[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) The company's Q1 2025 financials show a $9.4 million net loss and a 10% revenue decline due to goodwill impairment and restructuring charges [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $212.1 million due to a goodwill reduction, while liabilities rose slightly and cash declined **Condensed Consolidated Balance Sheet Highlights (in thousands)** | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $2,655 | $3,702 | | Goodwill | $120,700 | $128,100 | | Total Assets | $212,069 | $221,371 | | **Liabilities & Equity** | | | | Deferred Revenue (Current) | $50,124 | $44,934 | | Long-term debt | $33,000 | $32,000 | | Total Liabilities | $108,171 | $107,046 | | Total Stockholders' Equity | $103,898 | $114,325 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue fell 10% to $32.3 million, resulting in a $9.4 million net loss due to impairment and restructuring charges **Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data)** | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $32,301 | $36,025 | | Total operating expenses | $41,182 | $34,056 | | Impairment of goodwill | $7,400 | $0 | | Restructuring | $2,270 | $0 | | Operating income (loss) | $(8,881) | $1,969 | | Net loss | $(9,351) | $(1,512) | | Diluted loss per share | $(0.21) | $(0.03) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable at $2.2 million, while investing and financing activities led to a $1.0 million net decrease in cash **Cash Flow Summary (in thousands)** | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $2,248 | $2,087 | | Net cash used in investing activities | $(2,160) | $(4,442) | | Net cash from (used in) financing activities | $(1,135) | $1,389 | | **Net change in cash** | **$(1,047)** | **$(966)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a segment change, a $7.4M goodwill impairment, a $2.3M restructuring charge, and divergent brand revenue performance - In January 2025, the company restructured to separate its two brands, ClearanceJobs and Dice, into distinct divisions, resulting in an **8% workforce reduction** and a **$2.3 million charge** for severance costs[38](index=38&type=chunk) - Following the restructuring, the company performed a goodwill impairment test and recorded a **$7.4 million impairment charge** for the Dice reporting unit[57](index=57&type=chunk) - The company changed its reportable segments from a single 'Tech-focused' segment to two segments: **ClearanceJobs and Dice**, to align with the new operating structure[103](index=103&type=chunk)[104](index=104&type=chunk) **Disaggregated Revenue by Brand (in thousands)** | Brand | Q1 2025 Revenue | Q1 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | $13,377 | $13,005 | +3% | | Dice | $18,924 | $23,020 | -18% | | **Total** | **$32,301** | **$36,025** | **-10%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 10% revenue decline driven by the Dice segment, an $8.9 million operating loss, and sufficient liquidity [Revenue and Key Metrics](index=25&type=section&id=Revenue%20and%20Key%20Metrics) Key metrics show a 14% drop in Dice customers and a 12% rise in average revenue per customer for ClearanceJobs **Recruitment Package Customers** | Brand | As of March 31, 2025 | As of March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | 1,891 | 2,032 | (7)% | | Dice | 4,490 | 5,250 | (14)% | **Average Annual Revenue per Recruitment Package Customer** | Brand | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | ClearanceJobs | $25,806 | $23,050 | 12% | | Dice | $16,384 | $15,997 | 2% | **Backlog (in thousands)** | Metric | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Backlog | $107,760 | $110,736 | (3)% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 revenue fell 10% to $32.3 million, leading to an $8.9 million operating loss due to impairment and restructuring costs - Dice revenue **decreased by $4.1 million (18%)** due to macroeconomic conditions driving lower renewal rates and new business activity[136](index=136&type=chunk) - ClearanceJobs revenue **increased by $0.4 million (3%)** driven by high demand for professionals with government clearance[136](index=136&type=chunk) - Product development expenses **decreased by $1.0 million (20%)**, primarily due to $2.2 million in lower compensation costs in the Dice segment from reduced headcount[138](index=138&type=chunk) - Sales and marketing expenses **decreased by $1.6 million (12%)**, largely due to lower compensation costs and reduced discretionary marketing spend in the Dice segment[139](index=139&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased to $7.0 million with a margin of 22%, down from 24% in the prior-year period **Reconciliation of Net Loss to Adjusted EBITDA (in thousands)** | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(9,351) | $(1,512) | | Interest expense | 660 | 946 | | Income tax expense (benefit) | (126) | 2,269 | | Depreciation | 3,984 | 4,456 | | Non-cash stock-based compensation | 1,063 | 2,144 | | Impairment of goodwill | 7,400 | — | | Restructuring | 2,270 | — | | Other adjustments | 1,081 | 266 | | **Adjusted EBITDA** | **$6,981** | **$8,569** | **Adjusted EBITDA Margin** | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $32,301 | $36,025 | | Adjusted EBITDA | $6,981 | $8,569 | | **Adjusted EBITDA Margin** | **22%** | **24%** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $2.7 million in cash and $51.0 million available under its credit facility - At March 31, 2025, the company had **cash of $2.7 million** and **$51.0 million in borrowing capacity** under its $100.0 million Credit Agreement[158](index=158&type=chunk)[159](index=159&type=chunk) - Anticipated capital expenditures for fiscal year 2025 are approximately **$9 million to $10 million**[169](index=169&type=chunk) - As of March 31, 2025, **$4.3 million remained available** for purchase under the current stock repurchase plan[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its $33.0 million of variable-rate debt - The company has interest rate risk from its Credit Agreement. A hypothetical **1.0% increase** on the **$33.0 million** of variable rate borrowings outstanding as of March 31, 2025, would increase annual interest expense by approximately **$0.3 million**[176](index=176&type=chunk) - Operations are conducted within the United States, so current operations are **not subject to foreign exchange risk**[174](index=174&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** to provide reasonable assurance that information required to be disclosed is recorded, processed, and reported in a timely manner[180](index=180&type=chunk) - **No material changes** to internal controls over financial reporting occurred during the quarter ended March 31, 2025[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material pending legal proceedings outside the ordinary course of business - Except as noted in Note 11 of the financial statements, the company is **not currently a party to any material pending legal proceedings**[183](index=183&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred from the risk factors disclosed in the 2024 Annual Report on Form 10-K - As of May 12, 2025, there have been **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 886,012 shares in Q1 2025 and approved a new $5.0 million stock repurchase program - In January 2025, the Board approved a new stock repurchase program authorizing the purchase of up to **$5.0 million of common stock** through February 2026[186](index=186&type=chunk) **Stock Repurchases for Q1 2025** | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 482,526 | $2.53 | — | — | | Feb 2025 | 242,655 | $2.56 | 150,935 | $4,624,010 | | Mar 2025 | 160,831 | $1.84 | 160,831 | $4,327,495 | | **Total** | **886,012** | | **311,766** | | [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - During the three-month period ended March 31, 2025, **no director or officer adopted or terminated** a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[192](index=192&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and corporate governance documents

分组1 - DHI Group reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.05 per share a year ago, representing an earnings surprise of 300% [1] - The company posted revenues of $32.3 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.06%, and down from $36.03 million year-over-year [2] - DHI Group has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has underperformed, losing approximately 31.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $32.45 million, and for the current fiscal year, it is $0.11 on revenues of $131.69 million [7] - The Zacks Industry Rank for Internet - Content is in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - DHI Group's 2024 revenue was $142 million, with a compound annual growth rate (CAGR) of 6% from 2020 to 2024[8] - The company's adjusted EBITDA for 2024 was $35 million, resulting in an adjusted EBITDA margin of 25%[10, 11] - DHI Group's debt stood at $32 million[12] - The company repurchased $70 million worth of shares from 2020 to Q1 2025[13] - Q1 2025 operating cash flow was $22 million[63] Business Segments - ClearanceJobs' 2024 revenue was $54 million, with a CAGR of 16% from 2020 to 2024[43, 77] - ClearanceJobs had 1900 subscription clients[44, 77] - Dice's 2024 revenue was $88 million, with a CAGR of 2% from 2020 to 2024[45, 91] - Dice had 4500 subscription clients[46, 91] Key Metrics - ClearanceJobs Q1 2025 revenue renewal rate was 92% and the revenue retention rate was 106%[81] - Dice Q1 2025 revenue renewal rate was 70% and the revenue retention rate was 92%[94] - DHI Group has approximately 90% annual recurring revenue[18, 49, 109]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $32.3 million, a 10% decline year over year and a 7% decline sequentially [24] - Adjusted EBITDA decreased 19% to $7 million, with an adjusted EBITDA margin of 22%, compared to $8.6 million and a margin of 24% in the prior year [29][30] - The company recorded a net loss of $9.4 million or $0.21 per diluted share, compared to a net loss of $1.5 million or $0.03 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.4 million, up 3% year over year but down 3% sequentially, with adjusted EBITDA of $5.7 million and an adjusted EBITDA margin of 43% [24][30] - Dice revenue was $18.9 million, down 18% year over year and down 10% sequentially, with adjusted EBITDA of $3.4 million and an adjusted EBITDA margin of 18% [26][30] - ClearanceJobs bookings were $16.8 million, down 1% year over year, while Dice bookings were $25.3 million, down 20% year over year [24][26] Market Data and Key Metrics Changes - New tech job postings increased by 16% year over year in Q1, averaging 215,000 new postings per month [13] - The tech staffing sector's growth forecast for 2025 was revised to a 2% year over year increase, down from an original forecast of 5% [13] - Tech recruiter job postings increased by 36% year over year in Q1, indicating a forthcoming rise in demand for hiring tech professionals [14] Company Strategy and Development Direction - The company has realigned operations around two distinct brands, ClearanceJobs and Dice, to enhance profitability and unlock new growth opportunities [8][10] - Focus on recession-resistant sectors like consulting, healthcare, financial services, and education for new business [19] - The company is targeting a 24% adjusted EBITDA margin for the full year 2025 and plans to continue share repurchase programs to enhance shareholder value [21][33] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring demand is gradually returning to normal levels, with consistent year-over-year increases in tech job postings since August 2024 [12] - The uncertainty surrounding the Doge initiative has impacted new business bookings but is expected to be temporary [15] - Management remains confident in the long-term growth potential of ClearanceJobs and Dice as tech hiring demand normalizes [22] Other Important Information - The company has reduced operating costs by over $20 million through restructurings since May 2023 [10] - The average annual revenue per ClearanceJobs customer increased by 12% year over year to $25,800, while Dice's average annual revenue per customer was $16,400, up 2% year over year [25][27] - The company ended the quarter with $2.7 million in cash and total debt of $33 million, maintaining a leverage ratio of 0.98 times adjusted EBITDA [32] Q&A Session Summary Question: What gives ClearanceJobs a significantly higher adjusted EBITDA margin than Dice? - Management indicated that ClearanceJobs has a revenue per employee of about $700,000, while Dice's is about half that, necessitating more effort to enhance Dice's capabilities [37][38] Question: Is corporate expense running at about $6.05 million per quarter? - Corporate expenses are expected to run about $7 million annually, with a small team managing these costs [39][40] Question: What is the impact of lower demand on Dice's bookings? - Lower demand is attributed to multi-year contracts from previous high-demand periods, leading to challenges in renewals [42][44] Question: Has there been any flow of funds from EU defense spending? - There has been no significant change in funding for additional defense projects yet, but discussions indicate a likely increase in defense spending later this year [46][48] Question: What is the expected EBITDA margin for ClearanceJobs? - Management believes ClearanceJobs should maintain a 40% EBITDA margin for the foreseeable future [56][58] Question: How is the new business environment for Dice? - There is still uncertainty for commercial accounts, but bookings for staffing and recruiting agencies have exceeded expectations [60]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $32.3 million, a 10% decline year over year and a 7% decline sequentially [23] - Adjusted EBITDA for the quarter was $7 million, representing a margin of 22%, down from $8.6 million and a margin of 24% in the prior year [29] - The company recorded a net loss of $9.4 million or $0.21 per diluted share, compared to a net loss of $1.5 million or $0.03 per diluted share in the prior year [29] Business Line Data and Key Metrics Changes - ClearanceJobs (CJ) revenue was $13.4 million, up 3% year over year but down 3% sequentially, with adjusted EBITDA of $5.7 million and a margin of 43% [23][30] - Dice revenue was $18.9 million, down 18% year over year and down 10% sequentially, with adjusted EBITDA of $3.4 million and a margin of 18% [26][30] - CJ's average annual revenue per recruitment package customer increased by 12% year over year to $25,800, while Dice's was up 2% year over year to $16,400 [25][27] Market Data and Key Metrics Changes - New tech job postings increased by 16% year over year in Q1, averaging 215,000 new postings each month [12] - The tech staffing sector's growth forecast for 2025 was revised to a 2% year over year increase, down from an original forecast of 5% [12] - Tech recruiter job postings increased by 36% year over year, indicating a forthcoming rise in demand for hiring tech professionals [13] Company Strategy and Development Direction - The company has realigned operations around two distinct brands, ClearanceJobs and Dice, to enhance profitability and unlock growth opportunities [7] - Focus on recession-resistant sectors such as consulting, healthcare, financial services, and education for new business [18] - Continued investment in product innovation to drive customer engagement and future growth [22] Management's Comments on Operating Environment and Future Outlook - Management noted a gradual return to normal levels of tech hiring demand, with consistent year-over-year increases in job postings since August 2024 [11] - The company reiterated its full-year revenue guidance of $131 million to $135 million, with a target adjusted EBITDA margin of 24% [20][33] - Management expressed confidence in the long-term growth potential of ClearanceJobs and Dice as tech hiring demand normalizes [21] Other Important Information - The company has implemented cost reductions through restructuring, achieving a reduction of approximately $20 million in annual operating expenses [28] - A $5 million share repurchase program was announced, reflecting confidence in the strength of the brands and commitment to shareholder value [20][33] - Deferred revenue at the end of the quarter was $50.7 million, down 9% year over year [32] Q&A Session Summary Question: What gives ClearanceJobs a significantly higher adjusted EBITDA margin than Dice? - Management indicated that ClearanceJobs has a higher revenue per employee, approximately $700,000, compared to Dice's lower figure, necessitating more effort to enhance Dice's capabilities [37] Question: What is the current state of corporate expenses? - Corporate expenses are expected to run about $7 million annually, with a small team managing public company costs [40] Question: Can you explain the lower demand impacting Dice's bookings? - The decline in bookings was attributed to multi-year contracts from previous high-demand periods being adjusted due to current lower demand [43][45] Question: Has there been any impact from EU defense spending? - Management noted that while there was initial fear regarding contract terminations, larger contractors have not experienced significant changes, and discussions around increased defense budgets are promising [47][48] Question: How is the new business environment for Dice? - Management observed that while uncertainty remains for commercial accounts, bookings for staffing and recruiting agencies have exceeded expectations [59]

[DHI Group Q1 2025 Financial Results](index=1&type=section&id=DHI%20Group%20Reports%202025%20First%20Quarter%20Financial%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Q1 2025 revenue fell 10% to $32.3 million, with a net loss of $9.4 million due to goodwill impairment and restructuring charges Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$32.3M** | **$36.0M** | **-10%** | | - ClearanceJobs Revenue | $13.4M | $13.0M | +3% | | - Dice Revenue | $18.9M | $23.0M | -18% | | **Total Bookings** | **$42.1M** | **$48.8M** | **-14%** | | - ClearanceJobs Bookings | $16.8M | $17.0M | -1% | | - Dice Bookings | $25.3M | $31.8M | -20% | | **Net Loss** | **($9.4M)** | **($1.5M)** | **-527%** | | Diluted EPS | ($0.21) | ($0.03) | - | | Non-GAAP EPS | $0.04 | $0.05 | -20% | | **Adjusted EBITDA** | **$7.0M** | **$8.6M** | **-19%** | | Adjusted EBITDA Margin | 22% | 24% | -2 p.p. | | **Cash Flow from Operations** | **$2.2M** | **$2.1M** | **+8%** | | Total Debt | $33.0M | $41.0M | -19.5% | - The net loss was significantly impacted by a **$7.4 million impairment to Dice goodwill** and a **$2.3 million restructuring charge** during the quarter[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted resilience amid challenges, noting strong margins and early signs of a tech hiring recovery - CEO Art Zeile noted the company is navigating a challenging macroeconomic environment but maintained a **strong company-wide Adjusted EBITDA margin**[4](index=4&type=chunk) - A **slow but steady rise in new tech job postings** is being observed, suggesting companies are starting to reinvest in technology initiatives like AI[4](index=4&type=chunk) - ClearanceJobs is well-positioned for continued growth, potentially benefiting from a proposed **$150 billion increase in U.S. defense funding** and the development of new Govtech services[6](index=6&type=chunk) - CFO Greg Schippers stated that while ClearanceJobs bookings are expected to grow in 2025, **total bookings growth is not anticipated to resume until tech hiring normalizes**[7](index=7&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) The company reiterated its full-year 2025 guidance, projecting revenue of $131-$135 million and a 24% Adjusted EBITDA margin 2025 Financial Guidance | Metric | Guidance | | :--- | :--- | | Full-Year 2025 Total Revenue | $131M - $135M | | Q2 2025 Revenue | $32M - $33M | | Full-Year 2025 Adjusted EBITDA Margin | 24% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 revenue declined to $32.3 million, leading to an operating loss of $8.9 million due to significant impairment and restructuring costs Condensed Consolidated Statements of Operations (Unaudited, in thousands) | | For the three months ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Revenue** | **$32,301** | **$36,025** | | Total operating expenses | 41,182 | 34,056 | | *Impairment of goodwill* | *7,400* | *—* | | *Restructuring* | *2,270* | *—* | | **Operating income (loss)** | **(8,881)** | **1,969** | | Income (loss) before income taxes | (9,477) | 757 | | **Net loss** | **$(9,351)** | **$(1,512)** | | **Diluted loss per share** | **$(0.21)** | **$(0.03)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operations increased slightly to $2.2 million, while the quarter-end cash balance decreased to $2.7 million Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | | For the three months ended March 31, | | :--- | :---: | :---: | | | **2025** | **2024** | | **Net cash flows from operating activities** | **$2,248** | **$2,087** | | Net cash flows used in investing activities | (2,160) | (4,442) | | Net cash flows from (used in) financing activities | (1,135) | 1,389 | | **Net change in cash for the period** | **(1,047)** | **(966)** | | Cash, end of period | $2,655 | $3,240 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to $212.1 million as of March 31, 2025, primarily due to a reduction in goodwill Condensed Consolidated Balance Sheets (Unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :---: | :---: | | **ASSETS** | | | | Total current assets | $29,978 | $29,653 | | Goodwill | 120,700 | 128,100 | | **Total assets** | **$212,069** | **$221,371** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $63,486 | $62,713 | | Long-term debt | 33,000 | 32,000 | | **Total liabilities** | **108,171** | **107,046** | | **Total stockholders' equity** | **103,898** | **114,325** | [Supplemental Information and Non-GAAP Reconciliations](index=9&type=section&id=Supplemental%20Information%20and%20Non-GAAP%20Reconciliations) [Segment Performance & Key Metrics](index=11&type=section&id=Segment%20Performance%20%26%20Key%20Metrics) ClearanceJobs showed resilient revenue growth of 3%, while Dice revenue declined 18% along with lower customer and retention rates Q1 Revenue & Bookings by Segment (YoY, in thousands) | Segment | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :---: | :---: | :---: | | **ClearanceJobs** | Revenue | $13,377 | $13,005 | 3% | | | Bookings | $16,817 | $16,990 | -1% | | **Dice** | Revenue | $18,924 | $23,020 | -18% | | | Bookings | $25,308 | $31,786 | -20% | Q1 Renewal & Retention Rates by Segment (YoY) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :---: | :---: | | **ClearanceJobs** | Renewal Rate (Revenue) | 92% | 98% | | | Retention Rate | 106% | 115% | | **Dice** | Renewal Rate (Revenue) | 70% | 82% | | | Retention Rate | 92% | 100% | Recruitment Package Customers (as of March 31) | Segment | March 31, 2025 | March 31, 2024 | % Change | | :--- | :---: | :---: | :---: | | ClearanceJobs | 1,891 | 2,032 | -7% | | Dice | 4,490 | 5,250 | -14% | [Backlog and Deferred Revenue](index=12&type=section&id=Backlog%20and%20Deferred%20Revenue) Total backlog stood at $107.8 million as of March 31, 2025, a 3% decrease year-over-year but a 3% increase quarter-over-quarter Backlog and Deferred Revenue (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :---: | :---: | :---: | | Deferred Revenue | $50,666 | $45,456 | $55,716 | | Contractual commitments not invoiced | 57,094 | 59,294 | 55,020 | | **Total Backlog** | **$107,760** | **$104,750** | **$110,736** | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) The company reconciled GAAP to non-GAAP metrics, reporting a Non-GAAP EPS of $0.04 and an Adjusted EBITDA margin of 22% Reconciliation to Non-GAAP Earnings Per Share | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | **Diluted loss per share (GAAP)** | **$(0.21)** | **$(0.03)** | | Impairments | 0.16 | 0.01 | | Restructuring | 0.05 | — | | Severance, professional fees and related costs | 0.02 | — | | Non-cash stock-based compensation | 0.02 | 0.05 | | Tax impacts and other | (0.02) | 0.02 | | **Non-GAAP earnings per share** | **$0.04** | **$0.05** | Free Cash Flow Reconciliation (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | Cash provided by operating activities | $2,248 | $2,087 | | Less: Total fixed asset purchases | (2,160) | (4,442) | | **Free Cash Flow** | **$88** | **$(2,355)** | Net Loss to Adjusted EBITDA Reconciliation (in thousands) | | Q1 2025 | Q1 2024 | | :--- | :---: | :---: | | **Net loss (GAAP)** | **$(9,351)** | **$(1,512)** | | Interest expense | 660 | 946 | | Income tax expense (benefit) | (126) | 2,269 | | Depreciation | 3,984 | 4,456 | | Non-cash stock based compensation | 1,063 | 2,144 | | Impairment of goodwill | 7,400 | — | | Restructuring | 2,270 | — | | Severance, professional fees and related costs | 1,145 | — | | Other adjustments | (64) | 266 | | **Adjusted EBITDA (Non-GAAP)** | **$6,981** | **$8,569** | [Segment Adjusted EBITDA Reconciliation](index=15&type=section&id=Segment%20Adjusted%20EBITDA%20Reconciliation) ClearanceJobs' Adjusted EBITDA margin improved to 43%, while Dice's margin declined to 18% in Q1 2025 Adjusted EBITDA by Segment (YoY, in thousands) | Segment | Q1 2025 Adj. EBITDA | Q1 2025 Margin | Q1 2024 Adj. EBITDA | Q1 2024 Margin | | :--- | :---: | :---: | :---: | :---: | | ClearanceJobs | $5,705 | 43% | $5,459 | 42% | | Dice | $3,428 | 18% | $4,994 | 22% | | Corporate | $(2,152) | n.m. | $(1,884) | n.m. | | **Total** | **$6,981** | **22%** | **$8,569** | **24%** | [Other Information](index=2&type=section&id=Other%20Information) [Notes Regarding the Use of Non-GAAP Financial Measures](index=4&type=section&id=Notes%20Regarding%20the%20Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP measures for assessing financial trends and acknowledges their inherent limitations - The company uses non-GAAP measures to provide useful information to management and investors regarding **financial and business trends**, and for budgeting and planning[14](index=14&type=chunk) - Key non-GAAP measures defined include: **Non-GAAP Earnings Per Share, Free Cash Flow, Adjusted EBITDA, and Adjusted EBITDA Margin**[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company acknowledges limitations of non-GAAP measures, noting they **do not reflect cash expenditures** for capital replacements, working capital needs, or debt service[23](index=23&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section provides a legal disclaimer on forward-looking statements and outlines key business and economic risks - The press release contains forward-looking statements concerning possible **future financial condition, results of operations, strategy, plans, and growth potential**[11](index=11&type=chunk) - A wide range of factors could cause actual results to differ materially, including **competition, cybersecurity risks, economic downturns**, and the use of artificial intelligence[12](index=12&type=chunk)

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Group 1 - The analysis is intended for informational purposes and should not be considered professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [4]. - The article expresses that the views or opinions may not reflect those of the platform as a whole, indicating a diversity of perspectives among analysts [4].

Core Viewpoint - D.R. Horton, Inc. reported disappointing second-quarter fiscal 2025 results, with earnings and total revenues falling short of expectations and declining year-over-year [1][5]. Financial Performance - Adjusted earnings per share were $2.58, missing the Zacks Consensus Estimate of $2.66 by 3%, and down from $3.52 in the same quarter last year [5]. - Total revenues amounted to $7.73 billion, a 15% decrease year-over-year, and also missed analysts' expectations of $8.09 billion by 4.4% [5]. - The consolidated pre-tax profit margin was 13.8%, down from 16.8% a year ago [6]. Segment Performance - Homebuilding revenues were $7.2 billion, a 15% decline from the prior-year quarter, with home sales at $7.18 billion, down 15.2% year-over-year [7]. - Net sales orders decreased by 15% year-over-year to 22,437 homes, with the value of net orders dropping 17% to $8.4 billion [8]. - Financial Services revenues fell by 5.6% to $212.9 million, while the Rental business generated $144.2 million, down from $301.3 million a year ago [9]. Market Conditions - The housing market remains soft due to declining consumer confidence and affordability concerns, leading to lower net sales orders and weak contributions from rental operations and financial services [2]. - The cancellation rate on gross sales orders was 16%, slightly up from 15% a year ago [8]. Balance Sheet and Liquidity - As of March 31, 2025, D.R. Horton had cash and equivalents totaling $2.52 billion, down from $4.54 billion at the end of fiscal 2024, with total liquidity at $5.8 billion [10][11]. - The company had a debt of $6.5 billion, with a debt-to-total capital ratio of 21.1% [11]. Share Repurchase and Guidance - D.R. Horton repurchased 16.5 million shares for $2.4 billion in the first half of fiscal 2025, with a remaining stock repurchase authorization of $1.2 billion [12]. - The updated fiscal 2025 guidance expects consolidated revenues between $33.3 billion and $34.8 billion, down from a previous range of $36 billion to $37.5 billion [13].

Core Insights - Homebuilding stocks received a significant boost after President Trump excluded Canadian lumber from new tariffs, which is seen as a major win for the housing industry [1][3][4] - The exception for Canada and Mexico protects critical construction materials, alleviating concerns over rising costs and supply disruptions [3][4][10] Homebuilding Industry Performance - Shares of major homebuilders experienced notable gains, with D.R. Horton rising 4.6%, Dream Finders Homes increasing by 5.1%, and NVR up by 4.2% [2] - The iShares U.S. Home Construction ETF also rose by 2%, indicating positive investor sentiment towards the sector [2] Tariff Impact on Material Costs - Canada supplies approximately 85% of U.S. softwood lumber imports, which constitutes nearly 25% of domestic supply, making the tariff exemption crucial for builders [4] - Building material costs have surged by 34% since December 2020, significantly impacting profitability in the homebuilding sector [5] Investor Sentiment and Stock Performance - The stock surge suggests that investors are now pricing in lower-than-expected cost pressures, particularly for companies reliant on wood framing and Canadian lumber [6] - The Zacks Building Products - Home Builders industry has declined by 13.5% this year, performing better than the S&P 500's 14.1% decline [7] Company-Specific Insights - D.R. Horton is focusing on strategic investments in homebuilding lots and has a projected earnings growth rate of 18.1% over the next three to five years [12] - Dream Finders Homes operates with a lean model, relying on local subcontractors, which reduces its need for imported materials [13] - NVR's lot purchase agreement model enhances construction efficiency, with lots controlled increasing by 14.8% year-over-year [13] - Lennar benefits from increased cycle times and a digital marketing approach to align home sales with construction pace [14][15] - PulteGroup's regional diversification and investment in supply chain technology help mitigate reliance on imports [16]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...