DLH Holdings Corp
NASDAQ:DLHC
DLH Holdings Corp
DLH Holdings Corp. engages in the provision of technology enabled business process outsourcing program management solutions and public health research and analytics. The company is headquartered in Atlanta, Georgia and currently employs 2,300 full-time employees. The company is focused on providing solutions to three market areas, such as Defense and Veterans Health Solutions, Human Solutions and Services, and Public Health and Life Sciences. In Defense and Veterans Health Solutions market, it provides healthcare, technology, and logistics solutions to various agencies of the federal government. In Human Solutions and Services market, it combines subject matter expertise in information technology and analytics to provide program monitoring and evaluation; electronic medical records migration; data collection and management; and nutritional and social health assessments. In Public Health and Life Sciences market, its services include clinical trials, epidemiology studies, advancing disease prevention methods, and health promotion to underserved and at-risk communities. The company operates in more than 30 locations throughout the United States and one location overseas.
DLH Holdings Corp. engages in the provision of technology enabled business process outsourcing program management solutions and public health research and analytics. The company is headquartered in Atlanta, Georgia and currently employs 2,300 full-time employees. The company is focused on providing solutions to three market areas, such as Defense and Veterans Health Solutions, Human Solutions and Services, and Public Health and Life Sciences. In Defense and Veterans Health Solutions market, it provides healthcare, technology, and logistics solutions to various agencies of the federal government. In Human Solutions and Services market, it combines subject matter expertise in information technology and analytics to provide program monitoring and evaluation; electronic medical records migration; data collection and management; and nutritional and social health assessments. In Public Health and Life Sciences market, its services include clinical trials, epidemiology studies, advancing disease prevention methods, and health promotion to underserved and at-risk communities. The company operates in more than 30 locations throughout the United States and one location overseas.
Revenue Decline: DLH reported first quarter revenue of $68.9 million, down from $90.8 million last year, mainly due to program transitions to small business set aside contracts and some smaller contract completions.
Margin Improvement: Despite lower revenue, adjusted EBITDA margin improved sequentially to 9.5%, with ongoing cost reduction initiatives.
Debt Update: Debt rose to $136.6 million due to typical first quarter working capital needs but management remains on track with debt reduction plans for fiscal 2026.
Positive Budget Environment: Recently enacted government budgets have increased funding for key federal health agencies, providing greater visibility and supporting DLH's growth outlook.
Pipeline Headwinds: The market saw delays in contract awards and cancellations (notably CIO-SP4), but management expects improved bidding activity following budget clarity.
Cost Efficiency Focus: The company continues to scale indirect costs and implement digital tools to enhance efficiency amid contract transitions.
