Cash flow generation remains highly volatile and inconsistent, evidenced by a massive $18.4 million working capital outflow in 2025Q1 and a current ratio that has compressed to 0.87.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 19.27M | 23.22M | 27.37M | 31.03M | 1.24M | 45.66M | 19.45M | 18.04M | 14.08M | 6.52M | 6.04M | 1.98M | 1.67M | 1.8M | -2.78M | -987K | -2.24M | -2.09M | 4.68M | -1.38M | 8.66M | -2.05M | -1.19M | -6.81M | 1.18M | 3.94M | 3.84M | 3.2M | 200K | 1M | -2.4M |
| Operating CF Margin % | - | 6.74% | 6.91% | 8.26% | 0.31% | 18.56% | 9.3% | 11.25% | 10.57% | 5.64% | 7.06% | 3.03% | 2.75% | 3.37% | -5.66% | -2.35% | -5.49% | -4.54% | 6.39% | -2.06% | 12.09% | -4.34% | -3.63% | -10.84% | 0.15% | 0.61% | 0.86% | 1.31% | 0.14% | 0.82% | -2.38% |
| Operating CF Growth % | 77.37% | -15.16% | -11.82% | 2396.62% | -97.28% | 134.77% | 7.83% | 28.15% | 115.77% | 8.01% | 204.59% | 19.1% | -7.76% | 164.88% | -181.86% | 56.02% | -7.37% | -144.64% | 440.51% | -115.88% | 521.77% | -72.09% | 82.47% | -678.74% | -70.13% | 2.47% | 20.06% | 1500% | -80% | 141.67% | 22.58% |
| Net Income | -4.49M | 1.36M | 7.4M | 1.46M | 23.29M | 10.14M | 7.11M | 5.32M | 1.84M | 3.29M | 3.38M | 8.73M | 5.36M | -159K | -2.03M | -4.32M | -5.81M | -4.36M | 1.15M | -4.69M | -13.25M | -1.69M | -1.76M | -1.59M | 3.08M | 1.42M | 951K | 1.8M | 2.7M | -2.8M | -600K |
| Depreciation & Amortization | 17.21M | 17.18M | 17.05M | 15.56M | 7.67M | 8.12M | 7M | 3.96M | 2.24M | 1.72M | 1.24M | 55K | 116K | 299K | 275K | 146K | 118K | 111K | 311K | 349K | 381K | 561K | 409K | 329K | 1.41M | 1.42M | 1.33M | 1.1M | 700K | 1M | 800K |
| Stock-Based Compensation | 1.39M | 1.46M | 1.9M | 1.92M | 2.61M | 1.66M | 910K | 790K | 1.38M | 662K | 465K | 479K | 472K | 206K | 260K | 412K | 144K | 221K | 30K | 7K | 17K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -4.59M | -1.7M | -3.17M | -4.6M | 358K | 1.21M | 2.31M | 1.79M | 5.5M | 1.78M | -1.11M | -5.71M | -4.6M | 0 | -589K | 6.84M | -144K | 2.18M | -142K | 1.27M | 18.48M | -1.57M | 1.44M | -1.08M | 1.17M | 123K | 73K | 600K | -1.4M | 0 | 0 |
| Other Non-Cash Items | 2.34M | 1.74M | 1.84M | 9.86M | 664K | 792K | 600K | 982K | 275K | 401K | 319K | -369K | 284K | 247K | 135K | -4.29M | 1.72M | 221K | -509K | 275K | 570K | 825K | 2.33M | -27.29M | 546K | 981K | 386K | 100K | -300K | 1.2M | -500K |
| Working Capital Changes | 7.42M | 3.17M | 2.35M | 6.84M | -33.34M | 23.74M | 1.52M | 5.2M | 2.85M | -1.33M | 1.74M | -721K | 416K | 1.42M | -837K | 222K | 1.72M | -467K | 3.85M | 1.42M | 2.46M | 625K | -1.29M | 22.09M | -5.03M | -15K | 1.1M | -400K | -1.7M | 1.6M | -2.1M |
| Change in Receivables | 18.07M | 11.46M | 9.27M | 6.84M | -7.05M | -906K | -5.41M | 617K | 1.63M | -5.27M | -3.35M | -220K | -429K | 1.08M | -1.92M | 212K | 103K | 454K | -4.6M | -65K | 142K | -1.76M | 1.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -56K | -113K | 83K | 1.12M | -252K | 48K | 160K | -83K | 92K | -59K | 857K | 822K | 2.46M | -4.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -4.92M | -6.04M | -4.41M | -75K | -5.86M | 4.14M | 7.19M | 5.26M | 54K | 3.94M | 5.11M | -506K | -269K | 628K | 1.23M | -1K | 845K | -1.01M | 8.76M | 535K | -203K | 1.26M | -3.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -279K | -241K | -836K | -181.2M | -872K | -44K | -32.83M | -67.48M | -654K | -1.31M | -32.74M | -142K | -13K | -9K | -68K | -37K | 181K | -69K | 106K | -185K | -1.8M | -4.84M | -19K | -446K | -2.91M | 10.19M | -3.8M | -4.7M | -200K | -400K | -200K |
| Capital Expenditures | -279K | -241K | -836K | -625K | -872K | -103K | -152K | -405K | -654K | -1.06M | -498K | -142K | -13K | -9K | -68K | -37K | -194K | -69K | -251K | -246K | -146K | -129K | -19K | -525K | -2.18M | -589K | -486K | -4.7M | -200K | -400K | -200K |
| CapEx % of Revenue | 0.1% | 0.07% | 0.21% | 0.17% | 0.22% | 0.04% | 0.07% | 0.25% | 0.49% | 0.92% | 0.58% | 0.22% | 0.02% | 0.02% | 0.14% | 0.09% | 0.47% | 0.15% | 0.34% | 0.37% | 0.2% | 0.27% | 0.06% | 0.84% | 0.27% | 0.09% | 0.11% | 1.92% | 0.14% | 0.33% | 0.2% |
| Acquisitions | 0 | 0 | 0 | -180.57M | 0 | 59K | -32.68M | -67.08M | 0 | -250K | -32.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.08M | -4.71M | 0 | 0 | -727K | 10.28M | -3.31M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 375K | 0 | 357K | 61K | 419K | -1.87M | 0 | 79K | 0 | 500K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -19.05M | -23.19M | -26.4M | 150.15M | -24.19M | -22.93M | 12.95M | 44.88M | -12M | -3.71M | 24.57M | -191K | -1.15M | -1.48M | 5.18M | 600K | 258K | -62K | -167K | -5K | -6M | 5.14M | -57K | -874K | 464K | -4.56M | 2.29M | 2M | 900K | 200K | 2.5M |
| Debt Issued (Net) | -18.96M | -23.19M | -24.8M | 149.69M | -24.75M | -23.25M | 14M | 48.29M | -11.98M | -3.84M | 23.34M | -8K | -1.11M | -1.46M | 1.36M | 478K | 341K | -27K | -49K | -52K | -5.87M | 1.03M | -19K | -51K | 33K | -7.93M | 2.35M | 2M | 600K | -200K | 2.5M |
| Equity Issued (Net) | 0 | 0 | 261K | 1.11M | 837K | 366K | -156K | 0 | 0 | 0 | 2.52M | -183K | -112K | 0 | 3K | 146K | 0 | 0 | 0 | 0 | 0 | 3.96M | 0 | -692K | 510K | 3.37M | -57K | -100K | 300K | 200K | 100K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -211K | 0 | 0 | 0 | 0 | -183K | -91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -782K | -1.15M | -366K | -61K | -100K | 0 | 0 | 0 |
| Other Financing | -93K | 0 | -1.86M | -650K | -281K | -43K | -898K | -3.41M | -19K | 129K | -1.3M | 0 | 73K | -14K | 3.81M | -24K | -83K | -35K | -118K | 47K | -132K | 410K | -38K | -131K | -79K | -63K | 0 | 100K | 0 | 200K | -100K |
| Net Change in Cash | -65K | -217K | 127K | -13K | -23.82M | 22.69M | -433K | -4.57M | 1.43M | 1.5M | -2.13M | 1.65M | 500K | 319K | 2.33M | -424K | -1.8M | -2.22M | 4.62M | -1.56M | 853K | -1.76M | -1.27M | -8.13M | -1.27M | 9.57M | 2.34M | 400K | 900K | 800K | -100K |
| Free Cash Flow | 18.99M | 22.98M | 26.53M | 30.41M | 371K | 45.56M | 19.3M | 17.63M | 13.42M | 5.46M | 5.54M | 1.84M | 1.65M | 1.8M | -2.85M | -1.02M | -2.44M | -2.16M | 4.43M | -1.62M | 8.51M | -2.18M | -1.21M | -7.33M | -1.01M | 3.35M | 3.36M | -1.5M | 0 | 600K | -2.6M |
| FCF Margin % | 6.49% | 6.67% | 6.7% | 8.09% | 0.09% | 18.51% | 9.23% | 10.99% | 10.07% | 4.72% | 6.47% | 2.82% | 2.73% | 3.36% | -5.79% | -2.44% | -5.96% | -4.69% | 6.05% | -2.42% | 11.88% | -4.62% | -3.69% | -11.67% | -0.13% | 0.52% | 0.75% | -0.61% | - | 0.49% | -2.58% |
| FCF Growth % | -3.41% | -13.4% | -12.75% | 8096.23% | -99.19% | 136.08% | 9.44% | 31.37% | 145.84% | -1.48% | 201.03% | 11.44% | -8.02% | 163.02% | -178.32% | 58% | -12.92% | -148.72% | 373.35% | -119.04% | 490.15% | -80.03% | 83.47% | -628% | -130.08% | -0.24% | 323.73% | - | -100% | 123.08% | 25.71% |
| FCF per Share | 1.32 | 1.59 | 1.84 | 2.11 | 0.03 | 3.35 | 1.47 | 1.35 | 1.04 | 0.44 | 0.49 | 0.18 | 0.17 | 0.19 | -0.20 | -0.07 | -0.17 | -0.15 | 0.31 | -0.08 | 0.44 | -0.12 | -0.30 | -1.84 | -0.25 | 1.48 | 1.66 | -0.83 | - | 0.45 | -2.39 |
| FCF Conversion (FCF/Net Income) | -4.23x | 17.05x | 3.70x | 21.24x | 0.05x | 4.50x | 2.73x | 3.39x | 7.67x | 1.98x | 1.78x | 0.23x | 0.31x | -11.35x | 1.37x | 0.23x | 0.39x | 0.48x | 4.09x | 0.29x | -0.27x | 0.37x | 0.29x | 0.24x | 0.38x | 2.92x | 4.04x | 1.78x | 0.07x | -0.36x | 4.00x |
| Interest Paid | 9.34M | 13.51M | 16.04M | 14.15M | 1.53M | 2.94M | 2.81M | 1.5M | 800K | 883K | 454K | 0 | 0 | 0 | 298K | 229K | 46K | 50K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.54M | 2.05M | 3.26M | 5.6M | 9.28M | 936K | 917K | -543K | 876K | 337K | 124K | 0 | 0 | 0 | 11K | 17K | 86K | 124K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Federal contract recompete exposure
As reported in recent financial statements, DLHC's operating cash flow to net income ratio has exhibited extreme volatility, ranging from -11.62 to 33.12, which suggests that reported net income is a poor proxy for the company's actual ability to generate cash from its core operations.
The wide divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are the primary drivers of the company's cash profile. Investors should monitor whether this instability reflects fundamental accounting noise or a deeper inability to convert contract revenue into reliable cash inflows.
Based on the provided quarterly data, DLHC's free cash flow trajectory has been highly inconsistent, swinging from a $15.1 million inflow in 2025Q2 to a $12.1 million outflow in 2025Q1, highlighting the significant risks inherent in the company's current contract-based revenue model.
The erratic nature of free cash flow suggests that the company's liquidity is highly sensitive to the timing of federal payments and project milestones. This lack of predictability complicates capital planning and may force the company to rely on external financing to bridge gaps during periods of negative cash generation.
According to the cash flow statements, working capital changes have been the dominant factor in DLHC's cash flow profile, with a massive $18.4 million outflow in 2025Q1 followed by a $9.8 million inflow in 2025Q4, indicating significant sensitivity to federal billing cycles.
These dramatic fluctuations suggest that the company's cash position is heavily dependent on the timing of collections from government agencies. Such reliance on working capital management to maintain liquidity may indicate that the company lacks a sufficient cash buffer to absorb operational delays or contract payment disputes.
As indicated by the consistent $4.3 million quarterly depreciation and amortization expense, DLHC's reported net income is heavily impacted by non-cash charges, which may be masking the underlying cash-generating capacity of the business following its recent acquisition-heavy growth strategy.
The persistent amortization expense suggests that the company's past M&A activity continues to weigh on reported earnings, potentially obscuring the true economic performance of the acquired assets. Analysts should look past these non-cash items to determine if the core business can sustain itself without further capital infusions.
Quick answers to the most common questions about buying DLHC stock.
DLH Holdings Corp. (DLHC) generated $23.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DLH Holdings Corp. (DLHC) generated $23.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
DLH Holdings Corp. (DLHC) spent $0.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.