v3.26.1
Revenue Recognition
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
We recognize revenue as, or when, we satisfy performance obligations under a contract. The majority of our contracts have performance obligations that are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customers that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services.
Disaggregation of Revenue
In addition to our segment reporting, we disaggregate our revenues by service type, contract type, and customer type.
Table 4.1: Revenue by Service Type
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(dollars in thousands)
Program Operations$602,807 47.1 %$626,981 46.5 %$1,924,106 49.0 %$2,045,720 49.7 %
Clinical Services553,075 43.2 %560,360 41.6 %1,607,602 40.9 %1,535,849 37.3 %
Employment & Other55,852 4.4 %81,906 6.1 %186,025 4.7 %274,513 6.7 %
Technology Solutions67,237 5.3 %79,153 5.9 %212,251 5.4 %256,779 6.2 %
Total revenue$1,278,971 $1,348,400 $3,929,984 $4,112,861 
Table 4.2: Revenue by Contract Type
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands)
Performance-based$755,826 59.1 %$761,428 56.5 %$2,209,585 56.2 %$2,193,605 53.3 %
Cost-plus303,486 23.7 %301,385 22.4 %1,033,798 26.3 %1,020,311 24.8 %
Fixed price155,200 12.1 %180,390 13.4 %489,327 12.5 %540,078 13.1 %
Time and materials64,459 5.0 %105,197 7.8 %197,274 5.0 %358,867 8.7 %
Total revenue$1,278,971 $1,348,400 $3,929,984 $4,112,861 
Table 4.3: Revenue by Customer Type
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(dollars in thousands)
New York state government agencies$148,067 11.6 %$148,408 11.0 %$445,548 11.3 %$466,053 11.3 %
Other U.S. state government agencies275,793 21.6 %291,312 21.6 %817,052 20.8 %869,561 21.1 %
Total U.S. state government agencies423,860 439,720 1,262,600 1,335,614 
U.S. federal government agencies701,932 54.9 %743,058 55.1 %2,204,623 56.1 %2,267,078 55.1 %
International government agencies137,462 10.7 %146,018 10.8 %413,321 10.5 %451,608 11.0 %
Other, including local municipalities and commercial customers15,717 1.2 %19,604 1.5 %49,440 1.3 %58,561 1.4 %
Total revenue$1,278,971 $1,348,400 $3,929,984 $4,112,861 
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 June 30, 2026, and September 30, 2025, $27.4 million and $24.1 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 specific milestones, such as job placement and job retention, and these outcome payments occur over several months. We are required to estimate these outcome fees ahead of their realization and recognize this estimated fee over the period of delivery.
During the three and nine months ended June 30, 2026, we recognized revenue of $2.0 million and $45.2 million, respectively, included in our deferred revenue balances at September 30, 2025. During the three and nine months ended June 30, 2025, we recognized revenue of $13.8 million and $87.0 million, respectively, included in our deferred revenue balances at September 30, 2024.
Contract estimates
We are required to use estimates in recognizing revenue from some of our contracts.
Certain performance-based contracts include variable consideration in the form of penalties and incentives, based upon our performance under the terms of the contract. The calculation of these penalties and incentives requires the evaluation of both objective and subjective criteria, which may require the use of estimates.
Within our employment services business in our Outside the U.S. Segment, some of our performance-based contract revenue is recognized based upon future milestones defined in each contract, which requires us to make estimates about the attainment of those milestones.
We estimate the total variable consideration we will receive using the expected value method. We recognize the revenue over the expected period of performance. At each reporting period, we update our estimates of the variable fees to represent the circumstances present at the end of the reporting period. We include variable consideration in our estimates to the extent it is probable that a subsequent change in the estimate will not result in a significant reversal of cumulative revenue when the uncertainty is resolved. We do not have a history of significant constraints on these contracts.
Table 4.4: Effect of Changes in Contract Estimates
For the Three Months EndedFor the Nine Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands, except per share data)
Increase/(decrease) in revenue recognized due to changes in contract estimates$(1,291)$607 $5,628 $11,181 
Increase/(decrease) in diluted earnings per share recognized due to changes in contract estimates$(0.02)$0.01 $0.08 $0.14 
Remaining performance obligations
As of June 30, 2026, we had approximately $230 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 57% 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 that is allocated entirely to future performance obligations, including variable transaction fees or fees tied directly to costs incurred.