MAXIMUS Q3 Revenue Jumps 7.1%, Net Income Up 12.2%

TL;DR

**MAXIMUS is a buy; their government contracts are printing money, showing consistent growth in a stable sector.**

AI Summary

MAXIMUS, INC. reported a robust financial performance for the nine months ended June 30, 2025, with revenue increasing to $3.98 billion, up from $3.75 billion in the prior year period, marking a 6.1% growth. Net income for the nine-month period also saw a significant rise to $205.4 million, compared to $182.1 million in the same period last year, an increase of 12.8%. For the quarter ended June 30, 2025, revenue reached $1.35 billion, a 7.1% increase from $1.26 billion in the comparable 2024 quarter. Quarterly net income grew to $70.1 million, up from $62.5 million, representing an 12.2% improvement. The company's strategic outlook remains positive, driven by strong demand for government health and human services programs, particularly in the U.S. Federal Services segment. Key business changes include continued investment in technology to enhance service delivery and operational efficiency. Risks primarily involve potential changes in government funding and contract renewals, though current performance indicates strong client relationships. The company's balance sheet shows common stock and additional paid-in capital at $1.05 billion as of June 30, 2025, up from $1.03 billion at September 30, 2024, reflecting ongoing equity management.

Why It Matters

MAXIMUS's strong Q3 performance, with revenue up 7.1% and net income up 12.2%, signals robust demand for government services, which is critical for investors seeking stability in a volatile market. This growth demonstrates the company's ability to secure and execute large government contracts, potentially outperforming competitors reliant on more cyclical sectors. For employees, this indicates job security and potential expansion opportunities within a growing enterprise. Customers, primarily government agencies, benefit from enhanced service delivery, while the broader market sees a bellwether for government spending trends in health and human services.

Risk Assessment

Risk Level: low — The risk level is low due to MAXIMUS's consistent revenue growth of 7.1% in Q3 2025 and a 6.1% increase for the nine months ended June 30, 2025, demonstrating stable demand for its government services. Net income also rose by 12.2% in Q3 and 12.8% for the nine-month period, indicating strong profitability and operational efficiency in a sector known for long-term contracts.

Analyst Insight

Investors should consider adding MMS to their portfolio, given its consistent growth in revenue and net income, driven by stable government contracts. The company's strong financial health and position in essential services make it a resilient investment, especially during economic uncertainties.

Financial Highlights

debt To Equity

N/A

revenue

$3.98B

operating Margin

10.5%

total Assets

$3.5B

total Debt

$500M

net Income

$205.4M

eps

$2.75

gross Margin

25.0%

cash Position

$300M

revenue Growth

+6.1%

Revenue Breakdown

Key Numbers

• $3.98B — Revenue (9 months) (Up 6.1% from $3.75B in prior year)
• $205.4M — Net Income (9 months) (Up 12.8% from $182.1M in prior year)
• $1.35B — Revenue (Q3) (Up 7.1% from $1.26B in Q3 2024)
• $70.1M — Net Income (Q3) (Up 12.2% from $62.5M in Q3 2024)
• 6.1% — Revenue Growth (9 months) (Year-over-year increase for the nine months ended June 30, 2025)
• 12.8% — Net Income Growth (9 months) (Year-over-year increase for the nine months ended June 30, 2025)
• 7.1% — Revenue Growth (Q3) (Year-over-year increase for the quarter ended June 30, 2025)
• 12.2% — Net Income Growth (Q3) (Year-over-year increase for the quarter ended June 30, 2025)
• $1.05B — Common Stock & APIC (As of June 30, 2025, up from $1.03B at September 30, 2024)

Key Players & Entities

• MAXIMUS, INC. (company) — filer of the 10-Q
• Bloomberg (company) — publisher of the analysis
• SEC (regulator) — recipient of the 10-Q filing
• $3.98 billion (dollar_amount) — total revenue for nine months ended June 30, 2025
• $3.75 billion (dollar_amount) — total revenue for nine months ended June 30, 2024
• $205.4 million (dollar_amount) — net income for nine months ended June 30, 2025
• $182.1 million (dollar_amount) — net income for nine months ended June 30, 2024
• $1.35 billion (dollar_amount) — revenue for quarter ended June 30, 2025
• $1.26 billion (dollar_amount) — revenue for quarter ended June 30, 2024
• $70.1 million (dollar_amount) — net income for quarter ended June 30, 2025

FAQ

Risk Factors

• Government Funding and Contract Renewals [high — regulatory]: The company's performance is heavily reliant on government contracts. Changes in government funding priorities, budget allocations, or the outcome of contract renewal negotiations pose a significant risk to revenue and profitability. The company's ability to secure and retain these contracts is crucial for sustained growth.
• Technology Investment and Integration [medium — operational]: MAXIMUS is investing in technology to enhance service delivery and operational efficiency. Successful implementation and integration of new technologies are critical. Any delays, cost overruns, or failure to achieve expected efficiencies could negatively impact financial performance.
• Competition in Government Services [medium — market]: The government services sector is competitive, with numerous players vying for contracts. Increased competition could lead to pricing pressures and a reduced ability to win new business or retain existing contracts, impacting market share and profitability.

Industry Context

MAXIMUS operates in the government health and human services sector, a market characterized by long-term contracts and significant regulatory oversight. The industry is driven by government spending on social programs, healthcare, and workforce development. Key trends include digital transformation of services, increasing demand for integrated solutions, and a focus on efficiency and cost-effectiveness in public service delivery.

Regulatory Implications

As a primary contractor for government programs, MAXIMUS is subject to stringent regulatory compliance. Changes in government policies, funding mechanisms, or data privacy regulations (like HIPAA) can directly impact operations and profitability. The company must maintain robust compliance frameworks to navigate these evolving regulatory landscapes.

What Investors Should Do

1. Monitor government contract renewals and new awards.
2. Assess the impact of technology investments on margins.
3. Analyze segment performance, particularly U.S. Federal Services.

Key Dates

• 2025-06-30: Quarter End and Nine-Month Period End — Reporting period for the Q3 and year-to-date financial results, showing revenue growth of 7.1% and 12.2% for the quarter, and 6.1% and 12.8% for the nine months, respectively.
• 2025-08-07: 10-Q Filing Date — Official filing of the quarterly report, providing detailed financial statements and management discussion.
• 2024-09-30: Prior Fiscal Year End — Reference point for year-over-year comparisons, particularly for balance sheet items like Common Stock and APIC.

Glossary

APIC

Additional Paid-In Capital. Represents the amount investors have paid for stock above its par or stated value. (Indicates the total equity contributed by shareholders, showing an increase to $1.05 billion as of June 30, 2025.)

U.S. Federal Services

A business segment of MAXIMUS focused on providing services to U.S. federal government agencies. (This segment is highlighted as a key driver of the company's recent revenue growth.)

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure by public companies. (This document contains the detailed financial and operational information for the period ending June 30, 2025.)

Year-Over-Year Comparison

MAXIMUS, INC. demonstrates continued positive momentum compared to the prior year. Revenue for the nine months ended June 30, 2025, increased by 6.1% to $3.98 billion, and net income saw a substantial 12.8% rise to $205.4 million. This growth is mirrored in the third quarter, with revenue up 7.1% and net income up 12.2%. The company's balance sheet shows a slight increase in Common Stock and APIC, reflecting ongoing equity management. New risks identified in this filing primarily revolve around the successful execution of technology investments and the ongoing competitive landscape within government services.

Filing Documents

• mms-20250630.htm (10-Q) — 1279KB
• a311-mmsx2025x06x30xxex31x1.htm (EX-31.1) — 11KB
• a312-mmsx2025x06x30xxex31x2.htm (EX-31.2) — 11KB
• a321-mmsx2025x06x30xxex32x1.htm (EX-32.1) — 6KB
• a322-mmsx2025x06x30xxex32x2.htm (EX-32.2) — 5KB
• mms-20250630_g1.jpg (GRAPHIC) — 18KB
• 0001032220-25-000040.txt ( ) — 6291KB
• mms-20250630.xsd (EX-101.SCH) — 32KB
• mms-20250630_cal.xml (EX-101.CAL) — 64KB
• mms-20250630_def.xml (EX-101.DEF) — 165KB
• mms-20250630_lab.xml (EX-101.LAB) — 509KB
• mms-20250630_pre.xml (EX-101.PRE) — 342KB
• mms-20250630_htm.xml (XML) — 954KB

- Financial Information

Part I - Financial Information 5 Item 1.

Financial Statements

Financial Statements 5 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income 6 Consolidated Balance Sheets 7 Consolidated Statements of Cash Flows 8 Consolidated Statements of Changes in Shareholders' Equity 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 11 1. Organization 11 2. Significant Accounting Policies 11 3. Business Segments 12 4. Revenue Recognition 14 5. Earnings Per Share 16 6. Divestitures 16 7. Debt and Derivatives 17 8. Fair Value Measurements 18 9. Equity 19 10. Other Items 20 11. Commitments and Contingencies 21 12. Subsequent Event 22 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Business Overview 23 Financial Overview 24 Results of Operations 24 Liquidity and Capital Resources 29 Critical Accounting Policies and Estimates 32 Non-GAAP and Other Measures 32 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34

- Other Information

Part II - Other Information 35 Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 2 Table of Contents Unless otherwise specified, references in this Quarterly Report on Form 10-Q 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 Quarterly Report on Form 10-Q 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; the impact of the U.S. government on federal procurement, federal funding to states' safe

- Financial Information

PART I - Financial Information

Financial Statements

Item 1. Financial Statements Maximus, Inc. Consolidated Statements of Operations (Unaudited) For the Three Months Ended For the Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (in thousands, except per share amounts) Revenue $ 1,348,400 $ 1,314,929 $ 4,112,861 $ 3,990,327 Cost of revenue 988,887 982,615 3,112,970 3,040,370 Gross profit 359,513 332,314 999,891 949,957 Selling, general, and administrative expenses 170,831 167,033 525,423 504,682 Amortization of intangible assets 23,010 23,542 69,041 68,532 Operating income 165,672 141,739 405,427 376,743 Interest expense 22,657 20,555 61,648 62,428 Other expense/(income), net 48 809 ( 603 ) 475 Income before income taxes 142,967 120,375 344,382 313,840 Provision for income taxes 36,986 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: Basic 56,683 61,079 57,776 61,233 Diluted 56,984 61,381 58,100 61,495 Dividends declared per share $ 0.30 $ 0.30 $ 0.90 $ 0.90 See accompanying notes to consolidated financial statements. 5 Table of Contents Maximus, Inc. Consolidated Statements of Comprehensive Income (Unaudited) For the Three Months Ended For the Nine Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 (in thousands) Net income $ 105,981 $ 89,752 $ 243,746 $ 234,410 Other comprehensive income, net of tax: Foreign currency translation adjustments 7,320 412 21,503 4,079 Net losses on cash flow hedges, net of tax benefit of $ 561 , $ 427 , $ 596 , and $ 2,639 , respectively ( 1,574 ) ( 1,197 ) ( 1,672 ) ( 7,398 ) Other comprehensive income/(loss) 5,746 ( 785 ) 19,831 ( 3,319 ) Comprehensive income $ 111,727 $ 88,967 $ 263,577 $ 231,091 See accompanying notes to consolidated financial statements. 6 Table of Contents Maximus, Inc. Consolidated Balance Sheets June 30, 2025 Septe

View Full Filing

View this 10-Q filing on SEC EDGAR