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Financial Data and Key Metrics Changes - Revenue for the first quarter was reported at $68.9 million, down from $90.8 million in the prior year, primarily due to the conversion of certain programs to small business set-aside contracts, resulting in an approximate $18 million decrease [11] - Adjusted EBITDA for the quarter was $6.5 million, compared to $9.9 million in the prior year, with a sequential improvement in adjusted EBITDA margin to 9.5% [12][14] - Free cash flow usage was approximately $4.8 million during the quarter, an improvement from $12.1 million in the previous year [13] Business Line Data and Key Metrics Changes - The revenue contraction was largely attributed to small business set-aside conversions, particularly from CMOP and Head Start programs [11] - The company is focused on expanding efficiencies and margins while managing indirect costs, which are expected to improve in the second quarter [12][30] Market Data and Key Metrics Changes - The company noted improved demand across core markets, particularly in defense and intelligence, with a focus on rapid delivery, cost efficiency, and digital modernization [5][8] - Federal health agencies received funding increases compared to fiscal 2025 levels, which is expected to positively impact the company's organic growth initiatives [4] Company Strategy and Development Direction - The company is committed to three strategic pillars: digital transformation and cybersecurity, science, research and development, and systems engineering and integration [8] - There is a focus on leveraging technology and innovative tools to enhance productivity and competitive positioning [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exiting fiscal 2026 in a stronger position, supported by improved budget clarity and a healthy addressable market [10][15] - The management team emphasized the importance of maintaining a competitive indirect cost profile to support organic growth [28] Other Important Information - The company is actively working on deleveraging its balance sheet, with debt increasing to $136.6 million during the quarter, but remains compliant with financial covenants [14] - The management highlighted the need for agility in operations to compete effectively in both government and potential commercial markets [58] Q&A Session Summary Question: What accounted for the remaining $4 million in revenue decline? - The decline was attributed to smaller impacts from DOGE initiatives and the wrap-up of a USAID project [19][21] Question: Update on CMOP contracts and transition timing? - The company expects a complete wrap-up of CMOP work by Q3 of the current fiscal year, with manageable processes for transitions [25] Question: Insights on cost reductions and their impact? - Cost reductions are reflected in Q1 results, and the company is scaling costs related to CMOP as revenue volume changes [30][31] Question: Market opportunities and bidding activity? - The company has seen limited bid opportunities due to budget uncertainty but anticipates more stability moving forward [36][40] Question: Focus on civilian clients and commercial opportunities? - The company works with federal civilian agencies and is exploring more commercial opportunities, particularly in biotech [50][51]

Financial Data and Key Metrics Changes - Revenue for the first quarter was reported at $68.9 million, down from $90.8 million in the prior year, primarily due to the conversion of certain programs to small business set-aside contracts, resulting in an approximate $18 million decrease [11][12] - Adjusted EBITDA for the quarter was $6.5 million, compared to $9.9 million in the prior year, with an adjusted EBITDA margin improving sequentially to 9.5% [12][14] - Free cash flow usage was approximately $4.8 million during the quarter, a significant improvement from $12.1 million in the previous year [13] Business Line Data and Key Metrics Changes - The revenue contraction was largely attributed to small business set-aside conversions, particularly from the CMOP and Head Start programs [11] - The company is focused on expanding efficiencies and margins while managing indirect costs, which are expected to improve in the second quarter [12][30] Market Data and Key Metrics Changes - The company noted improved demand across core markets, particularly in defense and intelligence, with a focus on rapid delivery, cost efficiency, and digital modernization [5][8] - Federal health agencies received funding increases compared to fiscal 2025 levels, which is expected to positively impact the company's addressable markets [4][8] Company Strategy and Development Direction - The company is committed to three strategic pillars: digital transformation and cybersecurity, science, research and development, and systems engineering and integration [8] - There is a focus on leveraging technology and innovative tools to enhance productivity and competitive positioning [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exiting fiscal 2026 in a stronger position, supported by improved budget clarity and a healthy addressable market [10][15] - The management team emphasized the importance of agility and responsiveness to compete effectively in the evolving market landscape [58][60] Other Important Information - The company is actively working on deleveraging its balance sheet, with debt increasing to $136.6 million during the quarter, but remains compliant with financial covenants [14][15] - The management highlighted the importance of maintaining a competitive indirect cost profile to support organic growth [28] Q&A Session Summary Question: What accounted for the remaining $4 million in revenue decline? - The decline was attributed to smaller impacts from DOGE initiatives and the completion of a USAID project [19][21] Question: Update on CMOP contracts and transition timing? - The company expects a complete wrap-up of CMOP work by Q3 of the current fiscal year, with improved transition processes in place [25] Question: Insights on cost reductions and their impact? - Cost reductions are reflected in Q1 results, and the company is scaling costs in line with the volume changes from CMOP [30][31] Question: Market opportunities and bidding activity? - The company has seen limited bid opportunities due to budget uncertainty but anticipates more stability moving forward [36][40] Question: Focus on civilian clients and commercial opportunities? - The company works with federal civilian agencies and is exploring more commercial opportunities, particularly in biotech [50][51]

Financial Data and Key Metrics Changes - The company reported revenue of $68.9 million for the first quarter, down from $90.8 million in the prior year, primarily due to the conversion of certain programs to small business set-aside contracts, resulting in an approximate $18 million decrease [10] - Adjusted EBITDA for the quarter was $6.5 million, compared to $9.9 million in the prior year, with a sequential improvement in adjusted EBITDA margin to 9.5% [11] - Free cash flow usage was approximately $4.8 million, an improvement from $12.1 million in the previous year, reflecting better management of receivables [12] Business Line Data and Key Metrics Changes - Revenue contraction was largely attributed to small business set-aside conversions, particularly from CMOP and Head Start programs [10] - The company is focused on expanding efficiencies and margins while managing costs related to the transition of contracts [11][12] Market Data and Key Metrics Changes - The company noted improved demand across core markets, particularly in defense and intelligence, driven by federal health agencies prioritizing system interoperability and cybersecurity [5] - The recent budget stability is expected to positively impact the company's organic growth initiatives [4][7] Company Strategy and Development Direction - The company is committed to three strategic pillars: digital transformation and cybersecurity, science research and development, and systems engineering and integration [7] - There is a focus on leveraging technology and innovative tools to enhance productivity and competitive positioning [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exiting fiscal 2026 in a stronger position, supported by improved budget clarity and a broad portfolio of contract vehicles [7][9] - The management team emphasized the importance of maintaining a competitive indirect cost profile to support organic growth [28][29] Other Important Information - The company is actively working on deleveraging its balance sheet, with debt increasing to $136.6 million due to seasonal working capital requirements [12] - The management is optimistic about the future, expecting to convert 50%-55% of EBITDA generated during fiscal 2026 to reduce debt by year-end [13] Q&A Session Summary Question: What accounted for the remaining $4 million in revenue decline? - The decline was attributed to smaller impacts from DOGE initiatives and the completion of a USAID project [18][20] Question: Update on CMOP contracts and transition timing? - The company is in the wind-down phase for CMOP work, expecting a complete wrap-up by Q3 of the current fiscal year [25] Question: Were there costs associated with the recent cost reductions? - The costs of achieving reductions are reflected in Q1 results, impacting both the reduction in costs and the overall financials [30] Question: Insights on the bidding activity and market opportunities? - The company has seen a mix of bid opportunities, with some moving to vehicles where they are not prime, but remains optimistic about future stability in the market [34][39] Question: Who are the civilian clients and is there a focus on commercial jobs? - Civilian clients include federal agencies like NIH and CDC, with a small focus on commercial work through partnerships, but significant investment in this area is not planned [51][52]

February 10, 2026 CALL PARTICIPANTS FY26 First Quarter Earnings Three Months Ended 12.31.25 ZACH PARKER President & Chief Executive Officer KATHRYN JOHNBULL © Copyright 2026 DLH Holdings Corp. All Rights Reserved. 2 Forward-Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s f ...

Core Viewpoint - DLH Holdings Corp. reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, marking an earnings surprise of -28.57% [1] Financial Performance - The company posted revenues of $68.89 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.79% and down from $90.78 million in the same quarter last year [2] - Over the last four quarters, DLH has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Performance - DLH shares have increased by approximately 3.9% since the beginning of the year, outperforming the S&P 500, which gained 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $64.95 million, and for the current fiscal year, it is -$0.35 on revenues of $235.6 million [7] - The estimate revisions trend for DLH was unfavorable prior to the earnings release, resulting in a Zacks Rank of 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Staffing Firms industry, to which DLH belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 0-18492 DLH HOLDINGS CORP. (Exact name of registrant as specified in its charter) New Jersey 22-1899798 (State or other jurisdiction of incorporat ...

DLH Reports Fiscal 2026 First Quarter Results ATLANTA, Feb. 9, 2026 – DLH Holdings Corp. (NASDAQ: DLHC) ("DLH" or the "Company"), a leading provider of digital transformation and cybersecurity, systems engineering and integration, and science research and development, today announced financial results for its fiscal first quarter ended December 31, 2025. Q1 Highlights: Management Discussion: "The first quarter of fiscal 2026 demonstrated our resilience and disciplined commitment to managing profitability an ...

Core Insights - DLH Holdings Corp. reported a significant decline in revenue and net income for the fiscal first quarter ended December 31, 2025, reflecting a transition of legacy programs to small business contractors [3][4][6]. Financial Performance - Revenue decreased to $68.9 million from $90.8 million, a decline of 24.1% year-over-year [4]. - Income from operations fell to $1.4 million, down 75.0% from $5.6 million [4]. - The company reported a net loss of $1.3 million compared to a net income of $1.1 million in the prior year, marking a 218.2% change [4]. - Diluted earnings per share were $(0.09), a decrease of 212.5% from $0.08 [4]. - Adjusted EBITDA was $6.5 million, or 9.5% of revenue, down 34.3% from the previous year [4][6]. Cash Flow and Debt Management - Operating cash flow showed a usage of $(4.8) million, an improvement of 58.3% year-over-year [4][6]. - Free cash flow was $(4.8) million, a 60.3% improvement from $(12.1) million in the prior year [4][6]. - Debt increased to $136.6 million from $131.6 million, a rise of 3.8% [5]. Strategic Focus - The management emphasized a commitment to managing profitability and cash flow during the transition period, with initiatives to align costs with revenue volumes [3]. - The company aims to reduce debt levels using operating cash flow to enhance long-term financial flexibility and shareholder value [3]. Backlog and Future Outlook - The backlog increased slightly to $517.4 million from $514.3 million, reflecting a 0.6% growth [5]. - Management plans to discuss competitive conditions and strategies in an upcoming conference call [7].

Core Viewpoint - DLH Holdings Corp. is set to release its financial results for the fiscal first quarter ending December 31, 2025, on February 9, 2026, after market close, followed by a conference call on February 10, 2026, to discuss these results and operational trends [1]. Financial Results Announcement - The financial results will be released on February 9, 2026, after market close [1]. - A conference call for the investment community will take place on February 10, 2026, at 10:00 a.m. Eastern Time [1]. Conference Call Details - Interested parties can listen to the conference call by dialing 888-347-5290 or 412-317-5256 [2]. - Presentation materials will be available on the Investor Relations section of the DLH website prior to the call [2]. - A digital recording of the conference call will be accessible for replay two hours after the call's completion [2]. Company Overview - DLH enhances technology, public health, and cyber security readiness through various solutions and services [3]. - The company employs over 1,700 individuals dedicated to solving complex missions using advanced technologies [3]. - DLH focuses on digital transformation, artificial intelligence, advanced analytics, and telehealth systems to improve lives globally [3].