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 %