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DLH (DLHC) investor relations material

DLH Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary10 Feb, 2026

Executive summary

  • Q1 revenue was $68.9 million, down 24% year-over-year, mainly due to program transitions to small business set-aside contractors and government efficiency initiatives.

  • Net loss was $1.3 million, compared to net income of $1.1 million in the prior year.

  • Adjusted EBITDA was $6.5 million (9.5% of revenue), down from $9.9 million, reflecting cost reduction and operational streamlining.

  • Demand is improving in core markets, with emphasis on digital modernization, cybersecurity, and advanced technology integration.

  • Management remains focused on expanding efficiencies, margins, and deleveraging the balance sheet.

Financial highlights

  • Revenue for Q1 FY2026 was $68.9 million, down from $90.8 million year-over-year.

  • Adjusted EBITDA was $6.5 million, with a margin of 9.5%, compared to $9.9 million (11.0%) in the prior year.

  • Free cash flow usage improved to $(4.8) million from $(12.1) million year-over-year.

  • Net loss margin was (1.9)% compared to a net income margin of 1.2% a year ago.

  • Backlog at quarter-end was $517.4 million, with $124.0 million funded.

Outlook and guidance

  • Budget clarity and increased federal funding support a positive midterm outlook, with improved visibility for federal clients.

  • Management expects to align expenses with lower revenue volumes and restore margins to competitive levels after cost scaling initiatives.

  • Anticipates converting 50%-55% of fiscal 2026 EBITDA to debt reduction by year-end.

  • Operating cash flow is expected to be deployed toward reducing debt levels, enhancing long-term financial flexibility.

  • Operating fundamentals and organic growth initiatives expected to improve as the year progresses.

CMOP transition cost scaling impact
Adaptation to new gov't contracting models
Commercial biotech growth approach
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Frequently asked questions

DLH Holdings Corp delivers healthcare and human services solutions to federal government agencies. Its capabilities include program management, clinical services, technology solutions, and logistics in support of military, public health, and veteran-focused programs. The company is headquartered in Atlanta, Georgia, and its shares are listed on the NASDAQ.

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