Financial Analysis

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, which include but are not limited to bid protests, employment matters, contractual disputes, and charges before administrative agencies. Except for the matters described below for which we cannot predict the outcome, we do not believe 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 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 w …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT AND DERIVATIVES Table 7.1: Details of Debt December 31, 2025 September 30, 2025 (in thousands) Term Loan A (TLA) $ 841,875 $ 853,125 Term Loan B (TLB) 492,500 493,750 Revolver 245,000 Total debt principal 1,579,375 1,346,875 Less: Unamortized debt-issuance costs and discounts (11,865) (12,602) Total debt 1,567,510 1,334,273 Less: Current portion of long-term debt (58,305) (52,680) Long-term debt $ 1,509,205 $ 1,281,593 Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At December 31, 2025, 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, 2025 for the remainder of fiscal year 2026 through fiscal year 2031: Table 7.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) January 1, 2026 through September 30, 2026 $ 43,125 Year ended September 30, 2027 72,500 Year ended September 30, 2028 78,125 Year ended September 30, 2029 911,875 Year ended September 30, 2030 5,000 Years ended thereafter 468,750 Total payments $ 1,579,375 Interest Rate Derivative Instruments We utilize interest rate swaps that are designed to reduce our risk from changes in interest rates, which we have designated as cash flow hedges. The following table presents ou …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Table 4.1: Revenue by Service Type For the Three Months Ended December 31, 2025 December 31, 2024 (dollars in thousands) Program Operations $ 676,407 50.3 % $ 727,967 51.9 % Clinical Services 523,719 38.9 % 471,526 33.6 % Employment & Other 70,165 5.2 % 113,618 8.1 % Technology Solutions 74,755 5.6 % 89,564 6.4 % Total revenue $ 1,345,046 $ 1,402,675 Table 4.2: Revenue by Contract Type For the Three Months Ended December 31, 2025 December 31, 2024 (in thousands) Performance-based $ 720,661 53.6 % $ 717,771 51.2 % Cost-plus 386,388 28.7 % 384,427 27.4 % Fixed price 168,519 12.5 % 174,679 12.5 % Time and materials 69,478 5.2 % 125,798 9.0 % Total revenue $ 1,345,046 $ 1,402,675 Table 4.3: Revenue by Customer Type For the Three Months Ended December 31, 2025 December 31, 2024 (dollars in thousands) New York state government agencies $ 150,121 11.2 % $ 161,695 11.5 % Other U.S. state government agencies 268,472 20.0 % 291,067 20.8 % Total U.S. state government agencies 418,593 452,762 U.S. federal government agencies 767,803 57.1 % 764,437 54.5 % International government agencies 141,012 10.5 % 166,866 11.9 % Other, including local municipalities and commercial customers 17,638 1.3 % 18,610 1.3 % Total revenue $ 1,345,046 $ 1,402,675 Table 4.4: Effect of Changes in Contract Estimates For the Three Months Ended December 31, 2025 December 31, 2024 (in thousands, except per share data) Increase in revenue recognized due to changes in contract estimates $ 6,402 $ 6,800 Increase i …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

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 to four years, with a small number which cliff vest after three years. The RSUs granted to directors cliff vest one year from the grant date. PSU vesting is subject to the achievement of certain performance and market conditions, and the number of PSUs earned could vary from 0% to 200% of the number of PSUs awarded. The PSUs will vest at the end of a three-year performance period if the performance conditions are met. We issue new shares to satisfy our obligations under these plans. The fair value of each RSU and PSU is calculated at the date of the grant. During the three months ended December 31, 2025, we issued approximately 312,000 RSUs, which will vest ratably over three to four years, and approximately 146,000 PSUs, which will vest after three years if the performance conditions are met. Stock Repurchase Programs In September 2025, our Board of Directors authorized an increase to our existing stock purchase program that allows us to purchase, at management's discretion, up to $400 million of our common stock. During the three months ended December 31, 2025, we purchased approximately 0.4 million common shares at a cost of $31.1 million, which includes an additional charge from the 1% excise tax …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 to manage our interest rate exposure. These agreements can be valued using observable data and, accordingly, are classified as level 2 within the fair value hierarchy. In connection with the businesses sold in Australia and Korea, we indemnified the buyer related to certain potential losses, which are recorded at fair value, based on an assessment of probability-weighted outcomes. Accordingly, these inputs are not observable and are classified as level 3 within the fair value hierarchy. Changes in the fair value of the indemnification liability are recorded in the consolidated statements of operations. The table below presents 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, 2025. Table 8.1: Fair Value Measurements As of December 31, 2025 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 41,446 $ $ $ 41 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"REVENUE RECOGNITION We recognize revenue as, or when, we satisfy performance obligations under a contract. The majority of our contracts have performance obligations that are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customers that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. Disaggregation of Revenue In addition to our segment reporting, we disaggregate our revenues by service, contract type, and customer type. Table 4.1: Revenue by Service Type For the Three Months Ended December 31, 2025 December 31, 2024 (dollars in thousands) Program Operations $ 676,407 50.3 % $ 727,967 51.9 % Clinical Services 523,719 38.9 % 471,526 33.6 % Employment & Other 70,165 5.2 % 113,618 8.1 % Technology Solutions 74,755 5.6 % 89,564 6.4 % Total revenue $ 1,345,046 $ 1,402,675 Table 4.2: Revenue by Contract Type For the Three Months Ended December 31, 2025 December 31, 2024 (in thousands) Performance-based $ 720,661 53.6 % $ 717,771 51.2 % Cost-plus 386,388 28.7 % 384,427 27.4 % Fixed price 168,519 12.5 % 174,679 12.5 % Time and materials 69,478 5.2 % 125,798 9.0 % Total revenue $ 1,345,046 $ 1,402,675 Table 4.3: Revenue by Customer Type For the Three Months Ended December 31, 2025 December 31, 2024 (dollars in thousands) New York state government agencies $ 150,121 11.2 % $ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"BUSINESS SEGMENTS We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S. Our operating segments represent the manner in which our Chief Executive Officer (CEO), who is our Chief Operating Decision Maker, reviews our financial results. Our CEO assesses the performance of and allocates resources to each operating segment using information about the operating segment's revenue, gross profit, and segment income (loss) from operations. Our CEO does not evaluate operating segments using asset or liability information. U.S. Federal Services Our U.S. Federal Services Segment delivers solutions that help various U.S. federal government agencies better execute on their mission, including program operations and management, clinical services, and advanced technology solutions. U.S. Services Our U.S. Services Segment provides a variety of services, such as program operations, clinical services, employment services and advanced technology solutions and related professional services work for U.S. state and local government programs. These services support a variety of programs, including the programs under Medicaid and Children's Health Insurance Program (CHIP), the Affordable Care Act (ACA) marketplaces, and Temporary Assistance to Needy Families (TANF). Outside the U.S. Our Outside the U.S. Segment provides business process services and other solutions for international governments. These services include health and disabilit …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENT On January 6, 2026, our Board of Directors declared a quarterly cash dividend of $0.33 for each share of our common stock outstanding. The dividend is payable on March 2, 2026, to shareholders of record on February 13, 2026. Based upon the number of shares outstanding, we anticipate a cash payment of approximately $18.0 million.

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