Core Viewpoint - DLH Holdings Corp. has been awarded a task order valued at up to $46.9 million to provide information technology services to the National Institutes of Health, emphasizing its role in digital transformation and cyber security [1][2]. Group 1: Contract Details - The task order includes a base period and multiple options, aggregating to a three-year performance period [2]. - DLH will support approximately 7,000 end-customers through this contract, leveraging a comprehensive suite of digital transformation and cyber security solutions [2]. Group 2: Company Expertise and Services - DLH specializes in digital transformation, cyber security, science research and development, and systems engineering and integration [1][3]. - The company will implement a cloud migration strategy in partnership with leading commercial cloud service providers such as Azure, AWS, and Google [2]. - DLH's experts will focus on modernizing IT, improving customer experience, optimizing systems, and integrating emerging technologies like artificial intelligence [3]. Group 3: Company Overview - DLH enhances technology, public health, and cyber security readiness through various solutions and services, employing over 2,400 staff dedicated to supporting critical missions [3].

Financial Data and Key Metrics Changes - The company reported revenue of $83.3 million for Q3 2025, down from $100.7 million in the prior year, reflecting a decrease of $17.4 million due to various factors including contract transitions to small business contractors [16][17] - EBITDA for Q3 2025 was $8.1 million compared to $10 million in the same period last year, primarily due to lower overall revenue [17] - Operating cash flow generated was approximately $9.5 million during the quarter, with a reduction in days sales outstanding to 46 days from 52 days at the end of Q2 [18] Business Line Data and Key Metrics Changes - The decrease in revenue was attributed to the conversion of certain VA and DoD programs to small business contractors, accounting for decreases of $8.5 million and $3.2 million respectively [16] - Government efficiency initiatives narrowed the scope of some work, resulting in a $2.2 million decrease [17] Market Data and Key Metrics Changes - The company noted that the new administration has added layers of funding review and approval cycles, which have slowed revenue streams from existing contracts and impacted new business growth [6][10] - The anticipated changes in federal spending priorities are expected to create new business opportunities in technology, integration, cybersecurity, artificial intelligence, and machine learning [10][12] Company Strategy and Development Direction - The company is focused on operational agility, financial flexibility, and technology differentiation to navigate industry challenges and strengthen its long-term position [12] - The strategic goals include continuing to deleverage the company, protecting the revenue base, and preserving margin delivery through proactive scaling initiatives [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing anticipated changes in government procurement processes and increased funding for technology initiatives [10][13] - The company believes that its capabilities align well with federal technology initiatives and expects new business opportunities and contract wins in the medium to long term [12][14] Other Important Information - The company reduced debt by $9.4 million during the quarter, ending with $142.3 million in debt outstanding, and is a year ahead of mandatory debt payments [8][19] - The company remains well ahead of its debt covenants, supporting a positive outlook for the future [19] Q&A Session Summary Question: Inquiry about the small business set-aside business - Management noted that the transition to small business set-aside contracts has been slower than anticipated but expects heavy activity in the remainder of the quarter [31] Question: Update on government procurement processes - Management highlighted that cuts in government contract acquisition personnel have created gaps in resources, but there are signs of stabilization that could positively impact the pipeline [33] Question: General outlook for the company - Management expressed strong confidence in the company's positioning for a recovery in 2026, with good engagement with decision-makers and influencers [37]

Financial Performance - Q2 FY25 revenue was $89.2 million, compared to $101.0 million in Q2 FY24[18] - Q2 FY25 EBITDA was $9.4 million, compared to $10.2 million in Q2 FY24[18] - The company generated $14.5 million of operating cash flow in Q2[18] - Total debt was reduced by $15.3 million in Q2, reaching $151.7 million as of March 31, 2025[18, 9, 21] - The company expects 50-55% of EBITDA to convert to debt reduction by fiscal year end[23] Strategic Initiatives and Outlook - Technology-Powered Solutions (TPS) revenue was $60.7 million in Q2 FY25[18] - TPS revenue increased sequentially by 7.1% from the prior quarter[20] - The company has over $1.0 billion in contract value under review, expecting award decisions in the second half of the fiscal year[9] - The company maintains a healthy new business pipeline with $3.5 billion in opportunities[12] - Mandatory term debt is paid through March 31, 2026, a year ahead of schedule[9, 23]

Group 1: Earnings Performance - DLH Holdings Corp. reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, but down from $0.08 per share a year ago [1] - The company posted revenues of $83.34 million for the quarter, exceeding the Zacks Consensus Estimate by 0.41%, but down from $100.69 million year-over-year [2] - Over the last four quarters, DLH has surpassed consensus EPS estimates only once and topped revenue estimates just once [1][2] Group 2: Stock Performance and Outlook - DLH shares have declined approximately 31.5% year-to-date, contrasting with the S&P 500's gain of 7.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $84 million, and for the current fiscal year, it is $0.19 on revenues of $347 million [7] Group 3: Industry Context - The Staffing Firms industry, to which DLH belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact DLH's stock performance [5][6]

DLH Fiscal 2025 Third Quarter Results [Management Discussion and Outlook](index=1&type=section&id=Management%20Discussion%20and%20Outlook) DLH's management successfully preserved profit margins and maintained strong operating cash flow in the third quarter despite industry headwinds and a competitive landscape, anticipating robust bidding activity and growth in fiscal 2026 driven by increased defense spending, advanced technology integration, and public health initiatives - The company effectively navigated industry changes, preserving margin delivery and strong operating cash flow[5](index=5&type=chunk) - Management expects a return to robust bid activity and funding for fiscal 2026 and beyond, particularly in cybersecurity, digital transformation, and public health[5](index=5&type=chunk) - DLH believes it is well-positioned for medium and long-term growth due to anticipated increases in defense spending, a focus on advanced technologies, and an emphasis on public health issues[6](index=6&type=chunk) [Q3 FY2025 Financial Performance](index=1&type=section&id=Q3%20FY2025%20Financial%20Performance) The company reported a year-over-year decline in revenue to $83.3 million and net income to $0.3 million for the third quarter of fiscal 2025, primarily due to small business set-aside transitions and program timing [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) In Q3 FY2025, DLH's revenue was $83.3 million and net income was $0.3 million, both down from the prior year, yet the company generated strong cash flow, facilitating a significant $9.4 million debt reduction and maintaining a contract backlog of $555.3 million Q3 FY2025 vs Q3 FY2024 Key Metrics | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Revenue | $83.3 million | $100.7 million | | Earnings | $0.3 million | $1.1 million | | Diluted EPS | $0.02 | $0.08 | | EBITDA | $8.1 million | $10.0 million | - Total debt was reduced by **$9.4 million** during the fiscal third quarter, from **$151.7 million** to **$142.3 million**[7](index=7&type=chunk) - Contract backlog was **$555.3 million** as of June 30, 2025, compared to **$690.3 million** as of September 30, 2024[7](index=7&type=chunk) [Detailed Quarterly Results (Three Months Ended June 30, 2025)](index=2&type=section&id=Detailed%20Quarterly%20Results%20%28Three%20Months%20Ended%20June%2030%2C%202025%29) The $17.4 million year-over-year revenue decrease was specifically attributed to transitioned CMOP locations ($8.5M), unbundling of DoD contracts ($3.2M), and federal efficiency scope reductions ($2.2M), resulting in an operating margin contraction to 4.5% from 5.7%, despite a $1.1 million reduction in general and administrative expenses - The decline in revenue was primarily due to small business set-aside transitions, including lower revenue of approximately **$8.5 million** from CMOP locations, **$3.2 million** from unbundled DoD contracts, and **$2.2 million** from scope reductions[8](index=8&type=chunk) - Operating margin for Q3 FY2025 was **4.5%**, down from **5.7%** in the prior-year period. General and administrative expenses declined by **$1.1 million** year-over-year to **$7.9 million**[9](index=9&type=chunk) - Interest expense decreased to **$3.5 million** from **$4.1 million** in the prior-year period, reflecting lower outstanding debt[10](index=10&type=chunk) - Net income for Q3 FY2025 was **$0.3 million**, or **$0.02** per diluted share, compared to **$1.1 million**, or **$0.08** per diluted share, in Q3 FY2024[11](index=11&type=chunk) [Financial Position and Backlog](index=2&type=section&id=Financial%20Position%20and%20Backlog) As of June 30, 2025, DLH reported total debt of $142.3 million, a notable reduction from $154.6 million at the start of the fiscal year, reflecting strong cash generation, with a total contract backlog of $555.3 million, comprising $92.3 million in funded backlog and $463.0 million in unfunded backlog Debt and Cash Position | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Debt | $142.3 million | $154.6 million | | Cash | $0.2 million | $0.3 million | - The company anticipates it will convert **50-55%** of EBITDA to debt reduction over the course of the full fiscal year[13](index=13&type=chunk) Contract Backlog as of June 30, 2025 | Backlog Type | Amount | | :--- | :--- | | Funded | $92.3 million | | Unfunded | $463.0 million | | **Total** | **$555.3 million** | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the detailed unaudited consolidated financial statements for the three and nine months ended June 30, 2025, with comparative data for the same periods in 2024, including the Consolidated Statements of Operations, Consolidated Balance Sheets, and Consolidated Statements of Cash Flows [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of FY2025, DLH reported revenue of $83.3 million and net income of $0.3 million, while for the nine-month period, revenue was $263.3 million with a net income of $2.3 million, both periods showing a decline in revenue and profitability compared to the prior year Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $83,343 | $100,694 | | Income from operations | $3,755 | $5,763 | | Net income | $289 | $1,139 | | Diluted EPS | $0.02 | $0.08 | | --- | **Nine Months Ended June 30, 2025** | **Nine Months Ended June 30, 2024** | | Revenue | $263,337 | $299,551 | | Income from operations | $14,506 | $18,523 | | Net income | $2,281 | $5,102 | | Diluted EPS | $0.16 | $0.35 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's balance sheet showed total assets of $299.3 million and total liabilities of $185.6 million, resulting in total shareholders' equity of $113.7 million, an increase from $110.1 million at the end of fiscal 2024 Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total current assets | $49,587 | $52,957 | | Total assets | $299,341 | $314,381 | | Total current liabilities | $45,823 | $53,242 | | Total liabilities | $185,643 | $204,249 | | Total shareholders' equity | $113,698 | $110,132 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, DLH generated $12.5 million in net cash from operating activities, with net cash used in financing activities also at $12.5 million, primarily directed towards debt repayments, resulting in a slight net decrease in cash for the period Consolidated Cash Flow Highlights (Nine Months Ended, in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $12,536 | $14,931 | | Net cash used in investing activities | $(213) | $(627) | | Net cash used in financing activities | $(12,471) | $(14,096) | | Net change in cash | $(148) | $208 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company provides EBITDA, a non-GAAP measure, to supplement its financial results, reporting $8.1 million (9.7% of revenue) for Q3 FY2025 and $27.4 million for the nine-month period, with a full reconciliation from GAAP net income provided - The company uses EBITDA (defined as net income excluding depreciation and amortization, interest expense, and income tax) as a supplemental non-GAAP measure of performance[26](index=26&type=chunk) Reconciliation of Net Income to EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $289 | $1,139 | | EBITDA | $8,063 | $10,035 | | EBITDA as a % of revenue | 9.7% | 10.0% | | --- | **Nine Months Ended June 30, 2025** | **Nine Months Ended June 30, 2024** | | Net income | $2,281 | $5,102 | | EBITDA | $27,386 | $31,292 | | EBITDA as a % of revenue | 10.4% | 10.4% |

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%20I%3A%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Unaudited financial statements for Q2 and YTD 2025 reflect decreased revenue and net income, with total assets and liabilities declining while operating cash flow remained positive [Consolidated Statements of Operations](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Nine Months Ended June 30, 2025 ($) | Nine Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $83,343 | $100,694 | $263,337 | $299,551 | | **Income from operations** | $3,755 | $5,763 | $14,506 | $18,523 | | **Net income** | $289 | $1,139 | $2,281 | $5,102 | | **Net income per share - diluted** | $0.02 | $0.08 | $0.16 | $0.35 | - Revenue for the three and nine months ended June 30, 2025, **decreased by 17.2% and 12.1%** year-over-year, respectively, with net income seeing a **significant decline** for both periods[9](index=9&type=chunk) [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 ($) | September 30, 2024 ($) | | :--- | :--- | :--- | | **Total current assets** | $49,587 | $52,957 | | **Goodwill** | $138,161 | $138,161 | | **Total assets** | $299,341 | $314,381 | | **Total current liabilities** | $45,823 | $53,242 | | **Total liabilities** | $185,643 | $204,249 | | **Total shareholders' equity** | $113,698 | $110,132 | [Consolidated Statements of Cash Flows](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Nine Months Ended June 30, 2025 ($) | Nine Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $12,536 | $14,931 | | **Net cash used in investing activities** | ($213) | ($627) | | **Net cash used in financing activities** | ($12,471) | ($14,096) | | **Net change in cash** | ($148) | $208 | [Notes to Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) - A goodwill impairment assessment was triggered by a decrease in the Company's share price and market capitalization, but a subsequent quantitative assessment indicated goodwill was **not impaired** as of June 30, 2025[35](index=35&type=chunk) - The company's revenue is primarily derived from **U.S. government agencies**, with major customers being the **Department of Health and Human Services (49.3%)**, **Department of Veterans Affairs (34.1%)**, and **Department of Defense (15.5%)** for the nine months ended June 30, 2025[54](index=54&type=chunk)[107](index=107&type=chunk) Debt Obligations (in thousands) | Debt Component | June 30, 2025 ($) | September 30, 2024 ($) | | :--- | :--- | :--- | | Secured term loan | $128,250 | $142,500 | | Secured revolving line of credit | $14,039 | $12,058 | | **Net bank debt obligations** | **$138,348** | **$149,374** | - The Company utilizes a floating-to-fixed interest rate swap with a notional amount of **$74.0 million** to manage interest rate risk on its variable debt, which decreased interest expense by approximately **$0.2 million** for the nine months ended June 30, 2025[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=ITEM%202%3A%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes revenue and profitability declines to contract conversions, with backlog decreasing and operating cash flow positive [Major Customers and Contracts](index=24&type=section&id=Major%20Customers%20and%20Contracts) - The company's revenue is **highly concentrated** with **three major U.S. Federal government customers**: **Department of Health and Human Services (49.3%)**, **Department of Veterans Affairs (34.1%)**, and **Department of Defense (15.5%)** for the nine months ended June 30, 2025[107](index=107&type=chunk) - The VA's Consolidated Mail Outpatient Pharmacy (CMOP) program is undergoing a **transition to service-disabled veteran-owned small business (SDVOSB) prime contractors**, and DLH has **ceased or expects to cease operations at three locations** as they transition to new contractors[109](index=109&type=chunk)[110](index=110&type=chunk)[121](index=121&type=chunk) [Backlog](index=25&type=section&id=Backlog) Backlog Summary (in millions) | Date | Total Backlog ($M) | Funded Backlog ($M) | | :--- | :--- | :--- | | **June 30, 2025** | $555.3 | $92.3 | | **September 30, 2024** | $690.3 | $155.1 | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) - For the three months ended June 30, 2025, revenue **decreased by $17.4 million** year-over-year, primarily due to the conversion of certain VA and DOD contracts to small business contractors[123](index=123&type=chunk) - For the nine months ended June 30, 2025, revenue **decreased by $36.2 million** year-over-year for the same reasons, partially offset by new contract awards[130](index=130&type=chunk) - Interest expense **decreased** for both the three and nine-month periods due to debt prepayments and a lower floating interest rate[127](index=127&type=chunk)[134](index=134&type=chunk) [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Income to EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Nine Months Ended June 30, 2025 ($) | Nine Months Ended June 30, 2024 ($) | | :--- | :--- | :--- | :--- | :--- | | **Net income** | $289 | $1,139 | $2,281 | $5,102 | | **EBITDA** | $8,063 | $10,035 | $27,386 | $31,292 | - EBITDA **decreased to $27.4 million** for the nine months ended June 30, 2025, from **$31.3 million** in the prior year period, primarily due to lower revenue volume[137](index=137&type=chunk) [Liquidity and Capital Management](index=29&type=section&id=Liquidity%20and%20capital%20management) - Net cash provided by operating activities was **$12.5 million** for the nine months ended June 30, 2025, a **decrease from $14.9 million** in the prior year, mainly due to lower revenue volume[141](index=141&type=chunk) - As of June 30, 2025, the company had **$0.2 million in cash** and **$15.1 million of available borrowing capacity** under its revolving credit facility[140](index=140&type=chunk)[143](index=143&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203%3A%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages variable-rate debt interest risk with a $74.0 million floating-to-fixed swap, leaving remaining debt exposed to floating rates - A **1.0% increase** in the SOFR would impact annual interest expense by approximately **$0.7 million** on the unhedged portion of the company's debt[155](index=155&type=chunk) [Controls and Procedures](index=31&type=section&id=ITEM%204%3A%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management evaluated disclosure controls and procedures and found them to be **effective** at a reasonable assurance level[156](index=156&type=chunk) - **No changes** in internal control over financial reporting occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[159](index=159&type=chunk) [PART II OTHER INFORMATION](index=32&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=32&type=section&id=ITEM%201%3A%20LEGAL%20PROCEEDINGS) The company is not aware of any pending or threatened litigation expected to have a material adverse effect on its financial condition or operations - The Company is **not aware of any pending or threatened litigation** expected to have a **material adverse effect** on its financials[160](index=160&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A%3A%20RISK%20FACTORS) No material changes to risk factors from those disclosed in the Annual Report on Form 10-K for the fiscal year ended September 30, 2024 - **No material changes** have occurred from the risk factors described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202%3A%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not issue any unregistered equity securities during the reporting period [Defaults Upon Senior Securities](index=32&type=section&id=ITEM%203%3A%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities occurred during the reporting period [Mine Safety Disclosures](index=32&type=section&id=ITEM%204%3A%20MINE%20SAFETY%20DISCLOSURES) Mine safety disclosures are not applicable to the company's operations [Other Information](index=32&type=section&id=ITEM%205%3A%20OTHER%20INFORMATION) No Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during the quarter [Exhibits](index=33&type=section&id=ITEM%206%3A%20EXHIBITS) This section details the exhibits filed with the report, including CEO/CFO certifications and iXBRL financial data files

Core Insights - DLH Holdings Corp. reported a decline in revenue for Q3 fiscal 2025, totaling $83.3 million compared to $100.7 million in Q3 fiscal 2024, primarily due to small business set-aside transitions and contract adjustments [5][8][11] - The company experienced a reduction in operating income to $3.8 million, with an operating margin of 4.5%, down from 5.7% in the previous year [6][8] - DLH's total debt decreased to $142.3 million as of June 30, 2025, reflecting a $9.4 million reduction during the quarter [11][12] Financial Performance - Revenue for the three months ended June 30, 2025, was $83.3 million, a decrease of approximately $17.4 million year-over-year [5][8] - Net income for Q3 fiscal 2025 was approximately $0.3 million, or $0.02 per diluted share, compared to $1.1 million, or $0.08 per diluted share, in Q3 fiscal 2024 [9][10] - EBITDA for Q3 fiscal 2025 was $8.1 million, representing 9.7% of revenue, down from $10.0 million or 10.0% of revenue in the prior year [10][26] Operational Highlights - The company managed to reduce general and administrative expenses by $1.1 million year-over-year, reflecting effective management of operating costs [6][11] - DLH's contract backlog as of June 30, 2025, was approximately $555.3 million, a decrease from $690.3 million as of September 30, 2024 [12][11] - Interest expense decreased to $3.5 million in Q3 fiscal 2025 from $4.1 million in the prior-year period, attributed to lower outstanding debt [7][11] Strategic Outlook - Management expressed optimism about future growth opportunities, citing expected increases in defense spending and a focus on advanced technologies and public health initiatives [4][3] - The company anticipates a return to robust bid activity and funding across key service areas for fiscal 2026 and beyond [3][4] - DLH is positioned to leverage its capabilities in cybersecurity, digital transformation, and public health to support federal agencies [4][3]

DLH (NASDAQ: DLHC) enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by customers today, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,400 employees dedicated to the idea that "Your Mission is Our Passion," DLH brings a unique combination ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: DLH Holdings Corp. (DLHC) Analysis - DLHC has shown a price increase of 9.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 36.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - DLHC has a beta of 1.33, suggesting it moves 33% more than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [6] - DLHC has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is trading at a Price-to-Sales ratio of 0.21, indicating it is undervalued at 21 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides DLHC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Viewpoint - The focus is on identifying undervalued stocks through a combination of Zacks Rank and Style Scores, particularly highlighting DLH (DLHC) as a strong value stock opportunity [1][3][6] Company Analysis - DLHC has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is among the highest-quality value stocks available [3] - The stock has a Price-to-Book (P/B) ratio of 0.7, which is significantly lower than the industry average of 1.59, suggesting it may be undervalued [4] - Over the past year, DLHC's P/B ratio has fluctuated between a high of 1.56 and a low of 0.35, with a median of 1.03 [4] - The Price-to-Sales (P/S) ratio for DLHC is 0.21, compared to the industry average of 0.33, further indicating potential undervaluation [5] - These valuation metrics contribute to DLHC's strong Value grade and suggest a favorable earnings outlook, reinforcing its status as an impressive value stock [6]