Maximus, Inc. Earnings Recaps
Q3 2026
Aug 8, 2026
Shares fell 6.3% as investors reacted negatively to a cautionary outlook driven by a customer-directed pause in performance incentives on Maximus’ VA Medical Disability Exam program, which is set to weigh on fourth quarter profitability and margins.
Key takeaways
- Q3 revenue of $1.28 billion met expectations but reflected a pullback from prior-year temporary surges in natural disaster support and clinical volumes, particularly impacting the U.S. Federal Services segment.
- Adjusted EBITDA margin improved slightly to 15.0% from 14.7% year-over-year, reflecting operational efficiencies rather than volume growth.
- U.S. Federal Services operating margin rose to 18.6% despite revenue challenges; however, a pause in incentives on the VA MDE contract will pressure margins starting Q4.
- U.S. Services revenue held steady at $418 million, with a positive growth outlook for Q4 driven by Medicaid-related state engagements.
- Operating cash flow was negative $125 million, with elevated DSO of 98 days due to administrative delays at a key federal customer, though collections have begun to improve in July.
Q2 2026
May 8, 2026
Maximus’s shares edged up 0.5% following Q2 results largely in line with expectations, reflecting steady revenue but limited upside amid ongoing segment challenges and cautious near-term outlook.
Key takeaways
- Revenue came in at $1.31 billion, consistent with guidance and prior expectations, with U.S. Federal Services revenue down year-over-year due to lapping natural disaster work but up 1.5% organically.
- Adjusted EBITDA margin improved to 14.4%, aided by automation initiatives, supporting a slight increase in adjusted EPS to $2.07 from $2.01 a year ago.
- U.S. Federal Services segment margin expanded to 17.6%, prompting a raised margin guidance for the segment.
- U.S. Services segment revenue declined to $416 million, still impacted by a non-cash $6.9 million asset impairment, though margin excluding this charge improved sequentially.
- Outside U.S. segment remains unprofitable with a $3.1 million operating loss, as the company continues to reshape this business and pursue growth opportunities in select geographies.
Q3 2025
Aug 8, 2025
Maximus reported robust performance in Q3 FY2025, achieving a 24% increase in adjusted diluted earnings per share and 15% growth in adjusted EBITDA amid ongoing shifts in governmental policy.
Key takeaways
- Adjusted diluted EPS reached $2.16, up 24% year-over-year, reflecting strong operational performance.
- Revenue increased 4.3% year-over-year to $1.35 billion, driven by organic growth.
- The company is well-positioned to leverage new Medicaid and SNAP legislative changes, anticipating increased demand for their services over the next 18 to 24 months.
- Successful contract modifications with state clients indicate growing confidence in the U.S. Services segment's growth trajectory.
- Maximus focuses on delivering technology-led solutions to enhance efficiencies and user experiences in governmental services.