$DLHC

DLH Holdings Corp.

CIK:0000785557|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 44,225	$ 83,343	$ 172,383	$ 263,337
Contract costs	36,819	67,649	140,229	212,014
General and administrative costs	7,337	7,631	22,104	23,937
Depreciation and amortization	4,001	4,308	12,600	12,880
Total operating costs	48,157	79,588	174,933	248,831
Income (loss) from operations	(3,932)	3,755	(2,550)	14,506
Interest expense, net	3,082	3,540	9,617	11,549
Income (loss) before provision for income taxes	(7,014)	215	(12,167)	2,957
Provision for income taxes (benefit)	9,773	(74)	8,479	676
Net income (loss)	$ (16,787)	$ 289	$ (20,646)	$ 2,281
Net income (loss) per share - basic (in dollars per share)	$ (1.16)	$ 0.02	$ (1.42)	$ 0.16
Net income (loss) per share - diluted (in dollars per share)	$ (1.16)	$ 0.02	$ (1.42)	$ 0.16
Weighted average common stock outstanding
Basic (in shares)	14,493	14,386	14,493	14,386
Diluted (in shares)	14,493	14,450	14,493	14,458

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net income (loss)	$ (20,646)	$ 2,281
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,600	12,880
Amortization of deferred financing costs charged to interest expense	1,291	1,309
Stock-based compensation expense	1,045	1,284
Deferred income taxes, net	9,058	1,437
Changes in operating assets and liabilities:
Accounts receivable	13,986	4,933
Other assets	1,438	(4,216)
Accounts payable and accrued liabilities	(8,848)	(11,614)
Accrued payroll	(4,317)	2,175
Other liabilities	(2,388)	2,067
Net cash provided by operating activities	3,219	12,536
Investing activities
Purchase of equipment and improvements	(39)	(213)
Net cash used in investing activities	(39)	(213)
Financing activities
Proceeds from revolving line of credit	154,580	172,056
Repayments of revolving line of credit	(148,898)	(170,075)
Repayments of secured term loan	(8,500)	(14,250)
Payments of deferred financing costs	(159)	(202)
Payments for taxes related to net share settlement of restricted stock units	(93)	0
Net cash used in financing activities	(3,070)	(12,471)
Net change in cash	110	(148)
Cash - beginning of period	125	342
Cash - end of period	235	194
Supplemental disclosure of cash flow information
Cash paid during the period for interest	7,952	10,415
Cash paid during the period for income taxes	779	563
Common stock surrendered for the settlement of restricted stock units	93	0
Lease liability recognized to acquire a right-of-use asset	$ 0	$ 4,187

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Sep. 30, 2025
Current assets:
Cash	$ 235	$ 125
Accounts receivable	24,408	38,394
Other current assets	4,062	4,018
Total current assets	28,705	42,537
Goodwill	138,161	138,161
Intangible assets, net	79,818	91,865
Operating lease right-of-use assets	7,249	8,764
Deferred tax asset	0	7,947
Equipment and improvements, net	761	1,274
Other long-term assets	115	115
Total assets	254,809	290,663
Current liabilities:
Accounts payable and accrued liabilities	10,398	19,246
Accrued payroll	7,836	12,153
Debt obligations - current, net of deferred financing costs	21,372	8,067
Operating lease liabilities - current	2,872	2,918
Other current liabilities	57	287
Total current liabilities	42,535	42,671
Debt obligations - long-term, net of deferred financing costs	104,942	119,966
Operating lease liabilities - long-term	11,958	14,022
Deferred tax liability	1,111	0
Other long-term liabilities	999	1,046
Total liabilities	161,545	177,705
Shareholders' equity:
Common stock, $0.001 par value; 40,000 shares authorized; 14,493 and 14,493 shares issued and outstanding at June 30, 2026 and September 30, 2025, respectively	14	14
Additional paid-in capital	102,686	101,734
Retained earnings (accumulated deficit)	(9,436)	11,210
Total shareholders’ equity	93,264	112,958
Total liabilities and shareholders' equity	$ 254,809	$ 290,663