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DLHC

DLH Holdings Corp.

DLHC

DLH Holdings Corp. • NASDAQ
$6.21 ▼ -2.66% (-0.17)
Market Cap $89.34 M
52w High $9.47
52w Low $2.72
Dividend Yield 0%
P/E 19.41
Volume 5.66K
Outstanding Shares 14.39M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $83.343M ▼ $7.86M ▼ $289K ▼ 0.347% ▼ $0.02 ▼ $8.063M ▼
Q2-2025 $89.212M ▼ $12.888M ▲ $878K ▼ 0.984% ▼ $0.061 ▼ $8.989M ▼
Q1-2025 $90.782M ▼ $12.763M ▼ $1.115M ▼ 1.228% ▼ $0.077 ▼ $9.496M ▼
Q4-2024 $96.386M ▼ $12.822M ▲ $2.295M ▲ 2.381% ▲ $0.16 ▲ $10.262M ▲
Q3-2024 $100.694M $9.013M $1.139M 1.131% $0.08 $9.649M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $194K ▼ $299.341M ▼ $185.643M ▼ $113.698M ▲
Q2-2025 $196K ▼ $306.607M ▼ $193.758M ▼ $112.849M ▲
Q1-2025 $451K ▲ $325.009M ▲ $213.569M ▲ $111.44M ▲
Q4-2024 $342K ▼ $314.381M ▼ $204.249M ▼ $110.132M ▲
Q3-2024 $423K $324.957M $216.352M $108.605M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $289K ▼ $9.571M ▼ $-212K ▼ $-9.361M ▲ $-2K ▲ $10.123M ▼
Q2-2025 $877K ▼ $14.503M ▲ $551K ▲ $-15.309M ▼ $-255K ▼ $14.503M ▲
Q1-2025 $1.115M ▼ $-11.538M ▼ $-552K ▼ $12.199M ▲ $109K ▲ $-12.09M ▼
Q4-2024 $2.295M ▲ $12.435M ▲ $-209K ▼ $-12.307M ▼ $-81K ▼ $12.226M ▲
Q3-2024 $1.139M $4.63M $-161K $-4.284M $185K $4.469M

Five-Year Company Overview

Income Statement

Income Statement DLH’s revenue has been fairly steady over the last few years, with a noticeable step-up from earlier years but no clear growth surge more recently. Profit margins look modest but reasonably stable: the company is consistently earning a healthy spread between what it bills the government and what it costs to deliver, though this spread is not widening meaningfully. Operating profit has held in a narrow range, suggesting good cost discipline but also some limit to pricing power. Net income has been positive overall but a bit choppy, with one year close to breakeven and another much stronger, likely reflecting contract timing, interest costs, or one‑off items rather than a smooth upward trend. Overall, the income statement shows a mature government contractor with stable revenue and earnings that are solid but not yet on a clear acceleration path.

Balance Sheet

Balance Sheet The balance sheet shows a company that has grown but taken on more leverage to do so. Total assets have increased compared with earlier years, pointing to a larger operating footprint and more contract activity. Debt, however, has climbed meaningfully from earlier periods, while equity has only risen gradually. This mix means the company leans more on borrowing than it once did, which can enhance returns in good times but raises financial risk if contracts slow or margins tighten. Cash on hand is quite lean, implying a limited immediate cushion and a reliance on ongoing cash generation and bank lines. In short, the balance sheet is functional but more geared and less liquid than a very conservative profile would be.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive in recent years, even when reported earnings dipped, which is a good sign that the underlying contracts convert well into actual cash. Free cash flow closely tracks operating cash flow, because the business is not very capital‑intensive and requires minimal spending on physical assets. This light capital footprint is a structural strength: more of the cash the firm generates can go to paying down debt, funding small acquisitions, or absorbing bumps in contract timing. The one weak spot is the thin cash balance, which puts more pressure on future cash inflows to remain steady. Overall, cash flow quality looks solid, but the margin for error is not huge given the higher debt load.

Competitive Edge

Competitive Edge DLH operates in a focused niche: technology‑enabled services for U.S. federal agencies, especially in health and national security. Its main strengths are long‑standing relationships, deep domain knowledge, and incumbency on key multi‑year contract vehicles. Being an established vendor on major frameworks gives it recurring access to new task orders and raises the bar for new entrants. The company’s emphasis on integrating data analytics, cloud, and AI into mission work differentiates it from more traditional staff‑augmentation contractors and can support better margins on complex work. On the risk side, the business is heavily dependent on federal budgets and a limited set of agencies, and large contracts must periodically be re‑won in competitive bidding. This creates exposure to policy shifts, funding delays, and competitive pressure, even if the current position is relatively strong.

Innovation and R&D

Innovation and R&D DLH’s innovation is applied rather than lab‑heavy: it embeds new technologies into real government missions. Recent examples include remote surgical support systems, automated battlefield medical data collection, and integrated patient safety reporting across major defense and veterans’ health organizations. Its FedRAMP‑authorized cloud platform is a key asset, allowing it to host sensitive government data in a compliant environment and bundle analytics and AI on top. The company appears focused on expanding AI and machine‑learning use cases, telehealth and remote care solutions, and high‑complexity, high‑value projects that are harder for competitors to displace. The main uncertainty is adoption speed and funding priorities within government agencies; innovation must align with procurement cycles and security requirements, which can lengthen time from idea to revenue. Still, DLH’s track record suggests it is seen as a trusted partner for tech‑enabled modernization.

Summary

DLH presents as a specialized federal contractor with stable revenue, modest but consistent profitability, and solid cash generation from a low‑capital business model. The balance sheet has become more leveraged, which increases sensitivity to any downturn in contract wins or margins, and the cash buffer is limited, making steady cash flow execution important. Competitively, the firm benefits from incumbency, long‑term relationships, and a clear focus on health and national security missions where domain expertise matters. Its innovation efforts in AI‑enhanced, cloud‑based, and remote‑care solutions strengthen its positioning for more complex, higher‑value work, though they are ultimately tied to federal budget and procurement dynamics. Overall, DLH looks like a mature niche player: not without financial and concentration risks, but with a meaningful embedded role in mission‑critical government programs and a technology‑forward approach that could support gradual improvement over time if well executed.