Core Viewpoint - Maximus (MMS) has experienced significant selling pressure, resulting in a 22.6% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) indicates that MMS is currently in oversold territory with a reading of 20.85, suggesting a potential trend reversal is imminent [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating oversold conditions [2][3] Group 2: Fundamental Indicators - Analysts have raised their earnings estimates for MMS by 2.8% over the last 30 days, reflecting a strong consensus among sell-side analysts, which often leads to price appreciation [7] - MMS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Core Insights - Maximus (MMS) reported mixed first-quarter fiscal 2026 results, with earnings per share of $1.85 beating the Zacks Consensus Estimate by 0.5% and increasing 14.9% year over year, while total revenues of $1.4 billion missed the consensus mark by 4.6% and declined 4.1% from the previous year [1][7] Segmental Revenues - The U.S. Federal Services segment generated revenues of $786.6 million, exceeding the estimate of $775.2 million and showing growth from the previous year [2] - Revenues from the Outside the U.S. segment decreased by 15.7% year over year to $143.2 million, missing the estimate of $162.1 million [2] - The U.S. Services segment reported revenues of $415.2 million, down 8.2% year over year and below the estimate of $470.8 million [2] - The book-to-bill ratio for the quarter was 0.2 [2] Sales and Pipeline - Year-to-date signed contract awards totaled $246 million as of December 31, 2025, while contracts pending amounted to $699 million, impacted by the U.S. federal government shutdown [3] - The sales pipeline stands at $59.1 billion, which includes $3.82 billion in pending proposals, $2.36 billion in proposals in preparation, and $52.9 billion in tracking opportunities [3] Operating Performance - Operating income reached $146.2 million, a 68.5% increase year over year, surpassing the estimate of $136.8 million [4] - The operating income margin improved to 10.9%, up 470 basis points year over year and above the expected 9.7% [4] Key Balance Sheet and Cash Flow Figures - At the end of the quarter, cash and cash equivalents were $137.6 million, down from $222.4 million in the prior quarter [5] - Long-term debt increased to $1.5 billion from $1.3 billion at the end of September [5] - The company utilized $244.4 million in cash for operations, with capital expenditures of $6.2 million during the quarter [5] Fiscal 2026 Guidance - For fiscal 2026, total revenues are expected to be between $5.20 billion and $5.35 billion, below the Zacks Consensus Estimate of $5.45 billion [6] - Adjusted earnings are anticipated in the range of $8.05 to $8.35 per share, with the midpoint of $8.20 exceeding the current consensus estimate of $8.19 [6] - The adjusted EBITDA margin is now expected to be approximately 14%, an increase from the previously guided range of 13.6%–13.7% [8] - Free cash flow is projected to be between $450 million and $500 million, with interest expenses estimated at approximately $75 million [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the prece ...

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2026, the company reported revenue of $1.35 billion, representing a 4.1% decline compared to the prior year period, with approximately 1.5% of this decline attributed to the divestiture of the outside the U.S. segment [22][24] - Adjusted EBITDA margin was 12.7% and adjusted EPS was $1.85 for the quarter, compared to 11.2% and $1.61, respectively, for the prior year period [23] - The company raised earnings guidance and narrowed revenue guidance for the full fiscal year 2026 [4][32] Business Line Data and Key Metrics Changes - Revenue for the U.S. Federal Services segment increased by 0.8% to $787 million, all growth being organic, with an operating income margin of 16.5% [24] - The U.S. Services segment revenue decreased to $415 million from $452 million, with an operating income margin of 7.1% compared to 9.0% in the prior year period [25] - The outside the U.S. segment revenue decreased to $143 million from $170 million, with an operating loss of $1.4 million compared to an operating profit of $8.1 million in the prior period [28] Market Data and Key Metrics Changes - The company reported a pipeline of sales opportunities totaling $59.1 billion, up from $51.3 billion reported at the end of the previous quarter [8] - The share of new work in the total pipeline is 59%, with the U.S. Federal Services segment's share at 61% [8] - Proposals pending or submitted, and proposals currently being prepared total a combined $6.2 billion, a 55% increase from the previous year [9] Company Strategy and Development Direction - The company is focusing on expanding its use of automation and AI to enhance service delivery and improve financial performance [5][16] - The strategic evolution includes becoming a trusted provider of technology-driven solutions to government customers, with a focus on Medicaid and SNAP programs [5][12] - The company anticipates that award activity will pick up across the remaining quarters of fiscal year 2026, with a focus on organic growth opportunities [8][34] Management's Comments on Operating Environment and Future Outlook - Management noted that the company operates in a resilient sector of government spending, largely unaffected by temporary shutdowns [4] - The company expects to see increased demand for tech-enabled services as states prepare for new Medicaid and SNAP requirements [34] - Management expressed confidence in the guidance for fiscal year 2026, highlighting the durability of essential services provided to government [34] Other Important Information - The company completed the divestiture of its child support business, which comprised approximately $25 million of annual revenue, recognizing a gain of approximately $9 million [21] - The company was selected as the single awardee of the U.S. General Services Administration Blanket Purchase Agreement for government experience contact center services [19] Q&A Session Summary Question: How much of the revenue guidance is in hand versus new work? - Management indicated that there is virtually no new work remaining in the forecast, with initial guidance having about 3% of not yet new work [37] Question: Can you provide more color on segment revenue guidance and potential drivers? - Management expressed confidence in the guidance range, noting that U.S. Services revenue was down more than expected but anticipates year-over-year comparisons to improve [39] Question: What is the receptivity towards the new SNAP offering? - Management reported positive receptivity to the Accuracy Assistant tool, which helps states reduce SNAP payment error rates [48] Question: Any updates on the VA contract timing? - Management confirmed that current contracts have a performance period through December 31, 2026, and they are confident in their performance under the current contract [56] Question: What are the drivers for lower volumes in U.S. Services? - Management noted that there was no single driver for the revenue change, and the lower volumes are expected to improve as the year progresses [68]

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2026, the company reported revenue of $1.35 billion, representing a 4.1% decline compared to the prior year period, primarily due to the divestiture of the child support business and organic movements [22][24] - Adjusted EBITDA margin was 12.7% and adjusted EPS was $1.85, compared to 11.2% and $1.61 for the prior year period, indicating a year-over-year improvement driven by the performance of the U.S. Federal Services segment [23][24] - The company raised earnings guidance and narrowed revenue guidance for the full fiscal year 2026, with the bottom end of the revised revenue guidance set at $5.2 billion and the top end at $5.35 billion [31][32] Business Line Data and Key Metrics Changes - Revenue for the U.S. Federal Services segment increased by 0.8% to $787 million, all growth being organic, with an operating income margin of 16.5% [24][25] - The U.S. Services segment revenue decreased to $415 million from $452 million, with an operating income margin of 7.1%, reflecting lower volumes and demand for engagement [25][26] - The outside the U.S. segment revenue decreased to $143 million, with an operating loss of $1.4 million, primarily due to the divestiture of Australian and South Korean businesses [27][28] Market Data and Key Metrics Changes - The company reported a pipeline of sales opportunities totaling $59.1 billion, up from $51.3 billion, with a significant portion related to Medicaid and SNAP opportunities [8][9] - The share of new work in the total pipeline is 59%, with the U.S. Federal Services segment accounting for 61% of the total pipeline [8] Company Strategy and Development Direction - The company is focusing on expanding its use of automation and AI to enhance service delivery and improve financial performance, which is expected to drive shareholder value [5][16] - The strategic evolution includes becoming a trusted provider of technology-driven solutions to government customers, with a focus on Medicaid and SNAP programs [4][5] Management's Comments on Operating Environment and Future Outlook - Management noted that the government shutdown had minimal direct impact on the contract portfolio, but there were slower payments from customers and delays in award decisions [5][29] - The company anticipates that award activity will pick up in the remaining quarters of fiscal year 2026, with a focus on organic growth potential in fiscal year 2027 and beyond [8][34] Other Important Information - The company completed the divestiture of its child support business, which generated approximately $25 million in annual revenue, to focus on higher-value services [21] - Maximus was recognized on Forbes' list of America's Best Employers for 2026, highlighting employee contributions to customer trust [20] Q&A Session Questions and Answers Question: How much of the revenue guidance is in hand versus new work? - Management indicated that there is virtually no new work remaining in the forecast, with initial guidance having about 3% of not yet new work [37] Question: Can you provide more color on the segment revenue guidance? - Management expressed confidence in the guidance range, noting that U.S. Services revenue was down more than expected but anticipates year-over-year organic growth to resume by Q4 [39] Question: What is the receptivity towards the new SNAP offering? - Management reported positive receptivity to the Accuracy Assistant tool, which helps states reduce SNAP payment error rates [48] Question: What are the drivers for lower volumes in U.S. Services? - Management noted that lower volumes were driven by several programs experiencing reduced demand, but they expect year-over-year comparisons to improve [68][76]

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2026, the company reported revenue of $1.35 billion, representing a 4.1% decline compared to the prior year period, with approximately 1.5% of this decline attributed to the divestiture of the outside the U.S. segment [22][23] - Adjusted EBITDA margin was 12.7% and adjusted EPS was $1.85 for the quarter, compared to 11.2% and $1.61, respectively, for the prior year period [23] - Cash used in operating activities was a net outflow of $244 million, and Free Cash Flow was a net outflow of $251 million for the quarter, reflecting expected seasonality and temporary delays in collections [29][30] Business Line Data and Key Metrics Changes - Revenue for the U.S. Federal Services segment increased by 0.8% to $787 million, all growth being organic, with an operating income margin of 16.5% [24] - The U.S. Services segment revenue decreased to $415 million from $452 million, with an operating income margin of 7.1%, down from 9.0% in the prior year period [25] - The outside the U.S. segment revenue decreased to $143 million from $170 million, with an operating loss of $1.4 million compared to an operating profit of $8.1 million in the prior period [27] Market Data and Key Metrics Changes - The company reported a pipeline of sales opportunities totaling $59.1 billion, up from $51.3 billion reported at the end of the previous quarter, with 59% of the pipeline being new work [7][8] - Signed awards totaled $246 million in the first quarter, with a Book-to-Bill Ratio of approximately 0.5x, impacted by light award activity [6] Company Strategy and Development Direction - The company is focusing on expanding its use of automation and AI to enhance service delivery and improve financial performance, aiming to drive shareholder value [5][16] - The strategic evolution includes becoming a trusted provider of technology-driven solutions to government customers, with a focus on Medicaid and SNAP programs [4][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the government shutdown had a minimal direct impact on the contract portfolio, but there were slower payments from customers and delays in award decisions [5] - The company anticipates that award activity will pick up in the remaining quarters of fiscal year 2026, with guidance reflecting improvement in earnings outlook and narrowing revenue guidance [21][32] Other Important Information - The company completed the divestiture of its child support business, which comprised approximately $25 million of annual revenue, recognizing a gain of approximately $9 million [21] - The company was selected as the single awardee of the U.S. General Services Administration Blanket Purchase Agreement for government experience contact center services [19] Q&A Session Summary Question: How much of the revenue guidance is in hand versus new work? - Management indicated that there is virtually no new work remaining in the forecast, with initial guidance having about 3% of not yet new work [37] Question: Can you provide more color on the segment revenue guidance? - Management expressed confidence in the guidance range, noting that U.S. Services revenue was down more than expected but anticipated improvement in year-over-year comparisons [39] Question: What are the types of programs that could be awarded under the GSA blanket award? - Management explained that the underlying platform includes a multi-channel contact center environment, with capabilities for intelligent document processing and analytics [42][46] Question: What has been the receptivity towards the new SNAP offering? - Management reported positive receptivity to the Accuracy Assistant tool, which helps states reduce SNAP payment error rates [48][49] Question: What are the drivers for lower volumes in U.S. Services? - Management noted that there was no single driver for the revenue change, with several programs experiencing lower volumes, but expected organic growth to resume by Q4 [68][80]

Fiscal 2026 First Quarter Earnings Call Bruce Caswell President & Chief Executive Officer February 5, 2026 1 | Maximus: Q1 FY26 Earnings Presentation Forward-looking Statements & Non-GAAP Information These slides should be read in conjunction with our most recent quarterly earnings press release, along with listening to or reading a transcript of management comments from our most recent quarterly earnings conference call. This document contains non-GAAP financial information. Management uses this informatio ...

Core Insights - Maximus (MMS) reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.84 per share, and showing an increase from $1.61 per share a year ago, resulting in an earnings surprise of +0.72% [1] - The company posted revenues of $1.35 billion for the quarter ended December 2025, which was 4.57% below the Zacks Consensus Estimate and a slight decrease from $1.4 billion in the previous year [2] - Maximus shares have increased by approximately 8.5% since the beginning of the year, outperforming the S&P 500's gain of 0.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.03 on revenues of $1.39 billion, while for the current fiscal year, the estimate is $8.19 on revenues of $5.45 billion [7] - The estimate revisions trend for Maximus was favorable prior to the earnings release, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Government Services industry, to which Maximus belongs, is currently ranked in the top 7% of over 250 Zacks industries, suggesting a strong performance potential compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Date: February 5, 2026 FOR IMMEDIATE RELEASE CONTACT: James Francis, VP - IR IR@maximus.com Maximus Reports Fiscal Year 2026 First Quarter Results Earnings outlook raised on resilient performance and strong pipeline supports future outlook (Tysons, Va. - February 5, 2026) - Maximus (NYSE: MMS), a leading provider of government services, reported financial results for the three months ended December 31, 2025. Highlights for the first quarter of fiscal year 2026 include: "Our first quarter results reflect res ...

Core Insights - Maximus has launched TMAccuracy Assistant, an AI-powered solution designed to enhance the accuracy of the Supplemental Nutrition Assistance Program (SNAP) for state governments [1][4] - The solution aims to provide real-time case file analysis to identify data inconsistencies and prevent costly errors before they occur [1][5] Group 1: Product Features - TMAccuracy Assistant utilizes predictive analytics and intelligent automation to detect data inconsistencies and flag accuracy issues [1][6] - The tool identifies high-risk cases through real-time analysis, ensuring that the information used for decision-making is accurate before benefits are issued [4][6] - It offers features such as eligibility inconsistency identification, side-by-side support for eligibility staff, and monitoring and reporting through interactive dashboards [6] Group 2: Market Context - The launch of this solution is timely as states prepare for federal changes requiring them to fund a portion of SNAP benefits starting in October 2027, based on their payment error rates [3] - States with error rates exceeding 6% will incur progressively higher costs for SNAP food benefits, emphasizing the need for improved accuracy in eligibility determinations [3] Group 3: Company Commitment - Maximus emphasizes its commitment to helping governments improve their programs through innovative, tailored solutions that enhance program integrity and reduce risks [4][5] - The company aims to strengthen SNAP programs by providing automated quality assurance that prevents errors before they occur, ultimately leading to a lower error rate and a more robust program [5]