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DLH Holdings (DLHC)
NASDAQ:DLHC
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.16Last Year’s EPS
0.06Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call conveyed a mixed but constructive outlook. Short-term financial results show meaningful year-over-year revenue and EBITDA declines (revenue down ~24.1%, adjusted EBITDA down ~34.3%) driven primarily by program transitions to small-business set-asides and limited bid activity. Offsetting factors include improved budget clarity for fiscal 2026, sequential margin improvement to 9.5%, significant year-over-year free cash flow improvement (reduction in cash usage of ~$7.3M), active indirect cost reductions, and a clear deleveraging plan (targeting conversion of ~50%–55% of FY2026 EBITDA to debt reduction). Management emphasized market positioning in modernization, cybersecurity and AI, and expects more stable procurement activity going forward. On balance, positives (improved visibility, cost actions, cash improvement and debt-reduction plan) temper but do not fully offset the sizable near-term revenue and profitability headwinds.Company Guidance
Improved Budget Clarity and Funding for Fiscal 2026
Congress enacted a fiscal 2026 budget that increased funding capacity and provided improved visibility for clients; key federal health agencies received funding increases versus fiscal 2025, which management expects to support organic growth and modernization-driven awards.
Sequential Margin Improvement and Cost Reduction Actions
Adjusted EBITDA margin improved sequentially to 9.5% in Q1 FY2026. Management implemented phased indirect cost reductions and initiatives (including AI/ML efficiency projects) during the quarter; costs and savings from these actions are reflected in the Q1 financials and further reductions are expected to be more evident in Q2.
Free Cash Flow Significantly Improved Year-Over-Year
Q1 used approximately $4.8 million of free cash flow versus a $12.1 million use in the prior-year period — an improvement of $7.3 million (≈60.3% reduction in cash usage), primarily due to better receivables collection and timing effects.
Deleveraging Plan and Compliance
Debt increased modestly during the quarter to $136.6 million due to seasonal working capital and shutdown timing, but the company remains ahead of its mandatory term repayment schedule and in full compliance with financial covenants. Management expects to convert ~50%–55% of FY2026 EBITDA generated to reduce debt by year-end.
Strategic Market Positioning and Technical Capabilities
DLH emphasizes strengths in C6ISR, cloud migration, zero trust cybersecurity, AI adoption, digital sandboxes and advanced data science — capabilities that management says position the company competitively for modernization-driven opportunities across defense, intelligence and federal health agencies.
Operational Visibility on Contract Transitions
Management reports improved cadence on CMOP transitions and expects CMOP wind-down/ramp completion near Q3 FY2026, enabling more precise cost scaling and resource planning.
DLHC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DLHC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 09, 2026 | $5.84 | $5.56 | -4.79% |
Dec 10, 2025 | $5.87 | $5.67 | -3.41% |
Aug 06, 2025 | $5.56 | $5.55 | -0.18% |
May 07, 2025 | $4.05 | $4.08 | +0.74% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does DLH Holdings (DLHC) report earnings?
DLH Holdings (DLHC) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is DLH Holdings (DLHC) earnings time?
DLH Holdings (DLHC) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DLHC EPS forecast?
DLHC EPS forecast for the fiscal quarter 2026 (Q2) is -0.16.