 80 Item 9. Changes in and Disagreement s with Accountants on Accounting and Financial Disclosure 81 Item 9A.

Controls and Procedures

Controls and Procedures 81 Item 9B. Other Information 83 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 83 Part III. 84 Item 10. Directors, Executive Officers and Corporate Governance 84 Item 11.

Executive Compensation

Executive Compensation 84 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 84 Item 13. Certain Relationships and Related Transactions, and Director Independence 84 Item 14. Principal Accountant Fees and Services 84 Part IV. 85 Item 15. Exhibits and Financial Statement Schedules 85 Item 16. Form 10-K Summary 87

Signatures

Signatures 88 3 Table of Contents Unless otherwise specified, references in this Annual Report on Form 10-K to "our," "we," "us," "Maximus," the "Company," and "our business" refer to Maximus, Inc. and its subsidiaries. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Included in this Annual Report on Form 10-K are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. F orward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "opportunity," "could," "potential," "believe," "project," "estimate," "expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Any statements herein that are not historical facts, including statements about our confidence, strategies and initiatives, and our expectations about revenues, results of operations, profitability, liquidity, market dema nd, and our recent acquisitio ns and divestitures, are forward-looking statements that are subject to risks and uncertainties. These risks could cause our actual results to differ materially from those indicated by such forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: a failure to meet performance requirements under our contracts could lead to penalties, liquidated damages, actual damages, adverse settlement agreements, and/or contract termination; our ability to successfully compete, bid for, and accurately price contracts to generate our desired profit; the effects of future legislative or government budgetary and spending changes, including the impact of a prolonged U.S. government shutdown; the impact of the U.S. government

Business

Item 1. Business General Maximus, a Virginia corporation established in 1975 and celebrating its 50th anniversary this year, is a leading provider of tech-enabled services to government agencies. By moving people, technology, and government forward, Maximus helps improve the delivery of public services for more than 100 million American citizens, as well as citizens in the U.K., Canada, and the Middle East, amid complex technological, health, economic, and social challenges. As a trusted and accountable partner to primarily U.S. federal and state customers, we proudly design, develop, and deliver innovative and efficient programs that improve government's effectiveness in serving its citizens. We create value for our customers through our ability to translate public policy into operating models that achieve outcomes for governments at scale. Our work covers a broad array of services, including the operation of large health insurance eligibility and enrollment programs; clinical services, including assessments, appeals, and independent medical reviews; and technology services. These services benefit from an industry with increasing demand, constrained government budgets, and an increased focus on technology as governments prioritize modernization. We also demonstrate the ability to move quickly, ranging from digitally enabled contact center support services for natural disaster response to swift establishments of public health and safety initiatives. Our past and future success is based upon our strategic priorities that we believe are aligned with long-term demand characteristics and bipartisan programs that shape the role of government in serving its citizens. Tech-Enabled Customer Service. Maximus applies advances in business intelligence, predictive analytics and emerging technologies to advance a government agency's mission. We proactively detect and resolve barriers to reach target populations. In doing so, we aim to achieve higher levels of satisfaction,

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