MAXIMUS(MMS) - 2025 Q2 - Quarterly Results

Revenue Performance - Revenue for Q2 FY2025 increased 1.0% to $1.36 billion, with organic growth of 3.0$777.9 million, all organic growth from multiple sources[5]. - U.S. Services Segment revenue decreased 9.0% to $442.4 million, attributed to prior year excess volumes from Medicaid-related activities[8]. - Outside the U.S. Segment revenue decreased to$141.5 million, with positive organic growth of 4.6% partially offsetting the decline[10]. - Revenue for the three months ended March 31, 2025, was $1,361,786 thousand, a slight increase from$1,348,357 thousand for the same period in 2024, representing a growth of 1.73%[38]. Earnings and Profitability - Diluted earnings per share were $1.69, and adjusted diluted earnings per share were$2.01, compared to $1.31 and$1.57 for the prior year period[4]. - Net income for the three months ended March 31, 2025, was $96,569 thousand, up from$80,510 thousand in the prior year, indicating a year-over-year increase of 19.93%[37]. - Gross profit margin improved to 24.9% for the three months ended March 31, 2025, compared to 23.6% for the same period in 2024[38]. - Operating income for the three months ended March 31, 2025, was $152,968 thousand, up from$127,494 thousand in the same period last year, reflecting a growth of 19.98%[38]. - Adjusted EBITDA for the three months ended March 31, 2025, was $186,406,000, compared to$157,340,000 in the prior year, reflecting a year-over-year increase of 18.5%[44]. - The adjusted EBITDA margin improved to 13.7% for the three months ended March 31, 2025, up from 11.7% in the same quarter of 2024[44]. Guidance and Forecast - Full year revenue guidance for FY2025 is raised to a range of $5.25 billion to$5.4 billion, an increase of $50 million[17]. - Adjusted diluted earnings per share guidance for FY2025 is now expected to range between$6.30 and $6.60, an increase of$0.40[19]. - Free cash flow guidance remains unchanged at between $355 million and$385 million for FY2025[20]. Cash Flow and Assets - Cash, cash equivalents, and restricted cash at the end of the period increased to $155,938 thousand from$118,340 thousand year-over-year, marking a growth of 31.7%[37]. - Cash flows from operating activities for the three months ended March 31, 2025, were $42,714 thousand, down from$130,488 thousand in the prior year, a decline of 67.24%[37]. - Free cash flow for the three months ended March 31, 2025, was $25,508,000, a significant decline from$105,188,000 in the same quarter of 2024, representing a decrease of 75.7%[43]. - The company reported net cash used in operating activities of $(37,282,000) for the six months ended March 31, 2025, compared to$152,096,000 in the same period of 2024[43]. Balance Sheet - Total assets increased to $4,199,772 thousand as of March 31, 2025, compared to$4,131,508 thousand on September 30, 2024, reflecting a growth of 1.65%[35]. - Total liabilities rose to $2,532,298 thousand as of March 31, 2025, compared to$2,288,693 thousand on September 30, 2024, an increase of 10.66%[35]. - The company reported a decrease in accounts receivable, net, to $1,097,404 thousand as of March 31, 2025, from$879,514 thousand on September 30, 2024, indicating a significant increase of 24.83%[35]. Dividends and Amortization - The company paid cash dividends of $16,901 thousand during the three months ended March 31, 2025, compared to$18,309 thousand in the same period last year, a decrease of 7.66%[37]. - Amortization of intangible assets for the three months ended March 31, 2025, was $22,996,000, slightly higher than$21,641,000 in the same period of 2024, indicating a year-over-year increase of 6.3%[44]. Segment Performance - Maximus has divested businesses from its Outside the U.S. Segment during fiscal years 2025 and 2024, impacting overall segment performance[40]. - Net income for the six months ended March 31, 2025, was $137,765,000, slightly down from$144,658,000 in the same period of 2024, indicating a decrease of 4.8%[44].