Maximus, Inc. reported a revenue of $1.35 billion for the three months ended December 31, 2025, a decrease of 4.1% from $1.40 billion in the same period last year. The company's net income rose significantly to $93.9 million, or $1.70 per diluted share, compared to $41.2 million, or $0.69 per diluted share, in the prior year. This increase in profitability was attributed to a reduction in selling, general, and administrative expenses, which fell to $152.2 million from $191.7 million, and a higher gross profit margin of 23.7%, up from 21.5% a year earlier.
The decline in revenue was influenced by several factors, including the divestiture of the child support business, which generated approximately $25 million in annual revenue, and a decrease in organic revenue. The U.S. Services segment experienced an 8.2% drop in revenue, while the Outside the U.S. segment saw a 15.7% decline. In contrast, the U.S. Federal Services segment reported a slight revenue increase of 0.8%, benefiting from strong volumes in clinical assessments.
Operationally, Maximus has made strategic moves, including the divestiture of its child support business in December 2025, which resulted in a gain of $9 million. The company continues to focus on enhancing its technology capabilities and expanding its service offerings to government agencies. As of December 31, 2025, Maximus had approximately 54,549 shares outstanding, with a total shareholders' equity of $1.72 billion.
Looking ahead, Maximus anticipates improved cash flows in the second half of fiscal 2026, despite experiencing delays in cash collections due to seasonal factors and government shutdowns. The company reported a net cash used in operating activities of $244.4 million for the quarter, compared to $80 million in the same period last year. Maximus remains committed to leveraging its technology and operational efficiencies to drive future growth and profitability, with expectations of operating margins in the U.S. Federal Services segment ranging between 16.5% and 17% for the fiscal year.
About MAXIMUS, INC.
Maximus, Inc. provides government-focused health and human services solutions, including program operations, clinical assessments, and technology modernization. Serving federal, state, and international markets, it leverages digital engagement, AI, and analytics to improve service delivery and outcomes. With a strong emphasis on compliance, cybersecurity, and workforce development, Maximus aims to enhance government efficiency, citizen experience, and community well-being through innovative, scalable solutions.
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