Maximus, Inc. (MMS) SEC Filings & Earnings Calls

Integration risk and potential dilution from contingent consideration.

“potential additional contingent consideration tied to achieving certain performance objectives” · word for word

Temporary contractual modification on major federal program reduces H2 profitability.

“Received notification from a major customer regarding a temporary contractual modification effective July 1, 2026, through December 31, 2026.” · word for word

DSO elevated at 98 days; collections from major federal customer accelerated in July.

“DSO were 98 days at June 30, 2026. Collections from a major federal customer accelerated during July.” · word for word

Customer concentration and contract modification risk

“In late May 2026, we received notification from a major customer regarding a temporary contractual modification effective July 1, 2026 through December 31, 2026. We anticipate that this modification will reduce our diluted earnings per share by approximately $0.35 per quarter through the remainder of fiscal year 2026 and the first quarter of fiscal year 2027” · word for word

Leverage and debt covenant risk

“Our Consolidated Net Total Leverage Ratio means, for any twelve-month period, the ratio of our Funded Debt ... against our Consolidated EBITDA ... To comply with our Credit Agreement, this ratio cannot exceed 4.00:1.00 at the end of each quarter.” · word for word

Payment delay and cash flow risk

“We continue to experience administrative delays on payments from one of our large contracts with the U.S. federal government.” · word for word

Increased leverage from new term loans may increase financial risk.

“new term B loans in an aggregate principal amount of $325,000,000” · word for word

Government Payment Delays

“We continue to experience administrative delays on payments from one of our large contracts with the U.S. federal government.” · word for word

U.S. Services Segment Volume Decline

“Our U.S. Services Segment continues to experience lower volumes and demand across a broad range of contracts compared to prior years.” · word for word

Outside U.S. Segment Operating Loss

“Operating (loss)/income (3,085) 4,796” · word for word

Capitalized Software Impairment

“During the second quarter of the year, we recorded an impairment charge of $6.9 million related to a capitalized software asset following a client decision which resulted in its carrying value no longer being recoverable.” · word for word

U.S. Services segment margin pressure from asset impairment charge

“The second quarter of fiscal year 2026 included a non-cash impairment charge that decreased the U.S. Services segment's operating income by $6.9 million” · word for word

Outside the U.S. segment operating loss

“The segment realized an operating loss of $3.1 million for the second quarter of fiscal year 2026, compared to an operating profit of $4.8 million in the prior year period.” · word for word

Cash flow pressure from slow collections

“We reported net cash used in operations of $244.4 million for the first three months of fiscal year 2026, compared to $80.0 million for the first three months of fiscal year 2025.” · word for word

U.S. Services segment volume decline

“Our U.S. Services Segment continues to show lower volumes and demand across a broad range of contracts compared to prior years.” · word for word

Outside the U.S. segment revenue and margin pressure

“The organic decline in this segment relates to lower volumes on a number of our contracts. We are tracking a number of opportunities, but many have been delayed.” · word for word

Dependence on U.S. federal government contracts

“...combined with a government shutdown and administrative delays with one of our large contracts with the U.S. federal government.” · word for word

U.S. Services Segment revenue declined 8.2% YoY due to lower volumes; Outside the U.S. Segment operating loss of $1.4M.

“U.S. Services Segment revenue decreased 8.2% to $415 million. Outside the U.S. Segment realized an operating loss of $1.4 million.”

Government Contract Dependency

“Risks include government contract dependency, AI adoption, and cybersecurity; largely boilerplate.”

Executive Turnover

“Following the conclusion of our fiscal year 2025 and as disclosed in our Current Report on Form 8-K on December 18, 2025, Mr. Martinez announced his intention to resign effective as of February 15, 2026.” · word for word

Minimal risk; orderly transition with search underway.

“The Company has initiated a search for a replacement.” · word for word

U.S. Services segment revenue declined 7.7% due to normalization of Medicaid redeterminations; margin compressed from 12.9% to 9.7%.

“U.S. Services Segment revenue for fiscal year 2025 decreased by 7.7% to $1.76 billion... The decrease was primarily due to the prior fiscal year period containing excess volumes from Medicaid-related activities.” · word for word

Outside the U.S. segment revenue declined 8.7% due to divestitures, though organic growth was positive.

“Outside the U.S. Segment revenue for fiscal year 2025 decreased 8.7% to $599.9 million as compared to $657.1 million reported for the prior fiscal year. The revenue reduction was due to the divestitures of multiple employment services businesses.” · word for word

Government contract concentration

“In fiscal year 2025, approximately 55% of our total revenue was derived from the U.S. federal government, and approximately 33% of our total revenue was derived from contracts with state and local government agencies.” · word for word

Contract recompete risk

“Although it is difficult to track all the reasons for changes in our contracts, we believe that this contract erosion has typically affected approximately 7% to 10% of our business annually, with the erosion largely being replaced by new or expanded work elsewhere.” · word for word

Budget and policy change risk

“Changes in state or federal government initiatives or in the level of government spending due to budgetary or deficit considerations may have a significant impact on our future financial performance.” · word for word

Performance-based contract risk

“During fiscal year 2025, we derived approximately 54% of our revenue from performance-based contracts and 13% from fixed-price contracts.” · word for word