Delivered double-digit revenue increase driven by organic growth

NEW YORK, May 20, 2026 /PRNewswire/ — Fedcap announced its first half fiscal 2026 operational and financial results for the period ended March 31, 2026.

“The first half of fiscal 2026 demonstrated the strength and resilience of Fedcap’s diversified business model as we expanded our impact across areas in which we have substantial subject matter expertise, notably education, workforce development, health, and economic development, while continuing to expand our geographic presence. We served more than 252,000 individuals in the first half of fiscal 2026, executing effectively on existing contracts and winning new awards, reflecting our positive outcomes for clients,” stated Christine McMahon, President and CEO of Fedcap.

“We accelerated innovation through new education and workforce initiatives to address key government funder needs, and significantly strengthened our Health Practice through both leadership investment and the continued growth of Single Stop, which connected tens of thousands of households to more than $681 million in eligible benefits. Additionally, we continued our expansion into new international markets through strategic acquisitions in the U.K. and Australia.”

“These results reflect our commitment to scaling high-impact programs that drive long-term economic mobility and well-being for the individuals and communities we serve.”

Operational Highlights, Domestic and International

Fedcap operates across four key practice areas—education, workforce development, health, and economic development—delivered through a network of affiliates across the United States, Canada, the United Kingdom, and Australia. In the first half of fiscal 2026, Fedcap served 252,264 individuals, a 58% year-over-year increase.

Education

Fedcap continued to expand and innovate across its education portfolio during the first half of fiscal 2026, serving 4,323 students across early childhood, primary, secondary, transitional, and post-secondary trade training programs—a year-over-year increase of 27%.

Growth was supported by both strategic acquisitions and programmatic expansion, including The New School in the U.K., Apex Training’s green skills programming at Scotland’s National Retrofit Centre at the BE-ST Innovation Campus, the launch of Apex’s culinary program in New York City, and the expansion of Teaching the Autism Community Trades in Carbondale, Colorado. Across the portfolio, strong outcomes underscored program quality and impact, including an 88% completion rate and 75% job placement rate among graduates in their trained sectors.

Workforce Development

Fedcap continued to deliver strong workforce outcomes during the first half of fiscal 2026, placing 13,818 individuals into employment—an increase of 4.6% over the same period in 2025. Retention outcomes remained among the strongest in the sector, with 93% of individuals still employed at 30 days, 87% at 90 days, and 84% at 180 days.

Fedcap expanded its international workforce footprint through the acquisition of The Community Collective QLD, a provider specializing in disability services, employment pathways, and community-based supports in Australia. In the U.K., Fedcap secured a one-year extension of the national Restart program, where performance has remained strong across key workforce metrics, including innovative sustainable employment models through its clubhouse programs for individuals with mental health challenges. Domestic growth was further driven by the successful award of two major New York City workforce contracts, WeCARE and PACE.

Health

Growth in Fedcap’s Health Practice during the first half of fiscal 2026 was anchored by the continued success and expansion of Single Stop, the organization’s leading case management and benefits screening platform. Single Stop connected 24,833 households to more than $681 million in eligible benefits, averaging approximately $27,400 per household. The platform also expanded its reach through a new partnership with Navy Federal Credit Union, integrating benefits screening and access tools into financial services for more than 15 million members of the U.S. military and defense community.

Fedcap strengthened its Health Practice through the acquisition of Healthcare Ready, adding nationally recognized expertise in emergency preparedness, disaster response coordination, and healthcare supply chain resilience, with a focus on ensuring continuity of care for barriered communities. The organization also expanded its senior executive leadership team to support the continued growth of its global health portfolio. Across the enterprise, Fedcap provided wellness services to 19,064 individuals during fiscal 2026.

Economic Development

Fedcap’s social enterprise portfolio continued to generate strong economic mobility outcomes across the U.S. and U.K., employing 1,123 individuals in mission-driven enterprises during the first half of fiscal 2026. Employees in these programs earned an average annual wage of $51,871—approximately 67.9% higher than the New York State minimum wage benchmark. Long-term financial stability for employees also continued to strengthen through the Retirement Benefits of Employees of Fedcap Social Enterprises 403(b) Plan, which grew from $8 million in assets under management in 2010 to $194.2 million in 2026—representing more than 24x growth. Participation in the retirement plan also expanded significantly, increasing from 374 employee participants in 2010 to 5,646 participants in 2026.

First Half Fiscal 2026 Financial Results

For the first half of fiscal 2026, Fedcap reported $209.7 million in operating revenue, representing an 11.4% increase over the same period last year, and remains on track to achieve $432.2 million in total revenue for fiscal 2026. Fedcap reported $58.7 million in cash and investments, $413.8 million in total assets, and $144.8 million in long-term debt. Net assets increased to $107.1 million, continuing a strong multi-year trajectory of growth and organizational strengthening.

Fedcap’s business development pipeline also remained strong during the first half of fiscal 2026, with a current qualified pipeline of $277 million and $3.67 billion in total prospects under development. The organization executed $62.7 million in annualized new or recompete business during the period and achieved a 97% win rate on recompetes and a 14% win rate on new business opportunities.

Outlook

“Fedcap continues to demonstrate that disciplined growth, mission impact, and innovation can advance together. Our first-half results reflect strong momentum across our core practice areas as we leverage the positive outcomes we achieve for clients to secure new business and strengthen our position both domestically and internationally.”

“Across the enterprise, we are strategically deploying AI-enabled platforms and tools designed to improve client outcomes, increase staff productivity, strengthen operational efficiency, and help scale programs more effectively. Our approach to AI deployment is deliberate and responsible — grounded in strong safeguards around privacy, security, accuracy, and the ethical use of technology.

“Fedcap is strategically investing in the growth of our practice areas and technology innovation to build a stronger organization and expand opportunities for the communities we serve,” concluded McMahon.

About Fedcap
For nearly ninety years, Fedcap has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Fedcap drives economic mobility through four practice areas—education, workforce development, health, and economic development. Fedcap 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])

Fedcap Financial Statements


	Consolidated Statement of Activities
	for the period ended March 31, 2026 & 2025

	2026	2025
	Unaudited	Unaudited

REVENUE	$ 209,660,481	$ 188,213,635

EXPENSES
Salaries and benefits	$ 110,780,390	$ 102,197,496
Occupancy	15,230,507	15,758,378
Subcontractors	14,035,308	15,234,487
Depreciation and amortization	4,343,712	4,176,655
Interest expense	3,358,519	2,938,325
Other expense	59,891,669	47,627,710
TOTAL EXPENSES	$ 207,640,105	$ 187,933,051

OPER PROFIT/(LOSS)	$ 2,020,376	$ 280,584


Operating Ratios
Net operating ratio	0.96 %	0.15 %
Program Expense Ratio	88 %	88 %
Personnel cost ratio	53 %	54 %


	Consolidated Statement of Financial Position
	As of March 31
	2026	2025
	Unaudited	Unaudited
ASSETS
Cash and short term investments	$ 58,718,013	$ 35,364,723
Accounts Receivable (net)	69,919,396	60,917,192
Restricted Current Assets	2,677,161	2,677,161
Inventories (net)	776,110	717,348
Prepaid Expenses and Other Assets	11,851,792	12,671,157
Total Current Assets	$ 143,942,472	$ 112,347,581

Fixed Assets (net)	77,795,279	82,976,775
Operating Lease ROU Assets	84,576,335	80,924,777
ROU Finance Assets	62,446,369	66,321,742
Restricted Assets	36,325,872	38,956,789
Beneficial Remainder Trust	5,761,961	5,472,094
Other Assets	985,420	2,153,408
Total Assets	$ 411,833,708	$ 389,153,166

Liabilities
Accounts Payable and Accrued Liabilities	$ 39,466,620	$ 38,486,787
Notes Payable	6,509,969	2,353,893
Advance from Government Agency	4,795,210	40,206
Financing Lease Liabilities	1,912,349	2,135,202
ROU Liabilities	10,396,077	12,038,214
Other Current Liabilities	13,773,297	12,458,593
Total Current Liabilities	76,853,522	67,512,895


Long Term Debt	$ 108,001,907	$ 105,129,499
ROU Liabilities	85,016,587	76,047,382
Line of Credit	20,893,376	31,295,633
Other Liabilities	15,916,032	10,033,039
Total Liabilities	306,681,424	290,018,448

Net Assets
Without Donor Restrictions	$ 56,212,643	$ 47,565,585
With Donor Restrictions	48,939,641	51,569,132
Total Net Assets	$ 105,152,284	$ 99,134,718

Total Liabilities & Net Assets	$ 411,833,708	$ 389,153,166



Current Ratio	1.87	1.66
A/R Turnover Ratio	6.00	6.18
A/R Average Days Outstanding	61	59