DLH Reports Q3 Earnings with Revenue Shift Toward Technology Solutions
DLH Holdings Corp (NASDAQ: DLHC) reported $44.2 million in revenue for its fiscal third quarter, driven by a shift toward technology-powered solutions after transitioning the Veterans Affairs CMOP program to small-business contractors. The company generated $38 million from these tech-based services and expects similar performance in Q4. CFO Steve Oroho highlighted that cost-scaling actions led to adjusted EBITDA of $3.4 million (7.7% margin) and free cash flow of $4.2 million, with debt reduced to $128.7 million. DLH is targeting 9%-10% adjusted EBITDA margins in the long term and anticipates further debt reduction starting in fiscal 2027. The company also noted a more favorable government procurement environment and an expanding contract pipeline, including a new Navy logistics IT contract. Leadership transition saw Kathryn JohnBull become CEO while Steve Oroho took over as CFO.
Topics: debt_reduction ebitda government_contracting leadership_transition revenue