📊 DLHC Key Takeaways
Is DLH Holdings Corp. (DLHC) a Good Investment?
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.
DLH Holdings' fundamentals are under clear pressure, with revenue down 13% year over year, operating margin compressed to 2.1%, and the business slipping to a net loss. Financial health is strained by very low cash, sub-1.0 liquidity, high leverage, and weak interest coverage, while negative operating cash flow suggests earnings quality and debt service capacity are deteriorating.
Why Buy DLH Holdings Corp. Stock? DLHC Key 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
- Gross margin remains relatively solid at 37.4%, indicating underlying contract economics are not inherently weak
- Stockholders' equity of $112.19M still provides a meaningful capital base
- Capital expenditure needs are minimal, which can support future cash flow recovery if operations stabilize
DLHC Stock Risks: DLH Holdings Corp. Investment 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
- Revenue contraction and a sharp decline in earnings point to weakening demand or execution pressure
- Balance sheet risk is elevated due to $133.47M of long-term debt, 1.19x debt-to-equity, and only $257K of cash
- Interest coverage of 0.4x and negative free cash flow increase refinancing and covenant risk
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
- Operating cash flow and free cash flow trend
- Interest coverage and current ratio
DLH Holdings Corp. (DLHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DLHC Profit Margin, ROE & Profitability Analysis
DLHC vs Services Sector: How DLH Holdings Corp. Compares
How DLH Holdings Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DLH Holdings Corp. Stock Overvalued? DLHC Valuation Analysis 2026
Based on fundamental analysis, DLH Holdings Corp. shows some fundamental concerns relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DLH Holdings Corp. Balance Sheet: DLHC Debt, Cash & Liquidity
DLHC Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
DLHC Quarterly Earnings & 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.
DLH Holdings Corp. Dividends, Buybacks & Capital Allocation
DLHC SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined 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. ChatGPT: Gross margin remains relatively solid at 37.4%, indicating underlying contract economics are not inherently weak. Stockholders' equity of $112.19M still provides a meaningful capital base.
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. ChatGPT: Revenue contraction and a sharp decline in earnings point to weakening demand or execution pressure. Balance sheet risk is elevated due to $133.47M of long-term debt, 1.19x debt-to-equity, and only $257K of cash.
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.
Is DLHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, DLH Holdings Corp. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DLHC stock overvalued or undervalued?
Valuation metrics for DLHC: ROE of -1.2% (sector avg: 16%), net margin of -1.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy DLHC stock in 2026?
Our dual AI analysis gives DLH Holdings Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DLHC's free cash flow?
DLH Holdings Corp.'s operating cash flow is $-4.8M, with capital expenditures of $39.0K. FCF margin is -7.0%.
How does DLHC compare to other Services stocks?
Vs Services sector averages: Net margin -1.9% (avg: 10%), ROE -1.2% (avg: 16%), current ratio 0.97 (avg: 1.5).