Operating performance has deteriorated significantly, with revenue contracting 33.6% in 2026Q2 and operating margins falling to -0.1% from a 7.0% peak in 2024Q1.
| 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 |
|---|
| Sales/Revenue | 292.66M | 344.5M | 395.94M | 375.87M | 395.17M | 246.09M | 209.19M | 160.39M | 133.24M | 115.66M | 85.6M | 65.35M | 60.49M | 53.51M | 49.19M | 41.92M | 40.87M | 46.02M | 73.28M | 66.88M | 71.64M | 47.27M | 32.86M | 62.8M | 798.21M | 649.73M | 447.74M | 244.8M | 139.4M | 122.6M | 100.9M |
| Revenue Growth % | -22.39% | -12.99% | 5.34% | -4.88% | 60.58% | 17.64% | 30.42% | 20.38% | 15.19% | 35.12% | 31% | 8.02% | 13.06% | 8.77% | 17.34% | 2.57% | -11.18% | -37.2% | 9.57% | -6.65% | 51.55% | 43.89% | -47.69% | -92.13% | 22.85% | 45.11% | 82.9% | 75.61% | 13.7% | 21.51% | 36.72% |
| Cost of Goods Sold | 191.14M | 279.33M | 318.45M | 296.02M | 322.89M | 194.61M | 163.6M | 124.55M | 105.37M | 89.81M | 67.78M | 53.66M | 51.53M | 46.01M | 43.6M | 36.02M | 36.07M | 39.02M | 61.22M | 55.85M | 59.86M | 39.05M | 26.88M | 50.62M | 63.8M | 621.63M | 426.99M | 228.3M | 129.7M | 113.9M | 92.5M |
| COGS % of Revenue | - | 81.08% | 80.43% | 78.75% | 81.71% | 79.08% | 78.21% | 77.65% | 79.09% | 77.65% | 79.18% | 82.11% | 85.19% | 85.98% | 88.62% | 85.93% | 88.24% | 84.79% | 83.54% | 83.51% | 83.55% | 82.61% | 81.81% | 80.59% | 7.99% | 95.68% | 95.36% | 93.26% | 93.04% | 92.9% | 91.67% |
| Gross Profit | 42.26M | 65.16M | 77.49M | 79.86M | 72.29M | 51.48M | 45.59M | 35.84M | 27.86M | 25.85M | 17.83M | 11.69M | 8.96M | 7.5M | 5.6M | 5.9M | 4.81M | 7M | 12.06M | 11.03M | 11.79M | 8.22M | 5.98M | 12.19M | 734.41M | 28.1M | 20.76M | 16.5M | 9.7M | 8.7M | 8.4M |
| Gross Margin % | 14.44% | 18.92% | 19.57% | 21.25% | 18.29% | 20.92% | 21.79% | 22.35% | 20.91% | 22.35% | 20.82% | 17.89% | 14.81% | 14.02% | 11.38% | 14.07% | 11.76% | 15.21% | 16.46% | 16.49% | 16.45% | 17.39% | 18.19% | 19.41% | 92.01% | 4.32% | 4.64% | 6.74% | 6.96% | 7.1% | 8.33% |
| Gross Profit Growth % | - | -15.91% | -2.96% | 10.47% | 40.42% | 12.92% | 27.2% | 28.63% | 7.78% | 45.01% | 52.52% | 30.46% | 19.47% | 33.98% | -5.1% | 22.7% | -31.35% | -41.95% | 9.35% | -6.41% | 43.34% | 37.58% | -50.98% | -98.34% | 2513.83% | 35.37% | 25.79% | 70.1% | 11.49% | 3.57% | 55.56% |
| Operating Expenses | 42.32M | 48.38M | 52.59M | 62.77M | 39.01M | 34.26M | 32.13M | 25.87M | 19.08M | 19.22M | 13.76M | 9.19M | 8.2M | 7.25M | 7.75M | 10.12M | 9.14M | 6.62M | 11.34M | 13.06M | 14.19M | 13.18M | 10.6M | 14.92M | 730.67M | 24.82M | 18.34M | 13.3M | 8.1M | 11.3M | 8.8M |
| OpEx % of Revenue | - | 14.04% | 13.28% | 16.7% | 9.87% | 13.92% | 15.36% | 16.13% | 14.32% | 16.62% | 16.08% | 14.07% | 13.55% | 13.55% | 15.75% | 24.14% | 22.37% | 14.38% | 15.47% | 19.53% | 19.81% | 27.88% | 32.26% | 23.76% | 91.54% | 3.82% | 4.1% | 5.43% | 5.81% | 9.22% | 8.72% |
| Selling, General & Admin | 29.41M | 31.2M | 35.54M | 37.8M | 30.73M | 25.05M | 24.2M | 20.52M | 16.84M | 17.47M | 12.52M | 9.14M | 8.09M | 7.13M | 7.36M | 7.42M | 7.68M | 6.5M | 11.03M | 12.71M | 13.81M | 12.76M | 10.26M | 14.59M | 12.09M | 23.39M | 17M | 12.2M | 7.4M | 10.3M | 8M |
| SG&A % of Revenue | - | 9.06% | 8.98% | 10.06% | 7.78% | 10.18% | 11.57% | 12.8% | 12.64% | 15.1% | 14.62% | 13.98% | 13.37% | 13.33% | 14.96% | 17.71% | 18.8% | 14.13% | 15.05% | 19.01% | 19.28% | 26.99% | 31.22% | 23.24% | 1.51% | 3.6% | 3.8% | 4.98% | 5.31% | 8.4% | 7.93% |
| Research & Development | 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 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 17.18M | 17.05M | 24.97M | 8.28M | 9.2M | 7.93M | 5.35M | 2.24M | 1.75M | 1.24M | 55K | 106K | 121K | 387K | 2.7M | 1.46M | 111K | 311K | 349K | 381K | 422K | 342K | 329K | 718.58M | 1.42M | 1.33M | 1.1M | 700K | 1M | 800K |
| Operating Income | 7.42M | 16.79M | 24.9M | 17.09M | 33.28M | 17.22M | 13.46M | 9.97M | 8.78M | 6.63M | 4.06M | 2.5M | 764K | 248K | -2.15M | -4.22M | -4.34M | 386K | 721K | -2.03M | -2.41M | -4.96M | -4.62M | -2.73M | 3.74M | 3.28M | 2.42M | 3.2M | 1.6M | -2.6M | -400K |
| Operating Margin % | 2.53% | 4.87% | 6.29% | 4.55% | 8.42% | 7% | 6.44% | 6.21% | 6.59% | 5.73% | 4.75% | 3.82% | 1.26% | 0.46% | -4.37% | -10.07% | -10.61% | 0.84% | 0.98% | -3.04% | -3.36% | -10.49% | -14.07% | -4.35% | 0.47% | 0.5% | 0.54% | 1.31% | 1.15% | -2.12% | -0.4% |
| Operating Income Growth % | - | -32.59% | 45.69% | -48.64% | 93.22% | 27.95% | 35.04% | 13.5% | 32.46% | 63.14% | 62.82% | 226.7% | 208.06% | 111.53% | 49.06% | 2.63% | -1223.58% | -46.46% | 135.46% | 15.57% | 51.43% | -7.22% | -69.19% | -173.06% | 14.12% | 35.57% | -24.44% | 100% | 161.54% | -550% | 81.82% |
| EBITDA | 24.62M | 33.97M | 41.95M | 32.65M | 40.94M | 25.34M | 20.46M | 13.92M | 11.02M | 8.35M | 5.31M | 2.55M | 880K | 547K | -1.88M | -4.08M | -4.22M | 497K | 1.03M | -1.68M | -2.03M | -4.54M | -4.25M | -1.79M | 4M | 4.7M | 3.75M | 4.3M | 2.3M | -1.6M | 400K |
| EBITDA Margin % | 8.41% | 9.86% | 10.6% | 8.69% | 10.36% | 10.3% | 9.78% | 8.68% | 8.27% | 7.22% | 6.2% | 3.9% | 1.45% | 1.02% | -3.81% | -9.72% | -10.32% | 1.08% | 1.41% | -2.52% | -2.83% | -9.59% | -12.95% | -2.85% | 0.5% | 0.72% | 0.84% | 1.76% | 1.65% | -1.31% | 0.4% |
| EBITDA Growth % | -38.47% | -19.04% | 28.48% | -20.25% | 61.59% | 23.82% | 46.97% | 26.31% | 31.96% | 57.39% | 108.08% | 189.89% | 60.88% | 129.16% | 53.99% | 3.37% | -948.89% | -51.84% | 161.28% | 16.92% | 55.31% | -6.6% | -137.44% | -144.83% | -14.99% | 25.35% | -12.77% | 86.96% | 243.75% | -500% | 130.77% |
| D&A (Non-Cash Add-back) | 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 | 422K | 369K | 941K | 256K | 1.42M | 1.33M | 1.1M | 700K | 1M | 800K |
| EBIT | 6.24M | 15.12M | 23.1M | 14.97M | 32.64M | 16.43M | 12.86M | 9.01M | 8.47M | 6.29M | 2.9M | 2.5M | 764K | 248K | -1.88M | -4.3M | -4.42M | 570K | 939K | -547K | -2.41M | -4.96M | -4.62M | -2.73M | 722.13M | 3.28M | 2.42M | 3.2M | 1.6M | -2.6M | -400K |
| Net Interest Income | -13.56M | -15.03M | -17.15M | -16.27M | -2.21M | -3.78M | -3.56M | -2.49M | -1.07M | -1.15M | -743K | -80K | -109K | -349K | -480K | -283K | -161K | -177K | -119K | -123K | -463K | -163K | -43K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 58K | 71K | 38K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13K | 8K | 13K | 45K | 40K | 74K | 76K | 48K | 38K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 13.62M | 15.1M | 17.19M | 16.27M | 2.21M | 3.78M | 3.56M | 2.49M | 1.07M | 1.15M | 743K | 80K | 109K | 349K | 493K | 291K | 174K | 222K | 159K | 197K | 539K | 211K | 81K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -13.56M | -15.03M | -17.15M | -16.27M | -2.21M | -3.78M | -3.44M | -2.47M | -1.12M | -1.23M | -1.62M | 744K | -4K | -407K | 125K | -367K | -261K | -38K | 527K | -1.46M | -303K | 17K | 189K | 381K | 950K | -315K | -1.04M | -600K | -200K | 2.6M | 400K |
| Pretax Income | -6.14M | 1.75M | 7.75M | 820K | 31.06M | 13.44M | 10.02M | 7.5M | 7.67M | 5.4M | 2.45M | 3.24M | 760K | -159K | -2.03M | -4.59M | -4.6M | 348K | 1.25M | -3.5M | -2.71M | -4.94M | -4.43M | -2.35M | 4.69M | 2.96M | 1.38M | 2.6M | 1.4M | 0 | 0 |
| Pretax Margin % | -2.1% | 0.51% | 1.96% | 0.22% | 7.86% | 5.46% | 4.79% | 4.67% | 5.75% | 4.67% | 2.86% | 4.96% | 1.26% | -0.3% | -4.12% | -10.95% | -11.25% | 0.76% | 1.7% | -5.23% | -3.78% | -10.45% | -13.5% | -3.74% | 0.59% | 0.46% | 0.31% | 1.06% | 1% | - | - |
| Income Tax | -1.65M | 393K | 350K | -641K | 7.78M | 3.29M | 2.91M | 2.17M | 5.83M | 2.11M | -938K | -5.49M | -4.6M | 0 | 0 | 0 | 0 | -28K | 60K | -123K | 15.83M | -1.88M | -1.69M | -861K | 1.72M | 1.26M | 428K | 800K | -1.3M | 0 | 0 |
| Effective Tax Rate % | 26.9% | 22.39% | 4.52% | -78.17% | 25.03% | 24.51% | 29% | 28.97% | 76.05% | 39.13% | -38.35% | -169.38% | -604.87% | 0% | 0% | 0% | 0% | -8.05% | 4.81% | 3.52% | -583.77% | 37.97% | 38.02% | 36.61% | 36.6% | 42.56% | 31.04% | 30.77% | -92.86% | - | - |
| 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 | -31.78M | -5.55M | -4.08M | -28.89M | 3.08M | 1.35M | 951K | 1.8M | 2.7M | -2.8M | -600K |
| Net Margin % | -1.53% | 0.4% | 1.87% | 0.39% | 5.89% | 4.12% | 3.4% | 3.32% | 1.38% | 2.84% | 3.95% | 13.36% | 8.86% | -0.3% | -4.12% | -10.3% | -14.21% | -9.46% | 1.56% | -7.02% | -44.36% | -11.75% | -12.41% | -45.99% | 0.39% | 0.21% | 0.21% | 0.74% | 1.94% | -2.28% | -0.59% |
| Net Income Growth % | -182.72% | -81.59% | 406.3% | -93.73% | 129.55% | 42.61% | 33.62% | 189.98% | -44.16% | -2.84% | -61.23% | 62.93% | 3469.18% | 92.15% | 53.1% | 25.61% | -33.34% | -480.02% | 124.42% | 85.23% | -472.27% | -36.16% | 85.88% | -1039.35% | 128.12% | 41.75% | -47.17% | -33.33% | 196.43% | -366.67% | 81.82% |
| Net Income (Continuing) | -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 | -4.59M | -4.6M | 376K | 1.19M | -3.37M | -18.54M | -3.06M | -2.75M | -1.49M | 2.97M | 1.7M | 951K | 1.8M | 2.7M | -2.8M | -600K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 270K | -1.21M | -4.73M | -42K | -1.32M | -13.25M | -2.49M | -1.33M | -27.39M | 101K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 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 |
| EPS (Diluted) | -0.31 | 0.09 | 0.51 | 0.10 | 1.64 | 0.75 | 0.54 | 0.41 | 0.14 | 0.27 | 0.30 | 0.87 | 0.54 | -0.02 | -0.14 | -0.30 | -0.40 | -0.30 | 0.08 | -0.42 | -0.69 | -0.14 | -1.02 | -7.23 | 0.75 | 0.60 | 0.47 | 0.99 | 1.93 | -2.09 | -0.55 |
| EPS Growth % | -184.28% | -81.53% | 410% | -93.9% | 118.67% | 38.89% | 31.71% | 192.86% | -48.15% | -10% | -65.52% | 61.11% | 3257.89% | 87.79% | 53.33% | 25% | -33.33% | -479.75% | 118.81% | 39.13% | -392.86% | 86.27% | 85.89% | -1064% | 25% | 27.66% | -52.53% | -48.7% | 192.34% | -280% | 83.53% |
| EPS (Basic) | - | 0.09 | 0.52 | 0.11 | 1.82 | 0.81 | 0.58 | 0.44 | 0.14 | 0.29 | 0.34 | 0.91 | 0.56 | -0.02 | -0.14 | -0.30 | -0.40 | -0.30 | 0.08 | -0.42 | -0.69 | -0.14 | -1.02 | -7.24 | 0.75 | 0.63 | 0.47 | 0.99 | 1.93 | -2.09 | -0.55 |
| Diluted Shares Outstanding | 14.39M | 14.46M | 14.4M | 14.43M | 14.18M | 13.6M | 13.11M | 13.04M | 12.87M | 12.35M | 11.22M | 10.04M | 9.99M | 9.31M | 14.5M | 14.5M | 14.5M | 14.5M | 14.5M | 19.29M | 19.28M | 18.21M | 3.99M | 3.99M | 4.11M | 2.26M | 2.03M | 1.81M | 1.41M | 1.34M | 1.09M |
| Basic Shares Outstanding | 14.39M | 14.39M | 14.17M | 13.7M | 12.83M | 12.55M | 12.28M | 12.02M | 12.87M | 11.35M | 9.97M | 9.57M | 9.71M | 9.31M | 14.46M | 14.46M | 14.46M | 14.46M | 14.46M | 19.29M | 19.28M | 18.21M | 3.99M | 3.99M | 4.06M | 2.21M | 2.02M | 1.81M | 1.4M | 1.34M | 1.09M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Federal contract recompete exposure
As indicated by the most recent quarterly financial data, DLHC has experienced a significant revenue decline, with the top line contracting by 33.6% in 2026Q2 compared to the prior year, signaling a potential loss of critical federal contract volume or delays in new program awards.
The consistent downward trajectory in revenue over the last ten quarters suggests that the company is struggling to replace expiring contract vehicles with new wins. This trend warrants close investigation into the company's book-to-bill ratio, as the current inability to maintain top-line stability may indicate a weakening competitive position within its core federal health segments.
According to the reported income statement figures, DLHC's gross margin has faced significant volatility, culminating in a complete lack of reported gross profit in 2026Q2, which highlights the fragility of the company's cost-plus and fixed-price contract model in the face of declining scale.
The erosion of margins suggests that the company is failing to absorb fixed overhead costs as revenue volumes shrink. Investors should monitor whether this margin compression is a temporary byproduct of contract transitions or a permanent shift in the profitability profile of the firm's service offerings.
Based on the provided financial statements, DLHC's operating income has deteriorated from a peak of $6.8 million in 2024Q1 to a loss of $55,000 in 2026Q2, demonstrating that the company lacks the necessary scale to maintain positive operating leverage during periods of revenue contraction.
The inability to scale SG&A expenses downward in proportion to the revenue decline suggests a rigid cost structure that may be difficult to optimize in the short term. This lack of operating flexibility appears to be a primary driver of the company's recent net losses and warrants further scrutiny regarding management's expense discipline.
As reported in recent filings, DLHC's net income has shifted into negative territory, with a net loss of $2.5 million in 2026Q2, suggesting that non-operating items and interest expenses are exacerbating the impact of the company's core operational challenges on the bottom line.
The transition from profitability to consistent net losses indicates that the company's earnings quality is currently poor, with little room for error in its financial performance. The presence of stock-based compensation alongside these losses suggests that shareholder dilution may be occurring without the benefit of underlying earnings growth.
Based on the reported figures, the company's extremely low cash position of $125,000 combined with a 33.6% revenue decline raises significant questions regarding the sustainability of its current operations and its ability to fund ongoing contract requirements without additional capital or credit facility access.
Short-term observers may focus on the potential for a liquidity crisis if the company cannot stabilize its revenue base or secure additional funding. The current financial profile suggests that the company is operating with minimal margin for error, making it highly susceptible to any further delays in federal funding or contract losses.
Quick answers to the most common questions about buying DLHC stock.
For fiscal year 2025, DLH Holdings Corp. (DLHC) reported total revenue of $344.5M. This represents a 241.4% increase compared to $100.9M in 1996.
DLH Holdings Corp. (DLHC) is profitable, generating $1.4M in net income for the fiscal year ending 2025 with a net profit margin of 0.4%.
DLH Holdings Corp. (DLHC) reported an operating income of $16.8M, resulting in an operating profit margin of 4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
DLH Holdings Corp. (DLHC) generated $65.2M in gross profit for the year, representing a gross profit margin of 18.9%. This demonstrates the company's core pricing power and production efficiency.