Transcripts

Maximus, Inc.'s management answers for the business every quarter. These are the exchanges that explain it best — verbatim, from the call transcripts preserved in Sources. Each link opens the full transcript at that page in a new tab.

Q2 FY2026 Earnings Call — May 7, 2026

The clearest read on the current margin thesis — technology that decouples labor from volume — plus why those AI gains land in Federal and not state work, how the new H.R. 1 Medicaid/SNAP revenue is actually earned, and a candid look at elevated federal receivables. · Open the full transcript →

The core margin engine: technology embedded in programs decouples labor cost from volume, lifting Federal segment margin to 17.6%.

David Mutryn, Chief Financial Officer: The operating income margin for this segment in the second quarter was 17.6% as compared to 15.3% in the prior-year period. […] This quarter’s segment margin is delivering on that commitment thanks to technology initiatives embedded in our programs that decouple labor costs from our ability to process more volumes.

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Capital-allocation discipline: buy back stock only below intrinsic value, within a 2x–3x leverage band, while still pursuing M&A.

David Mutryn, Chief Financial Officer: We have long said that we are opportunistic in our share repurchasing. To be more direct, we prioritize repurchasing when we believe our share price does not reflect the intrinsic value of the business based on a disciplined and conservative assessment. Going forward, we will continue to execute on our capital deployment priorities while considering near-term liquidity, the potential M&A opportunity set, and all within the constraint of our stated target net debt ratio of 2x to 3x. Even amidst market conditions that are favorable to share repurchases, we continue to seek acquisition targets to accelerate longer-term organic growth.

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How H.R. 1 revenue is earned: a tool surfaces eligibility inconsistencies; wrapped BPO services contact beneficiaries to fix them.

Bruce Caswell, President and CEO: At the heart, it is really that tool and then the services we can wrap around it to help states identify instances where there could be inconsistencies. The tool surfaces inconsistencies in the data, and then the BPO services are used to contact beneficiaries, obtain corrections, and ensure an accurate eligibility determination. On the Medicaid side, we have a community engagement tool designed to allow beneficiaries first to navigate whether they actually need to comply with the work requirements, because they may have conditions that meet the qualifications for exemption.

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The receivables scare defused: one federal program's retroactive invoicing rework on a funded contract — a timing issue, not a credit risk.

David Mutryn, Chief Financial Officer: A little more detail: this is a large program with extremely complex and data-intensive invoicing requirements. The slowdown in collections has occurred since November as we have worked with our customer on incorporating new and evolving requirements, many of which are retroactive, so may require rework of prior period invoices. This is a federal agency. We are operating under a funded contract, so we have full confidence that the outstanding invoices will be collected.

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Q4 & FY2025 Earnings Call — November 20, 2025

The annual strategy call: management frames the One Big Beautiful Bill Act's Medicaid work-requirement and SNAP error-rate provisions as the biggest U.S. Services opening since the ACA, defends margin expansion on flat revenue, and points its M&A at the defense market. · Open the full transcript →

The differentiation claim: the only public peer to document its contract mix — 54.4% performance-based — betting on measurable delivery.

Bruce Caswell, President and CEO: To our knowledge, Maximus is the only public company in our sector that has formally documented its mix of contracts that are performance-based, which stands at 54.4% for fiscal year 2025. We believe this distinction reinforces our leadership in driving accountable and measurable results.

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The hardest question — margins up on flat revenue: severance savings, flat SG&A despite growth, and capex rolling into amortization.

David Mutryn, Chief Financial Officer (answering CJS Securities): if you look at the margin guidance we laid out for each of the segments, all three are actually slightly higher than where they finished fiscal year 2025. […] you may notice on the P&L total company SG&A, if you consider that there was $40 million of divestiture charges in the first year in 2025, the rest of SG&A is essentially flat from 2024 to 2025 despite the revenue growth. […] a number of capitalized software projects that have been driving CapEx the past couple of years are now operational and therefore amortizing.

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Where the acquisition dollars point: a defense/national-security market growing ~9%, with roughly $50B addressable to Maximus.

Bruce Caswell, President and CEO (answering CJS Securities): We've been fairly explicit with our investors in the marketplace noting that our priority in the near term is growth in the U.S. Federal market. And within that, we do have a bias toward the defense and national security space. Our research suggests that the CAGR in that area over the next several years is north of about 9%. We also believe from our research that the overall services marketplace and software spend in the defense community is well in excess of $150 billion and we believe the addressable component for Maximus to be nearly $50 billion.

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Q3 FY2025 Earnings Call — August 7, 2025

The federal cost-cutting stress-test: management quantifies DOGE contract actions at under 0.5% of revenue and lays out the conflict-free, at-scale moat — enrollment broker in ~23 states, ~60% of Medicaid enrollees — that makes the coming work hard for rivals to take. · Open the full transcript →

Why a soft 0.8x book-to-bill misleads: on-contract growth (revenue +4.3%, EBITDA +15%) is its own engine when rebids are light.

Bruce Caswell, President and CEO: These awards translate into a book-to-bill of approximately 0.8x using our standard reporting for the trailing 12-month or TTM period. […] To illustrate, our book-to-bill at the end of the third quarter of fiscal year 2024 was 0.6x. Since then, revenue has grown 4.3% and adjusted EBITDA 15%, underscoring how on-contract growth is another important source of organic growth, providing added strength and resilience to our portfolio.

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The moat in one answer: conflict-free, no payer or provider ties, at scale — ~23 states, ~60% of enrollees, where 'scale is everything.'

Bruce Caswell, President and CEO (answering Charles Strauzer, CJS Securities): We've said for many years that we've made a very deliberate decision to remain independent and conflict-free and in particular, have no direct or indirect financial relationships with payers or providers, which is very critical to the work that we do in the Medicaid space and to a certain degree as well with Medicare. […] But I would just say size matters in this market, and we have an established presence as the Medicaid managed care enrollment broker in about 23 states presently. We probably serve roughly 60% of the individuals nationally in the Medicaid program. As evidence in the results this quarter, scale is everything in this area of the business.

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How EPS grows without revenue: deleveraging cuts interest expense $20–25M next year, worth roughly $0.30 of EPS.

David Mutryn, Chief Financial Officer (answering CJS Securities): our interest expense could be another tailwind to our EPS. If we look at our projected cash flow right just here ahead of us in the fourth quarter, as well as through next year, absent M&A or share repurchases, the deleveraging we anticipate would drive interest expense being $20 million to $25 million lower next year. So that could be like a $0.30 EPS type year-over-year improvement there.

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The direct question on federal contract cuts — SEC, IRS, DOGE — met with a number: conservatively under 0.5% of FY'25 revenue.

Brian Gesuale (Raymond James); Bruce Caswell, President and CEO: Maybe you could talk about what's going on at the SEC as well as maybe anything with the IRS or any other customers that you want to discuss. […] I'm really pleased that the impact of contract actions across our portfolio has been minimal. If we had to put a number on it, conservatively less than 0.5% of our FY '25 revenues.

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Q2 FY2025 Earnings Call — May 8, 2025

The first call after the DOGE shock: management puts a number on the damage (~$4M of revenue), explains why an activity-based Medicaid model can gain even as enrollment falls, and defends guidance held deliberately flat — 'downside by design.' · Open the full transcript →

The shock, quantified: DOGE actions total about $4M of FY2025 revenue — de minimis on a $5B+ base — though concession requests have begun.

Bruce Caswell, President and CEO: The impact of DOGE decisions on the business to date has been limited to a handful of small contracts where budget or scope has now been modified, some of which were already scheduled to end this fiscal year. More specifically, to date, these actions are estimated to total about $4 million in FY 2025 revenue, a de minimis figure on our base of $5 billion plus of revenue. […] As an example, like others in our sector, we have fielded requests for pricing concessions on certain contracts, which leads to a process of mutual negotiation in due course.

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The counterintuitive defense: because contracts pay per activity, tighter eligibility checks can raise volumes even as rolls shrink.

Bruce Caswell, President and CEO: As discussed in February, changes that require customer engagement, such as verifying eligibility, typically increase our activity volume, which is our primary contracting model for state Medicaid programs. Therefore, a reduction in Medicaid recipients may not necessarily decrease consumer engagement, especially if eligibility verification or activity reporting requirements become more frequent than today. Additionally, in many of our largest states, we also manage state-based exchanges where customers can enroll if they are no longer eligible for Medicaid. This helps maintain our ongoing engagement with those consumers.

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The candid admission: civilian-agency pipeline has slowed, but the disruption pushes work into contract bridges that favor incumbents.

Bruce Caswell, President and CEO (answering Charlie Strauzer, CJS Securities): There has been some slowdown, however, and reduction even in the pipeline in the civilian agency space. […] this has led to contract bridges and extensions that benefit incumbents, including Maximus

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Q4 & FY2023 Earnings Call — November 16, 2023

The foundational teach on how Maximus makes money: the post-pandemic Medicaid 'redetermination' restart and its outsized flow-through to profit, the segment-margin mechanics behind it, and a portfolio tilting decisively toward federal work. · Open the full transcript →

The three step-ups that reshaped earnings: Medicaid redetermination restart, VA disability-exam volumes, and student-loan servicing.

David Mutryn, Chief Financial Officer: the second half of the year looked quite different from the first half as there were several sizable step-ups in earnings power of the core business as Medicaid redeterminations commenced in the third quarter in US services and volumes ramped on both the Veterans Affairs Medical Disability Exam contracts, which comprise the VES business and the student loan servicing contract in US Federal services.

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The margin mechanics of the redetermination cycle: US Services swung from underweight to an 11.6% Q4 margin as paused Medicaid work resumed.

David Mutryn, Chief Financial Officer: Let me recap the margin trend of this segment. Last year, in fiscal 2022, the first half of the year was overweight from the last of the profitable short-term COVID response work, while the second half of the year was underweight. This year, the first half remained underweight until the paused Medicaid redetermination commenced in the third quarter, yielding margin improvement in the back half of the year as we expected. With the full period contribution of redeterminations US services realized an 11.6% margin in the fourth quarter.

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Capital-allocation priorities, ranked: organic investment, dividend growth, then M&A — the long-term preference.

David Mutryn, Chief Financial Officer: Looking forward, our capital allocation priorities are unchanged. First, we fund organic investments, which are typically a combination of capital expenditures and expenses. Second, we maintain a dividend that we intend to grow over time with earnings and as evidenced by the recent quarterly dividend increase announcement to $0.30 per quarter. And third, strategic acquisitions intended to accelerate organic growth.

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The portfolio shift: U.S. Federal went from under half of backlog two years earlier to two-thirds; a 7% dividend raise signals confidence.

Bruce Caswell, President and CEO: Just two years ago, our US Federal Services Segment accounted for less than half of our backlog. Today, the Segment makes up two-thirds of our backlog. […] During the quarter, we announced a 7% increase in our quarterly dividend, raising it to $0.30 a share. As we stated in the press release, this dividend increase demonstrates our confidence in the earnings growth reflected in our guidance.

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The unit economics: redeterminations added ~$15M of quarterly US Services operating income ($40M→$55M), worth $0.15–$0.30 of EPS.

David Mutryn, Chief Financial Officer (answering Charlie Strauzer, CJS Securities): We do continue to see that contribution in line with the $0.15 to $0.30 range that we’ve given before. And I think you can see that just by looking at the total US services OI, which in Q1 and Q2 of fiscal year ’23 was more in the $40 million range per quarter. And then in Q4, it was at $55 million. So kind of a $15 million OI increase really driven by the redeterminations.

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More calls

Q1 FY2026 Earnings Call — February 5, 2026 · 11 pages · The deep dive on sizing and timing the Medicaid/SNAP opportunity: management estimates a high-single to low-double-digit organic run-rate for U.S. Services by FY2028 and walks through SNAP's 6% error-rate funding trigger. · Open →

Q1 FY2025 Earnings Call — February 6, 2025 · 8 pages · Early-transition resilience: the durable, entitlement-tied portfolio that survived the federal hiring freeze and OMB grant pause, plus the secured CMS Contact Center and VA disability-exam rebids. · Open →

Q4 & FY2024 Earnings Call — November 20, 2024 · 12 pages · The annual call on the eve of the Trump transition: how a ~50-year government partner prepares for procurement delays and DOGE, why it de-risked FY2025 guidance to ~2% new work, and the switch to reporting adjusted EBITDA. · Open →

Q3 FY2024 Earnings Call — August 7, 2024 · 10 pages · The contested $6.6B CMS Contact Center recompete and GAO protest, cost-plus contract economics, election-outcome resilience, and how FY2024's excess redetermination volumes normalize into FY2025. · Open →

Q2 FY2024 Earnings Call — May 8, 2024 · 9 pages · The Medicaid 'unwind' ends and reverts to business-as-usual, both domestic segments hit the top of their margin targets, and management weighs whether to even bid the labor-harmony CCO recompete. · Open →

Q1 FY2024 Earnings Call — February 7, 2024 · 10 pages · Why volumes swing profit disproportionately — 53% of revenue is performance-based — with the redetermination margin at a 13.5% high-water mark and the cost-plus CCO contract's economics disclosed. · Open →

Q3 FY2023 Earnings Call — August 3, 2023 · 8 pages · The mechanics of the Medicaid redetermination ramp: why volumes built slowly (ex parte renewals, hard-to-reach cohorts), plus the student-loan repayment restart and a MOVEit cyber charge. · Open →

Q4 & FY2021 Earnings Call — November 18, 2021 · 26 pages · The COVID-era playbook: standing up ~13,000 agents fast on a variable-cost model, four acquisitions including the Aidvantage student-loan servicing entry, and a back-loaded FY2022 built on the UK Restart program. · Open →