XML 23 R11.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Business Segments
6 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S.
U.S. Federal Services
Our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. This segment also includes appeals and assessments services, system and application development, Information Technology ("IT") modernization, and maintenance services. Certain state-based assessments and appeals work that is part of the segment's heritage continues to be managed within this segment. Under Technology Consulting Services ("TCS"), the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies. The segment continues to expand its clinical solutions through Veteran's Evaluation Services ("VES"), a Maximus company, that manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs ("VA").
U.S. Services
Our U.S. Services Segment provides a variety of business process services ("BPS"), such as program administration, assessments, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the Affordable Care Act ("ACA"), Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Previously, this segment suffered from reduced operating leverage resulting from the pause in Medicaid redeterminations during the COVID-19 pandemic, which resumed in fiscal year 2023.
Outside the U.S.
Our Outside the U.S. Segment provides BPS for international governments, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service and the recently awarded replacement contract to start in 2024, Functional Assessment Services, and Restart; and Australia, including Workforce Australia, and other employment support and job seeker services worldwide.
Table 3: Results of Operation by Business Segment
 For the Three Months EndedFor the Six Months Ended
March 31, 2024March 31, 2023March 31, 2024March 31, 2023
Amount% (1)Amount% (1)Amount% (1)Amount% (1)
(dollars in thousands)
Revenue:    
U.S. Federal Services$701,702 $584,075 $1,378,780 $1,202,242 
U.S. Services486,115 449,703 975,960 889,181 
Outside the U.S.160,540 173,074 320,658 364,675 
Revenue$1,348,357 $1,206,852 $2,675,398 $2,456,098 
Gross profit:
U.S. Federal Services$163,337 23.3 %$122,874 21.0 %$319,999 23.2 %$245,568 20.4 %
U.S. Services130,122 26.8 %86,016 19.1 %248,485 25.5 %169,614 19.1 %
Outside the U.S.24,130 15.0 %19,713 11.4 %49,159 15.3 %58,168 16.0 %
Gross profit$317,589 23.6 %$228,603 18.9 %$617,643 23.1 %$473,350 19.3 %
Selling, general, and administrative expenses: 
U.S. Federal Services$79,867 11.4 %$75,050 12.8 %$167,722 12.2 %$146,699 12.2 %
U.S. Services62,201 12.8 %43,415 9.7 %114,501 11.7 %89,257 10.0 %
Outside the U.S.23,460 14.6 %23,425 13.5 %48,601 15.2 %51,814 14.2 %
Divestiture-related charges (2)— NM883 NM1,018 NM883 NM
Other (3)2,926 NM(325)NM5,807 NM247 NM
Selling, general, and administrative expenses$168,454 12.5 %$142,448 11.8 %$337,649 12.6 %$288,900 11.8 %
Operating income/(loss): 
U.S. Federal Services$83,470 11.9 %$47,824 8.2 %$152,277 11.0 %$98,869 8.2 %
U.S. Services67,921 14.0 %42,601 9.5 %133,984 13.7 %80,357 9.0 %
Outside the U.S.670 0.4 %(3,712)(2.1)%558 0.2 %6,354 1.7 %
Amortization of intangible assets(21,641)NM(23,650)NM(44,990)NM(47,168)NM
Divestiture-related charges (2)— NM(883)NM(1,018)NM(883)NM
Other (3)(2,926)NM325 NM(5,807)NM(247)NM
Operating income$127,494 9.5 %$62,505 5.2 %$235,004 8.8 %$137,282 5.6 %
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(2)We have sold businesses in both fiscal years 2023 and 2024. Refer to "Note 7. Acquisitions and Divestitures" for more details.
(3)Other expenses includes credits and costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed.