olivLaw · US equity research
DLH Holdings Corp. DLHC
Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)
DLH Holdings provides digital transformation, cybersecurity, science research and systems engineering solutions to US federal agencies, mainly HHS, VA and DoD. The company is in a difficult stretch: revenue fell sharply in the quarter ended June 30, 2026 as legacy programs moved to small-business set-aside contractors, while DLH cut indirect costs and reduced debt.
At the close of 04 Nov 2026, DLH Holdings Corp. (DLHC) stock was 3.69 USD (+5.13% on the day), with market capitalisation 53.5 m USD, beta 0.72, 52-week range 3.46–6.57 USD. Latest reported quarter (Q3 2026): revenue of 44.2 m USD (−46.9% YoY), net income of -16.8 m USD (−5,908.7% YoY), diluted EPS -1.16 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 44.3
- weak (30–45)
- Bollinger (20, 2)
- 3.39 – 4.29
- in the lower half of the band · %B 0.33 · band width 23.5%
- SMA 50 / 200
- 3.94 / 5.15
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.11 / -0.10
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −9.6% | −1.1% | −8.5 pp | — |
| 3 months | −23.8% | −0.5% | −23.3 pp | — |
| 6 months | −34.1% | +4.4% | −38.5 pp | — |
| Year to date | −34.7% | +12.3% | −47.0 pp | — |
| 1 year | −39.6% | +13.5% | −53.2 pp | +54.7% |
| 3 years | −74.6% | +76.4% | −151.1 pp | −36.8% |
| 5 years | −75.6% | +63.7% | −139.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 96.4 m | 90.8 m | 89.2 m | 83.3 m | 81.2 m | 68.9 m | 59.3 m | 44.2 m |
| Cost of revenue | 77.5 m | 72.8 m | 71.6 m | 67.6 m | 67.3 m | 55.4 m | 47.5 m | 36.8 m |
| Operating income | 6.4 m | 5.6 m | 5.1 m | 3.8 m | 2.3 m | 1.4 m | -55.0 k | -3.9 m |
| Depreciation & amortisation | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.3 m | 4.0 m |
| Interest expense | 4.2 m | 4.1 m | 3.9 m | 3.5 m | 3.5 m | 3.0 m | 3.1 m | 3.1 m |
| Pre-tax income | 2.2 m | 1.5 m | 1.2 m | 215.0 k | -1.2 m | -2.0 m | -3.2 m | -7.0 m |
| Income tax | -81.0 k | 389.0 k | 360.0 k | -74.0 k | -282.0 k | -636.0 k | -659.0 k | 9.8 m |
| Net income | 2.3 m | 1.1 m | 878.0 k | 289.0 k | -920.0 k | -1.3 m | -2.5 m | -16.8 m |
| Diluted EPS | 0.16 | 0.08 | 0.06 | 0.02 | -0.06 | -0.09 | -0.17 | -1.16 |
| Operating cash flow | 12.4 m | -11.5 m | 14.5 m ≈ | 9.6 m ≈ | 10.7 m | -4.8 m | 3.8 m ≈ | 4.2 m ≈ |
| Capex | 209.0 k | 552.0 k | -551.0 k ≈ | 212.0 k ≈ | 28.0 k | 39.0 k | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 133.2 m | 160.4 m | 209.2 m | 246.1 m | 395.2 m | 375.9 m | 395.9 m | 344.5 m |
| Revenue YoY | +15.2% | +20.4% | +30.4% | +17.6% | +60.6% | −4.9% | +5.3% | −13.0% |
| Net income | 1.8 m | 5.3 m | 7.1 m | 10.1 m | 23.3 m | 1.5 m | 7.4 m | 1.4 m |
| Net income YoY | −44.2% | +190.0% | +33.6% | +42.6% | +129.6% | −93.7% | +406.3% | −81.6% |
| Diluted EPS | 0.14 | 0.41 | 0.54 | 0.75 | 1.64 | 0.10 | 0.51 | 0.09 |
| Diluted EPS YoY | −48.1% | +192.9% | +31.7% | +38.9% | +118.7% | −93.9% | +410.0% | −82.4% |
| net % | 1.4% | 3.3% | 3.4% | 4.1% | 5.9% | 0.4% | 1.9% | 0.4% |
| Free cash flow | 13.4 m | 17.6 m | 19.3 m | 45.6 m | 371.0 k | 30.4 m | 26.5 m | 23.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 125.0 k USD
- Financial debt
- 128.0 m USD
- Net debt
- 127.9 m USD
- Equity
- 113.0 m USD
- Total assets
- 290.7 m USD
- Debt / equity
- 1.13x
- Current ratio
- 1.00x
- ROE
- 1.2%
- ROA
- 0.5%
- FCF margin
- 6.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 209.2 m | 246.1 m | 395.2 m | 375.9 m | 395.9 m | 344.5 m | SEC (XBRL)· 10 Dec 2025verified |
| Cost of revenue | 163.6 m | 194.6 m | 322.9 m | 296.0 m | 318.4 m | 279.3 m | SEC (XBRL)· 10 Dec 2025verified |
| Gross profit | 45.6 m ≈ | 51.5 m ≈ | 72.3 m ≈ | 79.9 m ≈ | 77.5 m ≈ | 65.2 m ≈ | SEC (XBRL)· 10 Dec 2025derived |
| Operating income | 13.5 m | 17.2 m | 33.3 m | 17.1 m | 24.9 m | 16.8 m | SEC (XBRL)· 10 Dec 2025verified |
| Depreciation & amortisation | 7.0 m | 8.1 m | 7.7 m | 15.6 m | 17.1 m | 17.2 m | SEC (XBRL)· 10 Dec 2025verified |
| EBITDA | 20.5 m ≈ | 25.3 m ≈ | 40.9 m ≈ | 32.7 m ≈ | 42.0 m ≈ | 34.0 m ≈ | SEC (XBRL)· 10 Dec 2025derived |
| Interest expense | 2.8 m | 3.0 m | 1.6 m | 14.2 m | 15.4 m | 13.4 m | SEC (XBRL)· 10 Dec 2025verified |
| Pre-tax income | 10.0 m | 13.4 m | 31.1 m | 820.0 k | 7.7 m | 1.8 m | SEC (XBRL)· 10 Dec 2025verified |
| Income tax | 2.9 m | 3.3 m | 7.8 m | -641.0 k | 350.0 k | 393.0 k | SEC (XBRL)· 10 Dec 2025verified |
| Net income | 7.1 m | 10.1 m | 23.3 m | 1.5 m | 7.4 m | 1.4 m | SEC (XBRL)· 10 Dec 2025verified |
| Diluted EPS | 0.54 | 0.75 | 1.64 | 0.10 | 0.51 | 0.09 | SEC (XBRL)· 10 Dec 2025verified |
| Weighted average diluted shares | 13.1 m | 13.6 m | 14.2 m | 14.4 m | 14.4 m | 14.5 m | SEC (XBRL)· 10 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.4 m | 24.1 m | 228.0 k | 215.0 k | 342.0 k | 125.0 k | SEC (XBRL)· 10 Dec 2025verified |
| Receivables | 32.5 m | 33.4 m | 40.5 m | 59.1 m | 49.8 m | 38.4 m | SEC (XBRL)· 10 Dec 2025verified |
| Current assets | 37.4 m | 61.8 m | 43.6 m | 62.4 m | 53.0 m | 42.5 m | SEC (XBRL)· 10 Dec 2025verified |
| Property, plant & equipment, net | 3.3 m | 1.9 m | 1.7 m | 1.6 m | 1.8 m | 1.3 m | SEC (XBRL)· 10 Dec 2025verified |
| Goodwill | 67.1 m | 65.6 m | 65.6 m | 138.2 m | 138.2 m | 138.2 m | SEC (XBRL)· 10 Dec 2025verified |
| Intangibles (excl. goodwill) | 52.6 m | 47.5 m | 40.9 m | 124.8 m | 108.3 m | 91.9 m | SEC (XBRL)· 10 Dec 2025verified |
| Total assets | 183.6 m | 197.2 m | 169.0 m | 339.8 m | 314.4 m | 290.7 m | SEC (XBRL)· 10 Dec 2025verified |
| Accounts payable | 14.6 m | 16.7 m | 11.9 m | 12.6 m | 13.4 m | 12.3 m | SEC (XBRL)· 10 Dec 2025verified |
| Short-term debt | 6.7 m | 0 | 0 | 17.2 m | 12.1 m | 8.1 m | SEC (XBRL)· 10 Dec 2025verified |
| Long-term debt | 60.5 m | 44.6 m | 20.4 m | 155.1 m | 137.3 m | 120.0 m | SEC (XBRL)· 10 Dec 2025verified |
| Current liabilities | 48.0 m | 66.4 m | 38.5 m | 64.8 m | 53.2 m | 42.7 m | SEC (XBRL)· 10 Dec 2025verified |
| Total liabilities | 130.1 m | 131.6 m | 77.0 m | 237.4 m | 204.2 m | 177.7 m | SEC (XBRL)· 10 Dec 2025verified |
| Equity | 53.4 m † | 65.6 m † | 92.1 m † | 102.4 m † | 110.1 m † | 113.0 m † | SEC (XBRL)· 10 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 19.5 m | 45.7 m | 1.2 m | 31.0 m | 27.4 m | 23.2 m | SEC (XBRL)· 10 Dec 2025verified |
| Capex | 152.0 k | 103.0 k | 872.0 k | 625.0 k | 836.0 k | 241.0 k | SEC (XBRL)· 10 Dec 2025verified |
| Free cash flow | 19.3 m ≈ | 45.6 m ≈ | 371.0 k ≈ | 30.4 m ≈ | 26.5 m ≈ | 23.0 m ≈ | SEC (XBRL)· 10 Dec 2025derived |
| Investing cash flow | -32.8 m | -44.0 k | -872.0 k | -181.2 m | -836.0 k | -241.0 k | SEC (XBRL)· 10 Dec 2025verified |
| Financing cash flow | 12.9 m | -22.9 m | -24.2 m | 150.2 m | -26.4 m | -23.2 m | SEC (XBRL)· 10 Dec 2025verified |
| Share repurchases | 211.0 k | 0 | — | — | — | — | SEC (XBRL)· 06 Dec 2021verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 28 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 53.5 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet0
- Growth0
- Valuation66
- Quality49
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.29 – 53.46 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)19.43 – 53.46 (Mid 29.76)WACC 6.3% · starting FCFF 24.5 m USD · terminal value share of EV 83%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA0.29 – 12.88 (Mid 1.88)3 companies used · median multiple 9.2x · quartiles 7.8x – 18.8xEFOR, MAN, NSP
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 28/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -0.1% | 67 (vs peers) | 14% |
| Net margin · Quality | -8.5% | 19 (vs peers) | 9% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -4.5% | 0 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | -62.0% | 0 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | 7.6x | 0 (on a fixed band) | 14% |
| Interest coverage · Balance sheet | -0.0x | 0 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 0.7x | 0 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 10.8x | 38 (on a fixed band) | 14% |
| FCF yield · Valuation | 25.9% | 100 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet0/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality49/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation66/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DLH HOLDINGS CORP. (DLHC). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 344.5 m USD in 2025; YoY growth -13.0%; net margin -8.5%; ROE -20.8%; net debt/EBITDA 7.6x.
The estimated value range is 9.86–33.17 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 15.82 USD, the price of 3.69 USD leaves a potential of 328.7% (value / price − 1) and a margin of safety of 76.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 28/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 25.9%
- The price is below the estimated value range
What contradicts it
- Net margin: -8.5%
- Revenue CAGR 3Y: -4.5%
- EPS CAGR 3Y: -62.0%
- Net debt / EBITDA: 7.6x
- Interest coverage: -0.0x
- Current ratio: 0.7x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF conversion, P/E (TTM), Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| RHIRobert Half Inc. | 4.6 bn | 37.2 | 9.8% | 2.3% | −7.2% | +66% / −45% |
| MANManpowergroup Inc. | 2.2 bn | 18.5 | 5.8% | 0.6% | +0.6% | +63% / −37% |
| NSPInsperity, Inc. | 2.0 bn | 564.4 | 4.6% | 0.0% | +3.5% | +46% / −55% |
| AMNAmn Healthcare Services, Inc. | 1.8 bn | 17.8 | 15.6% | 3.1% | −8.5% | +187% / −30% |
| EFOREverforth, Inc. | 1.5 bn | 22.7 | 3.7% | 1.7% | −2.9% | −18% / −59% |
| KFRCKforce Inc | 1.0 bn | 24.4 | 30.5% | 3.0% | −5.4% | +98% / −16% |
| BBSIBarrett Business Services, Inc. | 802.2 m | 24.4 | 16.3% | 2.8% | +8.4% | −6% / +20% |
| TBITrueBlue, Inc. | 300.0 m | — | -15.9% | -2.6% | +3.1% | +101% / −29% |
| RCMTRcm Technologies, Inc. | 248.1 m | 15.1 | 39.5% | 5.1% | unavailable | +78% / +29% |
| HQIHireQuest, Inc. | 246.4 m | 30.9 | 12.1% | 27.1% | −11.4% | +104% / +20% |
| TTECTTEC Holdings, Inc. | 75.4 m | — | -108.2% | -10.2% | −3.2% | −54% / −92% |
| DLHCDlh Holdings Corp. | 53.5 m | — | -20.8% | -8.5% | −13.0% | −40% / −75% |
| BGSFBgsf, Inc | 41.8 m | — | -4.4% | -2.3% | −10.6% | −15% / −60% |
| STRRStar Equity Holdings, Inc. | 35.5 m | — | -18.2% | -4.3% | +22.9% | −5% / −39% |
| CIRCCircle8 Group Inc. | 26.7 m | — | — | -19.4% | −1.5% | −89% / −94% |
| YFORYY Group Holding Ltd. | 4.3 m | — | -94.1% | -11.8% | +29.4% | −100% / unavailable |
| KELYAKelly Services, Inc. | — | — | -24.3% | -6.7% | −1.9% | +96% / −19% |
1- and 3-year price returns: for DLHC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
DLH Holdings provides digital transformation, cybersecurity, science research and systems engineering solutions to US federal agencies, mainly HHS, VA and DoD. The company is in a difficult stretch: revenue fell sharply in the quarter ended June 30, 2026 as legacy programs moved to small-business set-aside contractors, while DLH cut indirect costs and reduced debt 13.
SWOT
Strengths
Weaknesses
- Dependence on a small number of large contracts means losing one program can have a major effect on revenue 1.
- Debt remains high relative to current revenue and reducing it is still a priority 3.
- The company posted a net loss in the third quarter of fiscal 2026, driven by a valuation allowance on deferred tax assets 3.
Opportunities
- Organic growth in core markets, especially cyber security and AI, could offset the loss of legacy programs 3.
- Indirect costs aligned with expected volumes could improve operating margins in fiscal 2027 3.
- Industry consolidation could open acquisition opportunities that strengthen the company's capabilities 1.
Risks
- Dependence on the federal governmenthigh
Nearly all revenue comes from federal agencies, so any cut in budgets or change in contract relationships would have a direct effect on results 1.
- Concentration on a few contractshigh
A significant part of revenue depends on contracts with VA and HHS, and losing a major program could have large effects 1.
- Debt and liquidity pressuremedium
Debt remains significant and its reduction depends on operating cash flow, which has declined in recent quarters 3.
- Shutdowns and budget delaysmedium
Failure to approve budgets on time can postpone contracts and payments, affecting revenue and cash flow 1.
- Leadership changelow
The appointment of a new CEO and CFO in the third quarter of fiscal 2026 introduces a transition period in strategy and execution 3.
Investment thesis
What would need to be true (bull case)
- If the alignment of indirect costs with revenue volumes holds, adjusted EBITDA margin could stay near the third-quarter level 3.
- Growing demand for cyber security and artificial intelligence could open new contracts for the company 12.
- More than a decade of experience in government research and health services may be an advantage in future bids 1.
What would break the thesis
- Revenue almost halved in the third quarter of fiscal 2026, and the transfer of programs to small businesses could continue 3.
- Backlog has fallen significantly, which could limit future revenue if new contracts do not materialise 3.
- The company recorded a net loss in the third quarter, driven by a tax valuation allowance, which could reflect persistent profitability problems 3.
What to watch
- Evolution of revenue and backlog after the transition of VA and HHS programsQ4 2026
- Financial results for the first quarter of fiscal 2027 and the adjusted EBITDA marginQ1 2027
- Debt reduction and the trend in operating cash flow2027
- Outcome of the CMOP solicitations and other set-aside contractsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
DLH Holdings Corp. delivers health and readiness solutions to federal government customers through three service lines: digital transformation and cyber security, science research and development, and systems engineering and integration 1. The company operates mainly as prime contractor, won through competitive bidding, and relies on a highly credentialed workforce 1. In fiscal 2025 revenue was 344.5 million USD and 99% of revenue came from federal agencies 1.
Key customers are HHS, VA and DoD, and dependence on a few large contracts is high, especially the VA CMOP program, which has been subject to solicitations limited to service-disabled veteran owned small businesses 1. Revenue in the third quarter of fiscal 2026 fell to 44.2 million USD, reflecting the transition of legacy programs to small-business contractors 3.
Management changed at the end of the third quarter of fiscal 2026, and the new leadership named disciplined organic growth, operating leverage and rapid debt reduction as its priorities 3. Backlog fell to 408.5 million USD at June 30, 2026 3.
Segments
Digital Transformation and Cyber Security
This line covers IT modernization, artificial intelligence, cloud enablement, big data analytics and cyber security services for NIH, DHA and the US Navy 12.
Market context
The market is federal government contracting, where budgets are authorized annually by Congress and can be delayed by government shutdowns, which affects the timing of bids 1. The company works in a highly competitive sector with long acquisition cycles, typically between 18 and 36 months for major programs 1.
Government policies favouring small and veteran-owned businesses may limit DLH's access to prime contractor positions on important programs, and the federal goal of routing a set share of prime contracts to small businesses is a key factor 1.
Trends
- Federal spending reductions and contract reviewsheadwind
The administration has begun efforts to cut federal spending, and GSA has asked agencies to review contracts with consulting firms, which has already led to reductions and cancellations 1. If these reviews continue, revenue could remain under pressure.
- Transfer of programs to small businessesheadwind
Several HHS and VA programs have been awarded to small-business contractors, which is the main reason for lower revenue in fiscal 2025 and in the third quarter of fiscal 2026 13.
- Consolidation among federal contractorsmixed
Mergers and acquisitions among federal contractors have increased in recent years and the company expects this to continue, which could create acquisition opportunities or competitive pressure 1.
- Focus on artificial intelligence and cyber securitytailwind
Demand for AI, cloud and cyber security solutions from defense and health agencies could support organic growth if budgets for these areas remain stable 12.
Competitive position
The market is dominated by large firms with greater resources, larger customer bases and stronger brand recognition 1. DLH competes by combining a credentialed workforce, proprietary tools and a track record of past performance, but its competitor set includes both large and small firms 1.
Set-aside rules for small and veteran-owned businesses can reduce the company's access to prime contractor positions, sometimes forcing it into a subcontractor role 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report25 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Current report06 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report17 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report17 Mar 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report09 Feb 2026
- Current report09 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / DLH Holdings Corp. · 10 Dec 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DLH Holdings Corp. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / DLH Holdings Corp. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.