DHI Group (DHX) AI Stock Analysis

• Market Cap: $111.98M
• Dividend Yield: N/A
• Average Volume (3M): 344.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -9.13%
• EPS Growth: -1032.39%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 88
• Industry: Staffing & Employment Services
• EPS (TTM): 0.03
• Shares Outstanding: 44,970,005
• 10 Day Avg. Volume: 744,590
• 30 Day Avg. Volume: 344,907
• PEG Ratio: <0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 5.03
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 61.43
• 1Y Price Target: $2.50
• Price Target Upside: 0.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $119.42M

• Rating: 59 Neutral
• Price Target: $2.50 ▲(0.40% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by deteriorated profitability and revenue pressure in the financials, despite strong free cash flow. Offsetting factors include constructive technical momentum and a balanced earnings-call outlook with supportive cash flow and margin targets, though continued Dice weakness and reduced forward visibility limit upside.

Positive Factors

Free cash flow strength

DHI generates durable free cash flow despite reported net losses. Sustained FCF provides funding for share buybacks, targeted M&A, and capex while cushioning cyclical revenue dips in hiring markets. That cash generation materially improves optionality and reduces refinancing risk over the next several quarters.

High gross margins and improving adjusted EBITDA

Very high gross margins indicate a scalable, low-cost delivery model for online marketplaces. Combined with recent adjusted EBITDA expansion, this shows operating leverage and successful cost reductions. If revenue stabilizes, the margin profile supports durable profitability and higher cash conversion over time.

Strategic expansion into defense staffing (ClearanceJobs)

The Point Solutions acquisition and ClearanceJobs' return to bookings growth diversify revenue into defense and cleared roles, broadening addressable market beyond job postings. Access to cleared talent and federal contract work creates higher-barrier, stickier revenue streams and less cyclical demand versus commercial tech hiring.

Negative Factors

Top-line decline and recurring revenue drop

Sustained declines in total and recurring revenue reduce revenue predictability and erode operating leverage. For a subscription- and posting-based marketplace, shrinking recurring revenue signals customer contraction or pricing pressure, making it harder to convert strong margins into consistent profits absent clear recovery in bookings.

Dice segment structural weakness

Dice's steep revenue and customer losses show structural exposure to commercial tech hiring cycles. A shrinking revenue base hampers fixed-cost absorption, pressures Dice margins over time, and increases reliance on ClearanceJobs and M&A to sustain growth. Recovery depends on a broader labor-market rebound.

Low near-term liquidity sensitivity

A very low cash balance combined with material revolver usage elevates liquidity risk if bookings or collections worsen. Even with manageable leverage metrics, tight cash reserves limit flexibility for opportunistic investments or to absorb further revenue shocks, making operational resilience contingent on continued FCF generation.

DHI Group Business Overview & Revenue Model

Company Description

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals in the United States, the United Kingdom, rest of Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees. It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology. The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1991 and is headquartered in Centennial, Colorado.

How the Company Makes Money

DHI Group primarily generates revenue by selling recruitment and hiring solutions tied to its specialized online marketplaces. Key revenue streams include (1) employer and recruiter payments for access to candidate databases and search tools, (2) job postings and related advertising/visibility products that promote open roles to the platforms’ audiences, and (3) subscription and contract-based hiring packages that bundle various recruitment products and services. Revenue is influenced by employers’ hiring demand and budget cycles; when hiring activity increases, spending on postings, sourcing access, and recruitment subscriptions typically rises, and it can soften during slower labor markets. Specific details on material partnerships, pricing, or segment-level revenue mix are null.

DHI Group Financial Statement Overview

Summary

Mixed fundamentals. Income statement is weak (revenue down and operating/net losses TTM), but cash flow is a relative strength with solid and improving free cash flow. Balance sheet leverage is manageable, though negative ROE and ongoing losses raise risk if profitability doesn’t recover.

Income Statement

TTM (Trailing-Twelve-Months) fundamentals weakened materially: revenue declined (-2.6) and the company moved to an operating loss (EBIT margin about -9.8%) with a net loss (net margin about -10.2%). A key positive is structurally strong gross profitability (gross margin ~82% TTM), but the sharp swing from modest profitability in 2023/2024 to losses TTM suggests elevated operating-cost pressure and/or non-recurring headwinds. Longer-term, revenue has been choppy (strong 2022 growth, then declines in 2024 and TTM), limiting confidence in near-term earnings durability.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.41 TTM, and equity remains sizable (~$94.5M) relative to total debt (~$39.2M). However, profitability deterioration is now a balance-sheet risk signal: return on equity is negative TTM (~-12.9%), indicating the capital base is not currently generating returns. Overall, the balance sheet appears stable, but sustained losses could reduce financial flexibility over time.

Cash Flow

Cash generation is a relative strength: operating cash flow was ~$21.1M TTM and free cash flow ~$13.8M, with free cash flow growth up strongly (42.5). This helps offset reported net losses and supports liquidity. The main weakness is that cash conversion versus accounting earnings is not especially strong in the provided ratio set (operating cash flow coverage around 0.33 TTM), but the absolute level of free cash flow is solid and improved versus 2024.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	127.83M	141.93M	151.88M	149.68M	119.90M
Gross Profit	108.21M	121.69M	132.09M	132.07M	104.81M
EBITDA	2.35M	24.12M	24.02M	22.66M	16.75M
Net Income	-13.51M	253.00K	3.49M	4.18M	-29.74M
Balance Sheet
Total Assets	188.24M	221.37M	225.20M	226.70M	221.58M
Cash, Cash Equivalents and Short-Term Investments	2.91M	3.70M	4.21M	3.01M	1.54M
Total Debt	46.57M	42.62M	46.55M	38.53M	32.10M
Total Liabilities	93.74M	107.05M	117.66M	120.47M	105.22M
Stockholders Equity	94.51M	114.33M	107.54M	106.24M	116.36M
Cash Flow
Free Cash Flow	13.79M	7.11M	1.09M	18.06M	14.27M
Operating Cash Flow	21.10M	21.05M	21.34M	36.03M	28.58M
Investing Cash Flow	-8.71M	-13.93M	-15.31M	-17.66M	-19.30M
Financing Cash Flow	-13.19M	-7.62M	-4.83M	-16.91M	-15.39M

DHI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHX, the sentiment is Positive. The current price of 2.49 is below the 20-day moving average (MA) of 2.52, above the 50-day MA of 2.14, and above the 200-day MA of 2.30, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.40 is Neutral, neither overbought nor oversold. The STOCH value of 28.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHX.

DHI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	68 Neutral	$150.73M	14.57	10.52%	2.55%	-12.65%	368.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DHX	59 Neutral	$111.98M	-5.14	-12.89%	―	-9.13%	-1032.39%
BGSF	59 Neutral	$72.69M	-6.66	-17.82%	41.67%	-36.79%	-507.05%
MHH	56 Neutral	$65.62M	134.64	0.69%	―	1.24%	97.14%
JOB	48 Neutral	$27.64M	-35.64	-51.65%	―	-15.43%	-43.45%
ZIP	48 Neutral	$216.10M	-10.62	―	―	-10.14%	-1381.34%

DHI Group Corporate Events

DHI Group Expands Defense Reach With ClearanceJobs Acquisition

On February 27, 2026, DHI Group subsidiary ClearanceJobs, LLC acquired all membership interests of Point Solutions Group, an engineering and technology professional services firm focused on defense contracting and government staffing, for an estimated $5.5 million. The deal, announced publicly on March 2, 2026, included a $5 million cash payment at closing and up to $0.5 million payable within a year subject to 2026 revenue thresholds.

Point Solutions Group’s Top Secret facility clearance and track record with U.S. Department of Defense and intelligence contracts give ClearanceJobs the ability to bid directly on federal work and provide staffing for hard-to-fill cleared roles. The acquisition expands ClearanceJobs’ addressable market beyond job postings and subscriptions, advancing its strategy to offer an end-to-end recruitment solution in the government contracting talent space and deepening DHI’s presence in U.S. defense-related markets.

The most recent analyst rating on (DHX) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on DHI Group stock, see the DHX Stock Forecast page.

DHI Group Announces Leadership Transition in Human Resources

DHI Group, a provider of specialized career marketplaces and recruitment solutions for technology and security professionals, focuses on connecting employers with highly skilled talent in niche sectors. The company operates platforms that support hiring needs in competitive, knowledge-based industries.

On February 20, 2026, DHI Group announced that long-serving Chief Human Resources Officer Pamela Bilash will retire effective April 1, 2026, after more than 12 years leading the firm’s people strategy through multiple transformations. The company simultaneously named former Maxar Technologies HR chief Elizabeth Andora as Chief People Officer, effective February 23, 2026, with Bilash staying on in an advisory role to ensure a smooth leadership transition in its human capital function.

On February 23, 2026, DHI Group issued a press release formally communicating Bilash’s retirement and Andora’s appointment, framing the change as part of an orderly succession process. The disclosure, furnished via a current report, underscores the company’s emphasis on continuity in its people-first culture and governance practices while updating stakeholders on key executive leadership changes.

The most recent analyst rating on (DHX) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on DHI Group stock, see the DHX Stock Forecast page.

DHI Group Posts Mixed Q4 Results, Authorizes Stock Buyback

On February 4, 2026, DHI Group reported fourth-quarter 2025 revenue of $31.4 million, down 10% year over year, as strength at its security-cleared marketplace ClearanceJobs (revenue up 1%, bookings up 3%) was offset by continued weakness at Dice (revenue down 17%, bookings down 11%) amid a challenging commercial tech hiring market. Despite the top-line pressure, net income improved to $1.4 million, non-GAAP EPS rose to $0.09, and Adjusted EBITDA margin expanded to 30% on cost discipline, while free cash flow jumped to $5.7 million in the quarter and $13.8 million for 2025, even as full-year revenue declined 10% and restructuring and impairment charges drove a $13.5 million net loss. The company highlighted resilient subscription-based recurring revenue, strong margins and improving free cash flow, with ClearanceJobs returning to bookings growth and benefiting from early defense hiring tailwinds, AgileATS performing ahead expectations, and Dice continuing a platform modernization and AI-driven differentiation strategy. Reflecting confidence in its long-term growth and margin prospects, DHI completed a prior $5 million repurchase plan in January 2026 and authorized a new $10 million stock buyback running from February 9, 2026 through February 8, 2027, while issuing 2026 revenue guidance of $118 million to $122 million and targeting a 25% Adjusted EBITDA margin for the group, with higher margin contributions expected from ClearanceJobs than from Dice.

The most recent analyst rating on (DHX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on DHI Group stock, see the DHX Stock Forecast page.