Quarterly ResultMay 6, 2026, 04:29 PM
DLH Q2 Revenue Down 33.5% to $59.3M; Net Loss $(2.5)M
AI Summary
DLH Holdings Corp. reported its fiscal second-quarter 2026 results, with revenue decreasing 33.5% year-over-year to $59.3 million and a net loss of $(2.5) million, or $(0.17) per diluted share. The company attributed the revenue decline to the ongoing transition of legacy programs to small-business set-aside contractors. Despite the revenue challenges, DLH achieved Adjusted EBITDA of $5.3 million (9.0% margin) due to cost scaling initiatives, generated $3.8 million in free cash flow, and reduced debt to $132.7 million. The company also secured a two-year sole source contract extension with NIH.
Key Highlights
- Q2 2026 Revenue decreased 33.5% year-over-year to $59.3 million.
- Q2 2026 Net loss was $(2.5) million, compared to net income of $0.9 million in Q2 2025.
- Diluted EPS was $(0.17) in Q2 2026, down from $0.06 in Q2 2025.
- Adjusted EBITDA was $5.3 million, representing a 9.0% margin.
- Free cash flow generated was $3.8 million.
- Debt reduced to $132.7 million from $136.6 million at the end of Q1 2026.
- Awarded a two-year sole source contract extension with NIH.
- Backlog decreased 14.0% to $442.4 million from September 30, 2025.