📊 DLHC Key Takeaways
Is DLH Holdings Corp. (DLHC) a Good Investment?
DLH Holdings is in severe financial distress with negative profitability, negative operating cash flow, and a current ratio of 0.87x indicating a potential liquidity crisis. The interest coverage ratio of 0.2x suggests the company cannot adequately service its $130M debt burden, creating substantial refinancing risk while revenue declines 13% YoY.
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.
DLH Holdings Corp. Key Strengths (DLHC)
- Gross margin of 20.1% demonstrates core operations can generate profit before overhead
- Maintains positive stockholders' equity of $110.3M despite recent losses
- Established market position in services sector with $128.2M annual revenue base
- 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
- Current and quick ratios of 0.87x signal impending liquidity crisis with insufficient current assets to cover short-term obligations
- Interest coverage of 0.2x indicates critical inability to service $130M debt - company earnings cover only 20% of interest expense
- Negative operating cash flow of -$984K reveals company is burning cash operationally with minimal $131K cash reserves
- Revenue declining 13.0% YoY combined with net margin of -3.0% and declining net income (-81.6% YoY)
- Operating margin of 1.1% leaves zero margin for error and vulnerable to minor operational disruptions
- Debt-to-equity ratio of 1.18x is unsustainable given negative earnings trajectory
- 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 - must turn positive to avoid insolvency
- Current ratio - critical to return above 1.0x to resolve liquidity risk
- Revenue trend reversal - must stabilize declining revenue and return to growth
- Interest coverage ratio - needs to improve significantly above 1.0x for debt sustainability
- Cash position - requires substantial increase from $131K to provide operational buffer
- 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 |
|---|---|---|---|
| Q2 2026 | $59.3M | $878.0K | $0.06 |
| 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 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/wk-form4_1781037407.xml | View → |
| Jun 3, 2026 | 4 | xslF345X06/wk-form4_1780519178.xml | View → |
| May 28, 2026 | 4 | xslF345X06/wk-form4_1780000990.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779394683.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779222212.xml | View → |
❓ Frequently Asked Questions about DLHC
What is the AI rating for DLHC?
DLH Holdings Corp. (DLHC) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DLHC's key strengths?
Claude: Gross margin of 20.1% demonstrates core operations can generate profit before overhead. Maintains positive stockholders' equity of $110.3M despite recent losses. 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: Current and quick ratios of 0.87x signal impending liquidity crisis with insufficient current assets to cover short-term obligations. Interest coverage of 0.2x indicates critical inability to service $130M debt - company earnings cover only 20% of interest expense. 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 $128.2M.
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 $-0.27.
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 grade reflects both perspectives for balanced insights.
What is DLHC's fundamental grade?
Based on our AI fundamental analysis in June 2026, DLH Holdings Corp. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DLHC stock overvalued or undervalued?
Valuation metrics for DLHC: ROE of -3.5% (sector avg: 16%), net margin of -3.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is DLHC's AI grade for 2026?
Our dual AI analysis gives DLH Holdings Corp. a combined D grade 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 $-984.0K, with capital expenditures of $39.0K. FCF margin is -0.8%.
How does DLHC compare to other Services stocks?
Vs Services sector averages: Net margin -3.0% (avg: 10%), ROE -3.5% (avg: 16%), current ratio 0.87 (avg: 1.5).