DLHC earnings analysis
What we found in DLHC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DLH Holdings Corp. reported a significant revenue decline and net loss in Q2 2026, largely attributed to the conversion of contracts to small business contractors. Key financial metrics reveal decreasing earnings per share and challenges in maintaining profitability amid rising operating costs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Revenue fell to $59.3M, a decrease of $29.9M (33.5%) compared to $89.2M in Q2 2025.
- Operating Loss
- Operating loss of $55K, down from a profit of $5.1M in Q2 2025.
- Net Loss
- Net loss of $2.5M in Q2 2026 compared to a profit of $878K in Q2 2025.
- Increased General and Administrative Costs
- General and administrative costs rose to 12.7% of revenue from 9.2% year-over-year.
- Interest Expense Decrease
- Interest expense decreased to $3.1M, down by $738K from Q2 2025.
- Significant Cash Reduction
- Operating cash flow turned negative, with cash used from operations totaling $984K.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Contract Loss Risks
- Conversion of contracts from DLH to small business contractors could significantly affect future revenues.
- Increased Operational Costs
- Operating costs are high despite lower revenues, highlighting inefficiencies.
- Credit Facility Dependency
- The company is reliant on its credit line, with a balance of $10.7M utilized against $50M available.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.17
- Gross margin
- 0%
- Operating margin
- -0.1%
- Segment
- Department of Health and Human Services: $32.5M
- Segment
- Department of Veterans Affairs: $19.7M
- Segment
- Department of Defense: $6.8M
- Segment
- Other: $0.2M
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-Q · February 5, 2025
- DLH reported Q1 revenue of $90,782,000 and diluted EPS of $0.08 for the three months ended December 31, 2024. Revenue and net income declined versus the prior year (revenue down from $97,850,000; net income down from…
- 10-Q · May 3, 2023
- DLH reported Q2 revenue of $99.417M, down from $108.699M a year earlier, while diluted EPS fell to $0.06 from $0.50. Operating income declined to $5.951M from $10.254M, pressured by higher interest expense and…
- 10-K · December 5, 2022
- DLH positions itself as a government-focused provider of technology-enabled health, public health research and logistics services, emphasizing FedRAMP-authorized cloud (Infinibyte®), CMMI level 3, and Joint Commission…
- 10-Q · January 31, 2022
- DLH reported strong top-line and profitability growth for the quarter: revenue rose to $152,801,000 from $57,852,000 a year earlier and net income increased to $7,804,000 (diluted EPS $0.55 vs $0.13). Income from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing DLHC makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever