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Maximus (NYSE: MMS) Q3 2026 earnings, guidance and cash flow update

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(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Maximus, Inc. reported fiscal 2026 third quarter revenue of $1.28 billion, compared with $1.35 billion a year earlier, in line with internal expectations. Operating margin was 12.6% and adjusted EBITDA margin 15.0%. Net income was $103.6 million, with diluted EPS of $1.95 and adjusted diluted EPS of $2.22, both modestly higher than the prior-year period.

U.S. Federal Services generated $721 million of revenue with an operating margin of 18.6%; guidance for this segment’s full‑year margin is now 16.5%–17.0% after a temporary contractual modification effective July 1 through December 31, 2026. U.S. Services revenue was $418 million with a 10.8% margin, and Outside the U.S. revenue was $140 million with a 0.9% margin, with management still targeting breakeven for the year.

Year‑to‑date signed awards totaled $1.25 billion, with $1.35 billion pending and a total sales pipeline of $50.4 billion. At June 30, 2026, gross debt was $1.65 billion and net leverage 2.0x. Operating cash flow in the quarter was an outflow of $125 million and free cash flow an outflow of $137 million, with DSO at 98 days but improved collections in July. The company repurchased 0.75 million shares for $50.4 million and declared a quarterly dividend of $0.33 per share. Fiscal 2026 guidance calls for revenue of $5.2–$5.35 billion, adjusted EBITDA margin of about 13.7%, adjusted diluted EPS of $7.90–$8.20, and free cash flow of $425–$475 million, with interest expense estimated at $88 million and a tax rate of 24.0%–24.5%.

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Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q3 2026 Revenue $1,278,971 thousand Revenue for the three months ended June 30, 2026
Q3 2026 Net Income $103,593 thousand Net income for the three months ended June 30, 2026
Q3 2026 Diluted EPS $1.95 Diluted earnings per share for the three months ended June 30, 2026
Q3 2026 Adjusted EBITDA $192,327 thousand Non-GAAP adjusted EBITDA for the three months ended June 30, 2026
FY 2026 Revenue Guidance $5,200–$5,350 million Reiterated fiscal 2026 revenue guidance range
FY 2026 Adjusted EPS Guidance $7.90–$8.20 Fiscal 2026 adjusted diluted earnings per share guidance
FY 2026 Free Cash Flow Guidance $425–$475 million Expected free cash flow for fiscal year 2026
Gross Debt $1.65 billion Unrestricted cash and cash equivalents $57 million; gross debt at June 30, 2026
adjusted EBITDA financial
"For the third quarter of fiscal year 2026, operating margin was 12.6% and adjusted EBITDA margin was 15.0%."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow guidance is updated to range between $425 million and $475 million."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
DSO financial
"DSO were 98 days at June 30, 2026."
Days Sales Outstanding (DSO) measures how long, on average, a company takes to collect payment after making a sale. Think of it as the number of days cash is tied up in unpaid invoices: a higher DSO is like waiting longer to be paid and can signal cash flow stress, while a lower DSO means faster collections and healthier working capital—important for assessing liquidity and operational efficiency.
sales pipeline financial
"The sales pipeline at June 30, 2026, totaled $50.4 billion..."
A sales pipeline is a staged view of potential customers at each step from first contact to a completed sale, showing how many prospects are in play and how far they’ve progressed. Investors watch it like a factory conveyor belt: a healthy, steadily moving pipeline signals likely future revenue and growth, while gaps or bottlenecks can warn that sales targets and cash flow may be at risk.
Revenue $1,278,971 thousand vs $1,348,400 thousand for the quarter ended June 30, 2025
Net income $103,593 thousand vs $105,981 thousand for the quarter ended June 30, 2025
Diluted EPS $1.95 vs $1.86 for the quarter ended June 30, 2025
Adjusted EBITDA $192,327 thousand vs $198,289 thousand for the quarter ended June 30, 2025
Adjusted diluted EPS $2.22 vs $2.16 for the quarter ended June 30, 2025
Guidance

For fiscal 2026, revenue is expected between $5.2 billion and $5.35 billion, adjusted EBITDA margin about 13.7%, adjusted diluted EPS between $7.90 and $8.20, and free cash flow between $425 million and $475 million.

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FAQ

How did Maximus (MMS) perform financially in Q3 fiscal 2026?
Maximus reported Q3 2026 revenue of $1.28 billion, compared with $1.35 billion a year earlier. Net income was $103.6 million, with diluted EPS of $1.95 and adjusted diluted EPS of $2.22, both slightly above the prior-year quarter.

What fiscal 2026 guidance did Maximus (MMS) provide for revenue and earnings?
For fiscal 2026, Maximus expects revenue of $5.2–$5.35 billion. It projects an adjusted EBITDA margin of about 13.7% and adjusted diluted EPS between $7.90 and $8.20, incorporating a temporary contractual modification on a major federal program.

What are Maximus (MMS) expectations for fiscal 2026 free cash flow and leverage?
Maximus expects fiscal 2026 free cash flow of $425–$475 million. At June 30, 2026, gross debt was $1.65 billion and the ratio of debt, net of allowed cash, to consolidated EBITDA was 2.0x, within the company’s stated 2x to 3x target range.

How did Maximus (MMS) segments perform in Q3 2026?
In Q3 2026, U.S. Federal Services generated $721 million revenue with an 18.6% margin, U.S. Services $418 million with a 10.8% margin, and Outside the U.S. $140 million with a 0.9% margin. Management still expects the Outside the U.S. segment to break even for the fiscal year.

What capital returns did Maximus (MMS) make to shareholders in Q3 2026?
During Q3 2026, Maximus repurchased 0.75 million shares of common stock for $50.4 million. The Board also declared a quarterly cash dividend of $0.33 per share, payable on August 31, 2026, to shareholders of record on August 14, 2026.

What is the size of Maximus (MMS) sales pipeline and recent awards?
At June 30, 2026, Maximus reported year-to-date signed contract awards of $1.25 billion and $1.35 billion of awarded-but-unsigned contracts. The total sales pipeline was $50.4 billion, with new work opportunities representing about 57% of that amount.
0001032220FALSE00010322202026-08-062026-08-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2026
maximus-logo.jpg

Maximus, Inc.
(Exact name of registrant as specified in its charter)
Virginia1-1299754-1000588
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
1600 Tysons BoulevardMcLean,VA22102
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including the area code(703)251-8500
No Change
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par valueMMSNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02    Results of Operations and Financial Condition.
 
On August 6, 2026, the Company issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01    Financial Statements and Exhibits.

(d)     Exhibits.
  
Exhibit No.Description
99.1
Press release dated August 6, 2026
104Inline XBRL for the cover page of this Current Report on Form 8-K.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Maximus, Inc.
(Registrant)
Date: August 6, 2026/s/ Elizabeth Moellering
Elizabeth Moellering
General Counsel and Corporate Secretary



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FOR IMMEDIATE RELEASECONTACT:James Francis, VP - IR
IR@maximus.com
Date: August 6, 2026

Maximus Reports Fiscal Year 2026 Third Quarter Results
Strong earnings performance reflects disciplined execution
(Tysons, Va. - August 6, 2026) - Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three and nine months ended June 30, 2026.
Highlights for the third quarter of fiscal year 2026 include:
•Revenue of $1.28 billion, compared to $1.35 billion for the prior year period, was in line with expectations and supports our full year revenue guidance outlook.
•Diluted earnings per share were $1.95 and adjusted diluted earnings per share were $2.22, compared to $1.86 and $2.16, respectively, for the prior year period.
•Revenue guidance is reiterated and expected to range between $5.2 billion and $5.35 billion for fiscal year 2026.
•Earnings guidance for fiscal year 2026 is updated to reflect a temporary customer-directed contractual modification on a major federal program. Adjusted diluted earnings per share are now expected to range between $7.90 and $8.20 per share, and adjusted EBITDA margin is expected to be approximately 13.7% for fiscal year 2026.
•Free cash flow guidance is updated to range between $425 million and $475 million.
•Repurchases of Maximus common stock in the quarter totaled 0.75 million shares for $50.4 million.
•A quarterly cash dividend of $0.33 per share is payable on August 31, 2026, to shareholders of record on August 14, 2026.
"Our third quarter results demonstrate the resilience of the Maximus business and our ability to deliver strong earnings performance while continuing to invest in long-term growth opportunities," said Bruce Caswell, President and Chief Executive Officer.
Caswell continued, "More broadly, we continue to see encouraging demand signals across our markets, increased adoption of AI-enabled solutions, growing interest in our SNAP-related offerings, and a substantial opportunity set in the defense and national security markets."
Third Quarter Results
Revenue for the third quarter of fiscal year 2026 was $1.28 billion and was consistent with our expectations entering the quarter. Prior year period revenue was $1.35 billion and benefited from elevated natural disaster support activity as well as temporary clinical volume surges within the U.S. Federal Services Segment.
For the third quarter of fiscal year 2026, operating margin was 12.6% and adjusted EBITDA margin was 15.0%. This compares to margins of 12.3% and 14.7%, respectively, for the prior year period. Diluted earnings per share were $1.95, and adjusted diluted earnings per share were $2.22. This compares to $1.86 and $2.16, respectively, for the prior year period.
Consolidated earnings improved over the prior year period primarily due, in part, to ongoing efficiency initiatives across multiple program areas, including broader deployment of automation and AI-enabled tools.
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U.S. Federal Services Segment
U.S. Federal Services Segment revenue for the third quarter of fiscal year 2026 was $721 million. Prior year period revenue of $761 million benefited from elevated natural disaster response work and temporary clinical volume surges that did not recur at the same level in the current quarter.
The segment operating margin for the third quarter of fiscal year 2026 was 18.6%, compared to 18.1% reported for the prior year period. Productivity improvements, technology-enabled efficiencies, and stable performance across core program areas contributed to the improvement.
During the quarter, we received notification from a major customer regarding a temporary contractual modification effective July 1, 2026, through December 31, 2026, which affects profitability expectations for the remainder of fiscal year 2026. This is reflected in updated fiscal year 2026 guidance as well as the full-year operating margin for the U.S. Federal Services Segment, which is now expected to range between 16.5% and 17.0%.
U.S. Services Segment
U.S. Services Segment revenue for the third quarter of fiscal year 2026 was $418 million and was consistent with our expectation for continued sequential improvement as we progress toward the positive revenue growth anticipated by the end of the fiscal year. The prior year period segment revenue was $440 million.
The segment operating margin for the third quarter of fiscal year 2026 was 10.8%, reflecting continued progression throughout the fiscal year, and compares to the prior year period segment operating margin of 10.2%. The full-year fiscal 2026 operating margin for the U.S. Services Segment is expected to range between 9.5% and 10.0%.
Outside the U.S. Segment
Outside the U.S. Segment revenue for the third quarter of fiscal year 2026 was $140 million, compared to $147 million in the prior year period. Variances in volumes across several programs, including both clinical and employment services contracts, were primarily responsible for the year-over-year revenue change.
The segment operating margin for the third quarter of fiscal year 2026 was 0.9%, compared to 4.0% reported for the prior year period. With the segment still expected to break even for fiscal year 2026, we continue to focus on driving growth and further margin improvement through the successful conversion of this segment's sales pipeline.
Sales and Pipeline
Year-to-date signed contract awards at June 30, 2026, totaled $1.25 billion, and contracts pending (awarded but unsigned) totaled $1.35 billion.
The sales pipeline at June 30, 2026, totaled $50.4 billion, comprised of approximately $2.86 billion in proposals pending, $2.42 billion in proposals in preparation, and $45.1 billion in opportunities we are tracking. New work opportunities represent approximately 57% of the total sales pipeline, and U.S. Federal Services Segment opportunities represent approximately 55% of the total sales pipeline.
Balance Sheet and Cash Flows
At June 30, 2026, unrestricted cash and cash equivalents totaled $57 million, and gross debt was $1.65 billion. The ratio of debt, net of allowed cash, to consolidated EBITDA for the quarter ended June 30, 2026, as calculated on a trailing twelve-month basis in accordance with our credit agreement, was 2.0x, compared to 1.8x at March 31, 2026. The ratio remains within our target net leverage ratio of 2x to 3x.
For the third quarter of fiscal year 2026, cash used in operating activities totaled $125 million, and free cash flow was an outflow of $137 million. DSO were 98 days at June 30, 2026. Collections from a major federal customer accelerated during July, and we continue to expect DSO to finish fiscal year 2026 below 70 days.
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During the third quarter of fiscal year 2026, we purchased approximately 0.75 million shares of Maximus common stock totaling $50.4 million. In May 2026, the Board of Directors authorized a refresh to the repurchase program for Maximus common stock up to an aggregate of $400 million. As of June 30, 2026, the entire $400 million authorization remained available for future repurchases.
On July 6, 2026, our Board of Directors declared a quarterly cash dividend of $0.33 for each share of our common stock outstanding. The dividend is payable on August 31, 2026, to shareholders of record on August 14, 2026.
Fiscal Year 2026 Guidance Update
We reiterate our fiscal year 2026 revenue guidance, which is expected to range between $5.2 billion and $5.35 billion, with results anticipated toward the lower end of the range.
We are updating fiscal year 2026 earnings guidance to account for the temporary contractual modification. We now expect our adjusted EBITDA margin to be approximately 13.7% and adjusted diluted earnings per share to range between $7.90 and $8.20 per share for fiscal year 2026.
We now expect free cash flow to range between $425 million and $475 million for fiscal year 2026, which corresponds to the earnings guidance change.
Interest expense is estimated to be $88 million, and the full fiscal year tax rate is expected to range between 24.0% and 24.5% for fiscal year 2026.
Conference Call and Webcast Information
Maximus will host a conference call this morning, August 6, 2026, 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, 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 provides tech-enabled services to government agencies, including innovative business process management 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 adjusted net income, free cash flow, diluted EPS adjusted for amortization of intangible assets and divestiture-related charges and gains, adjusted EBITDA, adjusted EBITDA margin, 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.
Included in this release are forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "on track,” "opportunity," "could," "potential," "believe," "project," "estimate,"
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"expect," "continue," "forecast," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Forward-looking statements that are not historical facts, including statements about our confidence, strategies and initiatives, guidance and expectations about revenues, results of operations, profitability, future contracts, liquidity, market opportunities, market demand, acceptance of our products and service offerings, or acquisitions and divestitures, 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. A summary of risk factors can be found in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed on November 20, 2025, and subsequent filings with the Securities and Exchange Commission (SEC). Our SEC filings are accessible on maximus.com.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to update the guidance herein or any other forward-looking statement as circumstances evolve.
FY26 Guidance Reconciliation - Non-GAAP
($ in millions except per share items)Low EndHigh End
Net income$376 $392 
Add: Interest expense and other expense/(income)88 88 
Add: Provision for income taxes120 126 
Add: Amortization of intangible assets81 81 
Add: Depreciation & amortization of property, equipment and capitalized software50 50 
Add: Capitalized software impairment charges7 7 
Add: Divestiture-related gains(10)(10)
Adjusted EBITDA$712 $734 
Revenue$5,200 $5,350 
Net income margin7.2 %7.3 %
Adjusted EBITDA margin13.7 %13.7 %
Diluted EPS$6.94 $7.24 
Add: effect of amortization of intangible assets on diluted EPS1.10 1.10 
Add: effect of divestiture-related gains on diluted EPS(0.14)(0.14)
Adjusted diluted EPS$7.90 $8.20 
Cash flows from operating activities$465 $515 
Remove: purchases of property and equipment and capitalized software costs(40)(40)
Free cash flow$425 $475 

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Maximus, Inc.
Consolidated Statements of Operations
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands, except per share amounts)
Revenue$1,278,971 $1,348,400 $3,929,984 $4,112,861 
Cost of revenue930,168 988,887 2,920,247 3,112,970 
Gross profit348,803 359,513 1,009,737 999,891 
Selling, general, and administrative expenses167,188 170,831 492,827 525,423 
Amortization of intangible assets20,187 23,010 60,785 69,041 
Operating income161,428 165,672 456,125 405,427 
Interest expense23,878 22,657 66,805 61,648 
Other (income)/expense, net(608)48 (1,639)(603)
Income before income taxes138,158 142,967 390,959 344,382 
Provision for income taxes34,565 36,986 95,360 100,636 
Net income$103,593 $105,981 $295,599 $243,746 
Earnings per share:
Basic$1.96 $1.87 $5.48 $4.22 
Diluted$1.95 $1.86 $5.45 $4.20 
Weighted average shares outstanding:
Basic52,854 56,683 53,974 57,776 
Diluted53,057 56,984 54,243 58,100 
Dividends declared per share$0.33 $0.30 $0.96 $0.90 







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Maximus, Inc.
Consolidated Balance Sheets
June 30, 2026September 30, 2025
(unaudited)
(in thousands)
Assets:
Cash and cash equivalents$56,953 $222,351 
Accounts receivable, net1,382,014 898,095 
Income taxes receivable31,019 3,904 
Prepaid expenses and other current assets171,377 128,574 
Total current assets1,641,363 1,252,924 
Property and equipment, net28,485 30,972 
Capitalized software, net201,373 214,260 
Operating lease right-of-use assets88,302 100,514 
Goodwill1,780,543 1,782,095 
Intangible assets, net477,031 538,266 
Deferred contract costs, net60,205 63,332 
Deferred compensation plan assets67,877 63,272 
Deferred income taxes8,047 11,491 
Other assets13,553 12,513 
Total assets$4,366,779 $4,069,639 
Liabilities and Shareholders' Equity:
Liabilities:
Accounts payable and accrued liabilities$263,220 $296,888 
Accrued compensation and benefits146,064 236,948 
Deferred revenue, current portion36,626 53,784 
Income taxes payable1,138 17,321 
Long-term debt, current portion71,599 52,680 
Operating lease liabilities, current portion38,280 38,605 
Other current liabilities121,142 68,937 
Total current liabilities678,069 765,163 
Deferred revenue, non-current portion35,863 43,757 
Deferred income taxes199,887 149,020 
Long-term debt, non-current portion1,565,336 1,281,593 
Deferred compensation plan liabilities, non-current portion66,468 62,145 
Operating lease liabilities, non-current portion56,603 71,289 
Other liabilities24,002 22,637 
Total liabilities2,626,228 2,395,604 
Shareholders' equity:
Common stock, no par value; 100,000 shares authorized; 52,358 and 54,805 shares issued and outstanding as of June 30, 2026, and September 30, 2025, respectively
647,138 628,118 
Accumulated other comprehensive loss(20,721)(17,867)
Retained earnings1,114,134 1,063,784 
Total shareholders' equity1,740,551 1,674,035 
Total liabilities and shareholders' equity$4,366,779 $4,069,639 
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Maximus, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands)
Cash flows from operating activities:
Net income$103,593 $105,981 $295,599 $243,746 
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property, equipment, and capitalized software11,874 9,607 37,091 27,502 
Capitalized software impairment charges— — 6,914 — 
Amortization of intangible assets20,187 23,010 60,785 69,041 
Amortization of debt issuance costs and debt discount842 736 2,314 2,046 
Deferred income taxes(13,365)(5,239)54,416 (5,829)
Stock compensation expense7,356 10,749 24,274 30,324 
Divestiture-related charges/(gains)(1,162)— (10,147)39,343 
Change in assets and liabilities, net of effects of business combinations and divestitures:
Accounts receivable(266,738)(318,415)(489,403)(553,297)
Prepaid expenses and other current assets7,189 1,398 13,152 9,341 
Deferred contract costs2,310 1,059 2,748 (856)
Accounts payable and accrued liabilities(19,107)(27,751)(33,345)(21,808)
Accrued compensation and benefits(6,303)(2,368)(79,734)(50,369)
Deferred revenue(3,056)2,618 (24,658)(8,675)
Income taxes33,959 12,090 (40,504)5,625 
Operating lease right-of-use assets and liabilities(1,341)(1,145)(2,814)(3,508)
Other assets and liabilities(1,225)4,952 3,449 (2,626)
Net cash used in operating activities(124,987)(182,718)(179,863)(220,000)
Cash flows from investing activities:
Purchases of property and equipment and capitalized software(11,980)(15,488)(28,752)(55,686)
Proceeds from divestitures3,947 — 16,842 736 
Other(2,500)— (2,500)(2,165)
Net cash used in investing activities(10,533)(15,488)(14,410)(57,115)
Cash flows from financing activities:
Cash dividends paid to Maximus shareholders(17,278)(16,904)(51,437)(51,865)
Purchases of Maximus common stock(49,917)— (204,919)(306,443)
Tax withholding related to RSU vesting— (10)(17,325)(16,451)
Payments for debt financing costs(2,393)— (2,393)(1,658)
Proceeds from borrowings703,675 376,208 1,368,675 1,335,208 
Principal payments for debt(600,935)(212,535)(1,065,935)(810,174)
Other, including customer escrowed funds10,732 (643)60,841 (1,824)
Net cash provided by financing activities43,884 146,116 87,507 146,793 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash188 1,528 (444)(65)
Net change in cash, cash equivalents, and restricted cash(91,448)(50,562)(107,210)(130,387)
Cash, cash equivalents, and restricted cash, beginning of period244,697 155,938 260,459 235,763 
Cash, cash equivalents, and restricted cash, end of period$153,249 $105,376 $153,249 $105,376 
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Maximus, Inc.
Consolidated Results of Operations by Segment
(Unaudited)
For the Three Months Ended June 30, 2026
(dollars in thousands)U.S. Federal Services% (1 )U.S. Services% (1 )Outside the U.S.% (1 )Total
Revenue$720,991 $418,227 $139,753 $1,278,971 
Cost of revenue498,720 69.2 %311,449 74.5 %119,999 85.9 %930,168 
Gross profit222,271 30.8 %106,778 25.5 %19,754 14.1 %348,803 
Other segment items (2)88,231 12.2 %61,589 14.7 %18,548 13.3 %168,368 
Segment operating income$134,040 18.6 %$45,189 10.8 %$1,206 0.9 %180,435 
Divestiture-related gains/(charges) (3)1,162 
Other (4)18 
Amortization of intangible assets(20,187)
Operating income$161,428 
For the Three Months Ended June 30, 2025
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$761,174 1$439,818 $147,408 $1,348,400 
Cost of revenue535,040 70.3 %333,886 75.9 %119,961 81.4 %988,887 
Gross profit226,134 29.7 %105,932 24.1 %27,447 18.6 %359,513 
Other segment items (2)88,272 11.6 %60,975 13.9 %21,507 14.6 %170,754 
Segment operating income$137,862 18.1 %$44,957 10.2 %$5,940 4.0 %188,759 
Other (4)(77)
Amortization of intangible assets(23,010)
Operating income$165,672 
        
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For the Nine Months Ended June 30, 2026
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$2,260,735 1$1,249,229 $420,020 $3,929,984 
Cost of revenue1,598,084 70.7 %957,548 76.7 %364,615 86.8 %2,920,247 
Gross profit662,651 29.3 %291,681 23.3 %55,405 13.2 %1,009,737 
Other segment items (2)266,174 11.8 %178,616 14.3 %58,664 14.0 %503,454 
Segment operating income/(loss)$396,477 17.5 %$113,065 9.1 %$(3,259)(0.8)%506,283 
Divestiture-related gains/(charges) (3)10,147 
Other (4)480 
Amortization of intangible assets(60,785)
Operating income$456,125 
For the Nine Months Ended June 30, 2025
(dollars in thousands)U.S. Federal Services% (1)U.S. Services% (1)Outside the U.S.% (1)Total
Revenue$2,319,756 $1,334,418 $458,687 $4,112,861 
Cost of revenue1,718,249 74.1 %1,021,712 76.6 %373,009 81.3 %3,112,970 
Gross profit601,507 25.9 %312,706 23.4 %85,678 18.7 %999,891 
Other segment items (2)245,563 10.6 %173,096 13.0 %66,822 14.6 %485,481 
Segment operating income$355,944 15.3 %$139,610 10.5 %$18,856 4.1 %514,410 
Divestiture-related gains/(charges) (3)(39,343)
Other (4)(599)
Amortization of intangible assets(69,041)
Operating income$405,427 
(1)Percentage of respective revenue, as applicable.
(2)Other segment items are principally selling, general, and administrative expenses allocated to segments.
(3)During fiscal years 2026 and 2025, we divested businesses from our U.S. Services and Outside the U.S. Segments, respectively.
(4)Other expenses include credits and costs that are not allocated to a particular segment.
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Maximus, Inc.
Consolidated Free Cash Flows - Non-GAAP
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands)
Net cash (used in) operating activities(124,987)(182,718)(179,863)(220,000)
Purchases of property and equipment and capitalized software(11,980)(15,488)(28,752)(55,686)
Free cash flow (Non-GAAP)$(136,967)$(198,206)$(208,615)$(275,686)

Maximus, Inc.
Non-GAAP Adjusted Results - Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share
(Unaudited)
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(dollars in thousands, except per share data)
Net income$103,593 $105,981 $295,599 $243,746 
Provision for income taxes34,565 36,986 95,360 100,636 
Interest expense23,878 22,657 66,805 61,648 
Other (income)/expense, net(608)48 (1,639)(603)
Amortization of intangible assets20,187 23,010 60,785 69,041 
Divestiture-related charges/(gains)(1,162)— (10,147)39,343 
Depreciation and amortization of property, equipment, and capitalized software11,874 9,607 37,091 27,502 
Capitalized software impairment charges— — 6,914 — 
Adjusted EBITDA (Non-GAAP)$192,327 $198,289 $550,768 $541,313 
Net income margin (GAAP)*8.1 %7.9 %7.5 %5.9 %
Adjusted EBITDA margin (Non-GAAP)*15.0 %14.7 %14.0 %13.2 %
* Margins are calculated as a percentage of revenue
Net income$103,593 $105,981 $295,599 $243,746 
Add back: Amortization of intangible assets, net of tax14,878 16,958 44,799 50,883 
Add back: Divestiture-related charges/(gains), net of tax(856)— (7,478)39,343 
Adjusted net income excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP)$117,615 $122,939 $332,920 $333,972 
Diluted earnings per share$1.95 $1.86 $5.45 $4.20 
Add back: Effect of amortization of intangible assets on diluted earnings per share0.28 0.30 0.83 0.88 
Add back: Effect of divestiture-related charges/(gains) on diluted earnings per share(0.01)— (0.14)0.67 
Adjusted diluted earnings per share excluding amortization of intangible assets and divestiture-related adjustments (Non-GAAP)$2.22 $2.16 $6.14 $5.75 
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