The continued revenue erosion and EPS miss reinforce a negative trajectory. Watch Q3 for completion of program transitions — if revenue stabilizes, the stock could find a floor; further declines would deepen losses. Debt reduction and FCF are supportive but secondary to top-line stabilization.
Price Chart
Executive Summary
DLH Holdings reported Q2 FY2026 (March 2026) results with revenue of $59.3M, down 33.5% YoY, and a GAAP net loss of $2.5M ($0.17 per share) versus a $0.9M profit last year. The revenue decline was driven by the ongoing transition of legacy prime contracts to small-business set-aside contractors. EPS missed the consensus estimate of -$0.16, coming in at -$0.17.
Key Financial Metrics
Key Facts
- Revenue $59.3M, down 33.5% YoY from $89.2M
- GAAP diluted EPS $(0.17) vs $(0.16) consensus (miss)
- Net loss $(2.5)M vs net income $0.9M last year
- Adjusted EBITDA $5.3M (9.0% margin) vs $9.4M (10.5%) last year
- Debt reduced to $132.7M from $136.6M at Q1 end
- Free cash flow $3.8M in Q2
- Awarded two-year sole source NIH contract extension
- Management guides for transition completion in Q3 FY2026
Financial Impact
Revenue declined 33.5% YoY to $59.3M; net loss of $2.5M (EPS -$0.17) vs consensus -$0.16; adjusted EBITDA margin compressed to 9.0% from 10.5%
Risk Factors
- Further revenue shrinkage if transition extends beyond Q3
- Inability to win new contracts to fill the revenue gap
- Potential covenant breaches if debt reduction stalls
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-031338 |
| Document: dlhc-20260506.htm | 0001628280-26-031338 |
| Document: 0001628280-26-031338-index-headers.html | 0001628280-26-031338 |
| Document: 0001628280-26-031338-index.html | 0001628280-26-031338 |
| Document: 0001628280-26-031338.txt | 0001628280-26-031338 |
| 8-K Data (Synthetic) | 0001628280-26-031338 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | Press Release | $4.01 | awaiting T+60 | — | $3.61 (−9.86%) |
Sep 28, 2026 28d ago | Press Release | $3.46 | awaiting T+60 | — | $3.61 (+4.34%) |
Sep 14, 2026 6w ago | Press Release | $3.63 | awaiting T+60 | — | $3.61 (−0.55%) |
Jul 6, 2026 16w ago | 8-K | $5.25 $3.70 | ▼ −29.52% | ▼ −31.52% | $3.61 (−31.24%) |
Jun 17, 2026 18w ago | 8-K | $5.44 $3.76 | ▲ +30.88% | ▲ +32.78% | $3.61 (+33.64%) |
Jun 16, 2026 19w ago | EFFECT | $5.47 $4.01 | ▲ +26.69% | ▲ +27.69% | $3.61 (+34.00%) |
Jun 4, 2026 20w ago | S-3 | $5.58 $4.35 | ▲ +22.13% | ▲ +26.13% | $3.61 (+35.30%) |
May 6, 2026 24w ago | 8-K | $5.73 $5.02 | ▲ +12.39% | ▲ +16.22% | $3.61 (+37.00%) |
US Market Status
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