Maximus Q1 2025: Unraveling Contradictions in Contracts, Funding, and Strategic Growth

These are the key contradictions discussed in Maximus' latest 2025Q1 earnings call, specifically including: CCO Contract Status, VA Funding Expectations, Strategic Growth Drivers, CMS CCO Contract Status, VA MDE Contract Recompete, and Revenue Growth Drivers:



Strong First Quarter Results:
- Maximus reported strong first quarter results, highlighted by favorable outcomes in recompetes and strategic divestitures.
- The company successfully opposed early recompete attempts for CMS Contact Center Operations and was awarded successor contracts for VA Medical Disability Examination, ensuring continued support and uninterrupted operations.

Divestiture and Share Repurchase Program:
- Maximus completed the divestiture of its employment services businesses in Australia and South Korea, aiming to reduce volatility and improve profitability in the segment.
- The Board of Directors authorized a $200 million increase to the share repurchase program, indicating confidence in the company's financial position and commitment to shareholder value.

Positioning in Government Services:
- Maximus is uniquely positioned to continue being a valued partner to government, with a durable portfolio tied to well-established entitlement programs like Medicare and Veterans Disability Benefits.
- The company's earned reputation and experience in software development, network infrastructure, and IT systems align well with the evolving needs of its customers and priorities of the new administration.

State-Level Medicaid Business Opportunities:
- Maximus sees opportunities in its state-level Medicaid business, as states develop contingency plans in response to potential changes in federal Medicaid spending.
- Changes requiring consumer engagement, such as eligibility verification, generally increase the company's volumes, which can lead to more state contract activity.