Overview

* DLH Holdings Corp ( DLHC ) fiscal Q3 rev declines to $83.3 mln, beating analyst expectations

* EPS for fiscal Q3 falls to $0.02, reflecting industry headwinds

* The provider of systems engineering and cyber security solutions reduces total debt by $9.4 mln during fiscal Q3

Outlook

* DLH expects robust bid activity and funding in fiscal 2026

* Company anticipates growth due to increased defense spending

* DLH sees demand for cybersecurity and digital transformation services

Result Drivers

* REVENUE DECLINE - Revenue fell due to small business set-aside transitions and scope reductions from federal efficiency initiatives

* CONTRACT TIMING - Service delivery timing on key contracts contributed to revenue changes

* DEBT REDUCTION - Co reduced total debt by $9.4 mln, reflecting improved working capital conditions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $83.34 $83 mln

Revenue mln (1

Analyst)

Q3 EPS $0.02

Q3 Net $289,000

Income

Q3 Basic $0.02

EPS

Q3 $3.76

Income mln

From

Operatio

ns

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for DLH Holdings Corp ( DLHC ) is $10.00, about 45% above its August 5 closing price of $5.50

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)