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The Fedcap Group Releases Fiscal Year 2025 Operating and Financial Results

PR Newswire·12/16/2025 17:55:00
語音播報

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, (JMalatras@fedcap.org)

 



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 %

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SOURCE The FedCap Group