0001628280-26-031338
SEC filingDLH Holdings Corp. reported Q2 fiscal 2026 revenue of $59.3 million, down 33.5% year-over-year, with an operating loss of $0.1 million and net loss of $2.5 million due to legacy program transitions.
DLH Holdings Corp. announced fiscal 2026 Q2 results showing significant revenue decline to $59.3 million from $89.2 million year-over-year, primarily due to transitions of legacy programs to small-business set-aside contractors, as highlighted in the press release (Exhibit 99.1). This transition year impacted top-line growth, with management noting proactive cost structure right-sizing to align with the Technology Powered Solutions business base, successfully protecting margins. Adjusted EBITDA of $5.3 million represented 9.0% of revenue, down from 10.5% last year but sustained through cost scaling initiatives that added back $1.1 million in general and administrative costs for the quarter. GAAP operating loss was minimal at $0.1 million, versus $5.1 million income prior year, while net loss was $2.5 million or $(0.17) diluted EPS. Balance sheet reflects debt reduction to $132.7 million from $136.6 million at Q1 end, with free cash flow of $3.8 million generated. Backlog stood at $442.4 million, down 14% from fiscal year-end. CEO Zach Parker emphasized a leaner operating model positioning DLH to capture digital modernization, cybersecurity, and AI opportunities amid improving government demand. A two-year sole source extension for NIH clinical research support was awarded, providing revenue visibility. Cash generation and debt paydown are expected to accelerate in H2 FY2026, supporting focus on profitable growth.