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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]

Core Insights - DHI Group (DHX) is set to report its third-quarter 2025 earnings on November 10, 2025, with a consensus estimate of 6 cents per share, indicating a year-over-year growth of 20% [1][9] - The expected revenue for the same quarter is $31 million, reflecting a year-over-year decline of 12.1% [1][9] - DHX has consistently surpassed earnings estimates in the past four quarters, achieving an average earnings surprise of 147.9% [2] Performance Factors - The strong profitability of the ClearanceJobs platform and the rising demand for tech talent with AI skills are likely to have positively impacted DHX's performance [3] - The recent acquisition of AgileATS has enhanced DHX's market share in the applicant tracking system market, contributing to improved top-line performance [4] - However, the Dice platform is facing challenges due to a weak hiring environment, which may offset gains from other areas [5] Challenges and Strategies - DHX's focus on cost optimization and restructuring is expected to support its bottom line amid revenue softness [6] - Persistent macroeconomic uncertainty and a sluggish non-AI tech hiring market are anticipated to negatively affect Dice bookings [6] - The current Zacks Rank for DHX is 4 (Sell), with an Earnings ESP of 0.00%, indicating uncertainty regarding an earnings beat this season [7]

Core Insights - D.R. Horton (DHI) is currently viewed as a more attractive investment compared to Smith Douglas Homes Corp. (SDHC) based on various valuation metrics and earnings outlook [1][3][7] Valuation Metrics - DHI has a forward P/E ratio of 13.20, while SDHC's forward P/E is 17.05, indicating DHI may be undervalued [5] - The PEG ratio for DHI is 3.30, compared to SDHC's PEG ratio of 11.76, suggesting DHI has a better growth outlook relative to its price [5] - DHI's P/B ratio stands at 1.93, while SDHC's P/B ratio is 2.22, further supporting DHI's valuation advantage [6] Earnings Outlook - DHI is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Summary of DHI Group (NYSE:DHX) Conference Call - October 20, 2025 Company Overview - **Company**: DHI Group, Inc. - **Industry**: Technology recruitment and job marketplace, specifically focused on tech professionals and security clearance jobs Key Points and Arguments 1. **Revenue Model**: Approximately 92% of DHI's revenue is derived from subscription contracts lasting one year or more, indicating a strong recurring revenue model [2][18] 2. **Financial Performance**: - Revenue for the previous year was $142 million with bookings of $141 million, both showing a 6% compound annual growth rate (CAGR) over five years [2][19] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin, with a target of 26% for 2025 [3][20] - Operating cash flow was $21 million, with capital expenditures (CapEx) of $14 million, primarily for software development [3][22] 3. **Market Position**: - DHI's Dice platform competes with LinkedIn, while ClearanceJobs has no direct competitors due to its focus on candidates with security clearances [4][5] - The tech workforce in the U.S. has grown approximately 3% annually over the last 25 years, with a projected growth of 18% from 2024 to 2034, which is double the overall workforce growth rate [10][11] 4. **Client Base**: - DHI serves approximately 4,400 clients on Dice and 1,900 clients on ClearanceJobs, with a significant target addressable market remaining [14][15][16] - Notable clients include Montefiore Healthcare System and General Motors, with Montefiore doubling its spend over ten years [13][25] 5. **Hiring Trends**: - The elevated interest rate environment has reduced hiring demand across all sectors, including technology [9][30] - However, there is a notable increase in demand for AI-related skills, with 50% of Dice job postings now requiring AI skills, up from 10% a year prior [31][32] 6. **Investment in Technology**: DHI has acquired an applicant tracking system (ATS) for $2 million to enhance its service offerings, which has already doubled its customer base within three months [34][35] Additional Important Insights - **Share Buyback Program**: DHI initiated a share buyback program in January 2024, having previously suspended it in 2023, and ended 2024 with a debt leverage ratio of less than 1x EBITDA [4][23] - **Cash Flow and Liquidity**: DHI targets a free cash flow of 10% of revenue annually, with a current debt of $32 million and approximately $2 million in cash on hand [22][23] - **Market Dynamics**: The company emphasizes the importance of skills over job titles in its recruitment process, utilizing a patented taxonomy of over 100,000 technology skills [12] This summary encapsulates the essential aspects of DHI Group's conference call, highlighting its business model, financial performance, market position, and strategic initiatives.

DHI Group (NYSE: DHX) Conference Call Summary Company Overview - DHI Group operates AI-powered career marketplaces focused on technology roles through its brands Dice and ClearanceJobs, enabling efficient connections between recruiters and skilled technology professionals [1][2] - The company is headquartered in Denver, Colorado, and is listed on the NYSE under the symbol DHX [2] Core Business Model - DHI Group's platforms are two-sided marketplaces that serve both clients (recruiters and hiring managers) and candidates [3] - The company has over 8 million professionals profiled, representing two-thirds of skilled technologists in the U.S. [3] - More than 90% of DHI's revenue is recurring, primarily from subscription contracts [4][14] Financial Performance - In 2024, DHI reported $142 million in revenue and $141 million in bookings, with a five-year CAGR of 6% for both [5][17] - Adjusted EBITDA was $35 million, yielding a 25% margin [5] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [5] Market Position and Competitors - ClearanceJobs is the leading platform for technology professionals with government clearance, a niche not served by competitors like LinkedIn [8][28] - Dice competes with platforms like LinkedIn, Indeed, and ZipRecruiter but focuses specifically on high-end tech talent [26][28] Industry Trends - The U.S. tech workforce has grown by approximately 3-4% annually over the past 25 years, with forecasts predicting an 18% growth over the next decade [6][10] - The demand for tech professionals is driven by the increasing reliance on technology and automation across all sectors [10][11] Challenges and Opportunities - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [10][18] - The company is targeting a 26% adjusted EBITDA margin for 2025, despite challenging market conditions [18] - The anticipated $1.1 trillion defense budget for fiscal year 2026 is expected to provide a significant boost to ClearanceJobs [31] Unique Value Proposition - DHI's platforms utilize a patented skills taxonomy that categorizes over 100,000 tech skills, differentiating them from generalist platforms [11][12] - The company emphasizes the cost-effectiveness of its services compared to external recruiters, with subscription costs ranging from $8,000 to $15,000 for entry-level positions [9] Future Growth Strategies - DHI Group is exploring M&A opportunities adjacent to ClearanceJobs and has recently acquired Agile ATS to enhance its offerings [24][25] - The company is focused on expanding its talent acquisition capabilities and improving client engagement through new features and services [24][25] Summary - DHI Group is well-positioned to capture growth in tech hiring, supported by a strong subscription model, a unique candidate pool, and anticipated increases in defense spending [25][31]

Core Insights - D.R. Horton (DHI) and NVR are two prominent stocks in the Building Products - Home Builders sector, with DHI currently offering better value for investors compared to NVR [1] Valuation Metrics - DHI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook than NVR, which has a Zacks Rank of 4 (Sell) [3] - DHI's forward P/E ratio is 14.37, significantly lower than NVR's forward P/E of 19.22, suggesting DHI may be undervalued [5] - The PEG ratio for DHI is 3.59, while NVR's PEG ratio is much higher at 11.17, indicating DHI's earnings growth is more favorably priced [5] - DHI's P/B ratio stands at 2.05, compared to NVR's P/B of 6.11, further supporting DHI's valuation advantage [6] - DHI has a Value grade of B, while NVR has a Value grade of C, reinforcing the perception that DHI is the more attractive investment option [6]

Core Insights - Dice has introduced a new Employer Experience that leverages AI-powered tools to enhance recruitment processes [1] - The new features aim to streamline workflows and improve candidate matching, enabling recruiters to hire more efficiently [1] Company Overview - Dice is focusing on integrating advanced technology into its recruitment platform to address the challenges faced by recruiters [1] - The introduction of AI tools signifies a shift towards more data-driven hiring practices within the industry [1] Industry Impact - The enhancements in candidate matching and workflow efficiency are expected to set a new standard in the recruitment industry [1] - By adopting AI technologies, companies in the recruitment sector may experience faster hiring times and improved overall performance [1]

Summary of DHI Group Inc. Q3 Investor Summit Company Overview - DHI Group Inc. is listed on the New York Stock Exchange under the symbol DHX and is headquartered in Denver, Colorado [2] - The company operates two tech-oriented recruiting platforms: ClearanceJobs and Dice, which connect recruiters and hiring managers with tech candidates [2][3] Industry Insights - The U.S. tech workforce has grown by approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is twice the overall employment growth rate [5][8] - The average salary for a tech worker in the U.S. was $111,000, compared to $50,000 for the average worker [6] Financial Performance - DHI reported $142 million in revenue and $141 million in bookings for the previous year, with a five-year CAGR of 6% for both metrics [4] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin [4] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [4] Revenue Model - Over 90% of DHI's revenue is recurring due to subscription contracts, with a one-year minimum contract and auto-renewal clauses [12] - DHI's platforms charge clients between $8,000 to $15,000 for entry-level year-long subscriptions [7] Market Position and Competitive Advantage - ClearanceJobs is the leading platform for accessing technology professionals with government clearance, a niche not served by LinkedIn [5][6] - DHI has a unique skills taxonomy that categorizes over 100,000 tech skills, which enhances candidate profiling and search capabilities [9][10] - The company has a significant total addressable market (TAM) with approximately 1,900 clients for ClearanceJobs and 4,400 clients for Dice [11][20] Recent Developments - DHI has restructured its operations to separate Dice and ClearanceJobs, aiming to maximize profitability and strategic options [15][16] - The company has reinstituted its share buyback program, allowing for the repurchase of up to $5 million of common stock through February 2026 [19] Future Outlook - Revenue guidance for 2025 is projected between $126 million and $128 million, with an expected EBITDA margin of 26% [26] - DHI is exploring new revenue lines, including an applicant tracking system (Agile ATS) and a premium candidate subscription for ClearanceJobs [28][29] Challenges and Market Conditions - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [8][16] - Dice's quarterly bookings have seen a decline of 16% year-over-year, reflecting challenges in the HR tech hiring environment [21] Key Differentiators - DHI differentiates itself from larger players like LinkedIn by focusing on tech skills rather than job titles, allowing for more relevant candidate engagement [32][34] - The platforms provide insights into candidate activity, such as the number of days since a candidate was last active, which is crucial for recruiters [34][35] Conclusion - DHI Group Inc. is well-positioned to capture growth in tech hiring, leveraging its unique platforms and expertise in technology recruitment [23]