Maximus, Inc. Reports $1.35 Billion Revenue and $106 Million Net Income for Q2 2025

Maximus, Inc. reported a revenue of $1.35 billion for the three months ended June 30, 2025, reflecting a 2.5% increase from $1.31 billion in the same period last year. For the nine months ending June 30, 2025, revenue rose to $4.11 billion, up 3.1% from $3.99 billion in the prior year. The company's net income for the latest quarter was $106 million, or $1.86 per diluted share, compared to $90 million, or $1.46 per diluted share, in the previous year. The increase in profitability was attributed to improved operational efficiencies and a higher gross profit margin, which rose to 26.7% from 25.3% year-over-year.

The financial performance was bolstered by the U.S. Federal Services segment, which generated $761 million in revenue, a significant increase from $683 million in the prior year, driven by growth in clinical programs and increased contract volumes. However, the U.S. Services segment experienced a decline in revenue, falling to $440 million from $472 million, primarily due to the normalization of activities following a surge in Medicaid redetermination efforts in the previous fiscal year. The Outside the U.S. segment also saw a decrease in revenue, reporting $147 million compared to $159 million, impacted by recent divestitures.

Maximus has made strategic moves, including the divestiture of its businesses in Australia and Korea, which contributed to a $39.3 million charge in divestiture-related expenses. The company continues to focus on enhancing its service offerings, particularly through the launch of its Total Experience Management (TXM) platform, aimed at improving government service delivery. The company also reported a significant increase in accounts receivable, which rose to $1.42 billion, reflecting delays in cash collections from major contracts.

Looking ahead, Maximus anticipates a return to normal cash flow levels as administrative delays in billing and contract approvals are resolved. The company expects to maintain its growth trajectory, driven by ongoing demand for its services amid increasing government focus on modernization and efficiency. The effective tax rate for the fiscal year is projected to be between 28% and 29%, influenced by the recent divestitures. Overall, Maximus remains optimistic about its strategic initiatives and market position as it continues to adapt to evolving government needs.