The Fedcap Group Releases First Half Fiscal Year 2025 Operating and Financial Results

9% Growth in Population Served Underscores Programmatic Expansion and Impact

First Half Results Reflect Year-on-Year Revenue Growth and Strong Financial Position
Diversified Portfolio Strengthens Resilience and Expands Growth Opportunities

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NEW YORK, May 20, 2025 -- The Fedcap Group announced its first half fiscal 2025 operational and financial results, ended March 31, 2025.

Commenting on the results, Christine McMahon, President and CEO of The Fedcap Group noted, "In the first half of 2025, we executed well, significantly increasing the number of individuals we served, growing our revenue base and continuing to diversify our services portfolio and geographic reach. These accomplishments have strengthened our financial position and provided additional resilience as we navigate dynamic business conditions.  

"Over the past six months, we've advanced several key initiatives through unprecedented collaboration across the Fedcap network as part of our revenue diversification strategy. These include the international launch of Apex Technical School's Clean Energy Training Center in the United Kingdom; the rapid organic growth of programs such as  the Teaching the Autism Community Trades program in Colorado, which has doubled in size; the establishment of new international markets, including Fedcap Australia; and the acquisition of ELITE Supported Employment, a Scotland-based Total Facilities Management company—marking our first international TFM expansion.

"Additionally, we have been scaling our scaling fee-for-service programs and expanding our SAS product offerings."

Operational Highlights, Domestic and International

The Fedcap Group operates across four key practice areas—education, workforce development, health, and economic development—through 29 nonprofit subsidiaries in 111 locations across the United States, Canada, and the United Kingdom. In the first half of fiscal 2025, The Fedcap Group served over 159,739 individuals, marking a 9.2% increase from the previous year.

Education
The Education Practice, representing 18% of total revenue, continued its strong growth. In the first half of Fiscal Year 2025, enrollment reached 3,405 students—a 55% increase from the same period last year. The practice expanded through strategic acquisitions, international growth, and new program development. Fedcap launched the Apex Clean Energy Training Center in the United Kingdom—its first international education initiative—and fully operationalized the Teaching the Autism Community Trades School in Colorado, now designated as the state's first-ever Specialized Day School. These additions bring the education portfolio to 22 programs across five states and one international location. Fedcap's education outcomes continue to exceed industry standards, with 83% student retention, 83% completion rates, and a 76% job placement rate.

Workforce Development
As the largest practice area—accounting for 40% of total revenue—the Workforce Development Practice continued its strong momentum in the first half of FY25. A total of 13,207 individuals were placed into jobs, reflecting a 6% increase from 2024. The Workforce Practice's job retention outcomes remain strong, with 88% of individuals retaining employment at 30 days, 82% at 90 days, and 78% at 180 days. Internationally, Fedcap Canada launched a Center of Excellence for Employability to expand evidence-based workforce strategies, while in the U.K., our Inspiring Futures program was renewed after demonstrating strong results in helping individuals with disabilities and health conditions secure employment.

Health
The Health Practice, representing 6% of total revenue, continues to demonstrate strong performance and innovation, particularly through the expansion of Single Stop and mental health initiatives. More than 29,000 individuals were screened for benefits through Single Stop, resulting in an average household benefit of $22,483. Fedcap also provided wellness services to 23,717 individuals, maintaining stable service levels year-over-year. Single Stop partnered with Upswing to bring AI-driven basic needs and emergency support to marginalized and non-traditional students. Moreover, the Health Practice secured NYC Council funding to sustain the Chelton Loft clubhouse after budget cuts and expanded its UK mental health footprint via a new contract with Surrey County Council to deliver employment support through the WorkWell initiative.  

Economic Development
Contributing 37% of total revenue, 1,060 individuals were directly employed by a company of The Fedcap Group at an average salary of $42,550—30% higher than an annual $15/hour wage. There has been a significant increase in retirement assets for Fedcap's direct client service workers, growing from $8.4 million in 2010 to $157.2 million in 2025. Key milestones included Fedcap's first international TFM acquisition—Scotland-based ELITE Supported Employment—the launch of business printing services, and the acquisition of Runway of Dreams and GAMUT Management to expand disability inclusion in the fashion and lifestyle sectors. Fedcap also invested $125K with the Brooklyn Chamber's CDFI, co-funding its first loan to a local food business.

First-Half FY2025 Financial Results

For the first half of FY2025, The Fedcap Group reported total revenue of $188.2 million, representing year-over-year growth of 2.6%. The organization remains on track to meet its full-year revenue projection of $379 million for fiscal 2025. As of March 31, 2025, The Fedcap Group reported $35.3 million in cash and investments, $389.1 million in total assets, and $146.5 million in long-term debt. Net assets grew to $99.1 million from $98.5 million from 2024, more than doubling from FY2021 and nearly tripling since FY2020.

Fedcap's business development pipeline was robust at the end of the first half, with a qualified pipeline of $287.5 million and $2.74 billion in prospects under development. The organization continues to perform well on contract retention and growth, achieving a 97%-win rate on recompetes and 21%-win rate on new business. Regionally, the U.S. represents the largest share of the pipeline at $234.3 million, with notable growth in Australia ($20 million) and the U.K. ($10.3 million).

As part of our long-term strategy to strengthen organizational resilience, Fedcap has been rebalancing its revenue portfolio. In the first half, 14% of total revenue was derived from fee-for-service programs. Based on the growth trajectory of existing initiatives and pipeline performance, Fedcap anticipates that fee-for-service contracts will increase to 20–25% of revenue by the end of FY2025, positioning the organization for greater stability and adaptability in the face of economic and policy shifts.

Outlook

"Looking ahead to the remainder of fiscal 2025 and beyond, our strategic investments position The Fedcap Group to deliver positive results, as we continue to navigate the current political and economic environment. We executed well in the first half of 2025, our pipeline of new business opportunities remains diverse and robust, and we continue to innovate across our portfolio of services.

"As we enter the second half of the fiscal year, we remain focused on extending our impact, while ensuring long-term sustainability. Through continued organic expansion, targeted acquisitions, and an unwavering commitment to our mission, The Fedcap Group is well-positioned to navigate today's dynamic business conditions and deliver lasting outcomes for individuals and communities across our global footprint," concluded McMahon.

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)

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