Maximus Inc
NYSE:MMS
Maximus Inc
Maximus Inc., established in 1975, has woven itself into the fabric of government operations globally by acting as a bridge between public policy and administrative execution. Initially gaining traction as a consulting venture, Maximus honed its expertise in human services, eventually blossoming into a leader in providing business process management, consulting, and technology solutions. The company operates primarily in the arenas of health and human services, tapping into an ever-growing demand from government agencies seeking to improve program efficiency, accessibility, and accountability. By focusing on program administration, case management, and citizen engagement, Maximus ensures that healthcare and various social services are delivered effectively, maximizing both government spending and citizen satisfaction. This stronghold in health and human services underscores its contract-based model, where the company procures long-term agreements with government clients, ensuring a steady revenue stream.
The core of Maximus’s business model revolves around its ability to navigate complex regulatory environments and deliver tailored solutions. Its expertise particularly shines in its interpretation of intricate policy landscapes, using this knowledge to offer program management services that streamline government operations. By leveraging technology, Maximus also brings innovation to traditional services; its digital transformation initiatives enable governments to provide services more efficiently and with greater transparency, ultimately bolstering public trust and engagement. Revenue flows from these projects typically stem from both fixed-price contracts and performance-based arrangements, where success is measured against predefined metrics, further accentuating Maximus’s commitment to delivering tangible outcomes. Through this combination of consulting prowess and technological integration, Maximus not only aids public institutions in achieving their objectives but has also firmly established itself as a pivotal player in the public sector outsourcing industry.
Maximus Inc., established in 1975, has woven itself into the fabric of government operations globally by acting as a bridge between public policy and administrative execution. Initially gaining traction as a consulting venture, Maximus honed its expertise in human services, eventually blossoming into a leader in providing business process management, consulting, and technology solutions. The company operates primarily in the arenas of health and human services, tapping into an ever-growing demand from government agencies seeking to improve program efficiency, accessibility, and accountability. By focusing on program administration, case management, and citizen engagement, Maximus ensures that healthcare and various social services are delivered effectively, maximizing both government spending and citizen satisfaction. This stronghold in health and human services underscores its contract-based model, where the company procures long-term agreements with government clients, ensuring a steady revenue stream.
The core of Maximus’s business model revolves around its ability to navigate complex regulatory environments and deliver tailored solutions. Its expertise particularly shines in its interpretation of intricate policy landscapes, using this knowledge to offer program management services that streamline government operations. By leveraging technology, Maximus also brings innovation to traditional services; its digital transformation initiatives enable governments to provide services more efficiently and with greater transparency, ultimately bolstering public trust and engagement. Revenue flows from these projects typically stem from both fixed-price contracts and performance-based arrangements, where success is measured against predefined metrics, further accentuating Maximus’s commitment to delivering tangible outcomes. Through this combination of consulting prowess and technological integration, Maximus not only aids public institutions in achieving their objectives but has also firmly established itself as a pivotal player in the public sector outsourcing industry.
Guidance Raised: Maximus increased its full-year earnings guidance and narrowed revenue guidance for fiscal 2026 amid solid first-quarter results.
Revenue: Q1 2026 revenue was $1.35 billion, down 4.1% year-over-year, primarily due to divestitures and some organic decline, but in line with expectations.
Earnings: Adjusted EBITDA margin improved to 12.7% and adjusted EPS rose to $1.85, up from $1.61 a year ago.
Segment Performance: U.S. Federal Services grew organically; U.S. Services and Outside the U.S. segments saw expected declines. Margins in Federal Services improved significantly.
New Work Minimal: Revenue guidance assumes almost no new work for fiscal 2026, with new contract activity expected to impact 2027 and beyond.
AI & Automation: Management highlighted growth in AI-driven solutions, including a new Blanket Purchase Agreement win with the GSA and positive momentum for the new SNAP Accuracy Assistant tool.
Cash Flow: Q1 saw typical seasonal cash outflow, with free cash flow guidance for the year unchanged at $450–500 million.
Medicaid & SNAP Opportunities: Building pipeline in Medicaid and SNAP, with new legislative requirements expected to drive future growth starting in late 2026 and into 2028.
