Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation, including statements regarding the future financial position of CareDx®, Inc. (together with its subsidiaries, "CareDx" or the "Company"), including financial targets and ...

Group 1 - Waystar Holding Corp. (NASDAQ:WAY) is considered a promising mid-cap healthcare stock with a current price target of $41, indicating a potential upside of nearly 25% for investors [1][2] - The company's growth prospects are bolstered by its strategic focus on AI-enabled automation in revenue cycle management, which is expected to enhance efficiency and cost-effectiveness [2] - Waystar's acquisition of Iodine Software is part of its inorganic growth strategy, aimed at expanding its addressable market and improving client retention through cross-selling opportunities [2] Group 2 - Market sentiment towards Waystar is highly positive, with 16 out of 17 analysts giving a Buy rating, resulting in an estimated 1-year average price target of $48.44, implying a 47.5% upside from the current level [3] - Waystar offers a comprehensive cloud-based software platform for payment processing in the healthcare industry, covering functions such as payment clearance, claims management, revenue capture, reporting, and analytics [4]

Core Insights - Maximus reported significant achievements in fiscal year 2025, with revenue growth and profitability exceeding initial expectations, highlighting the essential nature of its services [1][2] - The company is focusing on expanding in U.S. Federal markets and leveraging AI-enabled automation for productivity improvements in fiscal year 2026 [1] Financial Performance - Revenue for fiscal year 2025 increased by 2.4% to $5.43 billion, up from $5.31 billion in the previous year, with organic growth of 3.9% driven by clinical program volume growth in the U.S. Federal Services Segment [2][8] - The operating margin for fiscal year 2025 was 9.7%, compared to 9.2% in the prior year, while the adjusted EBITDA margin improved to 12.9% from 11.6% [3][8] - Diluted earnings per share rose to $5.51 from $4.99, and adjusted diluted earnings per share increased to $7.36 from $6.11, primarily due to enhanced operating profitability [4][8] Segment Performance - U.S. Federal Services Segment revenue grew by 12.1% to $3.07 billion, driven by organic growth from clinical programs and increased contributions from natural disaster support activities [5][8] - The operating margin for the U.S. Federal Services Segment improved to 15.3% from 12.2% in the prior year, reflecting better operating leverage and productivity enhancements [6][8] - U.S. Services Segment revenue decreased by 7.7% to $1.76 billion, attributed to excess volumes from Medicaid-related activities in the previous fiscal year [7][8] - Outside the U.S. Segment revenue fell by 8.7% to $599.9 million, impacted by divestitures, although there was positive organic growth of 4.1% [10][11] Cash Flow and Shareholder Returns - Cash flows from operating activities totaled $429 million, with free cash flow of $366 million, compared to $515 million and $401 million in the prior year [15][8] - The company repurchased approximately 5.8 million shares for $457 million during the fiscal year, with an additional $30.7 million spent on share repurchases post-September 30, 2025 [16][8] - A quarterly cash dividend of $0.30 per share was declared, payable on December 1, 2025 [17][8] Fiscal Year 2026 Guidance - Maximus expects fiscal year 2026 revenue to range between $5.225 billion and $5.425 billion, with an adjusted EBITDA margin of approximately 13.7% [18][19] - Adjusted diluted earnings per share are anticipated to be between $7.95 and $8.25 [18][19] - Free cash flow is projected to be between $450 million and $500 million for fiscal year 2026 [19][8] Sales and Pipeline - Year-to-date signed contract awards totaled $4.7 billion, with pending contracts amounting to $331 million, resulting in a book-to-bill ratio of 0.9x [12][8] - The total sales pipeline was valued at $51.3 billion, with U.S. Federal Services Segment opportunities representing approximately 66% of this pipeline [13][8] Balance Sheet - As of September 30, 2025, cash and cash equivalents stood at $222 million, with gross debt of $1.35 billion, resulting in a leverage ratio of 1.5x [14][8] - The company demonstrated strong improvement in collections, with days sales outstanding (DSO) decreasing to 62 days from 96 days [15][8]