Core Insights - DHI Group (DHX) reported third-quarter 2025 non-GAAP earnings of 9 cents per share, exceeding the Zacks Consensus Estimate by 50% and showing an 80% year-over-year improvement [1] - DHX's revenues for the third quarter reached $32.1 million, surpassing the Zacks Consensus Estimate by 3.6%, although this represents a 9% decline year-over-year [1] - The company's adjusted EBITDA increased by 19% year-over-year to $10.3 million, with an adjusted EBITDA margin expansion of 800 basis points to 32% [4][7] Revenue Breakdown - The ClearanceJobs segment generated revenues of $13.9 million, accounting for 43.3% of total revenues, reflecting a 1% year-over-year increase driven by demand for security-cleared technology professionals [3] - The Dice segment contributed $18.2 million, which is 56.7% of total revenues, but saw a 15% year-over-year decline; however, profitability improved due to restructuring and a transition to a self-service recruiting platform [4] Financial Position - DHX reported a cash reserve of $2.3 million for the quarter ended September 30, down from $2.8 million in the previous quarter, with total debt standing at $30 million [5] - The company generated free cash flow of $3.2 million and operating cash flows of $4.8 million in the third quarter [5] Guidance - For the full year 2025, DHX reaffirmed its revenue guidance of $126-$128 million, with the Zacks Consensus Estimate at $126 million, indicating an 11.2% year-over-year decline [6] - The expected revenue range for the fourth quarter of 2025 is between $29.5 million and $31.5 million, with the Zacks Consensus Estimate at $30.7 million, reflecting an 11.5% year-over-year decline [6] - DHX raised its adjusted EBITDA margin guidance to 27% for 2025 [6] Market Reaction - Following the better-than-expected results, DHX's shares rose by 18.3% in after-market trading on November 10 [2]

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Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year quarter [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million and a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14][15] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [14][15] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, reflecting macroeconomic headwinds [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The proposed $1.1 trillion U.S. defense budget for fiscal year 2026 represents a 13% increase over the previous year's budget, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on providing software tools for employers and recruiters to find tech talent, with over 90% of revenue coming from subscriptions [5] - The integration of Agile ATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is exploring additional opportunities in the GovTech space to expand its offerings [52] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite a mixed macro backdrop, with a significant trend towards AI-related job postings driving future demand [7][8] - The company remains optimistic about future growth driven by the defense budget and increased technology investments across industries [23] - Management highlighted the importance of the upcoming defense budget bills being passed to stimulate activity in the market [41] Other Important Information - The company repurchased 741,000 shares for $2.1 million during the quarter, with a total of 2.6 million shares repurchased for $6.2 million year-to-date [22] - The company is targeting total capital expenditures in 2025 to range between $7 million and $8 million, down from $13.9 million last year [21] Q&A Session Summary Question: What is driving the margin expansion in Dice? - Management indicated that the margin expansion was due to headcount vacancies being backfilled and efficient cost allocation to capitalized development costs [29] Question: What was the $9 million write-off related to? - The write-off was related to the Dice trade name, which experienced revenue declines [32] Question: How has renewal activity versus new business activity trended since the government shutdown? - Management noted solid renewal rates among larger customers, while smaller customers faced challenges [56] Question: What percentage of job postings are related to AI? - Over 50% of job postings on the platform are related to AI projects, a significant increase from earlier in the year [49] Question: Are there any other opportunities in the GovTech space? - Management is evaluating several opportunities in the GovTech space, indicating potential for future growth [52]

Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year quarter [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million, or a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14][15] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [15][16] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, indicating a challenging macro environment [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The proposed $1.1 trillion U.S. defense budget for fiscal year 2026 represents a 13% increase over the previous year's budget, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on two brands, ClearanceJobs and Dice, which serve technology professionals and employers [5] - The integration of AgileATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is optimistic about future growth driven by the defense budget and increasing investments in technology initiatives across industries [23] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite a mixed macro backdrop, with AI-related job postings driving future demand [7][8] - The company anticipates that the record-breaking defense budget will be a growth driver for ClearanceJobs [23] - Management expressed confidence in the long-term outlook for ClearanceJobs despite a bookings decline due to government hiring freezes [8][9] Other Important Information - The company has authorized a new $5 million stock repurchase program, reflecting confidence in its long-term value [13][22] - Operating expenses increased to $36.6 million, including a $9.6 million impairment of intangible assets, but excluding this, expenses declined significantly [17] Q&A Session Summary Question: Inquiry about Dice margin expansion - Management confirmed that the margin expansion was driven by operational efficiencies and headcount vacancies being backfilled [28][29] Question: Clarification on the $9 million write-off - The write-off was related to the Dice trade name, reflecting revenue declines experienced by Dice [32] Question: Discussion on government volatility impact - Management indicated that smaller and mid-sized defense contractors have become more conservative, but larger firms remain bullish due to their financial stability [40][41] Question: Update on new platform migration - Management reported successful migration of over half of the customers to the new platform, with no anticipated churn risk for remaining customers [42] Question: Future opportunities in the GovTech space - Management acknowledged ongoing evaluations of opportunities in the GovTech space, indicating potential for future growth [51]

Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million and a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [15] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, indicating a mixed macro backdrop [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The defense budget for fiscal year 2026 is proposed at $1.1 trillion, marking a 13% increase over the previous year, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on providing software tools for employers and recruiters to find tech talent, with over 90% of revenue coming from subscriptions [5] - The integration of Agile ATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is optimistic about future growth driven by the defense budget and increasing investments in technology initiatives across industries [23] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite remaining under historical levels, with a significant trend towards AI-related job postings [7] - The company anticipates that the record-breaking defense budget will drive growth for ClearanceJobs, while technology investments will create opportunities for both brands [23] - Management expressed confidence in the resilience of their subscription model and margin structure [13] Other Important Information - The company repurchased 741,000 shares for $2.1 million under its stock repurchase program [22] - The company is targeting total capital expenditures in 2025 to range between $7 million and $8 million, down from $13.9 million last year [21] Q&A Session Summary Question: What is driving the Dice margin expansion? - Management indicated that the margin expansion was due to headcount vacancies being backfilled and efficient cost allocation to capitalized development costs [28] Question: What was the $9 million write-off related to? - The write-off was related to the Dice trade name, which experienced revenue declines [31] Question: How is the government shutdown impacting bookings? - Management noted that smaller and mid-sized defense contractors have become more conservative, but larger firms remain bullish due to their stronger balance sheets [39] Question: What is the status of the new Dice platform migration? - Over half of the customers have migrated to the new platform, and management does not foresee churn risk with the remaining customers [41] Question: How is the company addressing customer acquisition costs with the new platform? - The introduction of a monthly subscription option has made it easier for customers to sign up, leading to an increase in new customer signings [56]

NYSE: DHX Q3 2025 Investor Presentation November 10, 2025 Forward looking statements This presenation and oral statements made from time to time by our representatives contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties an ...

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Revenue Performance - Total revenue for the three months ended September 30, 2025, was $32.1 million, a decrease of $3.2 million or 9% compared to $35.3 million in the same period of 2024[161]. - For the nine months ended September 30, 2025, total revenue decreased by $10.7 million, or 10%, to $96.5 million compared to $107.1 million in the same period of 2024[175]. - Revenue from ClearanceJobs increased by $0.1 million, or 1%, while Dice revenue decreased by $3.3 million, or 15%, to $18.2 million[161]. - Revenue from ClearanceJobs increased by $0.6 million, or 1%, while revenue from Dice decreased by $11.3 million, or 17% due to macroeconomic conditions[176]. - Revenue decreased by 10% to $96.5 million for the nine months ended September 30, 2025, compared to $107.1 million in 2024[187]. Customer Metrics - As of September 30, 2025, ClearanceJobs had 1,822 recruitment package customers, a decrease of 8% from 1,982 in the prior year, while Dice had 4,239 customers, down 13% from 4,868[149]. - The company generates over 90% of its total revenue from recruitment packages, which include access to databases and job posting capabilities[148]. - The company faces challenges in retaining customers and attracting qualified professionals due to macroeconomic conditions[151][158]. Financial Performance - Operating loss for the three months ended September 30, 2025, was $4.5 million, compared to operating income of $0.6 million in the same period of 2024, a decrease of $5.1 million[170]. - Operating loss for the nine months ended September 30, 2025, was $15.0 million, a decrease of $19.6 million from an operating income of $4.6 million in 2024, resulting in a negative operating margin of 15.6%[187]. - The company reported a net loss of $14.9 million for the nine months ended September 30, 2025, compared to a net loss of $0.8 million in 2024, resulting in a basic and diluted loss per share of $0.33[192]. Expenses - The largest components of expenses are personnel costs and marketing expenditures, with personnel costs including salaries, benefits, and commissions[159]. - Total cost of revenue decreased by $0.5 million, or 9%, to $4.6 million, with ClearanceJobs costs increasing by $0.2 million and Dice costs decreasing by $0.7 million[162]. - Product development expenses decreased by $1.9 million, or 40%, to $2.9 million, with ClearanceJobs increasing by $0.2 million and Dice decreasing by $2.1 million[163]. - Sales and marketing expenses decreased by $2.5 million, or 22%, to $9.1 million, with ClearanceJobs remaining flat and Dice decreasing by $2.5 million[164]. - General and administrative expenses decreased by $0.6 million, or 8%, to $7.6 million, with ClearanceJobs and Dice segments both showing reductions[165]. Impairments and Restructuring - The company recorded a $9.6 million impairment of intangible assets in the Dice segment during the three months ended September 30, 2025[169]. - The company recorded restructuring charges of $6.5 million during the nine months ended September 30, 2025, compared to $1.1 million in the same period of 2024[184]. - An impairment of intangible assets of $9.6 million was recorded in the Dice segment during the nine months ended September 30, 2025[185]. - The company recorded a $7.8 million impairment of goodwill in the Dice segment for the nine months ended September 30, 2025, representing 8.1% of revenue[186]. Cash Flow and Capital Expenditures - Cash flows from operating activities decreased to $13.9 million in 2025 from $16.7 million in 2024, a decline of approximately 16.8%[203]. - Cash used in investing activities was $7.2 million in 2025, down from $11.1 million in 2024, representing a reduction of approximately 35.3%[204]. - Cash used in financing activities increased to $8.1 million in 2025 from $7.7 million in 2024, primarily due to $6.1 million related to share repurchases[205]. - The company anticipates capital expenditures for the fiscal year ending December 31, 2025, to be approximately $7 million to $8 million[213]. Debt and Financial Position - As of September 30, 2025, the company had $49.0 million available for future borrowings under its $100 million Credit Agreement[202]. - The company has $30.0 million of borrowings on its revolving credit facility as of September 30, 2025[207]. - The company believes existing cash and cash generated from operations will be sufficient to meet cash requirements for at least the next 12 months[202]. - The company is in compliance with all financial covenants under the Credit Agreement as of September 30, 2025[207]. Tax and Interest - The effective tax rate for the three months ended September 30, 2025, was 15.3%, influenced by tax expense from deduction limitations on executive compensation[173]. - The effective tax rate for the nine months ended September 30, 2025, was 11.7%, significantly lower than 138.9% in 2024[191]. - Interest expense decreased by $0.1 million, or 19%, to $0.8 million, due to lower debt outstanding and lower interest rates[172]. - Interest expense decreased by 26% to $1.9 million for the nine months ended September 30, 2025, compared to $2.5 million in 2024[190]. Equity Investments - Income from equity method investment increased by $0.04 million, or 161%, to $0.06 million for the three months ended September 30, 2025[171]. - Income from equity method investment decreased by 73% to $0.1 million for the nine months ended September 30, 2025, compared to $0.3 million in 2024[188]. Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2025, was $25.7 million, slightly down from $26.2 million in 2024[200]. - Adjusted EBITDA Margin increased to 27% for the nine months ended September 30, 2025, compared to 24% in 2024[200].

Revenue Performance - Total revenue for Q3 2025 was $32.1 million, a decrease of 9% compared to Q3 2024[4] - Total revenue for Q3 2025 was $32,123, a decrease of 9% compared to $35,283 in Q3 2024[25] - Year-to-date revenue for 2025 was $96,451, down 10% from $107,141 in 2024[35] - The company reported a total revenue of $96,451,000 for the nine months ended September 30, 2025, compared to $107,141,000 in the same period of 2024, a decrease of 10%[60] Bookings and Customer Metrics - Total bookings were $25.4 million, down 12%, with ClearanceJobs bookings at $12.0 million (down 7%) and Dice bookings at $13.4 million (down 17%)[4] - Total bookings for Q3 2025 were $25.4 million, a decrease of 12% from $28.9 million in Q3 2024[41] - Average annual revenue per recruitment package customer for ClearanceJobs increased by 7% to $26,601 in Q3 2025, while Dice saw a decrease of 4% to $15,727[42] - Recruitment package customers decreased by 8% for ClearanceJobs to 1,822 and by 13% for Dice to 4,239 as of September 30, 2025[47] - Renewal rate on revenue for ClearanceJobs dropped to 85% in Q3 2025 from 91% in Q3 2024, and Dice's renewal rate decreased to 69% from 74%[43] Profitability and Loss - Net loss for the quarter was $4.3 million, or $0.10 per diluted share, compared to a net loss of $0.2 million, driven by a $9.6 million impairment of intangible assets[4] - Net loss for Q3 2025 was $4,269, compared to a net loss of $200 in Q3 2024, representing a significant increase in loss[25] - For Q3 2025, the net loss was $8.5 million, or $0.19 per diluted share, compared to a net loss of $2.7 million, or $0.05 per diluted share in Q3 2024[36] - For the nine months ended September 30, 2025, the net loss was $24.3 million, or $0.54 per diluted share, compared to a net loss of $8.4 million, or $0.19 per diluted share in the same period of 2024[38] Adjusted EBITDA - Adjusted EBITDA increased by 19% to $10.3 million, with an Adjusted EBITDA margin of 32% compared to 24% in the previous year[4] - Adjusted EBITDA for Q3 2025 was $10,273, reflecting a 19% increase from $8,619 in Q3 2024[35] - Adjusted EBITDA margin improved to 32% in Q3 2025, up from 24% in Q3 2024[35] - The Adjusted EBITDA margin for Q3 2025 was 32%, up from 24% in Q3 2024, showing improved operational efficiency[62] - For the nine months ended September 30, 2025, the Adjusted EBITDA was $25,748,000, slightly down from $26,160,000 in the same period of 2024[60] Cash Flow and Debt - Cash flow from operations was $4.8 million, generating free cash flow of $3.2 million, an increase from $2.3 million[4] - Free cash flow for Q3 2025 was $3.17 million, an increase of 38% from $2.29 million in Q3 2024[52] - Total debt decreased to $30.0 million from $32.0 million, with cash at the end of the quarter at $2.3 million[4] - The company reported a total of $2,296 in cash at the end of Q3 2025, down from $3,702 at the end of 2024[30] - Interest expense for YTD 2025 was $1,893,000, down from $2,546,000 in YTD 2024, indicating a reduction in financing costs[60] Guidance and Future Outlook - Full-year revenue guidance is reiterated at $126 to $128 million, with Q4 revenue expected to be between $29.5 million and $31.5 million[6] - Full-year Adjusted EBITDA margin guidance raised to 27% due to improved Dice margins[6] - The company provided guidance for future Adjusted EBITDA margin but could not reconcile it to GAAP measures due to uncertainties in predicting various financial impacts[63] Asset and Liability Overview - Total assets decreased to $192,476 as of September 30, 2025, from $221,371 at the end of 2024[30] - Total liabilities were reported at $95,199 as of September 30, 2025, down from $107,046 at the end of 2024[30] - Deferred revenue as of September 30, 2025, was $40.98 million, down 10% from $45.46 million in December 2024[47] Impairment and Other Charges - The company incurred an impairment of intangible assets amounting to $9,600,000 in Q3 2025[58]