Financial Release

August 28, 2026August 28, 2026

Fedcap Releases First Half Fiscal 2026 Operating and Financial Results

Delivered double-digit revenue increase driven by organic growth.

New York, NY – Fedcap announced its first half fiscal 2026 operational and financial results for the periodended 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.

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May 15, 2024May 15, 2024

The Fedcap Group Releases First Half Fiscal Year 2024 Operating and Financial Results

New York, NY (May 7, 2024) – The Fedcap Group announced its first half fiscal 2024 operational and financial results, ended March 31, 2024.

Commenting on the results, Christine McMahon, President and CEO of The Fedcap Group noted, “We are pleased with the resilience that Fedcap demonstrated during this period of difficult economic and business conditions, which included growing fixed costs coupled with reduced government funding for several of our programs. Despite these challenges, we were able to increase the number of individuals served and post stable financial results, reflecting the diversity of our programs and revenue sources. As we move ahead in the second half of fiscal 2024, we will continue to prioritize organic growth, acquisitions, and new program launches to deliver positive outcomes for clients and maintain consistent financial results for the organization.”

“In the past six months, we completed several key initiatives, culminating in the successful launch of our innovation incubator and digital skills center, Civic Hall, in New York. Additionally, we launched a new Apex Technical School solar training program in Brooklyn, New York—increasing the education portfolio to 18 programs in four states, and we strategically expanded our presence through key acquisitions, notably the Teaching the Autism Community Trades School in Denver, Colorado. Our ongoing success in securing new contracts has enabled us to extend our service reach, exemplified by our latest workforce contract in Tennessee. Due to our exceptional service delivery, we’ve earned an extension for our UK Restart workforce contract. These are emblematic of initiatives that have proven positive track records with respect to benefits to individuals and society, and they are scalable to other geographies in which we are providing services.”

Find more information here on The Fedcap Group website.

April 5, 2022April 7, 2022

The Fedcap Group Financial and Programmatic Results for FY 2021 Demonstrate Effective Implementation and Strong Financial Performance

On Thursday, December 16, The Fedcap Group reported its operating and financial results for fiscal year 2021 ended September 30, 2021. These biannual presentations provide our investors including donor and funders, supply chain and other key stakeholders with regular and timely disclosures about financial and operational performance, mission-related impact, and trends and challenges for The Fedcap Group, while underscoring our commitment to fiscal transparency. View the press release.

Highlights from a very successful year—include double digit revenue growth reflecting both organic and acquisition growth, contract awards exceeding $435 million, an expanded international footprint, and the acquisition of Civic Hall, a high profile and innovative provider of advanced technology training solutions.

Year-on-year revenue growth of 23% in fiscal 2021 was led by full year contributions from our large Canadian workforce development contract and from our FY 202 acquisition of APEX Technical School, a New York City institution having graduated over 40,000 people as plumbers, electricians and other high-demand trades. Additionally, we ramped up our substantial new contract in the UK, valued at $267 million, to provide support for people who are unemployed as a direct impact of the COVID-19 pandemic.

Christine McMahon, CEO of The Fedcap Group

Other highlights include the employment of over 1,500 people in our commercial business operations, most of whom have disabilities or other barriers; provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to over 40,000 people; placed 13,100 people in jobs, along with follow-on job retention services, provided services to 10,000 children ages 0-8, and launched the Greenleaf Neurodiversity Community Center in Austin, Texas, an innovative public-private partnership that serves young people with autism who are transitioning to adulthood. Looking ahead, The Fedcap Group plans to launch an innovative digital training center leveraging the assets of both Apex and Civic Hall. This 80,000-square-foot digital training center will address the re-skilling and up-skilling of workers, supplying a trained workforce to meet the demand of our transforming economy and job landscape. And to gain a higher education platform, the agency recently announced a strategic partnership with Paul Smith’s College, located in Upstate New York. The college serves approximately 1,000 students a year, over 46 percent of whom are the first in their families to attend college.

I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve. This is an indication of the strong culture that unites us and enables us to continue to make a significant impact on the lives of people with barriers to economic wellbeing in 22 states and Canada, Scotland and England

Christine

April 4, 2022April 7, 2022

The Fedcap Group Reports First Half Fiscal Year 2021 Financial and Operating Results

New York, May 19, 2021 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for the first half of fiscal year 2021. Committed to providing services that positively impact the lives of people with barriers to economic wellbeing, The Fedcap Group is structured in four areas of practice: Education, Workforce Development, Occupational Health and Economic Development and operates through 21 nonprofit subsidiaries, in the U.S., Canada and the UK.

Management Comment

“The Fedcap Group’s first half performance represented a strong start to fiscal 2021. Revenues increased 18% to $152.8MM, reflecting our growing platform of services and expanding geographic footprint. During the period, we continued to execute effectively on existing contracts and increase our impact by winning large, new awards, all while managing through the challenges of COVID-19. We also completed two important strategic acquisitions: Apex Technical School in September 2020 and Civic Hall Technology Hub at the end of March 2021. Both combinations significantly advance our ability to train and upskill individuals in the technology sector—creating a pathway to long term economic wellbeing.

“First half revenue growth was led by the ramp up of the large Canadian workforce development contract we were awarded last fiscal year, increased demand for our facility management and cleaning services during the pandemic and a 6-month contribution from the Apex acquisition. Also in the first half of 2021, we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual and developmental disabilities, the previously incarcerated and those on public assistance.

“As we slowly turn the corner on the pandemic, The Fedcap Group remains committed to assisting people from across our footprint who are struggling to make ends meet, ensuring children have access to much needed educational and supportive services and helping individuals develop the skills to succeed in the changing workplace,” said Christine McMahon, President and Chief Executive Officer.

2021 Financial and Operating Metrics

Revenue for the first half of FY 2021 ending March 31, 2021 was $152.8MM, an 18% increase over the similar period last year. The Fedcap Group provides a diversified its revenue array of services to at-risk populations across four key practice areas.

Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of fiscal year 2021 we employed over 1,700 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings.
Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of 2021, we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to over 21,000 people. We placed 5,900 people in jobs, along with follow-on job retention services.
Education and Occupational Health represent growing bodies of work in early childhood services provided through Easterseals and other programs assisting individuals with intellectual and developmental disabilities (I/DD) entering the workforce. We provided services to 5,325 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social wellbeing. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages.

For the first half of Fiscal 2021 operating expenses were $152.2MM, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $604 thousand for the period ended March 31, 2021 compared to an operating loss of $1.4MM in the same period last year.

As of March 31st, 2021, cash and marketable securities were $33.7MM compared with $15.9MM for the same period in the prior year, inclusive of $15MM that represented federal government-funded loans as part of the Payroll Protection Plan (PPP).

In October 2020, The Fedcap Group refinanced a portion of its outstanding debt. The line of credit capacity was increased to $42.5MM from $28MM to support the organization’s future growth.

Summary and Outlook

“The first half of fiscal year 2021 has been an exciting period for The Fedcap Group. Business conditions continued to improve as certain pandemic-related restrictions were eased, and we were able to achieve positive outcomes for an expanded universe of individuals in need. Additionally, we are very pleased with our acquisitions of Apex Technical School and Civic Hall, two high profile companies.

“Bringing Apex Technical School into The Fedcap Group provides tremendous opportunity to expand our efforts in creating pipelines from training to jobs. For nearly 60 years, Apex has provided educational opportunities that change lives. Each year, 1000+ individuals graduate with skills and certifications in trades with tremendous growth potential. This combination allows us to expand our ability to assist unemployed individuals develop new skills, especially in technology and compete in the changing marketplace.

“Civic Hall Technology Hub is a center for learning, collaboration, and technology for the public good. Founded in February 2015, Civic Hall has built a strong following with government, tech companies, media leaders, academic institutions, foundations, and community-based organizations that will support our training and upskilling services.

“In the first half, our Fedcap UK subsidiary successfully competed to provide support for people who have been directly impacted by the COVID-19 pandemic and have been unemployed between 12-18 months. The contract, valued at over $201,600MM over 4.5 years, was awarded to us in April, and represent important recognition of the track record we have established in gaining employment for individuals across England and Scotland, as well as in the US and Canada.

“As our economies emerge from the pandemic, we expect demand for services provided by the Fedcap Group to continue to increase. I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This is an indication of the strong culture that unites us and enables us to continue to make a significant impact in the lives of people with barriers to economic wellbeing,” noted Ms. McMahon.

About The Fedcap Group

For 86 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving nearly 300,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency. 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.

Conference Call Details

Date: Wednesday, May 19, 2021, 11:00 a.m. ET
Link to Webcast: Fedcap.org/results

PARTICIPANT DIAL IN (TOLL FREE): 1-844-792-3735
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UK Toll Free: 08002799489

Financials

Fedcap Rehabilitation Services, Inc. and Subsidiaries Consolidated Statement of Financial Position

Fedcap Rehabilitation Services, Inc. and
Subsidiaries Consolidated Statement of Activities

April 3, 2022April 7, 2022

The Fedcap Group Reports Fiscal Year 2020 Operating and Financial Results

--Resilient performance supported by a strong programmatic, financial and technology infrastructure--

Remained fully operational while ensuring health and safety of personnel and clients.
Provided frontline services across our diversified platform.
Maintained our strong financial position,
Positioned The Fedcap Group to address post-pandemic challenges and opportunities.

New York, December 11 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for fiscal year 2020 ending September 30, 2020. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas: Education, Workforce Development, Occupational Health and Economic Development.

Management Comment

“The Fedcap Group’s fiscal 2020 performance demonstrated the resilience of our organization and our ability to manage effectively through the challenges of COVID-19. We have remained operational throughout this unprecedented health crisis, providing a broad range of services to consumers, while maintaining strict safety protocols to protect our staff. At the same time, we took action to optimize The Fedcap Group’s financial position to ensure the sustainability of our work, ending the year with relatively stable year-on-year recurring revenue levels, a strong cash position, and expanded bank credit lines,” said Christine McMahon, President and Chief Executive Officer.

“Nowhere has the pandemic been more acutely felt than in our at-risk communities, where individuals are suffering high infection rates, loss of income and a pullback in available services. We are proud of how well The Fedcap Group has been able to utilize our robust platform to provide much needed help, including: distributing over 50 tons of food, toiletries, and other essentials through our child development centers and special education schools, cooking over 160,000 meals for the homeless and food insecure in our commercial kitchen, providing childcare to health care providers and first responders, and offering remote telehealth services to tens of thousands of individuals. Similarly, our facilities management subsidiary has deep cleaned over 18 million square feet of commercial space to provide a safe working environment for thousands of individuals.

“As our staff worked tirelessly since March to address the special pandemic-related needs in our communities, 2020 was also a year in which we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual and developmental disabilities (I/DD), the previously incarcerated and those on public assistance. Throughout the year, we made targeted investments to enhance our technology infrastructure, enabling the transition to work-from-home and upgrading our financial, HR, fundraising and business development systems to create a sustainable platform from which to efficiently serve our diversified populations.

2020 Financial and Operating Metrics

Revenue for FY 2020 was $273.1 million, stable on a recurring revenue basis with the prior fiscal year. Lower year-on-year comparisons of reported revenue primarily reflect the downsizing of our home health business, which contributed additional revenues of approximately $6.7 million in 2019 and the wind-down of a large project that generated revenues of $25.2 million last year.

Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.

Economic Development is comprised of business services operations that directly employ the populations we serve. In fiscal year 2020 we employed over 1,700 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings. During this pandemic, client demand for Total Facilities Management has increased significantly, and we have worked diligently to meet the increased cleaning needs of the over 18MM square feet of space that we maintain.

Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In 2020 we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to 23,000 people. We placed just under 9,000 people in jobs and provided job retention services. We have continued to provide most of these services via video conferencing and technology platforms during the current healthcare crisis.

Education and Occupational Health represent growing bodies of work in early childhood services provided through Easterseals and in our programs assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. We provided services to 6,535 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages. Transitioning this work to a telehealth model during COVID-19 has involved engagement of families and a learning curve for staff.

Fiscal 2020 operating expenses were $272.6 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating gain of $504 thousand for the year ended September 30, 2020, largely reflecting the organization’s agility during the COVID-19 crisis, pivoting to delivering services remotely, expanding COVID-related services and managing expenses in areas where revenues were impacted by the crisis.

At September 30, 2020, cash and marketable securities were $31.7 million, of which $12.5 million represented federal government-funded loans as part of the Payroll Protection Plan (PPP). At the end of fiscal 2019, cash and marketable securities were $18.5 million.

During FY20, The Fedcap Group began the process of increasing its working capital line of credit to enable the organization to effectively bid for many growth opportunities that exist. In October 2020, The Fedcap Group refinanced a portion of its outstanding debt. The line of credit capacity was increased to $42.5 million from $25 million and long-term debt was decreased by $4 million.

Summary and Outlook

“Fiscal 2020 was a tale of two halves. In the first half of the year, Fedcap was moving forward with its growth strategy, achieving positive outcomes for individuals in need, winning new contracts including a large new workforce development contract in Canada, and engaging in talks with potential acquisition candidates.

“At the onset of the pandemic, we pivoted quickly to address the dire situations that existed in many of our communities. I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This demonstrates the strong culture that unites us and supports our confidence in The Fedcap Group’s ability to continue to effectively navigate the COVID-19 health crisis and to emerge from it as an even stronger organization.

“While the pandemic caused delays in several of our initiatives, we are pleased to report that in the 4th quarter of fiscal 2020, we officially brought Apex Technical School into The Fedcap Group. Since 1961, Apex Technical School has enjoyed a rich tradition of service to New Yorkers. Licensed by the New York State Education Department, the school’s founders were marine, stationary and refrigeration engineers who were well known in union and trade association activities. They developed a trade school for the purposes of offering a hands-on quality education. Nearly 60 years later, Apex continues to provide educational opportunities that change lives. Each year, 1000+ individuals graduate with skills and certifications in trades with tremendous growth potential. This combination allows us to expand our ability to assist unemployed individuals develop new skills, especially in the area of technology, and compete in the changing marketplace.

“We have also ramped-up our large Canadian workforce contract and are now serving a population of more than 10,000 people across Ontario. Additionally, we continue to expand our presence in the UK and we were recently selected by the UK Department of Work and Pensions (DWP) as one of 14 organizations (and the only nonprofit agency) eligible to compete for new workforce development contracts worth £2.9 billion over 4 years, throughout England, Scotland and Wales.

“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers that are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. We already are seeing greater demand for our on-premises Facilities Management Services and have added over 40 individuals to implement contract plus-ups we have received, to increase the scope of our work in this arena. There also will be expanded need for our workforce training and development work to help get individuals back to work.

“Operating in 22 states and Canada, Scotland and England, we are a leader in providing relevant services. Our strong financial position and the dedication of our staff give us confidence in The Fedcap Group’s ability to remain a sustainable organization supported by a strong programmatic, financial and technology infrastructure,” said Ms. McMahon.

About The Fedcap Group

For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 265,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.

Conference Call Details

Date: December17, 2020 at 11:00am ET

Webcast:

www.fedcapgroup.org/results

US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Contact:
Ariana Reed Casasanto
646-931-2412
acasasanto@fedcap.org

Category: Financial Release

Fedcap Releases First Half Fiscal 2026 Operating and Financial Results

Fedcap Releases First Half Fiscal 2026 Operating and Financial Results