📊 DLHC Key Takeaways
Investment Thesis
DLH Holdings is experiencing severe financial deterioration with negative net income, negative operating cash flow, and deteriorating profitability metrics despite maintaining a respectable gross margin. The company's liquidity position is critically weak with near-unity current ratio and minimal cash reserves ($257K) while carrying substantial long-term debt ($133.5M), creating significant solvency risk.
DLHC Strengths
- Solid gross margin of 37.4% indicates reasonable pricing power and cost management at operational level
- Asset base of $283.5M provides some collateral value for debt obligations
- Recent insider activity (4 Form 4 filings in 90 days) suggests some management engagement
DLHC Risks
- Negative net income of -$1.3M with 81.6% YoY deterioration indicates fundamental business model stress
- Negative operating cash flow of -$4.8M and free cash flow of -$4.8M demonstrate inability to fund operations from business activities
- Critical liquidity crisis with current ratio of 0.97x and cash position of only $257K against $133.5M long-term debt and 1.19x debt-to-equity ratio
- Interest coverage of 0.4x shows company cannot service debt from operating earnings, indicating imminent financial distress
- Revenue decline of 13.0% YoY combined with operating margin compression to 2.1% suggests losing competitive position
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Debt refinancing ability and covenant compliance status
- Revenue stabilization and customer retention metrics
- Working capital management and cash position improvement
DLHC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DLHC Profitability Ratios
DLHC vs Default Sector
How DLH Holdings Corp. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DLHC Balance Sheet & Liquidity
DLHC 5-Year Financial Trend
5-Year Trend Summary: DLH Holdings Corp.'s revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.15 reflects profitable operations.
DLHC Growth Metrics (YoY)
DLHC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $68.9M | $1.1M | $0.08 |
| Q3 2025 | $83.3M | $289.0K | $0.02 |
| Q2 2025 | $89.2M | $878.0K | $0.06 |
| Q1 2025 | $90.8M | $1.1M | $0.08 |
| Q3 2024 | $100.7M | $1.1M | $0.08 |
| Q2 2024 | $99.4M | $805.0K | $0.06 |
| Q1 2024 | $72.7M | $1.5M | $0.11 |
| Q3 2023 | $66.4M | $1.7M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DLHC Capital Allocation
DLHC SEC Filings
Access official SEC EDGAR filings for DLH Holdings Corp. (CIK: 0000785557)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DLHC
What is the AI rating for DLHC?
DLH Holdings Corp. (DLHC) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DLHC's key strengths?
Claude: Solid gross margin of 37.4% indicates reasonable pricing power and cost management at operational level. Asset base of $283.5M provides some collateral value for debt obligations.
What are the risks of investing in DLHC?
Claude: Negative net income of -$1.3M with 81.6% YoY deterioration indicates fundamental business model stress. Negative operating cash flow of -$4.8M and free cash flow of -$4.8M demonstrate inability to fund operations from business activities.
What is DLHC's revenue and growth?
DLH Holdings Corp. reported revenue of $68.9M.
Does DLHC pay dividends?
DLH Holdings Corp. does not currently pay dividends.
Where can I find DLHC SEC filings?
Official SEC filings for DLH Holdings Corp. (CIK: 0000785557) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DLHC's EPS?
DLH Holdings Corp. has a diluted EPS of $-0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.