Mid-Single Digit Revenue Growth Together with Further Program and Geographic Expansion
NEW YORK, Dec. 11, 2024 -- The Fedcap Group announced its fiscal year 2024 operational and financial results, ended September 30, 2024.
Christine McMahon, President and CEO of The Fedcap Group, commented, "We are proud of the strides Fedcap made in fiscal 2024 to expand our reach and deliver impactful outcomes in key areas. Our programmatic and geographic expansions—including new health initiatives, specialized disability programming, and entry into new domestic and international markets —demonstrate our commitment to empowering historically underserved populations to achieve economic well-being. Amid continued economic and political headwinds, we maintained mid-single-digit and revenue growth thanks to our focused strategy and the dedication of our exceptional team."
"In fiscal 2024, we successfully launched Civic Hall at Union Square in New York City, which welcomed 35,000 visitors in its first full year of operation. Our acquisitions of the Teaching the Autism Community Trades (TACT) school in Colorado and Easterseals in Mississippi highlight our commitment to creating new pathways to employment for individuals with disabilities. To expand our reach in the growing health sector, we are enhancing our international clubhouse mental health model to provide comprehensive support services, empowering individuals to achieve meaningful social inclusion, economic stability, and community integration. Additionally, we broadened our global reach with the launch of Fedcap Australia. These initiatives reflect our unwavering commitment to delivering impactful, scalable solutions that transform the lives of individuals and strengthen communities."
Operational Highlights
The Fedcap Group operates in four key practice areas—education, workforce development, health, and economic development—across 24 nonprofit subsidiaries in 106 locations spanning the United States, Canada, and the United Kingdom. In fiscal 2024, The Fedcap Group served over 243,964 individuals, a 6.8% increase compared to the previous year.
Education
The Education Practice has experienced significant growth through the launch of new programs and market expansions, serving 4,968 students across child development and post-secondary trades programs—more than doubling enrollment from 2023 levels. Fiscal 2024 marked the successful launch of Civic Hall—The Bernard Goldstein Center in New York, a digital skills training hub and tech innovation center that trained more than 1,000 individuals in high-demand digital skills sectors during its first full year of operation. The acquisition of the Teaching the Autism Community Trades School in Denver, Colorado, has expanded high-demand programming for neurodivergent individuals, increasing the Education Practice offerings to 20 programs across five states.
Workforce Development
As Fedcap's largest practice area, Workforce Development delivered strong results, placing over 28,400 individuals into employment in the U.S., U.K., and Canada—an 11% increase over last year and a record-high for the organization. The Workforce Development Practice consistently achieves high retention rates, with 88% of the individuals we placed remaining employed for at least 30 days, 78% for 90 days, and 76% 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 80,000 individuals and yielded an average benefit of $20,206 per household. Fedcap saw a 23.6% increase in the delivery of wellness services, serving nearly 38,000 people globally.
Economic Development
The Economic Development Practice has built on its legacy of over nine decades 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 2024 at competitive salary levels, fostering economic stability and advancing workforce inclusion.
There has been a significant increase in retirement assets for Fedcap's direct client service workers, growing from $8.4 million in 2010 to $158 million in 2024. 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.
FY2024 Financial Results
Fedcap achieved $382.1 million in operating revenue for fiscal 2024, representing a 4.5%, or $16.6 million increase over fiscal 2023. As of September 30, 2024, Fedcap had $35.2 million in cash and investments, total assets of $403.5 million, and long-term liabilities of $234.9 million. Net assets grew to $100.7 million, nearly tripling since fiscal 2020.
The organization maintains a strong business development pipeline valued at close to $300 million, with a consistent 90%+- win rate on contract recompetes.
Outlook
"Our future strategy focuses on expanding high-demand services to eliminate critical barriers to employment, scaling our successful fee-for-service trades programs internationally, and offering targeted support tailored to underserved disability communities," said McMahon. "We are dedicated to empowering individuals with barriers through education and workforce training, health interventions, and economic opportunities—equipping them with the skills needed to secure meaningful, well-paying jobs with clear pathways to long-term career growth."
McMahon continued, "Fedcap's financial strength is built on a robust commitment to diversifying revenue sources. This includes increasing the contribution of fee-for-service programs, which we expect to more than double as a percentage of our operating revenues within the next five years. Fedcap is prepared to recalibrate its offerings to meet any new requirements following the recent U.S. and U.K. elections, which may lead to the reprioritization of key funding streams and programs. By strategically broadening our funding base, we ensure sustained impact and resilience in serving those who need it most."
About The Fedcap Group
For nearly ninety years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to address some of society's most pressing needs through four core practice areas: education, workforce development, health, and economic development. The Fedcap Group provides educational services for all age groups, vocational training, and job placement in high-growth industries, as well as support services such as behavioral health care—all aimed at helping individuals achieve economic mobility and long-term self-sufficiency. The Fedcap Group also invests its time and resources in broader systemic change by partnering with federal, state, and local governments to improve the design, funding, and delivery of services.
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