What does Maximus do and what are its main business segments?

What factors drove the changes in Maximus's revenue and profit?

What were the key takeaways from Maximus’s earnings call?

What is the market's earnings forecast for Maximus next quarter?

What is Maximus's latest dividend and current dividend yield?

Did Maximus beat or miss consensus estimates last quarter?

What is Maximus's gross profit margin?

What is the revenue and EPS growth rate for Maximus year over year?

- **Strong Financial Performance**: 2025 revenue $5.43B, adjusted EBITDA margin 12.9%, free cash flow $366M. 2026 guidance reflects 13.7% EBITDA margin and $8.10 EPS midpoint.
- **AI-Driven Growth**: 30 AI deployments planned for 2026, including TXM platform for government CX. Defense sector contracts (e.g., $86M Air Force deal) highlight strategic expansion.
- **Policy Opportunities**: SNAP compliance urgency driving state engagement; Medicaid work requirements may create long-term growth.
- **Capital Allocation**: $457M shares repurchased in 2025; M&A focus on defense and tech-enabled solutions.

**【Management Opening Remarks】**
- James Francis provided standard disclaimers regarding forward-looking statements and non-GAAP financial measures, emphasizing the importance of reviewing SEC filings for full risk disclosures.

**【CEO Summary Section】**
- **Fiscal Year 2025 Highlights**: Organic growth of 3.9%, with U.S. Federal Services segment delivering 12.1% growth. Customer retention remained strong, with only 0.5% of revenue impacted by cancellations.
- **Strategic Priorities for 2026**: Expansion in U.S. federal markets, policy-driven initiatives (e.g., One Big Beautiful Bill Act), and AI deployment. TXM platform, an AI-infused CX solution, is being tested by customers.
- **Defense Sector Growth**: Won a $86 million Air Force contract, expanding into defense and national security markets through OTAs and CRADAs.
- **Policy Impact**: Medicaid and SNAP compliance efforts are creating opportunities, with 30 AI-related deployments planned for 2026.

**【CFO Financial Commentary】**
- **2025 Financial Results**: Revenue $5.43 billion, adjusted EBITDA margin 12.9%, adjusted EPS $7.36. Free cash flow $366 million, net debt 1.5x EBITDA.
- **2026 Guidance**: Revenue $5.225-$5.425 billion (midpoint $5.325B), adjusted EBITDA margin 13.7%, EPS $7.95-$8.25. Free cash flow $450-$500 million.
- **Key Drivers**: Cost management (e.g., $16M severance charges in Q4), technology adoption, and disciplined capital allocation (shares repurchased $457M in 2025).

**【Q&A Key Highlights】**
- **Margin Expansion**: Driven by technology adoption, cost management, and reduced severance costs in 2026. U.S. Federal Services margin expected to improve to 15.5%-16%.
- **Government Shutdown Impact**: Minimal operational disruption; Q1 2026 cash flow may be delayed but expected to recover.
- **M&A Focus**: Defense and national security opportunities with access to customer relationships, technical capabilities, and business systems.
- **Policy Update**: SNAP error rate compliance urgency driving RFI/RFP activity; Medicaid work requirements may take longer to implement.


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