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Business Segments
6 Months Ended
Mar. 31, 2025
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. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results.
U.S. Federal Services
Our U.S. Federal Services Segment delivers solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. The segment also includes system and application development, Information Technology (IT) modernization, and maintenance services. Clinical services comprises appeals and assessments services, which includes managing the evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs (VA) and certain state-based assessments and appeals work that is part of the segment's heritage. 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.
U.S. Services
Our U.S. Services Segment provides a variety of services, such as program operations, clinical services, employment services and technology solutions, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the programs under the Affordable Care Act (ACA), Medicaid, the Children's Health Insurance Program (CHIP), Temporary Assistance to Needy Families (TANF), and child support programs. Program operations include comprehensive program administration services for government clients. The services we provide vary from program to program and include: centralized multilingual customer contact centers and multichannel, digital self-service options to better serve citizens' needs; application assistance to beneficiaries to help them access benefits; person centered clinical assessment services; provider enrollment systems and related business process services; employment services including eligibility support, case management, job-readiness preparation, job search and employer outreach, job retention and career advancement, and selected educational and training services. Our consulting services include technical and financial consulting services, including Independent Verification and Validation (IV&V) services, program modernization consulting; and project management.
Outside the U.S.
Our Outside the U.S. Segment provides BPS and technology solutions for international governments. These services include health and disability assessments, program administration for employment services, wellbeing solutions and other job seeker-related services, digitally-enabled customer services, and advanced technologies for modernization. We support programs and deliver services in various locations, including the United Kingdom, where we serve the newly awarded Functional Assessment Services (FAS) contract, which replaced the Health Assessment Advisory Service (HAAS) contract, and the Restart employment program. In recent years, we have divested components of this segment including, in the first quarter of fiscal year 2025, our businesses in Australia and Korea.
Table 3.1: Results of Operations by Business Segment
 For the Three Months EndedFor the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
Amount% (1)Amount% (1)Amount% (1)Amount% (1)
(dollars in thousands)
Revenue:
U.S. Federal Services$777,927 $701,702 $1,558,582 $1,378,780 
U.S. Services442,350 486,115 894,600 975,960 
Outside the U.S.141,509 160,540 311,279 320,658 
Revenue$1,361,786 $1,348,357 $2,764,461 $2,675,398 
Gross profit:
U.S. Federal Services$202,058 26.0 %$163,337 23.3 %$375,373 24.1 %$319,999 23.2 %
U.S. Services111,770 25.3 %130,122 26.8 %206,774 23.1 %248,485 25.5 %
Outside the U.S.24,993 17.7 %24,130 15.0 %58,231 18.7 %49,159 15.3 %
Gross profit$338,821 24.9 %$317,589 23.6 %$640,378 23.2 %$617,643 23.1 %
Selling, general, and administrative expenses:
U.S. Federal Services$83,076 10.7 %$79,867 11.4 %$157,291 10.1 %$167,722 12.2 %
U.S. Services57,963 13.1 %62,201 12.8 %112,121 12.5 %114,501 11.7 %
Outside the U.S.20,197 14.3 %23,460 14.6 %45,315 14.6 %48,601 15.2 %
Divestiture-related charges (2)1,002 NM— NM39,343 NM1,018 NM
Other (3)619 NM2,926 NM522 NM5,807 NM
Selling, general, and administrative expenses$162,857 12.0 %$168,454 12.5 %$354,592 12.8 %$337,649 12.6 %
Operating income:
U.S. Federal Services$118,982 15.3 %$83,470 11.9 %$218,082 14.0 %$152,277 11.0 %
U.S. Services53,807 12.2 %67,921 14.0 %94,653 10.6 %133,984 13.7 %
Outside the U.S.4,796 3.4 %670 0.4 %12,916 4.1 %558 0.2 %
Amortization of intangible assets(22,996)NM(21,641)NM(46,031)NM(44,990)NM
Divestiture-related charges (2)(1,002)NM— NM(39,343)NM(1,018)NM
Other (3)(619)NM(2,926)NM(522)NM(5,807)NM
Operating income$152,968 11.2 %$127,494 9.5 %$239,755 8.7 %$235,004 8.8 %
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(2)During fiscal years 2025 and 2024, we have divested businesses from our Outside the U.S. Segment. See "Note 6. Divestitures" for additional information.
(3)Other expenses include credits and costs that are not allocated to a particular segment.