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Jun 30
Maximus Q3 2025 Earnings Report
Maximus reported its fiscal year 2025 third quarter results, demonstrating revenue growth and increased earnings per share, leading to a third consecutive raise in FY25 guidance.
Key Takeaways
Maximus delivered a strong third quarter for fiscal year 2025, with revenue increasing by 2.5% to $1.35 billion and diluted EPS rising to $1.86. Adjusted diluted EPS also saw a significant increase to $2.16. The U.S. Federal Services Segment was a primary driver of organic growth, while the U.S. Services Segment experienced a decrease due to prior year's temporary Medicaid-related activities. The company raised its full-year fiscal 2025 guidance for revenue, adjusted EBITDA margin, and adjusted diluted EPS.
Revenue increased by 2.5% to $1.35 billion in Q3 FY25, up from $1.31 billion in the prior year period.
Diluted earnings per share rose to $1.86, and adjusted diluted earnings per share reached $2.16, compared to $1.46 and $1.74 respectively in the prior year.
Organic growth was 4.3%, primarily driven by strong performance in the U.S. Federal Services Segment.
Maximus is raising its full-year fiscal 2025 guidance for revenue, adjusted EBITDA margin, and adjusted diluted earnings per share for the third consecutive time.
Maximus
Maximus
Maximus Revenue by Segment
Revenue by Segment
U.S. Federal Services Revenue
CapyFin.comU.S. Services Revenue
CapyFin.comOutside the U.S. Revenue
CapyFin.com Forward Guidance
Maximus is raising its fiscal year 2025 guidance for revenue, adjusted EBITDA margin, and free cash flow, reflecting confidence in continued strong performance.
Positive Outlook
- Full-year revenue guidance increased by $100 million at the midpoint, now expected to range between $5.375 billion and $5.475 billion.
- Adjusted EBITDA margin guidance improved by 130 basis points to approximately 13% for the full year.
- Adjusted diluted earnings per share guidance increased by $1.00 at the midpoint, now expected to range between $7.35 and $7.55 per share.
- Free cash flow guidance increased by $10 million at the midpoint, now expected to range between $370 million and $390 million.
- Weighted average shares outstanding forecast remains unchanged at approximately 58 million shares for fiscal year 2025.
Challenges Ahead
- Interest expense is estimated to be $81 million for fiscal year 2025.
- The full-year tax rate is still expected to range between 28% and 29%.
- Operating cash flows in Q3 were impacted by payment delays on two large programs, leading to a peak in Days Sales Outstanding.
- Recent quarters of increased borrowings are due to a combination of common stock purchases and temporary working capital needs.
- No other specific negative forward guidance points were explicitly stated beyond the financial estimates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income