MAXIMUS(US:MMS)2025-08-07 11:58Revenue and Growth - Revenue for Q3 FY2025 increased by 2.5% to $1.35 billion, compared to $1.31 billion in the prior year period, with organic growth of 4.3% driven primarily by the U.S. Federal Services Segment[3] - The U.S. Federal Services Segment revenue increased by 11.4% to $761.2 million, driven by elevated volumes in clinical programs[5] - Revenue for the three months ended June 30, 2025, was $1,348,400, a slight increase from $1,314,929 in the prior year, marking a growth of 3%[35] - U.S. Federal Services revenue reached $761,174, up from $683,347, indicating a growth of 11% year-over-year[35] - The company has divested businesses from its Outside the U.S. Segment during fiscal years 2025 and 2024, impacting overall revenue[38] Earnings and Profitability - Diluted earnings per share for Q3 FY2025 were $1.86, and adjusted diluted earnings per share were $2.16, compared to $1.46 and $1.74 in the prior year period[4] - Operating income for the three months ended June 30, 2025, was $165,672, compared to $141,739 in the prior year, representing a growth of 17%[35] - For the three months ended June 30, 2025, operating income was $165,672,000, compared to $141,739,000 for the same period in 2024, representing a year-over-year increase of 16.9%[41] - Adjusted EBITDA for the nine months ended June 30, 2025, was $541,313,000, up from $470,439,000 in the same period of 2024, reflecting a growth of 15.0%[41] - The adjusted EBITDA margin for the three months ended June 30, 2025, improved to 14.7%, compared to 13.1% in the same period of 2024[41] Cash Flow and Financial Position - Free cash flow guidance for FY2025 is increased to a range of $370 million to $390 million, reflecting improved collections anticipated through the end of the fiscal year[19] - Cash used in operating activities for Q3 FY2025 totaled $182.7 million, with Days Sales Outstanding (DSO) increasing to 96 days[15] - Cash flows from operating activities showed a net cash used of $182,718 for the three months ended June 30, 2025, compared to a net cash provided of $199,328 in the prior year[34] - The company reported net cash used in operating activities of $(182,718,000) for the three months ended June 30, 2025, compared to $199,328,000 for the same period in 2024[40] - Cash, cash equivalents, and restricted cash at the end of the period was $105,376, down from $147,801, a decrease of 29%[34] Guidance and Future Outlook - Full-year revenue guidance for FY2025 is raised to a range of $5.375 billion to $5.475 billion, an increase of $100 million at the midpoint[17] - The adjusted EBITDA margin for FY2025 is expected to be approximately 13%, an improvement of 130 basis points from prior guidance[18] Assets and Liabilities - Total assets increased to $4,462,293, up from $4,131,508, representing a growth of 8% year-over-year[32] - Total liabilities increased to $2,689,257, up from $2,288,693, reflecting a rise of 17% year-over-year[32] - Shareholders' equity decreased to $1,773,036 from $1,842,815, a decline of 4%[32] Net Income and Profit Margins - Net income for the three months ended June 30, 2025, was $105,981, compared to $89,752 for the same period last year, reflecting a 18% increase[34] - Gross profit margin improved to 26.7% for the three months ended June 30, 2025, compared to 25.3% in the same period last year[35] - Net income for the three months ended June 30, 2025, was $105,981,000, an increase from $89,752,000 in the same period of 2024, marking a growth of 18.1%[41] - Adjusted net income excluding amortization of intangible assets and divestiture-related charges for the nine months ended June 30, 2025, was $333,972,000, compared to $285,936,000 in the same period of 2024, reflecting a growth of 16.8%[41]