DLH Holdings Corp. (DLHC) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

was a symbol to compete for. Our differentiated suite of data science and AIML technology applications, our outstanding capabilities, and workforce alignment aligns exceptionally well to position us for work within our three strategic pillars, science, research, and development, digital transformation and cybersecurity, and systems engineering and integrations. As government acquisition strategies evolve, we remain prepared and proactive, leveraging speed, innovation, and agility to compete on multiple fronts in an accelerated acquisition landscape. With that, I'd now like to turn the call over to our Chief Financial Officer, Katherine Johnbaugh. Katherine? Thank you, Zach, and good morning, everyone. Thanks for joining our reporting on our second quarter results for fiscal 2026. Turning to slide six, I'd like to first provide a high-level overview of some key financial metrics for the three months ended March 31st, 2026. We reported revenue at 59.3 million in the second quarter versus 89.2 million in the prior year period, reflecting contributions from expansion on existing contracts offset by the impact of conversion of certain programs to small business set-aside contracts, as discussed in the past, and certain government efficiency initiatives. In total, the revenue contraction was mostly due to small business set-aside initiatives, primarily from CMOP and Head Start with approximately a $24 million increase in the quarter-over-quarter results. The remaining change was due to year-over-year contract completions and government efficiency initiatives. We reported adjusted EBITDA of 5.3 million for the quarter compared to 9.4 million in the prior year period, with the decrease primarily driven by the changing revenue volumes. Adjusted EBITDA margin was 9% for the qu...