DHX — DHI Group, Inc.

DHI Group, Inc. Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenue: $32.4 million, down 10% year-over-year, flat sequentially.
• Total Bookings: $31.2 million, down 5% year-over-year.
• Recurring Revenue: Down 12% year-over-year.
• ClearanceJobs Revenue: $13.9 million, up 1% year-over-year; bookings at $14.6 million, up 3% year-over-year.
• Dice Revenue: $17.4 million, down 17% year-over-year; bookings at $16.6 million, down 11% year-over-year.
• Net Income: $1.3 million (3¢ per diluted share), compared to $1 million (2¢ per diluted share) in Q4 2024.
• Adjusted EBITDA: $9.4 million (30% margin), up from $9.2 million (26% margin) year-over-year.
• Free Cash Flow: $5.7 million, significantly up from $1.6 million in Q4 2024.
• Deferred Revenue: $39.9 million, down 12% year-over-year.

2. Strategic Updates and Business Highlights:

• ClearanceJobs: Experienced a positive inflection in bookings after leadership changes. The defense budget is expected to drive growth, with a significant increase in U.S. defense spending anticipated.
• Agile ATS Acquisition: Successfully integrated, doubling its revenue in under six months, enhancing ClearanceJobs' offerings.
• Dice: Launched a new employer experience platform aimed at improving operational efficiency and expanding the addressable market.
• AI-Related Hiring: 55% of Dice job postings required AI skills, indicating a growing demand for specialized tech talent.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Expected to be between $118 million and $122 million.
• ClearanceJobs Revenue Guidance: Projected at $56 million to $58 million for the full year.
• Dice Revenue Guidance: Expected between $62 million and $64 million for the full year.
• Adjusted EBITDA Margin Target: 25% for DHI overall, with 40% for ClearanceJobs and 22% for Dice.

4. Bad News, Challenges, or Points of Concern:

• Declining Metrics: Both total revenue and bookings were down year-over-year, particularly for Dice, which continues to face challenges in the commercial tech hiring environment.
• Customer Churn: ClearanceJobs saw a 9% decline in recruitment package customers year-over-year, while Dice experienced a 12% decline.
• Market Conditions: The commercial tech hiring market remains subdued, with Dice not expected to see bookings growth until broader market conditions improve.

5. Notable Q&A Insights:

• ClearanceJobs Bookings: Management expects continued growth in 2026, driven by defense spending and improved sales execution.
• Dice's Position: While AI-related job postings are increasing, the overall tech hiring market remains flat, and Dice's growth is contingent on the recovery of tech hiring.
• Renewal Trends: Larger customers showed confidence in renewing contracts, particularly in light of the new defense budget.
• New Subscription Model for ClearanceJobs: A premium candidate subscription was piloted, showing promising early results, with plans for broader rollout in 2026.

Overall, while DHI Group is facing challenges in the commercial tech hiring space, particularly with Dice, there are positive indicators for ClearanceJobs driven by defense spending and strategic initiatives aimed at enhancing customer engagement and operational efficiency.