DLH Holdings (DLHC)
NASDAQ:DLHC
Want to see DLHC full AI Analyst Report?
Top Page
DLH Holdings
(NASDAQ:DLHC)
Select Model
Select Model
Rating:51Neutral
Price Target:
$5.50
▼(-13.52% Downside)
Action:Reiterated
Date:06/18/26
The score is held back primarily by weakening profitability (revenue decline and net losses) and elevated leverage, alongside bearish technical momentum. These are partially offset by continued positive cash generation and recent commentary/events pointing to margin resilience, free-cash-flow support, and incremental balance-sheet flexibility as management pursues deleveraging and pipeline-driven stabilization.
Positive Factors
Strong cash generation
Consistent positive operating and free cash flow provides durable liquidity to fund operations, service debt, and invest in bids. Even with revenue pressure, FCF near operating cash flow supports deleveraging and reduces refinancing risk over the next several quarters.
Negative Factors
Declining revenue and net losses
Sustained revenue contraction and a return to net losses weaken earnings power and reduce retained earnings available for reinvestment. If top‑line trends persist, margin recovery and cash conversion could be constrained, limiting long‑term growth and deleveraging progress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive operating and free cash flow provides durable liquidity to fund operations, service debt, and invest in bids. Even with revenue pressure, FCF near operating cash flow supports deleveraging and reduces refinancing risk over the next several quarters.
Read all positive factors
DLH Holdings (DLHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.84M
Dividend YieldN/A
Average Volume (3M)27.65K
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-22.39%
EPS Growth-181.54%
CountryUS
Employees2,400
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.32
Shares Outstanding14,493,035
10 Day Avg. Volume37,306
30 Day Avg. Volume27,646
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)0.72
Price to Sales (P/S)0.24
P/FCF Ratio3.54
Enterprise Value/Market Cap2.86
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda9.80
Forecast
1Y Price Target
$10.00Price Target Upside57.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.46
Revenue Forecast (FY)$234.89M
DLH Holdings Business Overview & Revenue Model
Company Description
DLH Holdings Corp., headquartered in Atlanta, Georgia, was established in 1969 and operated as TeamStaff, Inc. until its name change in June 2012. The company specializes in offering a range of technology-enabled business process outsourcing, comp...
How the Company Makes Money
DLH primarily makes money by providing services to U.S. federal government customers under contractual arrangements, with revenue recognized as it performs work under those contracts. Its core revenue streams are service-based and are generated th...
DLH Holdings Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call communicated a mixed picture: material near-term financial headwinds with a steep year-over-year revenue decline (~33.5%) and a sharp drop in adjusted EBITDA (~43.6%), largely driven by program transitions to small business set-asides and contract completions. Offsetting these negatives, management reported margin resilience (9% adjusted EBITDA margin), positive free cash flow (~$3.8M), resumed deleveraging (debt reduced to $132.7M), a two-year NIH contract extension adding revenue visibility, recognition for technology capabilities, and an improving pipeline as delayed procurements return to market. Risks remain around federal health reprioritization and typical government procurement timing uncertainty, but the company appears to be stabilizing its cost structure and positioning for upcoming opportunities.Positive Updates
Adjusted EBITDA Margin Maintained
Delivered adjusted EBITDA of $5.3 million and an adjusted EBITDA margin of 9% for the quarter, demonstrating margin resilience despite lower revenue.
Negative Updates
Significant Revenue Decline
Reported revenue of $59.3 million for the quarter versus $89.2 million in the prior-year period, a year-over-year decline of approximately 33.5%, primarily driven by program transitions to small business set-aside contracts and contract completions.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Margin Maintained
Delivered adjusted EBITDA of $5.3 million and an adjusted EBITDA margin of 9% for the quarter, demonstrating margin resilience despite lower revenue.
Read all positive updates
Company Guidance
The company guided that fiscal 2026 Q2 results reflected revenue of $59.3 million (vs. $89.2M year-ago), adjusted EBITDA of $5.3 million (vs. $9.4M), and an adjusted EBITDA margin of 9%, with roughly $3.8 million of free cash flow generated in the quarter; total debt was reduced to $132.7 million from $136.6 million the prior quarter (a $3.9M decline), and management expects to convert approximately 50%–55% of fiscal‑2026 EBITDA to debt reduction by year‑end while remaining in compliance with covenants; operationally they expect to complete the VA CMOP transition just before Memorial Day, received a two‑year sole‑source NIH extension, see a healthy pipeline with awards expected in the coming months (and some decisions by fiscal year‑end), and noted that FY2026 funding rose vs FY2025 for key federal health agencies while the President’s FY2027 request calls for historic defense/intel increases and unspecified federal health reductions.DLH Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 292.66M | 344.50M | 395.94M | 375.87M | 395.17M | 246.09M |
| Gross Profit | 49.73M | 65.16M | 77.49M | 79.86M | 72.29M | 51.48M |
| EBITDA | 22.97M | 32.29M | 40.15M | 30.54M | 40.30M | 24.55M |
| Net Income | -4.49M | 1.36M | 7.40M | 1.46M | 23.29M | 10.14M |
Balance Sheet | ||||||
| Total Assets | 276.71M | 290.66M | 314.38M | 339.84M | 169.01M | 197.17M |
| Cash, Cash Equivalents and Short-Term Investments | 131.00K | 125.00K | 342.00K | 215.00K | 228.00K | 24.05M |
| Total Debt | 145.58M | 144.97M | 164.81M | 191.71M | 39.11M | 66.27M |
| Total Liabilities | 166.44M | 177.71M | 204.25M | 237.40M | 76.95M | 131.56M |
| Stockholders Equity | 110.27M | 112.96M | 110.13M | 102.44M | 92.06M | 65.61M |
Cash Flow | ||||||
| Free Cash Flow | 18.99M | 22.98M | 26.53M | 30.41M | 371.00K | 45.56M |
| Operating Cash Flow | 19.27M | 23.22M | 27.37M | 31.03M | 1.24M | 45.66M |
| Investing Cash Flow | -279.00K | -241.00K | -836.00K | -181.20M | -872.00K | -44.00K |
| Financing Cash Flow | -19.05M | -23.19M | -26.40M | 150.15M | -24.19M | -22.93M |
DLH Holdings Technical Analysis
Negative
6.36
Price Trends
5.72
Negative
5.75
Negative
5.76
Negative
Market Momentum
-0.05
Negative
39.87
Neutral
3.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLHC, the sentiment is Negative. The current price of 6.36 is above the 20-day moving average (MA) of 5.54, above the 50-day MA of 5.72, and above the 200-day MA of 5.76, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 3.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLHC.
DLH Holdings Risk Analysis
DLH Holdings disclosed 44 risk factors in its most recent earnings report. DLH Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DLH Holdings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $78.84M | -17.44 | -4.00% | ― | -22.39% | -181.54% | |
48 Neutral | $20.54M | -0.77 | -95.31% | ― | -18.24% | -169.43% | |
48 Neutral | $76.25M | -2.47 | -237.34% | ― | 7.23% | 27.75% | |
48 Neutral | $28.46M | -0.24 | -333.08% | ― | -31.38% | -7.02% | |
46 Neutral | $52.58M | -1.11 | 106.69% | ― | -65.57% | -254.11% | |
46 Neutral | $23.67M | -15.16 | -10.56% | ― | 1.55% | 69.81% |
* Industrials Sector Average
DLHC
DLH Holdings
5.44
>-0.01
-0.18%
OMEX
Odyssey Marine Exploration
0.90
-0.32
-26.48%
SGRP
Spar Group
0.82
-0.23
-22.19%
TISI
Team
16.68
-3.02
-15.33%
SST
System1
2.85
-6.70
-70.16%
PMEC
Primech Holdings Ltd.
0.62
-0.60
-49.51%
DLH Holdings Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
DLH Holdings Amends Secured Credit Agreement to Increase Flexibility
Positive
Jun 17, 2026
On June 11, 2026, DLH Holdings Corp. and its subsidiaries executed a second amendment to their existing secured credit agreement, which provides a syndicated term loan and revolving credit facility. The amendment preserves the overall structure of...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.