Research News and Market Data on DLHC
December 10, 2025
ATLANTA, Dec. 10, 2025 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of digital transformation and cybersecurity, systems engineering and integration, and science research and development, today announced financial results for its fiscal fourth quarter ended September 30, 2025.
Q4 Highlights:
- Revenue performance mixed as budgetary priorities continue to come into focus; solid revenue growth of 8.8% in National Security contract portfolio this quarter as compared to fiscal 2024 Q4.
- Delivered EBITDA of $6.6 million as investment in new business continued and company executed scaling initiatives at the end of the quarter and into fiscal 2026
- Free cash flow of $10.7 million driven by strong customer collections
- Debt reduced to $131.6 million as deleveraging strategy continued
“I am incredibly proud of the robust foundations we have built. We’ve transformed DLH into a federal health and national security leader by organizing around three technology-driven pillars. Despite facing near-term market headwinds that have impacted revenue, our strategy, which utilizes proprietary advanced tools and commercial best practices, provides us the capability and agility to effectively navigate today’s environment and drive long-term value,” said Zach Parker, DLH President and Chief Executive Officer.
“We generated $10.7 million of free cash flow in the quarter, which capped the $23 million total reduction in indebtedness for the year. The aggressive deleveraging strengthens our balance sheet and supports our operational stability. With expected expanding demand from key agencies for technology powered solutions—especially in advanced AI and mission-critical cybersecurity—we believe there are tremendous opportunities. We have strategically prepared DLH to identify and seize these new opportunities, ensuring we remain the trusted, forward-thinking partner, dedicated to advancing our customers’ missions.”
| Operating Financial Summary | |||||
| Three Months Ended September 30, | |||||
| $ million | 2025 | 2024 | % Change | ||
| Revenue | $81.2 | $96.4 | (15.8)% | ||
| Income from operations | $2.3 | $6.4 | (64.1)% | ||
| Net (loss) income | $(0.9) | $2.3 | (139.1)% | ||
| Diluted Earnings Per Share | $(0.06) | $0.16 | (137.5)% | ||
| EBITDA | $6.6 | $10.7 | (38.3)% | ||
| EBITDA margin on Revenue | 8.1% | 11.1% | (27.0)% | ||
| Cash provided by Operating Activities | $10.7 | $12.4 | (13.7)% | ||
| Free Cash Flow | $10.7 | $12.2 | (12.3)% | ||
| Additional Financial Metrics | |||||
| September 30, 2025 | September 30, 2024 | % Change | |||
| Debt | $131.6 | $154.6 | (14.9)% | ||
| Backlog | $514.3 | $690.3 | (25.5)% | ||
Earnings Webcast:
DLH management will discuss third quarter results and provide a general business update, including current competitive conditions and strategies, during a conference call beginning at 10:00 AM Eastern Time tomorrow, December 11, 2025. Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call.
A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID #7526746.
About DLH:
DLH (NASDAQ: DLHC) enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit www.DLHcorp.com.
Contact Information:
Investor Relations
Chris Witty
(646) 438-9385
[email protected]
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management “believes”, “expects”, “anticipates”, “plans”, “intends” and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH’s actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the risk that we will not realize the anticipated benefits of acquisitions (including anticipated future financial performance and results); the diversion of management’s attention from normal daily operations of the business and the challenges of managing larger and more widespread operations; the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.
