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Revenue Recognition | 9 Months Ended
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Jun. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | REVENUE RECOGNITION We recognize revenue as, or when, we satisfy performance obligations under a contract. The majority of our contracts have performance obligations that are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customers that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. Disaggregation of Revenue In addition to our segment reporting, we disaggregate our revenues by service, contract type, and customer type.
Table 4.1: Revenue by Service Type
| For the Three Months Ended |  | For the Nine Months Ended
| June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
| (dollars in thousands)
Program Operations | $ | 626,981 |  |  | 46.5 | % |  | $ | 604,614 |  |  | 46.0 | % |  | $ | 2,045,720 |  |  | 49.7 | % |  | $ | 1,957,034 |  |  | 49.0 | %
Clinical Services | 560,360 |  |  | 41.6 | % |  | 506,077 |  |  | 38.5 | % |  | 1,535,849 |  |  | 37.3 | % |  | 1,401,069 |  |  | 35.1 | %
Employment & Other | 81,906 |  |  | 6.1 | % |  | 112,044 |  |  | 8.5 | % |  | 274,513 |  |  | 6.7 | % |  | 346,404 |  |  | 8.7 | %
Technology Solutions | 79,153 |  |  | 5.9 | % |  | 92,194 |  |  | 7.0 | % |  | 256,779 |  |  | 6.2 | % |  | 285,820 |  |  | 7.2 | %
Total revenue | $ | 1,348,400 |  |  |  |  | $ | 1,314,929 |  |  |  |  | $ | 4,112,861 |  |  |  |  | $ | 3,990,327 |  |  |
Table 4.2: Revenue by Contract Type
| For the Three Months Ended |  | For the Nine Months Ended
| June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
| (in thousands)
Performance-based | $ | 761,428 |  |  | 56.5 | % |  | $ | 758,942 |  |  | 57.7 | % |  | $ | 2,193,605 |  |  | 53.3 | % |  | $ | 2,202,541 |  |  | 55.2 | %
Cost-plus | 301,385 |  |  | 22.4 | % |  | 281,823 |  |  | 21.4 | % |  | 1,020,311 |  |  | 24.8 | % |  | 958,336 |  |  | 24.0 | %
Fixed price | 180,390 |  |  | 13.4 | % |  | 170,787 |  |  | 13.0 | % |  | 540,078 |  |  | 13.1 | % |  | 514,280 |  |  | 12.9 | %
Time and materials | 105,197 |  |  | 7.8 | % |  | 103,377 |  |  | 7.9 | % |  | 358,867 |  |  | 8.7 | % |  | 315,170 |  |  | 7.9 | %
Total revenue | $ | 1,348,400 |  |  |  |  | $ | 1,314,929 |  |  |  |  | $ | 4,112,861 |  |  |  |  | $ | 3,990,327 |  |  |
Table 4.3: Revenue by Customer Type
| For the Three Months Ended |  | For the Nine Months Ended
| June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
| (dollars in thousands)
New York state government agencies | $ | 148,408 |  |  | 11.0 | % |  | $ | 159,927 |  |  | 12.2 | % |  | $ | 466,053 |  |  | 11.3 | % |  | $ | 487,413 |  |  | 12.2 | %
Other U.S. state government agencies | 291,312 |  |  | 21.6 | % |  | 310,374 |  |  | 23.6 | % |  | 869,561 |  |  | 21.1 | % |  | 952,978 |  |  | 23.9 | %
Total U.S. state government agencies | 439,720 |  |  |  |  | 470,301 |  |  |  |  | 1,335,614 |  |  |  |  | 1,440,391 |  |  |
U.S. federal government agencies | 743,058 |  |  | 55.1 | % |  | 666,895 |  |  | 50.7 | % |  | 2,267,078 |  |  | 55.1 | % |  | 2,015,780 |  |  | 50.5 | %
International government agencies | 146,018 |  |  | 10.8 | % |  | 156,587 |  |  | 11.9 | % |  | 451,608 |  |  | 11.0 | % |  | 468,995 |  |  | 11.8 | %
Other, including local municipalities and commercial customers | 19,604 |  |  | 1.5 | % |  | 21,146 |  |  | 1.6 | % |  | 58,561 |  |  | 1.4 | % |  | 65,161 |  |  | 1.6 | %
Total revenue | $ | 1,348,400 |  |  |  |  | $ | 1,314,929 |  |  |  |  | $ | 4,112,861 |  |  |  |  | $ | 3,990,327 |  |  |
Contract balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. We classify these assets as accounts receivable — billed and billable and unbilled receivables; the liabilities are classified as deferred revenue. In many contracts, we bill our customers on a monthly basis shortly after the month end for work performed in that month. Where such balances are billable and collectible under standard terms, they are included within accounts receivable, net. Exceptions to this pattern will arise for various reasons, including those listed below. •Under cost-plus contracts, we are typically required to estimate a contract's share of our general and administrative expenses. This share is based upon estimates of total costs, which may vary over time. We typically invoice our customers at an agreed provisional billing rate, which may differ from actual rates incurred. If our actual rates are higher than the provisional billing rates, an asset is recorded for this variance; if the provisional billing rates are higher than our actual rates, we record a liability. •Certain contracts include retainage balances, whereby revenue is earned, but some portion of cash payments are held back by the customer for a period of time, typically to allow the customer to confirm the objective criteria laid out by the contract have been met. This balance is classified as accounts receivable - unbilled until restrictions on billing are lifted. As of June 30, 2025, and September 30, 2024, $26.5 million and $31.9 million, respectively, of our unbilled receivables are related to amounts pursuant to contractual retainage provisions. •In certain contracts, we may receive funds from our customers prior to performing operations. These funds are typically referred to as "set-up costs" and reflect the need for us to make investments in infrastructure prior to providing a service. This investment in infrastructure is not a performance obligation that is distinct from the service that is subsequently provided and, as a result, revenue is not recognized based upon the establishment of this infrastructure, but rather over the course of the contractual relationship. The funds are initially recorded as deferred revenue and recognized over the term of the contract. Other contracts may not include set-up fees but will provide higher fees in earlier periods of the contract. The premium on these fees is deferred. •Some of our contracts, notably our employment services contracts in the Outside the U.S. Segment, include payments for desired outcomes, such as job placement and job retention, and these outcome payments occur over several months. We are required to estimate these outcome fees ahead of their realization and recognize this estimated fee over the period of delivery. During the three and nine months ended June 30, 2025, we recognized revenue of $13.8 million and $87.0 million, respectively, included in our deferred revenue balances at September 30, 2024. During the three and nine months ended June 30, 2024, we recognized revenue of $8.2 million and $53.5 million, respectively, included in our deferred revenue balances at September 30, 2023. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. Certain performance-based contracts include variable consideration in the form of penalties and incentives, based upon our performance under the terms of the contract. The calculation of these penalties and incentives requires the evaluation of both objective and subjective criteria, which may require the use of estimates. Within our employment services business in our Outside the U.S. Segment, some of our performance-based contract revenue is recognized based upon future milestones defined in each contract, which requires us to make estimates about the attainment of the milestones. We estimate the total variable consideration we will receive using the expected value method. We recognize the revenue over the expected period of performance. At each reporting period, we update our estimates of the variable fees to represent the circumstances present at the end of the reporting period. We are required to constrain our estimates to the extent that it is probable that there will not be a significant reversal of cumulative revenue when the uncertainty is resolved. We do not have a history of significant constraints on these contracts.
Table 4.4: Effect of Changes in Contract Estimates
| For the Three Months Ended |  | For the Nine Months Ended
| June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
| (in thousands, except per share data)
Increase in/(reduction of) revenue recognized due to changes in contract estimates | $ | 607 |  |  | $ | (3,576) |  |  | $ | 11,181 |  |  | $ | (12,772) |
Increase in/(reduction of) diluted earnings per share recognized due to changes in contract estimates | $ | 0.01 |  |  | $ | (0.04) |  |  | $ | 0.14 |  |  | $ | (0.16) |
Remaining performance obligations As of June 30, 2025, we had approximately $330 million of remaining performance obligations, with obligations running through March 2032. We anticipate that most of the obligations will be settled within a shorter period of time, with 63% of this balance being utilized within the next 12 months. This balance excludes contracts with an original duration of twelve months or less, including contracts with a penalty-free termination for convenience clause, and any variable consideration that is allocated entirely to future performance obligations, including variable transaction fees or fees tied directly to costs incurred.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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