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Sep 30, 2025
Maximus Q4 2025 Earnings Report
Maximus reported strong fourth quarter results with higher profitability, robust cash flow, and margin expansion.
Key Takeaways
Maximus delivered a solid Q4 with increased operating income and improved adjusted EPS. The company generated strong free cash flow and maintained a stable revenue base, despite a slight decline in certain segments. Operating efficiencies and cost controls supported margin expansion.
Q4 revenue was flat year-over-year at $1.32 billion, indicating stability across core operations.
Net income rose to $75.3 million, driven by improved operational efficiency.
Free cash flow for the quarter reached $641.8 million, reflecting strong cash generation.
Adjusted EPS came in at $1.62, up from $1.46 in the prior year quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal year 2026, Maximus expects stable revenue with improved profitability, driven by margin expansion and AI-driven productivity enhancements.
Positive Outlook
- FY26 revenue guidance set between $5.225B and $5.425B
- Adjusted EBITDA margin expected to improve to approximately 13.7%
- Adjusted EPS forecasted between $7.95 and $8.25
- Free cash flow projected between $450M and $500M
- Focus on AI-enabled automation and federal market expansion for long-term growth
Challenges Ahead
- Lower revenue expected from outside the U.S. due to past divestitures
- Continued headwinds in U.S. Services segment from reduced Medicaid activity
- Expense pressures from severance charges booked in Q4 FY25
- Interest expense expected to be $69 million in FY26
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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