DLH (NASDAQ:DLHC) Issues Quarterly Earnings Results

DLH (NASDAQ:DLHC) posted its earnings results on Monday. The business services provider reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.02), FiscalAI reports. DLH had a negative net margin of 0.33% and a negative return on equity of 0.95%. The company had revenue of $68.89 million for the quarter, compared to analysts’ expectations of $70.15 million.

DLH Stock Down 4.8%

Shares of NASDAQ DLHC opened at $5.56 on Wednesday. The stock has a market capitalization of $80.56 million, a P/E ratio of -79.42 and a beta of 1.60. DLH has a one year low of $2.72 and a one year high of $8.10. The firm’s 50 day simple moving average is $5.77 and its two-hundred day simple moving average is $5.74. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.00 and a quick ratio of 1.00.

Key Headlines Impacting DLH

Here are the key news stories impacting DLH this week:

• Positive Sentiment: Adjusted EBITDA beat relative expectations on a margin basis: management reported Adjusted EBITDA of $6.5M (9.5% of revenue) and said cost-scaling initiatives are already reducing expenses, which supports near-term profitability improvement. DLH Reports Fiscal 2026 First Quarter Results
• Positive Sentiment: Operating cash usage improved year-over-year (operating cash use of $4.8M vs $11.5M prior year) and backlog ticked up slightly, which gives management room to pursue deleveraging over the rest of fiscal 2026. QuiverQuant Q1 Summary
• Positive Sentiment: Notable insider/institutional buying activity reported (Brook Asset Management / MINK purchases), which can signal management/insider confidence in the turnaround. QuiverQuant Q1 Summary
• Neutral Sentiment: Management hosted an earnings call to walk investors through the transition to small-business set-aside contractors and cost actions; the transcript and highlights are available for detail but contained no major new guidance. Earnings Call Highlights (TipRanks)
• Neutral Sentiment: Short interest data is noisy in recent feeds (reporting anomalies), but the January snapshot showed ~55k shares short (~0.4% of float) with an ~8.2 day cover ratio — not currently indicative of a large short squeeze dynamic.
• Negative Sentiment: Revenue fell 24.1% YoY to $68.9M and missed consensus (~$70.2M), with management attributing the drop to anticipated transitions of legacy programs to small-business contractors — a clear near-term business headwind. Zacks: Reports Q1 Loss, Lags Revenue Estimates
• Negative Sentiment: GAAP results showed a net loss of $1.3M (EPS -$0.09), missing the consensus loss estimate and reversing from prior-year profit — combined with modestly higher debt (to $136.6M) and very low cash on hand, this raises near-term liquidity and margin concerns. Yahoo Finance: Q1 Highlights

Insider Buying and Selling

In related news, major shareholder Mink Brook Asset Management Ll acquired 44,208 shares of the firm’s stock in a transaction dated Wednesday, December 17th. The shares were purchased at an average price of $5.50 per share, for a total transaction of $243,144.00. Following the completion of the acquisition, the insider owned 1,931,447 shares in the company, valued at approximately $10,622,958.50. This represents a 2.34% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. In the last 90 days, insiders have acquired 50,237 shares of company stock valued at $276,304. 12.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On DLH

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in DLH by 1.2% in the third quarter. Vanguard Group Inc. now owns 494,618 shares of the business services provider’s stock valued at $2,795,000 after purchasing an additional 5,735 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of DLH in the second quarter worth $65,000. Qube Research & Technologies Ltd bought a new stake in DLH during the 2nd quarter valued at $73,000. Strs Ohio purchased a new stake in DLH during the 1st quarter valued at $185,000. Finally, Bank of America Corp DE boosted its position in DLH by 31.9% during the 4th quarter. Bank of America Corp DE now owns 7,679 shares of the business services provider’s stock valued at $62,000 after buying an additional 1,855 shares during the period. 67.25% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on DLHC. Weiss Ratings reiterated a “sell (d)” rating on shares of DLH in a research note on Wednesday, January 21st. Zacks Research cut shares of DLH from a “hold” rating to a “strong sell” rating in a research report on Wednesday, December 17th. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock has an average rating of “Sell”.

DLH Company Profile

DLH Holdings Corp. (NASDAQ: DLHC) is a provider of mission-driven professional services primarily to federal government agencies and select commercial clients. The company designs and delivers tailored solutions across a range of critical mission areas, including program and project management, consulting, technical assistance, and administrative support. Through its Healthcare Solutions offerings, DLH also specializes in supporting clinical and allied health staffing needs for federal health agencies and health systems.

Operating under its Federal Solutions segment, DLH partners with agencies such as the Department of Veterans Affairs, Department of Defense, Department of Homeland Security, and the Department of Health and Human Services.