Maximus (MMS) 10-Q 8 Feb 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Dec. 31, 2023	Feb. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	1-12997
Entity Registrant Name	Maximus, Inc.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-1000588
Entity Address, Address Line One	1600 Tysons Boulevard
Entity Address, City or Town	McLean
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	703
Local Phone Number	251-8500
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MMS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,031,447
Entity Central Index Key	0001032220
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Revenue	$ 1,327,041	$ 1,249,246
Cost of revenue	1,026,987	1,004,499
Gross profit	300,054	244,747
Selling, general, and administrative expenses	169,195	146,452
Amortization of intangible assets	23,349	23,518
Operating income	107,510	74,777
Interest expense	21,507	21,606
Other expense/(income), net	488	(266)
Income before income taxes	85,515	53,437
Provision for income taxes	21,367	13,442
Net income	$ 64,148	$ 39,995
Earnings per share:
Basic (in dollars per share)	$ 1.05	$ 0.65
Diluted (in dollars per share)	$ 1.04	$ 0.65
Weighted average shares outstanding:
Basic (in shares)	61,322	61,117
Diluted (in shares)	61,535	61,196
Dividends declared per share (in dollars per share)	$ 0.30	$ 0.28

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 64,148	$ 39,995
Other comprehensive (loss)/income, net of tax:
Foreign currency translation adjustments	5,912	8,036
Net losses on cash flow hedges, net of tax effect of $(3,169) and $(1,349), respectively	(8,885)	(3,781)
Other comprehensive (loss)/income	(2,973)	4,255
Comprehensive income	$ 61,175	$ 44,250

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net losses on cash flow hedges, tax	$ (3,169)	$ (1,349)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Assets:
Cash and cash equivalents	$ 104,186	$ 65,405
Accounts receivable, net	860,409	826,873
Income taxes receivable	15,850	16,556
Prepaid expenses and other current assets	129,174	146,632
Total current assets	1,109,619	1,055,466
Property and equipment, net	34,976	38,831
Capitalized software, net	125,383	107,811
Operating lease right-of-use assets	154,929	163,929
Goodwill	1,781,092	1,779,215
Intangible assets, net	680,309	703,648
Deferred contract costs, net	46,439	45,372
Deferred compensation plan assets	47,273	42,919
Deferred income taxes	2,204	2,459
Other assets	34,637	46,147
Total assets	4,016,861	3,985,797
Liabilities:
Accounts payable and accrued liabilities	267,623	282,081
Accrued compensation and benefits	115,864	194,251
Deferred revenue, current portion	63,032	60,477
Income taxes payable	23,717	451
Long-term debt, current portion	90,443	86,844
Operating lease liabilities, current portion	48,490	49,852
Other current liabilities	49,197	49,058
Total current liabilities	658,366	723,014
Deferred revenue, non-current portion	37,221	38,849
Deferred income taxes	198,317	203,898
Long-term debt, non-current portion	1,222,243	1,163,149
Deferred compensation plan liabilities, non-current portion	51,507	46,432
Operating lease liabilities, non-current portion	118,594	129,367
Other liabilities	12,807	13,253
Total liabilities	2,299,055	2,317,962
Commitments and contingencies (Note 10)
Shareholders' equity:
Common stock, no par value; 100,000 shares authorized; 61,031 and 60,998 shares issued and outstanding as of December 31, 2023 and September 30 2023, respectively	585,278	577,898
Accumulated other comprehensive loss	(30,588)	(27,615)
Retained earnings	1,163,116	1,117,552
Total shareholders' equity	1,717,806	1,667,835
Total liabilities and shareholders' equity	$ 4,016,861	$ 3,985,797

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands	Dec. 31, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	100,000	100,000
Common stock, shares issued (in shares)	61,031	60,998
Common stock, shares outstanding (in shares)	61,031	60,998

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 64,148	$ 39,995
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property, equipment, and capitalized software	8,411	12,280
Amortization of intangible assets	23,349	23,518
Amortization of debt issuance costs and debt discount	601	1,034
Deferred income taxes	(2,165)	(1,331)
Stock compensation expense	9,427	4,403
Loss on sale of a businesses	1,018	0
Change in assets and liabilities, net of effects of business combinations:
Accounts receivable	(35,379)	(200,749)
Prepaid expenses and other current assets	10,056	10,624
Deferred contract costs	(888)	(1,013)
Accounts payable and accrued liabilities	(15,543)	3,642
Accrued compensation and benefits	(67,392)	(53,271)
Deferred revenue	877	14,764
Income taxes	22,250	9,465
Operating lease right-of-use assets and liabilities	(1,088)	(948)
Other assets and liabilities	3,926	2,928
Net cash provided by/(used in) operating activities	21,608	(134,659)
Cash flows from investing activities:
Purchases of property and equipment and capitalized software	(22,247)	(15,697)
Proceeds from divestitures	1,815	0
Net cash used in investing activities	(20,432)	(15,697)
Cash flows from financing activities:
Cash dividends paid to Maximus shareholders	(18,299)	(17,017)
Tax withholding related to RSU vesting	(13,455)	(8,475)
Payments for contingent consideration	(2,819)	(1,415)
Proceeds from borrowings	228,409	268,702
Principal payments for debt	(166,658)	(61,355)
Cash-collateralized escrow liabilities	1,204	(9,473)
Net cash provided by financing activities	28,382	170,967
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	1,846	2,421
Net change in cash, cash equivalents, and restricted cash	31,404	23,032
Cash, cash equivalents, and restricted cash, beginning of period	122,091	136,795
Cash, cash equivalents, and restricted cash, end of period	$ 153,495	$ 159,827

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Loss	Retained Earnings
Balance (in shares) at Sep. 30, 2022		60,774
Beginning balance at Sep. 30, 2022	$ 1,549,371	$ 557,978	$ (33,961)	$ 1,025,354
Increase (Decrease) in Shareholders' Equity
Net income	39,995			39,995
Foreign currency translation	8,036		8,036
Cash flow hedge, net of tax	(3,781)		(3,781)
Cash dividends	(17,017)			(17,017)
Dividends on RSUs	0	298		(298)
Stock compensation expense	4,403	$ 4,403
Ending (in shares) at Dec. 31, 2022		60,774
Ending balance at Dec. 31, 2022	$ 1,581,007	$ 562,679	(29,706)	1,048,034
Balance (in shares) at Sep. 30, 2023	60,998	60,998
Beginning balance at Sep. 30, 2023	$ 1,667,835	$ 577,898	(27,615)	1,117,552
Increase (Decrease) in Shareholders' Equity
Net income	64,148			64,148
Foreign currency translation	5,912		5,912
Cash flow hedge, net of tax	(8,885)		(8,885)
Cash dividends	(18,299)			(18,299)
Dividends on RSUs	0	285		(285)
Stock compensation expense	9,427	9,427
Tax withholding adjustment related to RSU vesting	(2,332)	$ (2,332)
RSUs vested (in shares)		33
RSUs vested	$ 0
Ending (in shares) at Dec. 31, 2023	61,031	61,031
Ending balance at Dec. 31, 2023	$ 1,717,806	$ 585,278	$ (30,588)	$ 1,163,116

Organization

Organization	3 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	ORGANIZATION Maximus, a Virginia corporation established in 1975, is a leading provider of government services worldwide. Under our mission of Moving People Forward , we help millions of people access the vital government services they need. With over 45 years of experience working with local, state, federal, and international government clients, we proudly design, develop, and deliver innovative and impactful programs that change lives. We are driven to strengthen communities and improve the lives of those we serve. We are a proud partner to government agencies in the United States ("U.S.") and worldwide.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation for Interim Periods Certain information and footnote disclosures normally included for the annual financial statements to be prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. We believe that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly our financial position and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for the year or future periods. The financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended September 30, 2023, included in our Annual Report on Form 10-K for the fiscal year then ended (the "2023 10-K"). We have continued to follow the accounting policies set forth in those financial statements. Use of Estimates The preparation of these financial statements, in conformity with U.S. GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expenses. At each reporting period end, we make estimates, including those related to revenue recognition and cost estimation on certain contracts, the realizability of long-lived assets, including goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation.

Business Segments

Business Segments	3 Months Ended
	Dec. 31, 2023
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, which 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. Over the last three years, many programs in this segment have been operating with depressed margins resulting from the pause in Medicaid redeterminations. The depressed margins have resulted from reduced operating leverage in the segment as costs cannot scale down at the same rate to meet lower demand due to requirements to fulfill other obligations on these contracts. With the resumption of redeterminations, we expect fiscal year 2024 and beyond to reflect a recovery of operating leverage. 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 ("HAAS") and the recently awarded replacement contract to start in 2024, Functional Assessment Services (“FAS”), and Restart; Australia, including Workforce Australia and employment support and job seeker services worldwide. Table 3.1: Results of Operation by Business Segment For the Three Months Ended December 31, 2023 December 31, 2022 Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 677,078 $ 618,167 U.S. Services 489,845 439,478 Outside the U.S. 160,118 191,601 Revenue $ 1,327,041 $ 1,249,246 Gross profit: U.S. Federal Services $ 156,662 23.1 % $ 122,694 19.8 % U.S. Services 118,363 24.2 % 83,598 19.0 % Outside the U.S. 25,029 15.6 % 38,455 20.1 % Gross profit $ 300,054 22.6 % $ 244,747 19.6 % Selling, general, and administrative expenses: U.S. Federal Services $ 87,855 13.0 % $ 71,649 11.6 % U.S. Services 52,300 10.7 % 45,842 10.4 % Outside the U.S. 25,141 15.7 % 28,389 14.8 % Divestiture-related charges (2) 1,018 NM — NM Other (3) 2,881 NM 572 NM Selling, general, and administrative expenses $ 169,195 12.7 % $ 146,452 11.7 % Operating income: U.S. Federal Services $ 68,807 10.2 % $ 51,045 8.3 % U.S. Services 66,063 13.5 % 37,756 8.6 % Outside the U.S. (112) (0.1) % 10,066 5.3 % Amortization of intangible assets (23,349) NM (23,518) NM Divestiture-related charges (2) (1,018) NM — NM Other (3) (2,881) NM (572) NM Operating income $ 107,510 8.1 % $ 74,777 6.0 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) In November 2023, we sold our businesses in Italy and Singapore, as well as our employment services business in Canada, recording a loss of $1.0 million. We previously recorded an impairment charge of $2.9 million related to these assets. (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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2023
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 contract type and customer type. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results, which is further discussed in "Note 3. Business Segments." Table 4.1: Revenue by Contract Type For the Three Months Ended December 31, 2023 December 31, 2022 (dollars in thousands) Performance-based $ 704,711 53.1 % $ 569,217 45.6 % Cost-plus 342,015 25.8 % 347,319 27.8 % Fixed price 176,677 13.3 % 175,073 14.0 % Time and materials 103,638 7.8 % 157,637 12.6 % Total revenue $ 1,327,041 $ 1,249,246 Table 4.2: Revenue by Customer Type For the Three Months Ended December 31, 2023 December 31, 2022 (dollars in thousands) U. S. federal government agencies $ 662,946 50.0 % $ 603,918 48.3 % U.S. state government agencies 486,943 36.7 % 437,362 35.0 % International government agencies 155,612 11.7 % 181,760 14.5 % Other, including local municipalities and commercial customers 21,540 1.6 % 26,206 2.1 % Total revenue $ 1,327,041 $ 1,249,246 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 and such balances are considered collectible and 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 December 31, 2023, and September 30, 2023, $21.6 million and $20.7 million, respectively, of our unbilled receivables 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 months ended December 31, 2023, we recognized revenue of $37.7 million included in our deferred revenue balances at September 30, 2023. During the three months ended December 31, 2022, we recognized revenue of $51.1 million included in our deferred revenue balances at September 30, 2022. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. Some of our performance-based contract revenue is recognized based upon future milestones defined in each contract. This is the case in many of our employment services contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment milestones, which may take many months to achieve. We recognize revenue over the period of performance. Our estimates vary from contract to contract but may include the number of participants within a portfolio reaching employment milestones and the service delivery periods for participants reaching the employment milestone. We estimate the total variable fees we will receive using the expected value method. We recognize the fees 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. Changes to our estimates are recognized on a cumulative catch-up basis. For the three months ended December 31, 2023, there was a decrease in revenue and diluted earnings per share of $4.6 million and $0.07 from changes in estimates. There was no material effect for the three months ended December 31, 2022. Remaining performance obligations As of December 31, 2023, we had approximately $300 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 70% of this balance 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 which is allocated entirely to future performance obligations, including variable transaction fees or fees tied directly to costs incurred.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE Table 5: Weighted Average Number of Shares - Earnings Per Share For the Three Months Ended December 31, 2023 December 31, 2022 (in thousands) Basic weighted average shares outstanding 61,322 61,117 Dilutive effect of unvested RSUs and PSUs 213 79 Denominator for diluted earnings per share 61,535 61,196

Debt And Derivatives

Debt And Derivatives	3 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Debt And Derivatives	DEBT AND DERIVATIVES Table 6.1: Details of Debt December 31, 2023 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 888,750 $ 909,375 Term Loan B, due 2028 344,052 344,934 Revolver 80,000 — Subsidiary loan agreements 6,818 3,220 Total debt principal 1,319,620 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,934) (7,536) Total debt 1,312,686 1,249,993 Less: Current portion of long-term debt (90,443) (86,844) Long-term debt $ 1,222,243 $ 1,163,149 Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2023, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2023 for the remainder of fiscal year 2024 through fiscal year 2028: Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) January 1, 2024 through September 30, 2024 $ 71,340 Year ended September 30, 2025 92,903 Year ended September 30, 2026 821,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,821 Total Payments $ 1,319,620 Interest Rate Derivative Instruments To reduce our interest rate credit risk, we entered into interest-rate swap agreements covering $650 million of our Term Loan A, effectively setting a fixed rate for a portion of our debt. The balance of the debt pays interest based upon an index. At December 31, 2023, our effective interest rate, including the original issuance costs and discount rate, was 6.0%. At December 31, 2023, we recorded an asset of $21.2 million and a liability of $2.2 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $31.0 million at September 30, 2023. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheet. Our interest rate agreement for a notional amount of $150 million expires in September 2024; the remaining balance of our swap agreements expires in May 2026, concurrent with the maturity of Term Loan A.
Debt And Derivatives	DEBT AND DERIVATIVES Table 6.1: Details of Debt December 31, 2023 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 888,750 $ 909,375 Term Loan B, due 2028 344,052 344,934 Revolver 80,000 — Subsidiary loan agreements 6,818 3,220 Total debt principal 1,319,620 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,934) (7,536) Total debt 1,312,686 1,249,993 Less: Current portion of long-term debt (90,443) (86,844) Long-term debt $ 1,222,243 $ 1,163,149 Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2023, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. The following table sets forth future minimum principal payments due under our debt obligations as of December 31, 2023 for the remainder of fiscal year 2024 through fiscal year 2028: Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) January 1, 2024 through September 30, 2024 $ 71,340 Year ended September 30, 2025 92,903 Year ended September 30, 2026 821,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,821 Total Payments $ 1,319,620 Interest Rate Derivative Instruments To reduce our interest rate credit risk, we entered into interest-rate swap agreements covering $650 million of our Term Loan A, effectively setting a fixed rate for a portion of our debt. The balance of the debt pays interest based upon an index. At December 31, 2023, our effective interest rate, including the original issuance costs and discount rate, was 6.0%. At December 31, 2023, we recorded an asset of $21.2 million and a liability of $2.2 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $31.0 million at September 30, 2023. The asset and liability are recorded as "other assets" and "other liabilities," respectively, within our consolidated balance sheet. Our interest rate agreement for a notional amount of $150 million expires in September 2024; the remaining balance of our swap agreements expires in May 2026, concurrent with the maturity of Term Loan A.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The following assets and liabilities are recorded at fair value on a recurring basis. • We hold mutual fund assets within a Rabbi Trust to cover liabilities in our deferred compensation plan. These assets have prices quoted within active markets and, accordingly, are classified as level 1 within the fair value hierarchy. • We have interest rate swap agreements serving to reduce our interest rate risk on our debt. These agreements can be valued using observable data and, accordingly, are classified as level 2 within the fair value hierarchy. • We anticipate paying additional consideration for certain acquisitions based upon the subsequent performance of the businesses acquired. This liability is based upon our internal assumptions over revenues, margins, volumes, and contract terms. Accordingly, these inputs are not observable and are classified as level 3 within the fair value hierarchy. The tables below present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis and their corresponding level within the fair value hierarchy. No transfers between Level 1, Level 2, and Level 3 fair value measurements occurred for the three months ended December 31, 2023. Table 7.1: Fair Value Measurements As of December 31, 2023 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 29,126 $ — $ — $ 29,126 Interest rate swap - $450 million notional value — 21,185 — 21,185 Total assets $ 29,126 $ 21,185 $ — $ 50,311 Liabilities: Interest rate swap - $200 million notional value $ — $ 2,212 $ — $ 2,212 Contingent consideration — — 8,166 8,166 Total liabilities $ — $ 2,212 $ 8,166 $ 10,378 The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of our debt is consistent with the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs). Accumulated Other Comprehensive Loss All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swaps, net of tax. The following table shows changes in accumulated other comprehensive loss. Amounts reclassified from other comprehensive income were recorded within our selling, general and administrative expenses (for foreign currency translation adjustments) and within interest expense (for gains on derivatives). Table 7.2: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) Other comprehensive income before reclassifications 5,779 (5,801) (22) Amounts reclassified from accumulated other comprehensive loss 133 (3,084) (2,951) Net current period other comprehensive losses 5,912 (8,885) (2,973) Balance as of December 31, 2023 $ (44,572) $ 13,984 $ (30,588) Contingent Consideration The fair value of our contingent consideration is based upon estimates of the likely payments, which are based upon assumptions over future performance. The liabilities are reviewed on a quarterly basis and, where changes in estimates arise, these are recorded to selling and general administrative expenses. Our contingent consideration relates to the businesses below: • In October 2021, we acquired the student loan servicing business from Navient, rebranded as Aidvantage. Future payments are based upon volumes, up to a maximum payment of $65.0 million. At December 31, 2023, and September 30, 2023, the Aidvantage contingent consideration was $5.6 million and $7.5 million, respectively. • In January 2022, we acquired BZ Bodies Limited. Future payments are based upon the performance of the business through December 2023, up to a maximum payment of $2.5 million (£2.0 million British Pounds). At December 31, 2023, and September 30, 2023, we recorded a contingent consideration liability for the maximum payment, which we anticipate making in fiscal year 2024. Movement in our contingent consideration balance is as follows: Table 7.3: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Opening contingent consideration as of September 30, 2023 $ 9,903 Adjustments to fair value recorded in the period 977 Cash payments (2,819) Foreign currency translations 105 Closing contingent consideration as of December 31, 2023 $ 8,166

Equity

Equity	3 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity	EQUITY Stock Compensation We grant restricted stock units ("RSUs") and performance stock units ("PSUs") to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by the Board of Directors and stockholders. The RSUs granted to employees vest ratably over three During the three months ended December 31, 2023, we issued approximately 302,000 RSUs, which will vest ratably over three

Other Balance Sheet Items

Other Balance Sheet Items	3 Months Ended
	Dec. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Other Balance Sheet Items	OTHER BALANCE SHEET ITEMS Cash, Cash Equivalents, and Restricted Cash Table 9.1: Details of Cash and Cash Equivalents and Restricted Cash December 31, 2023 September 30, 2023 (in thousands) Cash and cash equivalents $ 104,186 $ 65,405 Restricted cash 49,309 56,686 Cash, cash equivalents, and restricted cash $ 153,495 $ 122,091 Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. Table 9.2: Supplemental Disclosures of Cash Flow Information For the Three Months Ended December 31, 2023 December 31, 2022 (in thousands) Interest payments $ 20,522 $ 19,748 Income tax (refunds)/payments, net $ (588) $ 4,982 Accounts Receivable, Net Table 9.3: Details of Accounts Receivable, Net December 31, 2023 September 30, 2023 (in thousands) Billed and billable receivables $ 708,145 $ 692,707 Unbilled receivables 160,250 137,885 Allowance for credit losses (7,986) (3,719) Accounts receivable, net $ 860,409 $ 826,873 On September 21, 2022, we entered into a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain U.S.-originated accounts receivable balances up to a maximum amount of $200.0 million at any given time. In return for these sales, we receive a cash payment equal to the face value of the receivables less a financing charge. We account for these transfers as sales. We have no retained interest in the transferred receivables other than administrative responsibilities, and Wells Fargo has no recourse for any credit risk. We estimate that the implicit servicing fees for an arrangement of this size and type would be immaterial. For the three months ended December 31, 2023, the gross fair value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $108.2 million. In exchange for these sales, we received $107.5 million of cash. The balance, representing a loss on sale from these transfers, is included within our selling, general and administrative expenses. We have recorded these transactions within our operating cash flows.

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	COMMITMENTS AND CONTINGENCIES Litigation We are subject to audits, investigations, and reviews relating to compliance with the laws and regulations that govern our role as a contractor to agencies and departments of federal, state, local, and foreign governments. Adverse findings could lead to criminal, civil, or administrative proceedings, and we could be faced with penalties, fines, suspension, or debarment. Adverse findings could also have a material adverse effect on us because of our reliance on government contracts. We are subject to periodic audits by federal, state, local, and foreign governments for taxes. We are also involved in various claims, arbitrations, and lawsuits arising in the normal conduct of our business. These include but are not limited to bid protests, employment matters, contractual disputes, and charges before administrative agencies. Although we can give no assurance, based upon our evaluation and taking into account the advice of legal counsel, we do not believe that the outcome of any existing matter would likely have a material adverse effect on our consolidated financial position, results of operations, or cash flows. We evaluate, on a regular basis, developments in our litigation matters and establish or make adjustments to our accruals as appropriate. A liability is accrued if a loss is probable and the amount of such loss can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated, or the risk of loss is only reasonably possible, a potential liability will be disclosed but not accrued, if material. Due to the inherent uncertainty in the outcome of litigation, our estimates and assessments may prove to be incomplete or inaccurate and could be impacted by unanticipated events and circumstances, adverse outcomes, or other future determinations. MOVEit Cybersecurity Incident Litigation As the Company has previously disclosed, on May 31, 2023, Progress Software Corporation, the developer of MOVEit (“MOVEit”), a file transfer application used by many organizations to transfer data, announced a critical zero-day vulnerability in the application that allowed unauthorized third parties to access its customers’ MOVEit environments. Maximus uses MOVEit for internal and external file sharing purposes, including to share data with government customers related to Maximus's services in support of certain government programs. Based on its review of the impacted files to date, the Company has provided notices to individuals whose personal information, including social security numbers, protected health information, and/or other personal information, may have been included in the impacted files. On August 1, 2023, a purported class action was filed against Maximus Federal Services, Inc. (a wholly-owned subsidiary of Maximus, Inc.) in the U.S. District Court for the Eastern District of Virginia arising out of the MOVEit cybersecurity incident – Bishop v. Maximus Federal Services, Case No. 1:23-cv-01019 (U.S. Dist. Ct. E. D. VA). The plaintiff, who purports to represent a nationwide class of individuals, alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. Since August 1, 2023, approximately ten additional cases arising out of the MOVEit cybersecurity incident have been filed in federal courts against Maximus, Inc. and its subsidiaries. The most recent case, Forsyth ex rel. S.F. v. Maximus, Inc., et al., No. 1:24-cv-10218-ADB was filed January 26, 2024. These cases each allege substantially similar allegations on behalf of putative nationwide classes and on behalf of various putative state subclasses. On October 4, 2023, the United States Judicial Panel on Multidistrict Litigation granted a Motion to Transfer that created a Multidistrict Litigation (“MDL”) in the District of Massachusetts for all cases in federal court related to the MOVEit cybersecurity incident, including cases filed against Maximus and other defendants, including Progress Software Corporation, the creator of MOVEit. All of the cases against Maximus, Inc. and its subsidiaries initially filed in federal courts outside of the District of Massachusetts that are related to the MOVEit cybersecurity incident have now been transferred to the MDL under the caption In re: MOVEit Customer Data Security Breach Litigation and are currently stayed pending the filing of consolidated amended compliant(s). The plaintiffs in Bishop and the other cases against the company in the MDL seek damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. On September 6, 2023, an individual action was filed in state court in the Florida Circuit Court for the 7th Judicial Circuit, Volusia County: Taylor v. Maximus Federal Services, Case No. 2023-12349 (Fla. Cir. Ct., 7th Jud. Cir., Volusia Cnty.), also arising out of the MOVEit cybersecurity incident. The plaintiff alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. Since September 6, 2023, approximately eight additional individual actions have been filed against Maximus, Inc. and its subsidiaries in Florida state courts, one of which has been dismissed. These actions all raise substantially similar allegations and legal claims. The plaintiffs in these individual actions seek damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. On October 27, 2023, a purported class action was filed in state court in Marion Superior Court in Marion County, Indiana, against Maximus Health Services, Inc. (a wholly owned subsidiary of Maximus, Inc.): Solis Garcia v. Maximus Health Services, Inc., Case No. 49D12-2310-CT-042115 (Ind. Super. Ct., Marion Cnty.), again arising out of the MOVEit cybersecurity incident. The plaintiff, who purports to represent a class comprised of Indiana residents, alleges, among other things that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. The plaintiff seeks damages to be proved at trial. The Company has removed this case to federal court in the Southern District of Indiana and requested that it be transferred to the MDL. The Company is not able to determine or predict the ultimate outcome of any of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. The Company is not able to determine or predict the ultimate outcome of any of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. Census Project – Civil Investigation Demand (“CID”) In 2021, Maximus received a CID from the U.S. Department of Justice (“DOJ”) pursuant to the False Claims Act seeking records pertaining to the Census project. The CID requested the production of documents related to the Company’s compliance with telephone call quality assurance scoring and reporting requirements. The Company is cooperating with the DOJ in its investigation and providing responses and information on an ongoing basis. As of December 31, 2023, the Company has reserved $3.0 million in connection with this matter. While it is reasonably possible that losses exceeding the amount accrued may be incurred, it is not possible at this time to estimate the additional possible loss in excess of the amount already accrued.

Subsequent Event

Subsequent Event	3 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	SUBSEQUENT EVENT On January 5, 2024, our Board of Directors declared a quarterly cash dividend of $0.30 for each share of our common stock outstanding. The dividend is payable on February 29, 2024, to shareholders of record on February 15, 2024. Based upon the number of shares outstanding, we anticipate a cash payment of approximately $18.3 million.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 64,148	$ 39,995

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
David W. Mutryn [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	David W. Mutryn, our Chief Financial Officer, adopted a new Rule 10b5-1 trading arrangement on November 17, 2023 that is scheduled to terminate on February 29, 2024. Under the trading arrangement, up to an aggregate of 8,000 shares of common stock are available to be sold by the broker on a particular date.
Name	David W. Mutryn
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	November 17, 2023
Arrangement Duration	105 days
Aggregate Available	8,000
Michelle Link [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Michelle Link, our Chief Human Resources Officer, adopted a new Rule 10b5-1 trading arrangement on December 15, 2023 that is scheduled to terminate on December 2, 2024. Under the trading arrangement, up to an aggregate of 5,588 shares of common stock are available to be sold by the broker on particular dates, subject to adjustment based on the vesting of performance awards.
Name	Michelle Link
Title	Chief Human Resources Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 15, 2023
Arrangement Duration	354 days
Aggregate Available	5,588

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of these financial statements, in conformity with U.S. GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expenses. At each reporting period end, we make estimates, including those related to revenue recognition and cost estimation on certain contracts, the realizability of long-lived assets, including goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation.

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Dec. 31, 2023
Segment Reporting [Abstract]
Schedule of Financial Information for each of the Company's Business Segments	Table 3.1: Results of Operation by Business Segment For the Three Months Ended December 31, 2023 December 31, 2022 Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 677,078 $ 618,167 U.S. Services 489,845 439,478 Outside the U.S. 160,118 191,601 Revenue $ 1,327,041 $ 1,249,246 Gross profit: U.S. Federal Services $ 156,662 23.1 % $ 122,694 19.8 % U.S. Services 118,363 24.2 % 83,598 19.0 % Outside the U.S. 25,029 15.6 % 38,455 20.1 % Gross profit $ 300,054 22.6 % $ 244,747 19.6 % Selling, general, and administrative expenses: U.S. Federal Services $ 87,855 13.0 % $ 71,649 11.6 % U.S. Services 52,300 10.7 % 45,842 10.4 % Outside the U.S. 25,141 15.7 % 28,389 14.8 % Divestiture-related charges (2) 1,018 NM — NM Other (3) 2,881 NM 572 NM Selling, general, and administrative expenses $ 169,195 12.7 % $ 146,452 11.7 % Operating income: U.S. Federal Services $ 68,807 10.2 % $ 51,045 8.3 % U.S. Services 66,063 13.5 % 37,756 8.6 % Outside the U.S. (112) (0.1) % 10,066 5.3 % Amortization of intangible assets (23,349) NM (23,518) NM Divestiture-related charges (2) (1,018) NM — NM Other (3) (2,881) NM (572) NM Operating income $ 107,510 8.1 % $ 74,777 6.0 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) In November 2023, we sold our businesses in Italy and Singapore, as well as our employment services business in Canada, recording a loss of $1.0 million. We previously recorded an impairment charge of $2.9 million related to these assets. (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.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Table 4.1: Revenue by Contract Type For the Three Months Ended December 31, 2023 December 31, 2022 (dollars in thousands) Performance-based $ 704,711 53.1 % $ 569,217 45.6 % Cost-plus 342,015 25.8 % 347,319 27.8 % Fixed price 176,677 13.3 % 175,073 14.0 % Time and materials 103,638 7.8 % 157,637 12.6 % Total revenue $ 1,327,041 $ 1,249,246 Table 4.2: Revenue by Customer Type For the Three Months Ended December 31, 2023 December 31, 2022 (dollars in thousands) U. S. federal government agencies $ 662,946 50.0 % $ 603,918 48.3 % U.S. state government agencies 486,943 36.7 % 437,362 35.0 % International government agencies 155,612 11.7 % 181,760 14.5 % Other, including local municipalities and commercial customers 21,540 1.6 % 26,206 2.1 % Total revenue $ 1,327,041 $ 1,249,246

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares used toCompute Earnings Per Share	Table 5: Weighted Average Number of Shares - Earnings Per Share For the Three Months Ended December 31, 2023 December 31, 2022 (in thousands) Basic weighted average shares outstanding 61,322 61,117 Dilutive effect of unvested RSUs and PSUs 213 79 Denominator for diluted earnings per share 61,535 61,196

Debt And Derivatives (Tables)

Debt And Derivatives (Tables)	3 Months Ended
	Dec. 31, 2023
Debt Disclosure [Abstract]
Schedule of Debt	Table 6.1: Details of Debt December 31, 2023 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 888,750 $ 909,375 Term Loan B, due 2028 344,052 344,934 Revolver 80,000 — Subsidiary loan agreements 6,818 3,220 Total debt principal 1,319,620 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,934) (7,536) Total debt 1,312,686 1,249,993 Less: Current portion of long-term debt (90,443) (86,844) Long-term debt $ 1,222,243 $ 1,163,149
Schedule of Maturities of Long-term Debt	Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) January 1, 2024 through September 30, 2024 $ 71,340 Year ended September 30, 2025 92,903 Year ended September 30, 2026 821,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,821 Total Payments $ 1,319,620

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Assets and Liabilities	Table 7.1: Fair Value Measurements As of December 31, 2023 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 29,126 $ — $ — $ 29,126 Interest rate swap - $450 million notional value — 21,185 — 21,185 Total assets $ 29,126 $ 21,185 $ — $ 50,311 Liabilities: Interest rate swap - $200 million notional value $ — $ 2,212 $ — $ 2,212 Contingent consideration — — 8,166 8,166 Total liabilities $ — $ 2,212 $ 8,166 $ 10,378 The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of our debt is consistent with the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs). Accumulated Other Comprehensive Loss All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swaps, net of tax. The following table shows changes in accumulated other comprehensive loss. Amounts reclassified from other comprehensive income were recorded within our selling, general and administrative expenses (for foreign currency translation adjustments) and within interest expense (for gains on derivatives). Table 7.2: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) Other comprehensive income before reclassifications 5,779 (5,801) (22) Amounts reclassified from accumulated other comprehensive loss 133 (3,084) (2,951) Net current period other comprehensive losses 5,912 (8,885) (2,973) Balance as of December 31, 2023 $ (44,572) $ 13,984 $ (30,588) Contingent Consideration The fair value of our contingent consideration is based upon estimates of the likely payments, which are based upon assumptions over future performance. The liabilities are reviewed on a quarterly basis and, where changes in estimates arise, these are recorded to selling and general administrative expenses. Our contingent consideration relates to the businesses below: • In October 2021, we acquired the student loan servicing business from Navient, rebranded as Aidvantage. Future payments are based upon volumes, up to a maximum payment of $65.0 million. At December 31, 2023, and September 30, 2023, the Aidvantage contingent consideration was $5.6 million and $7.5 million, respectively. • In January 2022, we acquired BZ Bodies Limited. Future payments are based upon the performance of the business through December 2023, up to a maximum payment of $2.5 million (£2.0 million British Pounds). At December 31, 2023, and September 30, 2023, we recorded a contingent consideration liability for the maximum payment, which we anticipate making in fiscal year 2024. Movement in our contingent consideration balance is as follows: Table 7.3: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Opening contingent consideration as of September 30, 2023 $ 9,903 Adjustments to fair value recorded in the period 977 Cash payments (2,819) Foreign currency translations 105 Closing contingent consideration as of December 31, 2023 $ 8,166

Other Balance Sheet Items (Tabl

Other Balance Sheet Items (Tables)	3 Months Ended
	Dec. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	Table 9.1: Details of Cash and Cash Equivalents and Restricted Cash December 31, 2023 September 30, 2023 (in thousands) Cash and cash equivalents $ 104,186 $ 65,405 Restricted cash 49,309 56,686 Cash, cash equivalents, and restricted cash $ 153,495 $ 122,091
Restrictions on Cash and Cash Equivalents	Table 9.1: Details of Cash and Cash Equivalents and Restricted Cash December 31, 2023 September 30, 2023 (in thousands) Cash and cash equivalents $ 104,186 $ 65,405 Restricted cash 49,309 56,686 Cash, cash equivalents, and restricted cash $ 153,495 $ 122,091
Supplementary Cash Flow Information	Table 9.2: Supplemental Disclosures of Cash Flow Information For the Three Months Ended December 31, 2023 December 31, 2022 (in thousands) Interest payments $ 20,522 $ 19,748 Income tax (refunds)/payments, net $ (588) $ 4,982
Details of Accounts Receivable	Table 9.3: Details of Accounts Receivable, Net December 31, 2023 September 30, 2023 (in thousands) Billed and billable receivables $ 708,145 $ 692,707 Unbilled receivables 160,250 137,885 Allowance for credit losses (7,986) (3,719) Accounts receivable, net $ 860,409 $ 826,873

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Capitalized software, net	$ 125,383	$ 107,811
Technology Equipment
Property, Plant and Equipment [Line Items]
Capitalized software, net	$ 26,800

Business Segments - Financial i

Business Segments - Financial information by segment (Details) $ in Thousands		3 Months Ended
	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Financial information for each of the Company's business segments
Number of operating segments | segment		3
Revenue:
Revenue		$ 1,327,041	$ 1,249,246
Gross profit:
Gross profit		$ 300,054	$ 244,747
Gross profit (as a percent)		22.60%	19.60%
Selling, general, and administrative expenses:
Selling, general, and administrative expenses		$ 169,195	$ 146,452
Selling, general, and administrative expense (as a percent)		12.70%	11.70%
Divestiture-related charges		$ 1,018	$ 0
Impairment charges	$ 2,900
Operating income:
Operating income		$ 107,510	$ 74,777
Operating income (as a percent)		8.10%	6%
Amortization of intangible assets		$ (23,349)	$ (23,518)
Segment Reconciling Items
Selling, general, and administrative expenses:
Selling, general, and administrative expenses		2,881	572
Divestiture-related charges		1,018	0
Operating income:
Amortization of intangible assets		(23,349)	(23,518)
Other		(2,881)	(572)
U.S. Federal Services | Operating Segments
Revenue:
Revenue		677,078	618,167
Gross profit:
Gross profit		$ 156,662	$ 122,694
Gross profit (as a percent)		23.10%	19.80%
Selling, general, and administrative expenses:
Selling, general, and administrative expenses		$ 87,855	$ 71,649
Selling, general, and administrative expense (as a percent)		13%	11.60%
Operating income:
Operating income		$ 68,807	$ 51,045
Operating income (as a percent)		10.20%	8.30%
U.S. Services | Operating Segments
Revenue:
Revenue		$ 489,845	$ 439,478
Gross profit:
Gross profit		$ 118,363	$ 83,598
Gross profit (as a percent)		24.20%	19%
Selling, general, and administrative expenses:
Selling, general, and administrative expenses		$ 52,300	$ 45,842
Selling, general, and administrative expense (as a percent)		10.70%	10.40%
Operating income:
Operating income		$ 66,063	$ 37,756
Operating income (as a percent)		13.50%	8.60%
Outside the U.S. | Operating Segments
Revenue:
Revenue		$ 160,118	$ 191,601
Gross profit:
Gross profit		$ 25,029	$ 38,455
Gross profit (as a percent)		15.60%	20.10%
Selling, general, and administrative expenses:
Selling, general, and administrative expenses		$ 25,141	$ 28,389
Selling, general, and administrative expense (as a percent)		15.70%	14.80%
Operating income:
Operating income		$ (112)	$ 10,066
Operating income (as a percent)		(0.10%)	5.30%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 1,327,041	$ 1,249,246
U. S. federal government agencies
Disaggregation of Revenue [Line Items]
Revenue	$ 662,946	$ 603,918
U. S. federal government agencies | Revenue Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	50%	48.30%
U.S. state government agencies
Disaggregation of Revenue [Line Items]
Revenue	$ 486,943	$ 437,362
U.S. state government agencies | Revenue Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	36.70%	35%
International government agencies
Disaggregation of Revenue [Line Items]
Revenue	$ 155,612	$ 181,760
International government agencies | Revenue Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	11.70%	14.50%
Other, including local municipalities and commercial customers
Disaggregation of Revenue [Line Items]
Revenue	$ 21,540	$ 26,206
Other, including local municipalities and commercial customers | Revenue Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	1.60%	2.10%
Performance-based
Disaggregation of Revenue [Line Items]
Revenue	$ 704,711	$ 569,217
Performance-based | Revenue Benchmark | Contract Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	53.10%	45.60%
Cost-plus
Disaggregation of Revenue [Line Items]
Revenue	$ 342,015	$ 347,319
Cost-plus | Revenue Benchmark | Contract Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	25.80%	27.80%
Fixed price
Disaggregation of Revenue [Line Items]
Revenue	$ 176,677	$ 175,073
Fixed price | Revenue Benchmark | Contract Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	13.30%	14%
Time and materials
Disaggregation of Revenue [Line Items]
Revenue	$ 103,638	$ 157,637
Time and materials | Revenue Benchmark | Contract Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue in %	7.80%	12.60%

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Deferred revenue, revenue recognized	$ 37,700	$ 51,100
Revenue	$ 1,327,041	$ 1,249,246
Diluted (in dollars per share)	$ 1.04	$ 0.65
Change in estimate
Disaggregation of Revenue [Line Items]
Revenue	$ (4,600)
Diluted (in dollars per share)	$ (0.07)
Unbilled receivables
Disaggregation of Revenue [Line Items]
Unbilled contracts receivable	$ 21,600		$ 20,700

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	70%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Basic weighted average shares outstanding (in shares)	61,322,000	61,117,000
Dilutive effect of unvested RSUs and PSUs (in shares)	213,000	79,000
Denominator for diluted earnings per share (in shares)	61,535,000	61,196,000
Antidilutive securities excluded from computation of earnings per share (in shares)	467,000	804,000

Debt And Derivatives - Schedule

Debt And Derivatives - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Debt principal	$ 1,319,620
Total debt principal	1,319,620	$ 1,257,529
Less: Unamortized debt-issuance costs and discounts	(6,934)	(7,536)
Total debt	1,312,686	1,249,993
Less: Current portion of long-term debt	(90,443)	(86,844)
Long-term debt	1,222,243	1,163,149
Secured Debt | Term Loan A, due 2026
Debt Instrument [Line Items]
Debt principal	888,750	909,375
Secured Debt | Term Loan B, due 2028
Debt Instrument [Line Items]
Debt principal	344,052	344,934
Revolver | Revolving Credit Facility
Debt Instrument [Line Items]
Debt principal	80,000	0
Subsidiary loan agreements
Debt Instrument [Line Items]
Debt principal	$ 6,818	$ 3,220

Debt And Derivatives - Schedu_2

Debt And Derivatives - Schedule of Repayments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Debt Disclosure [Abstract]
January 1, 2024 through September 30, 2024	$ 71,340
Year ended September 30, 2025	92,903
Year ended September 30, 2026	821,028
Year ended September 30, 2027	3,528
Year ended September 30, 2028	330,821
Total Payments	$ 1,319,620

Debt And Derivatives - Narrativ

Debt And Derivatives - Narrative (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Annual effective interest rate	6%
Other Assets
Debt Instrument [Line Items]
Fair value of derivative asset	$ 21,200,000	$ 31,000,000
Other Liabilities
Debt Instrument [Line Items]
Fair value of derivative liability	2,200,000
Term Loan A, due 2026 | Secured Debt | Interest Rate Swap
Debt Instrument [Line Items]
Debt instrument, face amount	650,000,000
Term Loan A, due 2026 | Secured Debt | Interest Rate Swap 2
Debt Instrument [Line Items]
Derivative, notional amount	$ 150,000,000

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Interest Rate Swap
Financial information for each of the Company's business segments
Notional value, asset	$ 450,000
Notional value, liability	200,000
Fair Value, Recurring
Financial information for each of the Company's business segments
Total assets	50,311
Contingent consideration	8,166
Total liabilities	10,378
Fair Value, Recurring | Interest Rate Swap
Financial information for each of the Company's business segments
Total assets	21,185
Interest rate swap	2,212
Fair Value, Recurring | Deferred compensation assets - Rabbi Trust
Financial information for each of the Company's business segments
Total assets	29,126
Level 1 | Fair Value, Recurring
Financial information for each of the Company's business segments
Total assets	29,126
Contingent consideration	0
Total liabilities	0
Level 1 | Fair Value, Recurring | Interest Rate Swap
Financial information for each of the Company's business segments
Total assets	0
Interest rate swap	0
Level 1 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust
Financial information for each of the Company's business segments
Total assets	29,126
Level 2 | Fair Value, Recurring
Financial information for each of the Company's business segments
Total assets	21,185
Contingent consideration	0
Total liabilities	2,212
Level 2 | Fair Value, Recurring | Interest Rate Swap
Financial information for each of the Company's business segments
Total assets	21,185
Interest rate swap	2,212
Level 2 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust
Financial information for each of the Company's business segments
Total assets	0
Level 3 | Fair Value, Recurring
Financial information for each of the Company's business segments
Total assets	0
Contingent consideration	8,166
Total liabilities	8,166
Level 3 | Fair Value, Recurring | Interest Rate Swap
Financial information for each of the Company's business segments
Total assets	0
Interest rate swap	0
Level 3 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust
Financial information for each of the Company's business segments
Total assets	$ 0

Fair Value Measurements - Accum

Fair Value Measurements - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 1,667,835	$ 1,549,371
Other comprehensive income before reclassifications	(22)
Amounts reclassified from accumulated other comprehensive loss	(2,951)
Other comprehensive (loss)/income	(2,973)	4,255
Ending balance	1,717,806	1,581,007
Foreign currency translation adjustment
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	(50,484)
Other comprehensive income before reclassifications	5,779
Amounts reclassified from accumulated other comprehensive loss	133
Other comprehensive (loss)/income	5,912
Ending balance	(44,572)
Net unrealized gain on derivatives, net of tax
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	22,869
Other comprehensive income before reclassifications	(5,801)
Amounts reclassified from accumulated other comprehensive loss	(3,084)
Other comprehensive (loss)/income	(8,885)
Ending balance	13,984
Total
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	(27,615)	(33,961)
Other comprehensive (loss)/income	(2,973)
Ending balance	$ (30,588)	$ (29,706)

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) £ in Millions, $ in Millions	Dec. 31, 2023 USD ($)	Dec. 31, 2023 GBP (£)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 GBP (£)	Oct. 31, 2021 USD ($)
Aidvantage
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Contingent consideration	$ 5.6		$ 7.5
BZ Bodies Limited
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Contingent consideration	$ 2.5	£ 2	$ 2.5	£ 2
Maximum | Navient
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Contingent consideration					$ 65

Fair Value Measurements - Unobs

Fair Value Measurements - Unobservable Inputs (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2023 USD ($)
Contingent Consideration
Beginning balance	$ 9,903
Adjustments to fair value recorded in the period	$ 977
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)
Cash payments	$ (2,819)
Foreign currency translations	$ 105
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]	Foreign currency translation adjustments
Ending balance	$ 8,166

Equity - Narrative (Details)

Equity - Narrative (Details)	3 Months Ended
	Dec. 31, 2023 shares
Restricted Stock Units (RSUs)
Stock-based compensation
Shares issued (in shares)	302,000
Restricted Stock Units (RSUs) | Member of Board of Directors | A2021 Stock Incentive Plan
Stock-based compensation
Vesting period	1 year
Restricted Stock Units (RSUs) | Minimum
Stock-based compensation
Vesting period	3 years
Restricted Stock Units (RSUs) | Minimum | A2021 Stock Incentive Plan
Stock-based compensation
Vesting period	3 years
Restricted Stock Units (RSUs) | Maximum
Stock-based compensation
Vesting period	4 years
Restricted Stock Units (RSUs) | Maximum | A2021 Stock Incentive Plan
Stock-based compensation
Vesting period	5 years
Performance Shares
Stock-based compensation
Vesting period	3 years
Shares issued (in shares)	128,000
Performance Shares | Minimum | A2021 Stock Incentive Plan
Stock-based compensation
Vesting rights, percentage	0%
Performance Shares | Maximum | A2021 Stock Incentive Plan
Stock-based compensation
Vesting rights, percentage	200%

Other Balance Sheet Items - Sch

Other Balance Sheet Items - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 104,186	$ 65,405
Restricted cash	49,309	56,686
Cash, cash equivalents, and restricted cash	$ 153,495	$ 122,091	$ 159,827	$ 136,795

Other Balance Sheet Items - Sup

Other Balance Sheet Items - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Interest payments	$ 20,522	$ 19,748
Income tax refunds, net	$ (588)
Income tax payments, net		$ 4,982

Other Balance Sheet Items - Det

Other Balance Sheet Items - Details of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ (7,986)	$ (3,719)
Accounts receivable, net	860,409	826,873
Billed and billable receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	708,145	692,707
Unbilled receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 160,250	$ 137,885

Other Balance Sheet Items - Nar

Other Balance Sheet Items - Narratives (Details) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 21, 2022
Cash and Cash Equivalents [Abstract]
Receivables purchase agreement, maximum sales amount		$ 200
Transfer of financial assets, accounted for as sales	$ 108.2
Cash received from transfer of financial assets	$ 107.5

Commitments and contingencies (

Commitments and contingencies (Details) $ in Millions	Sep. 06, 2023 action	Dec. 31, 2023 USD ($) case
Loss Contingencies [Line Items]
Loss contingency accrual | $		$ 3
MOVEit, Federal Court
Loss Contingencies [Line Items]
Number of cases filed | case		10
MOVEit, State Court
Loss Contingencies [Line Items]
Number of cases filed	8
Number of cases dismissed	1

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 29, 2024	Jan. 05, 2024
Subsequent Event
Subsequent Event [Line Items]
Cash dividend declared (in dollars per share)		$ 0.30
Common Stock | Forecast
Subsequent Event [Line Items]
Payments of dividends	$ 18.3