DLH Holdings Q3 revenue falls 47% as legacy contracts end

DLH Holdings

29/07/2026 21:24

Overview
US digital transformation firm's fiscal Q3 revenue fell 47% yr/yr due to legacy program transitions
Company posted net loss of $16.8 mln versus profit a year earlier
DLH completed cost reduction actions and announced new CEO and CFO appointments

Outlook
Company expects Q4 revenue to be generated entirely by technology-powered solutions
DLH anticipates Q4 Adjusted EBITDA margins to remain near Q3 levels
Company says it is positioned for improved performance in fiscal 2027

Result Drivers
LEGACY PROGRAM TRANSITIONS - Co said revenue declined yr/yr primarily due to transition of legacy programs to small-business set-aside contractors
COST ALIGNMENT ACTIONS - Co completed indirect cost reduction actions to align operating structure with expected, near-term revenue volumes

Company press release: ID:nGNX3ZRpn6

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$44.2 mln
$50 mln (1 Analyst)
Q3 Net Loss
 
$16.8 mln
 
Q3 Income From Operations
 
-$3.9 mln
 

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 is $10.00, about 91.6% above its July 28 closing price of $5.22

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(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.)