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      The Fedcap Group Releases Fiscal Year 2025 Operating and Financial Results


      News provided by

      The Fedcap Group

      Dec 16, 2025, 12:55 ET

      Share this article

      Share this article


      The Fedcap Group
      The Fedcap Group

      Revenue Growth Driven by Expanded Portfolio of Programmatic Work Across a Diversified Geographic Footprint

      NEW YORK, Dec. 16, 2025 /PRNewswire/ -- Fedcap announced its fiscal year 2025 operational and financial results, ended September 30, 2025.

      Christine McMahon, President and CEO of Fedcap stated, "Fedcap delivered strong fiscal 2025 results—exceeding our internal revenue projections and expanding our impact across every region we serve."

      "In 2025, we advanced our mission by entering emerging fields that open new pathways to economic mobility for individuals facing barriers. Our acquisition of Runway of Dreams and Gamut Management strengthens provides new avenues of opportunity in adaptive fashion and inclusive lifestyle design—an emerging field redefining access and opportunity for individuals with disabilities. The addition of the Verdancy Group expands our presence in the global green-skills economy, preparing workers for high-demand jobs in sustainability and clean energy. Bringing on Big Picture Learning UK and ELITE Supported Employment in Wales deepens our international footprint in education, employability, and economic development—further positioning Fedcap as a global leader in economic mobility."

      "Positive program outcomes have translated directly into Fedcap's organizational resilience and long-term growth. In 2025, Apex Technical School was recognized with the Accrediting Commission of Career Schools and Colleges School of Excellence Award, Fedcap Rehabilitation Services was honored with the 2025 NYSID Member Agency of the Year Award, and our UK-based Clubhouses received a national Shine Award for excellence in advancing mental health recovery and overall economic well-being. Together, these achievements underscore that our best-in-class programming remains the engine of our growth and the foundation of our mission."

      Operational Highlights

      The Fedcap Group operates in four practice areas—education, workforce development, health, and economic development—across 30 nonprofit subsidiaries in more than 110 locations spanning the United States, Canada, and the United Kingdom. In fiscal 2025, Fedcap served over 333,479 individuals, a 37% increase compared to the previous year.

      Education
      The Education Practice has experienced significant growth through the launch of new programs and market expansions, serving 7,748 students across child development through post-secondary trades programs—more than a 56% increase from 2024. In FY25, the Education Practice had an 89.7% student completion rate and a 74.2% job placement rate in sectors graduates were trained in.   

      Workforce Development
      Workforce Development delivered strong results, placing over 31,181 individuals into employment in the U.S., U.K., and Canada—an 9.7% increase over last year. The Workforce Development Practice consistently achieves high retention rates, with 88% of the individuals placed remaining employed for at least 30 days, 79% for 90 days, and 77% for 180 days.

      Health
      The Health Practice demonstrated continued growth driven by the success of the Single Stop case management and benefits screening program, which served more than 76,000 individuals and yielded more than $924 million in eligible benefits—or an average benefit of $24,000 per household. In FY25, Fedcap provided wellness services to 68,013 individuals —a 46.6% increase over FY24.

      Economic Development
      The Economic Development Practice has built on Fedcap's 90-year history by creating sustainable employment opportunities, with a particular focus on individuals with disabilities. Through its social enterprises, Fedcap directly employed more than 1,000 individuals in fiscal 2025 at competitive salary levels, fostering economic stability and advancing workforce inclusion.  

      There has been a significant increase in the retirement assets of Fedcap's direct client service workers, growing from $8.4 million in 2010 to $178.5 million in 2025. This growth reflects our organization's values and commitment not only to providing sustainable wages but also to fostering wealth and financial stability among our diverse workforce.

      International Expansion
      Since entering international markets in 2017, Fedcap has established a significant presence in Canada and the United Kingdom. This year, Fedcap expanded our global footprint with the launch of Fedcap Australia, marking a new chapter in our mission to deliver impactful solutions and support diverse communities worldwide.

      FY2025 Financial Results

      Fedcap achieved $404.5 million in operating revenue for fiscal 2025, representing a 6.8% increase over fiscal 2024. As of September 30, 2025, Fedcap had $49.4 million in cash and investments, total assets of $402.5 million, and long-term liabilities of $298.5 million.  

      Fedcap maintains a strong business development pipeline valued at approximately $270 million, with a consistent win rate of about 90% on contract recompetes.

      Outlook

      "Looking ahead to fiscal 2026, we believe Fedcap is well-positioned to navigate the continued volatility in the broader economic and political landscape," said McMahon. "Our strategic revenue diversification—driven by the scaling of fee-for-service education programs and ongoing geographic diversification achieved through the growth of our UK operations and international expansion into Australia, provide meaningful stability and new opportunities for growth. We are also advancing a deliberate expansion of our Health Practice, supported by new leadership appointments and several large programs scheduled to launch this year. These efforts will deepen our impact, and ensure that Fedcap continues delivering reliable, high-quality outcomes for the individuals and communities we serve."

      About The Fedcap Group
      For nearly ninety years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society's most pressing needs. The Fedcap Group drives economic mobility through four practice areas—education, workforce development, health, and economic development. The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state, and local government to improve the way services are designed, funded, and delivered. For more information visit www.fedcapgroup.org.

      Contact:
      Jim Malatras, 212-727-4200, ([email protected])

       

      Consolidated Statement of Financial Position

       

      As of September 30

       

      2025

       

      2024

       

      Unaudited 

       

      Audited

      ASSETS

           

      Cash and short term investments

      $            49,396,635

       

      $            44,782,985

      Accounts Receivable (net)

      66,532,142

       

      67,854,815

      Restricted Current Assets

      2,677,161

       

      2,677,161

      Inventories (net)

      570,111

       

      268,491

      Prepaid Expenses and Other Assets

      14,003,191

       

      11,624,074

      Total Current Assets

      $          133,179,240

       

      $          127,207,526

             

      Fixed Assets (net)

      79,920,998

       

      83,597,003

      Operating Lease ROU Assets

      80,284,602

       

      82,714,494

      ROU Finance Assets

      64,584,992

       

      67,543,511

      Restricted Assets

      37,618,209

       

      40,295,370

      Beneficial Remainder Trust

      5,618,494

       

      5,638,867

      Other Assets

      1,259,456

       

      1,122,157

      Total Assets

      $          402,465,991

       

      $          408,118,928

             

      Liabilities

           

      Accounts Payable and Accrued Liabilities

      $            40,311,761

       

      $            51,455,168

      Notes Payable

      3,666,196

       

      3,483,264

      Advance from Government Agency

      40,206

       

      1,994,103

      Financing Lease Liabilities

      1,855,207

       

      1,778,617

      ROU Liabilities

      8,167,512

       

      10,280,832

      Other Current Liabilities

      9,705,643

       

      11,089,217

      Total Current Liabilities

      63,746,526

       

      80,081,201

             
             

      Long Term Debt

      $          115,667,535

       

      $          107,074,418

      ROU Liabilities

      81,146,976

       

      78,074,139

      Line of Credit

      20,886,439

       

      31,303,482

      Other Liabilities

      17,012,665

       

      12,791,887

      Total Liabilities

      298,460,141

       

      309,325,127

             

      Net Assets

           

      Without Donor Restrictions

      $            52,436,717

       

      $            47,224,668

      With Donor Restrictions

      51,569,132

       

      51,569,133

      Total Net Assets

      $          104,005,849

       

      $            98,793,801

             

      Total Liabilities & Net Assets

      $          402,465,991

       

      $          408,118,928

             
             

      Current Ratio

      2.09

       

      1.59

      A/R Turnover Ratio

      6.08

       

      5.58

      A/R Average Days Outstanding

      60

       

      65

       

      Consolidated Statement of Activities

       

      for the period ended September 30, 2025 & 2024

         
       

      2025

       

      2024

       

      Unaudited 

       

      Audited

             

      REVENUE

      $                404,479,460

       

      $                378,651,750

             

      EXPENSES

           

      Salaries and benefits

      $                207,725,698

       

      $                200,980,621

      Occupancy

      36,586,735

       

      34,836,915

      Subcontractors

      31,060,648

       

      33,878,068

      Depreciation and amortization

      7,733,324

       

      7,673,498

      Interest expense

      5,731,244

       

      6,223,045

      Other expense

      110,429,763

       

      92,820,219

      TOTAL EXPENSES

      $                399,267,412

       

      $                376,412,366

             

      OPER PROFIT/(LOSS)

      $                    5,212,048

       

      $                    2,239,384

             

      Operating Ratios

           

      Net operating ratio

      1.29 %

       

      0.59 %

      Program Expense Ratio

      88 %

       

      88 %

      Personnel cost ratio

      51.4 %

       

      53.1 %

      SOURCE The Fedcap Group

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