Maximus, Inc. (MMS): Business Model Canvas [Dec-2025 Updated]

Honestly, when you look at a company like Maximus, Inc., you're not just seeing a contractor; you're seeing the engine behind massive government programs, and their Business Model Canvas tells a clear story of scale and tech adoption. With total revenue hitting $5.43 billion in fiscal year 2025, driven heavily by US Federal work at 56%, their value proposition hinges on being a tech-enabled, mission-critical partner, not just a service provider. We need to see how they manage that high-trust, long-term relationship with agencies while investing heavily in AI and their 37,200-person workforce to win those complex, performance-based contracts-so dive in below to see the exact mechanics of this government-centric model.

Maximus, Inc. (MMS) - Canvas Business Model: Key Partnerships

Expanded partnership with Genesys for AI-powered public sector services

• Maximus Total Experience (TXM) solution integrates with Genesys Cloud platform for AI-driven experience orchestration.
• Collaboration helps government agencies modernize constituent engagement across federal, state, local, and international programs.
• The integrated platform unifies digital and voice channels.

Technology vendors for cloud and advanced analytics platforms

• Use of AWS GovCloud and Amazon Textract for proprietary AI and machine learning-powered records processing on the VA Medical Disability Exam (MDE) contract.

Subcontractors for specialized local service delivery

No specific financial or volume data available for subcontractor engagement as of late 2025.

Clinical and medical professionals for assessment programs

• U.S. Federal Services Segment operating margin for Q1 Fiscal Year 2025 was 12.7%, benefiting from clinical assessment volume.
• U.S. Federal Services Segment revenue for Q3 Fiscal Year 2025 increased due to elevated volumes on programs in the clinical portfolio.
• The U.S. Federal Services Segment generated $3.07 billion in revenue for Fiscal Year 2025.
• The segment's operating margin for Fiscal Year 2025 was 15.3%.

The company's overall momentum is supported by a sales pipeline totaling $44.7 billion as of June 30, 2025.

Maximus, Inc. (MMS) - Canvas Business Model: Key Activities

You're looking at the core engine of Maximus, Inc. (MMS) as of late 2025, which is all about executing massive, mission-critical government service contracts. This isn't small-scale consulting; this is about administering entire federal and state programs. For fiscal year 2025, the company brought in total revenue of $5.43 billion. That work is heavily weighted toward the federal side, with the U.S. Federal Services segment generating 56% of that total revenue, amounting to $3.07 billion in FY 2025. The U.S. Services segment, covering state and local work, accounted for 32% of revenue, or $1.76 billion. To manage this scale, Maximus relies on a substantial workforce: as of September 30, 2025, they had about 37,200 employees plus 9,300 contingent workers on the books.

The nature of these engagements defines their activity. Maximus is focused on winning and managing long-term, complex government contracts. You should note the concentration risk here: roughly 60% of the total 2025 revenue came from just the ten largest contracts, with about one-fifth of that tied to a single federal agency. The structure of these deals is also key; about 54% of revenue came from performance-based contracts, while 13% came from fixed-price contracts in FY 2025. The pipeline for future work is significant; as of June 30, 2025, year-to-date signed contract awards totaled $3.37 billion, with an additional $1.44 billion in contracts awarded but unsigned. The total sales pipeline tracked at that time was $44.7 billion.

A major activity supporting this scale, especially within the U.S. Federal Services segment, is providing clinical assessments. This area is a clear growth driver; the segment saw a 12.1% revenue increase in FY 2025, fueled by high demand for clinical services. For instance, Maximus is awarded successor contracts for the VA Medical Disability Examination (MDE) program, which is expected to see volume increases due to legislation like the PACT Act. The company's ability to process this volume directly impacts profitability, as processing higher clinical assessment volume benefited margins in Q2 FY 2025.

Next, let's look at how Maximus is embedding technology into its service delivery. Developing and deploying AI-enabled automation is a stated priority for driving productivity and operating leverage into fiscal 2026. They are actively using these tools to enhance program integrity; for example, in one specific VA program, their AI-powered solutions prevented waste by 60 percent. This use of intelligent automation is designed to handle routine tasks, allowing human judgment to focus on complex issues. We see this in action in their contact center work; in one state's unemployment program, routing calls through their center dropped the wait time from 90 minutes down to just 17 minutes. The company supports its operations with a large, skilled workforce ready to deploy, as shown by adding over 500 work-from-home customer service representatives within 5 days to handle a surge.

Here's a quick look at the financial scale of the primary activities in fiscal year 2025:

The core of Maximus's operational activity is managing these large programs, which requires significant human capital and technological deployment. The company's focus on clinical assessments, particularly for federal health programs, is what drove the 12.1% expansion in the U.S. Federal Services segment revenue for the year. You can see the operational efficiency gains reflected in the overall adjusted EBITDA margin, which expanded to 12.9% in FY 2025, up from 11.6% the prior year.

The key activities break down into the following operational focus areas:

• Administering large eligibility and enrollment programs.
• Securing and executing contracts tied to entitlement programs.
• Deploying AI to enhance program integrity and efficiency.
• Managing high-volume clinical evaluation processes for veterans.
• Supporting international government programs (e.g., UK FAS contract).

Finance: draft 13-week cash view by Friday.

Maximus, Inc. (MMS) - Canvas Business Model: Key Resources

You're looking at the core assets Maximus, Inc. (MMS) relies on to execute its government services strategy as of late 2025. These aren't just line items; they are the actual engines driving their business.

The human capital supporting Maximus, Inc. is substantial, though it saw a slight reduction in the most recent fiscal year. As of September 30, 2025, the company reported a workforce of approximately 37,200 employees and an additional 9,300 contingent workers. This compares to 41,100 employees on September 30, 2024, representing a decrease of 3,900, or -9.49% year-over-year.

Maximus, Inc. has deep, long-standing expertise in the complex world of government legislation and program rules, a capability cemented by celebrating its 50+ years in business in 2025. This expertise is reflected in how their revenue is generated across their operating segments for the fiscal year ended September 30, 2025:

The concentration risk is notable; roughly 60% of Maximus, Inc.'s revenue in 2025 came from its ten largest contracts. The total full year revenue for fiscal year 2025 was $5.43 billion, up 2.4% from the prior year.

A critical technology asset is the proprietary Total Experience Management (TXM) platform, which was launched in 2024 and enhanced with Amazon Web Services (AWS) capabilities in 2025. This cloud-based, digitally powered platform is FedRAMP-authorized and integrates several artificial intelligence tools. The platform's capabilities include:

• Intelligent document processing.
• AI-assisted customer interactions.
• Topic mining and sentiment analysis.
• Support for scalable and cloud-based modernization efforts.

Early results from federal agencies using Maximus TXM showed tangible benefits, including $26 million in reduced onboarding costs and a 27 percent improvement in quality scores within the first six weeks of deployment. The platform also contributed to a 198% reduction in employee turnover in some early use cases.

Maximus, Inc. has also secured a key compliance credential relevant to its defense work. As of August 2025, the company achieved Cybersecurity Maturity Model Certification (CMMC) Level 2. This certification confirms Maximus, Inc. meets the Defense Department's rigorous cybersecurity standards for protecting Controlled Unclassified Information (CUI). The immediate operational advantages this provides to government customers include:

• Avoiding lengthy Authorization to Operate (ATO) delays.
• Accelerating deployment timelines for supported programs.
• Reducing risk at project startup.

Finance: review the impact of the $457 million spent on share repurchases in FY25 against the $366 million in free cash flow generated.

Maximus, Inc. (MMS) - Canvas Business Model: Value Propositions

Delivering efficient, accountable administration of complex public programs

You're looking at a company whose value proposition is deeply tied to its ability to manage massive, critical government workloads reliably. The proof is in the scale and the trust shown by contract renewals. Maximus, Inc. finished fiscal year 2025 with total revenue hitting $5.43 billion, which was a 2.4% increase year-over-year, or 3.9% on an organic basis. This stability comes from a deep pipeline of work; as of September 30, 2025, the company reported $4.7 billion in year-to-date signed contract awards, with another $331 million in contracts pending signing. This backlog shows the government relies on Maximus, Inc. to keep essential services running, which is the core of accountability in this space.

The effectiveness of this administration is reflected in the bottom line. For the full fiscal year 2025, the company achieved an adjusted EBITDA margin of 12.9%, showing improved operational efficiency over the prior year's 11.6%. That efficiency translates directly to shareholder value, with full-year adjusted diluted earnings per share reaching $7.36.

Here are the key financial results underpinning this value delivery for fiscal year 2025:

Modernizing citizen services through digital and AI-driven solutions

Maximus, Inc. is actively demonstrating its value by integrating advanced technology into legacy government systems. They are deploying AI and automation under their Maximus Forward transformation initiative to shift personnel to higher-value functions. For instance, on their Federal No Surprises Act contract, an AI solution was implemented to streamline the independent dispute resolution process.

This focus on digital modernization is winning new, high-tech federal work:

• Awarded a $77 million contract to provide cybersecurity, cloud services, and engineering support for the Air Force Cyber Command and Control Systems.
• Achieved Cybersecurity Maturity Model Certification (CMMC) Level 2, confirming its ability to secure national defense data.
• Secured a potential five-year, $123 million contract with the National Energy Technology Laboratory for professional IT services.
• Won an approximately $10 million contract from the IRS for OCIO Development, Infrastructure, Security, and Modernization.

You can see the impact on citizen-facing services, too. Maximus, Inc. redesigned Louisiana's Medicaid site, boosting customer experience and digital access for over 1.4 million residents. That's a concrete example of digital transformation helping people connect to care.

Providing clinical assessment services with high quality and scale

The demand for clinical services is a major driver of Maximus, Inc.'s growth. The U.S. Federal Services segment, which includes much of this clinical work, expanded by 12.1% in fiscal year 2025. Organic growth for the full year was 3.9%, driven primarily by this high demand for clinical services within that segment. The segment's Q3 FY2025 revenue hit $761.2 million, fueled by elevated volumes in its clinical portfolio.

The company is using technology to scale these assessments. On its Medical Disability Exam (MDE) contract with the Department of Veterans Affairs (VA), Maximus, Inc. leveraged tools like AWS GovCloud and Amazon Textract to build an AI/machine learning-powered records processing system. This allows them to shift labor to quality assurance, directly supporting the VA's objectives through high-quality, scalable assessment support.

Reducing government operating costs through business process outsourcing (BPO)

Cost reduction for the government client is achieved through the BPO model, which is evident in margin improvement and specific contract types. The company's ability to manage high-volume processes efficiently is a key value proposition here. For example, the U.S. Services Segment operating margin improved to 9.7% in fiscal year 2025, up from 1.2% in the prior fiscal year, following the divestiture of more volatile employment services businesses, allowing focus on core, high-margin BPO functions.

This BPO value is also seen in technology-enabled contact center work, such as the $76 million contract with the Federal Reserve System to provide contact center services through its Total Experience Management platform. Furthermore, the company continues its role as West Virginia's Medicaid and CHIP enrollment broker, showcasing continuity and satisfaction in essential, large-scale administrative outsourcing.

Maximus, Inc. (MMS) - Canvas Business Model: Customer Relationships

You're managing relationships with entities that control billions in spending, so trust isn't just a buzzword; it's the contract itself. Maximus, Inc.'s customer relationships are fundamentally long-term and built on deep integration with government agencies, which is evident in their revenue structure. For fiscal year 2025, the company reported total revenue of US$5.43 billion.

This reliance on government is significant, showing where that trust is placed. In 2025, about 56% of that revenue came from U.S. Federal Services, with an additional 32% from U.S. Services (state and local), meaning 88% of the business is domestic public sector work. Furthermore, the concentration risk underscores the depth of these ties: roughly 60% of 2025 revenue derived from its ten largest contracts, with about one-fifth tied to a single federal agency.

To manage this scale, Maximus deploys dedicated resources. As of September 30, 2025, the company supported its operations with about 37,200 employees and 9,300 contingent workers, all supporting these complex programs.

Dedicated contract management teams are essential for maintaining service continuity across these massive operations. For instance, in programs like the District of Columbia's TANF case management, which Maximus has supported since 2000, familiarity is key; approximately one-third of the staff members supporting this work are previous program participants, ensuring institutional knowledge remains embedded.

• Contract types heavily feature performance-based structures (~54% of 2025 revenue).
• Fixed-price contracts accounted for 13% of 2025 revenue.
• Focus areas include large eligibility, enrollment, and clinical assessment programs.

The sales process for large recompetes is inherently relationship-driven and consultative, as evidenced by the intense focus on contract protests and bid defense. While the potential $6.6 billion Contact Center Operations recompete with CMS was cancelled in late 2024/early 2025, the legal challenge itself demonstrated the high-stakes, consultative nature required to defend established, multi-year government partnerships. New wins, like the $86 million potential value Joint Cyber Command & Control (JCC2) Readiness contract awarded to the Air Force in November 2025, rely on leveraging existing technology expertise and proven leadership across federal agencies.

Continuous engagement is necessary to align services with evolving legislative priorities, especially given the company's stated focus on technology modernization and AI. Maximus emphasizes blending human-centered design with advanced technology to help agencies build trust through seamless experiences. They actively discuss strategies to transform service delivery, which directly addresses new mandates and policy shifts from government partners. This consultative approach is how they secure successor contracts, such as being awarded successor contracts for VA Medical Disability Examination services, ensuring uninterrupted support.

Maximus, Inc. (MMS) - Canvas Business Model: Channels

You're looking at how Maximus, Inc. (MMS) gets its services into the hands of its customers-primarily government entities. This is all about direct engagement and winning competitive bids for large, long-term contracts. The company's channel strategy is heavily weighted toward the U.S. public sector.

The pipeline for future work is substantial, indicating a significant volume of potential revenue flowing through these channels. As of September 30, 2025, the total sales pipeline for Maximus, Inc. stood at $51.3 billion.

Here is a breakdown of that pipeline as of that date:

• Proposals pending: $3.37 billion
• Proposals in preparation: $1.37 billion
• Opportunities tracking: $46.6 billion

New work opportunities made up approximately 64% of this total pipeline.

Direct contracting with U.S. Federal agencies

The U.S. Federal segment is a primary focus for capturing this pipeline activity. Opportunities within the U.S. Federal Services Segment accounted for approximately 66% of the total sales pipeline as of September 30, 2025. To give you a historical perspective on revenue concentration, in fiscal year 2023, approximately 48% of Maximus, Inc.'s total revenue came from the U.S. federal government.

Maximus Federal Services, Inc. utilizes several contract vehicles to secure this work, including General Services Administration (GSA) Awards Contracts and Other Transaction Agreements (OTAs). Specific contract vehicles mentioned include the GSA contract GS-35F-685GA and the Centers for Medicare and Medicaid Services (CMS) Strategic Partners Acquisition Readiness Contract (SPARC).

For the full fiscal year 2025, year-to-date signed contract awards totaled $4.7 billion as of September 30, 2025.

Direct contracting with U.S. State and Local governments

State and local governments represent another core channel. In fiscal year 2023, contracts with state and local government agencies accounted for approximately 37% of the company's total revenue. The company continues to secure and manage these state-level programs.

For example, Maximus US Services, Inc. entered into a HYBRID CONTRACT with the State of Michigan, effective March 11, 2025, with a term running through March 10, 2030, which may be renewed. Furthermore, Maximus redesigned Louisiana's Medicaid site, which serves over 1.4M+ residents.

The company also emphasizes its ability to extend state contracts to other states and governmental subdivisions upon written agreement.

Direct contracting with international government ministries

Maximus, Inc. operates through an Outside the U.S. segment, which serves international government ministries. Based on fiscal year 2023 data, foreign government agencies contributed approximately 14% of the company's total revenue. The company is focused on delivering services across federal, state, local, and international government programs.

Proposal and bidding processes

The proposal and bidding process is the feeder mechanism for all the direct contracting channels. As noted, the total sales pipeline was $51.3 billion at the end of fiscal year 2025. This process involves several stages of engagement before a contract is officially signed.

The status of contract awards as of September 30, 2025, shows the conversion success from the pipeline:

The book-to-bill ratio, which measures contract awards against revenue recognized over the trailing twelve months, was 0.9x at September 30, 2025. This means that in the trailing year, the value of new contract awards was slightly less than the revenue recognized from existing contracts.

The distribution of opportunity focus within the pipeline is heavily skewed toward the federal level, which is a key area for future channel execution:

• U.S. Federal Services Segment opportunities: approximately 66% of the total sales pipeline.

The company is actively managing this pipeline, with a recent appointment of a Chief Growth Officer for Federal Business to lead growth strategy and capture operations for Civilian, Health, and Defense and National Security markets.

Maximus, Inc. (MMS) - Canvas Business Model: Customer Segments

You're looking at the core of Maximus, Inc.'s business, which is almost entirely centered on serving government entities at every level. This focus means their success is directly tied to public policy, funding cycles, and the administration of vital citizen services. Honestly, the concentration risk is something you need to watch closely.

The customer base is clearly segmented by geography and funding source, which is reflected in the revenue split for fiscal year 2025. Here's the quick math on where the money came from:

The U.S. Federal Government is the single largest customer group, accounting for about 55.2% of total revenue in fiscal year 2025. This segment is mission-driven, focusing on transforming government operations for health, civilian, and defense agencies. Maximus delivers solutions in areas like clinical services, eligibility and enrollment, and digital modernization. Still, this concentration means that about 60% of the company's total revenue is tied up in just its ten largest contracts, with nearly one-fifth of that coming from a single federal agency.

The U.S. State and Local Governments form the second pillar, representing approximately 32.5% of the revenue base. This group relies on Maximus for program operations, technology solutions, and professional services to manage complex state-level mandates. The segment saw revenue decrease by 7.7% in FY 2025, partly due to the winding down of excess volumes related to Medicaid redeterminations from the prior year. Their operating margin for the segment settled at 9.7% for the year.

International Governments make up the smallest piece of the pie, contributing about 10.9% of revenue, totaling around $599.9 million in fiscal year 2025. While this segment's revenue declined by 8.7%, its profitability improved significantly, with an operating margin of 3.7%, up from 1.2% the prior year, largely because of strategic divestitures of employment services businesses.

A critical subset of the state and federal customer base involves agencies managing large entitlement programs. Maximus positions itself as a trusted partner to help these agencies handle increasing caseloads and contain costs while improving citizen experience. You see their work directly supporting the administration of these massive programs:

• Eligibility and enrollment support for Medicaid and CHIP programs.
• Operations for state-based health insurance exchange activities (ACA marketplaces).
• Case management for Temporary Assistance for Needy Families (TANF).
• Administration of child support enforcement and collection services.
• Clinical assessments and independent determinations for appeals and reviews.

The company emphasizes its ability to translate public policy into operating models that achieve outcomes at scale, a key value proposition for these specific government agencies. Finance: draft 13-week cash view by Friday.

Maximus, Inc. (MMS) - Canvas Business Model: Cost Structure

You're managing a business that relies heavily on government contracts, so understanding where every dollar goes in the cost structure of Maximus, Inc. is key to seeing their margin potential. Honestly, their costs are dominated by the people needed to execute complex, regulated work.

High personnel costs for the large, specialized workforce

The sheer scale of the workforce is a primary cost driver. Maximus, Inc. maintains a substantial base of direct labor and support staff to manage its large government programs. As of September 30, 2025, the company reported approximately 37,200 employees and an additional 9,300 contingent workers. This large, specialized workforce means labor, including subcontracted labor, makes up about two-thirds of the total Cost of Revenue.

Selling, general, and administrative (SG&A) expenses, which are primarily composed of labor costs for non-client-facing and corporate resources, also reflect this personnel base. For the nine months ended June 30, 2025, SG&A expenses totaled $354.6 million (or $354,592 thousand). This compares to $337.6 million (or $337,649 thousand) for the same nine-month period in fiscal year 2024. Fluctuations in SG&A are mainly driven by changes in this administrative cost base, not directly by revenue changes.

Here are some key cost-related financial snapshots for Maximus, Inc. as of late 2025:

Significant investment in technology, including AI and digital transformation

Maximus, Inc. is actively making investments to enhance resources for contract initiatives, which includes technology spending. The company highlights its competitive strength in technology modernization. For fiscal 2026, Maximus is prioritizing the deployment of AI-enabled automation designed to drive productivity and operating leverage. These technology investments translate into specific accounting line items, such as capitalized software costs, which are then reflected in depreciation and amortization expenses as the assets become operational. For instance, the CFO noted that some capitalized software projects are now operational, leading to higher depreciation.

The company's focus on technology is a strategic lever to improve margins, as seen in the fiscal 2026 guidance which anticipates margin expansion using technology upgrades.

Costs associated with bidding and recompeting for large contracts

The pursuit of new and existing work involves significant, though often unquantified in total, costs related to proposal development, compliance, and the bidding process itself. A clear example of the stakes involved in recompetes is the Centers for Medicare & Medicaid Services (CMS) Contact Center Operations contract. The value of this single contract, which was being recompeted earlier than expected, is equivalent to approximately 10% to 15% of total Company revenue on an annual basis. The contract type is cost-plus-award-fee, which traditionally carries low single-digit margins. The company's sales pipeline at June 30, 2025, totaled $44.7 billion, showing the scale of effort required for proposal preparation and tracking.

The company's cost structure must absorb the expense of positioning for these large opportunities, which is a defintely necessary part of securing future revenue streams.

Amortization of intangible assets (a non-cash cost)

Amortization of intangible assets is a non-cash charge that reflects the periodic expensing of acquired assets like customer relationships and technology. Maximus, Inc. has a significant balance of these assets stemming from a 2021 acquisition, which totaled $422.9 million as of June 30, 2025. Substantially all of these assets are being amortized over the remaining eight years.

Reported amortization expenses for fiscal year 2025 periods show the impact of this non-cash charge:

• For the nine months ended June 30, 2025, amortization of intangible assets was $69.0 million (or $69,041 thousand).
• For the six months ended March 31, 2025, the charge was $46.0 million (or $46,031 thousand).
• The initial fiscal year 2025 guidance from November 2024 forecasted a full-year expense of $92 million for amortization of intangible assets.

This non-cash cost is explicitly excluded when calculating the company's adjusted earnings per share guidance for fiscal year 2025.

Maximus, Inc. (MMS) - Canvas Business Model: Revenue Streams

You're looking at the top-line picture for Maximus, Inc. as of the close of fiscal year 2025. The total full-year revenue landed at $5.43 billion for fiscal year 2025. This top number shows growth, but the real story is where that money came from, and honestly, it's heavily weighted toward one area. The U.S. Federal Services segment was the engine, bringing in $3.07 billion in revenue for FY 2025, which was a solid 12.1% increase year-over-year.

Here's how the main revenue segments stacked up for the full fiscal year 2025:

When you break down the contract structure, you see a clear preference for payment tied to results. Approximately 54% of total revenue came from performance-based contracts. That's a big chunk, meaning a significant portion of what Maximus earns depends on hitting specific service levels or achieving stated outcomes for the government client. Still, that leaves nearly half of the revenue coming from other structures, like fixed-price work, which was about 13% of revenue.

The sources of this revenue are concentrated in a few key areas of government service delivery:

• Clinical services volume within the U.S. Federal Services Segment.
• Program operations for U.S. state and local government programs.
• Support for Medicaid, ACA marketplaces, and child support programs.
• Revenue streams tied to eligibility, enrollment, and clinical assessment work.