DHI(DHX) - 2025 Q2 - Quarterly Results

Executive Summary & Business Overview This section provides an overview of DHI Group's Q2 2025 financial performance, management insights, company profile, and forward-looking statements Second Quarter 2025 Financial Highlights DHI Group reported a decline in total revenue and bookings for Q2 2025, primarily driven by a significant decrease in Dice's performance, while ClearanceJobs showed modest growth, recording a net loss due to a substantial restructuring charge, though non-GAAP EPS and Adjusted EBITDA margin improved Financial Highlights (in millions, except EPS and percentages) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | % Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | :------------- | | Revenue | | | | | | Total Revenue | $32.0 | $35.8 | ($3.8) | (11)% | | ClearanceJobs Revenue | $13.6 | $13.5 | $0.1 | 1% | | Dice Revenue | $18.4 | $22.3 | ($3.9) | (18)% | | Bookings | | | | | | Total Bookings | $27.1 | $29.9 | ($2.8) | (10)% | | ClearanceJobs Bookings | $11.6 | $11.5 | $0.1 | 0% | | Dice Bookings | $15.6 | $18.4 | ($2.8) | (16)% | | Profitability | | | | | | Net Loss (Income) | ($0.8) | $0.9 | ($1.7) | (189)% | | Diluted EPS | ($0.02) | $0.02 | ($0.04) | — % | | Non-GAAP EPS | $0.07 | $0.06 | $0.01 | 17% | | Adjusted EBITDA | $8.5 | $9.0 | ($0.5) | (5)% | | Adjusted EBITDA Margin | 27% | 25% | 2% | | | ClearanceJobs Adj. EBITDA | $6.1 | $6.0 | $0.1 | 2% | | ClearanceJobs Adj. EBITDA Margin | 45% | 44% | 1% | | | Dice Adj. EBITDA | $4.2 | $4.8 | ($0.6) | (12.5)% | | Dice Adj. EBITDA Margin | 23% | 22% | 1% | | | Cash & Debt | | | | | | Cash Flow from Operations | $6.9 | $9.1 | ($2.2) | (24)% | | Free Cash Flow | $4.8 | $5.6 | ($0.8) | (14)% | | Cash at Quarter End | $2.8 | $3.0 | ($0.2) | (7)% | | Total Debt | $30.0 | $35.0 | ($5.0) | (14)% | - A $4.2 million restructuring charge was incurred, projected to yield $14.0 million to $16.0 million in future annualized cost savings[4] Management Commentary The CEO emphasized ClearanceJobs' strategic importance and strong profitability, citing the AgileATS acquisition as a key step in expanding the GovTech footprint, while the CFO revised full-year revenue guidance downwards due to broader tech hiring headwinds but raised the full-year Adjusted EBITDA margin guidance, reflecting cost management and operational efficiency from the recent restructuring - DHI Group's CEO, Art Zeile, highlighted ClearanceJobs' strategic importance and strong profitability, noting its role in connecting employers with tech talent and the expansion of the GovTech footprint through the AgileATS acquisition[4][5] - CFO Greg Schippers stated that DHI Group is reducing its full-year revenue guidance to $126 million to $128 million, with third-quarter revenue expected to be $31 million to $32 million, due to anticipated stabilization of the broader tech hiring environment[6] - The company is raising its full-year Adjusted EBITDA margin guidance to 26%, reflecting continued cost management and operational efficiency following the recently announced restructuring[6] Company Overview DHI Group, Inc. is a provider of AI-powered career marketplaces, primarily through its brands ClearanceJobs and Dice, which focus on connecting recruiters with highly skilled technology professionals using a patented skills-matching algorithm - DHI Group, Inc. (NYSE: DHX) provides AI-powered career marketplaces specializing in technology roles[9] - The company's two main brands, ClearanceJobs and Dice, facilitate connections between recruiters and tech professionals using a patented algorithm that manages over 100,000 unique technology skills[9] Conference Call Information DHI Group hosted a conference call on August 6, 2025, at 5:00 p.m. Eastern Time to discuss its financial results and recent developments, with access provided via dial-in and a live webcast - A conference call was scheduled for August 6, 2025, at 5:00 p.m. Eastern Time, hosted by President and CEO Art Zeile and CFO Greg Schippers[7] - Access to the call was available via dialing 844-890-1790 (U.S.) or 412-380-7407 (outside U.S.), and a live webcast was provided through the Investor Relations section of the company's website[8] Forward-Looking Statements This section serves as a disclaimer, indicating that the press release contains forward-looking statements subject to numerous uncertainties and factors that could cause actual results to differ materially from projections, advising against undue reliance on these statements and listing various risks, including market competition, business model adaptation, and economic downturns - The press release contains forward-looking statements, which are subject to numerous uncertainties and factors that are difficult to predict and beyond the company's control[10] - Key factors that could affect actual financial results include the ability to execute the tech-focused strategy, competition, failure to adapt the business model, inability to integrate acquisitions, and economic cyclicality[11] - Readers are cautioned not to place undue reliance on these statements, which speak only as of their original date, and the company has no obligation to update them except as required by law[10][11] Financial Statements This section presents the company's Condensed Consolidated Statements of Operations, Cash Flows, and Balance Sheets for the reported periods Condensed Consolidated Statements of Operations The Condensed Consolidated Statements of Operations show a net loss of $0.8 million for Q2 2025, a significant decline from a net income of $0.9 million in Q2 2024, primarily due to a $4.2 million restructuring charge and a decrease in total revenue Condensed Consolidated Statements of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :------ | :------ | :------- | :------- | | Revenue | $32,027 | $35,833 | $64,328 | $71,858 | | Total Operating Expenses | $33,292 | $33,830 | $74,874 | $67,886 | | Operating Income (Loss) | ($1,265) | $2,003 | ($10,546) | $3,972 | | Net Income (Loss) | ($841) | $943 | ($10,592) | ($569) | | Diluted EPS | ($0.02) | $0.02 | ($0.23) | ($0.01) | - A restructuring charge of $4,216 thousand was recorded in Q2 2025, contributing to the net loss, compared to no such charge in Q2 2024[24] Condensed Consolidated Statements of Cash Flows The Condensed Consolidated Statements of Cash Flows indicate a decrease in net cash from operating activities for Q2 2025 compared to Q2 2024, alongside reduced cash used in investing activities due to lower fixed asset purchases, with net cash used in financing activities also decreasing Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Net Cash from Operating Activities | $6,866 | $9,063 | $9,114 | $11,150 | | Net Cash Used in Investing Activities | ($2,025) | ($3,471) | ($4,185) | ($7,913) | | Net Cash Used in Financing Activities | ($4,714) | ($5,877) | ($5,849) | ($4,488) | | Net Change in Cash | $127 | ($285) | ($920) | ($1,251) | | Cash, End of Period | $2,782 | $2,955 | $2,782 | $2,955 | - Purchases of fixed assets decreased by 41% year-over-year in Q2 2025, contributing to lower cash used in investing activities[26][51] Condensed Consolidated Balance Sheets The Condensed Consolidated Balance Sheets show a decrease in total assets and total liabilities from December 31, 2024, to June 30, 2025, with cash balances also declining, while deferred revenue saw a slight increase Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash | $2,782 | $3,702 | | Accounts Receivable, Net | $17,733 | $22,120 | | Total Current Assets | $25,755 | $29,653 | | Goodwill | $120,300 | $128,100 | | Total Assets | $204,944 | $221,371 | | Deferred Revenue (Current) | $46,482 | $44,934 | | Total Current Liabilities | $61,834 | $62,713 | | Long-Term Debt | $30,000 | $32,000 | | Total Liabilities | $102,448 | $107,046 | | Total Stockholders' Equity | $102,496 | $114,325 | - Goodwill decreased from $128.1 million at December 31, 2024, to $120.3 million at June 30, 2025, indicating an impairment charge during the period[24][28] Non-GAAP Financial Measures & Supplemental Data This section defines non-GAAP financial measures, provides supplemental data, and includes reconciliations for key performance indicators Notes Regarding the Use of Non-GAAP Financial Measures This section clarifies the company's use of non-GAAP financial measures like Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and Non-GAAP Earnings Per Share, explaining that these measures provide additional insights into financial and business trends, are used for internal management, and exclude items affecting comparability, while also outlining their limitations compared to GAAP measures - Non-GAAP measures (Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Non-GAAP EPS) are provided as supplemental information to GAAP, offering insights into financial and business trends for management and investors[13] - Management uses these non-GAAP measures for reviewing financial results, budgeting, planning, and evaluating profitability and performance comparisons[13][16] - Limitations of non-GAAP measures include not reflecting cash expenditures, working capital needs, interest expense, or cash requirements for asset replacements, and potential differences in calculation by other companies[20][22] Non-GAAP Earnings Per Share Definition This section defines Non-GAAP Earnings Per Share, outlining its calculation methodology and limitations as a non-GAAP financial metric - Non-GAAP Earnings Per Share is calculated as diluted earnings per share adjusted for non-cash stock-based compensation, impairments, restructuring charges, severance, and discrete tax items[14] - It is not a GAAP measurement and should not be considered an alternative to diluted earnings per share or net income[15] Free Cash Flow Definition This section defines Free Cash Flow, detailing its calculation and significance for assessing the company's liquidity and debt servicing capacity - Free Cash Flow is defined as net cash provided by operating activities minus fixed asset purchases[15] - It is considered an important non-GAAP measure for investors to understand the company's ability to service debt, incur or pay down indebtedness, or repurchase common stock[15] Adjusted EBITDA and Adjusted EBITDA Margin Definition This section defines Adjusted EBITDA and Adjusted EBITDA Margin, explaining their calculation and utility for internal monitoring and performance evaluation - Adjusted EBITDA represents net income adjusted for interest expense, income tax expense, depreciation and amortization, non-cash stock-based compensation, impairment charges, restructuring charges, and other non-recurring items[16][17] - Adjusted EBITDA Margin is computed as Adjusted EBITDA divided by revenue[18] - These measures are used for internal monitoring, planning, analyzing investment decisions, and evaluating profitability, and are considered important indicators for investors regarding cash flow generation[16][19] Non-GAAP & Supplemental Data Overview This section introduces the supplemental information and non-GAAP financial data provided to help readers assess DHI Group's business operations and performance, including necessary reconciliations to the most comparable GAAP measures - Supplemental information and non-GAAP financial data are provided to assist in assessing business operations and performance[30] - Required reconciliations to the most directly comparable GAAP measures are included within the press release[30] Revenue and Profitability Metrics DHI Group's Q2 2025 revenue declined 11% YoY, primarily due to an 18% drop in Dice revenue, while ClearanceJobs revenue grew 1%, reporting a net loss for the quarter, but non-GAAP EPS increased, and Adjusted EBITDA margin improved to 27% Revenue and Profitability Metrics (in thousands, except percentages and EPS) | Metric | Q2 2025 | Q2 2024 | $ Change | % Change | | :-------------------------- | :------ | :------ | :------- | :------- | | Revenue | | | | | | ClearanceJobs | $13,626 | $13,528 | $98 | 1% | | Dice | $18,401 | $22,305 | ($3,904) | (18)% | | Total Revenue | $32,027 | $35,833 | ($3,806) | (11)% | | Profitability | | | | | | Net income (loss) | ($841) | $943 | ($1,784) | (189)% | | Net income (loss) margin | (3)% | 3% | n.m. | n.m. | | Diluted earnings (loss) per share | ($0.02) | $0.02 | ($0.04) | — % | | Non-GAAP earnings per share | $0.07 | $0.06 | $0.01 | 17% | | Adjusted EBITDA | $8,494 | $8,972 | ($478) | (5)% | | Adjusted EBITDA margin | 27% | 25% | n.m. | n.m. | Revenue and Profitability Metrics (YTD, in thousands, except percentages and EPS) | Metric | YTD 2025 | YTD 2024 | $ Change | % Change | | :-------------------------- | :------- | :------- | :------- | :------- | | Revenue | | | | | | ClearanceJobs | $27,003 | $26,533 | $470 | 2% | | Dice | $37,325 | $45,325 | ($8,000) | (18)% | | Total Revenue | $64,328 | $71,858 | ($7,530) | (10)% | | Profitability | | | | | | Net income (loss) | ($10,592) | ($569) | ($10,023) | n.m. | | Net income (loss) margin | (16)% | (1)% | n.m. | n.m. | | Diluted earnings (loss) per share | ($0.23) | ($0.01) | — | n.m. | | Non-GAAP earnings per share | $0.11 | $0.12 | — | (8)% | | Adjusted EBITDA | $15,475 | $17,541 | ($2,066) | (12)% | | Adjusted EBITDA margin | 24% | 24% | n.m. | n.m. | Bookings and Customer Metrics Total bookings for Q2 2025 decreased by 10% year-over-year, primarily due to a 16% decline in Dice bookings, while ClearanceJobs bookings remained flat, with year-to-date bookings also showing a similar trend Bookings (in thousands) | Bookings | Q2 2025 | Q2 2024 | $ Change | % Change | | :---------------------- | :------ | :------ | :------- | :------- | | ClearanceJobs | $11,569 | $11,521 | $48 | 0% | | Dice | $15,551 | $18,466 | ($2,915) | (16)% | | Total Bookings | $27,120 | $29,987 | ($2,867) | (10)% | Bookings (YTD, in thousands) | Bookings | YTD 2025 | YTD 2024 | $ Change | % Change | | :---------------------- | :------- | :------- | :------- | :------- | | ClearanceJobs | $28,386 | $28,511 | ($125) | 0% | | Dice | $40,859 | $50,252 | ($9,393) | (19)% | | Total Bookings | $69,245 | $78,763 | ($9,518) | (12)% | - Bookings represent the value of contractually committed services with a contract start date during the period, recognized as revenue within 12 months[40] Average Annual Revenue per Recruitment Package Customer ClearanceJobs experienced a 7% increase in average annual revenue per recruitment package customer in Q2 2025, while Dice saw a 5% decrease, reflecting divergent performance trends between the two brands Average Annual Revenue per Recruitment Package Customer | Brand | Q2 2025 | Q2 2024 | $ Change | % Change | | :------------ | :------ | :------ | :------- | :------- | | ClearanceJobs | $26,026 | $24,275 | $1,751 | 7% | | Dice | $15,434 | $16,294 | ($860) | (5)% | Average Annual Revenue per Recruitment Package Customer (YTD) | Brand | YTD 2025 | YTD 2024 | $ Change | % Change | | :------------ | :------- | :------- | :------- | :------- | | ClearanceJobs | $25,916 | $23,662 | $2,254 | 10% | | Dice | $15,909 | $16,146 | ($237) | (1)% | Renewal and Retention Rates ClearanceJobs' renewal rates (by revenue and count) and retention rates decreased in Q2 2025 compared to Q2 2024, though its retention rate remained above 100%, while Dice also experienced declines in renewal rates, but its retention rate improved slightly Renewal Rate on Revenue | Renewal Rate on Revenue | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :------ | :------ | :------- | :------- | | ClearanceJobs | 87% | 96% | 90% | 98% | | Dice | 75% | 78% | 72% | 81% | Renewal Rate on Count | Renewal Rate on Count | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | ClearanceJobs | 77% | 78% | 78% | 79% | | Dice | 66% | 69% | 68% | 74% | Retention Rates | Retention Rates | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------- | :------ | :------ | :------- | :------- | | ClearanceJobs | 103% | 113% | 105% | 113% | | Dice | 102% | 99% | 96% | 100% | Recruitment Package Customers, Deferred Revenue and Backlog Both ClearanceJobs and Dice experienced a decrease in recruitment package customers year-over-year, with deferred revenue increasing slightly from December 2024 but decreasing year-over-year, while total backlog saw a modest decline Recruitment Package Customers | Recruitment Package Customers | June 30, 2025 | June 30, 2024 | Change | % Change | | :---------------------------- | :------------ | :------------ | :----- | :------- | | ClearanceJobs | 1,868 | 2,009 | (141) | (7)% | | Dice | 4,365 | 5,031 | (666) | (13)% | Deferred Revenue and Backlog (in thousands) | Deferred Revenue and Backlog | June 30, 2025 | December 31, 2024 | $ Change (vs Dec 2024) | % Change (vs Dec 2024) | June 30, 2024 | $ Change (vs Jun 2024) | % Change (vs Jun 2024) | | :------------------------------------------ | :------------ | :---------------- | :--------------------- | :--------------------- | :------------ | :--------------------- | :--------------------- | | Deferred Revenue | $46,858 | $45,456 | $1,402 | 3% | $52,268 | ($5,410) | (10)% | | Contractual commitments not invoiced | $54,316 | $59,294 | ($4,978) | (8)% | $51,431 | $2,885 | 6% | | Backlog | $101,174 | $104,750 | ($3,576) | (3)% | $103,699 | ($2,525) | (2)% | Non-GAAP Earnings Per Share Reconciliation The reconciliation shows that DHI Group's diluted loss per share of ($0.02) in Q2 2025 was adjusted to a non-GAAP earnings per share of $0.07, primarily by adding back non-cash stock-based compensation and restructuring charges, net of tax impacts Non-GAAP Earnings Per Share Reconciliation | Reconciliation Item | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------------------------------------------------- | :------ | :------ | :------- | :------- | | Diluted earnings (loss) per share | ($0.02) | $0.02 | ($0.23) | ($0.01) | | Non-cash stock-based compensation | $0.03 | $0.05 | $0.06 | $0.10 | | Non-cash stock-based compensation, tax impact | ($0.01) | ($0.01) | ($0.01) | ($0.02) | | Impairments | — | — | $0.17 | $0.01 | | Severance, professional fees and related costs | $0.01 | — | $0.03 | — | | Severance, professional fees and related costs, tax impact | — | — | ($0.01) | — | | Restructuring | $0.09 | — | $0.14 | — | | Restructuring, tax impact | ($0.02) | — | ($0.04) | — | | Discrete tax items | ($0.01) | — | — | $0.05 | | Other | — | — | — | ($0.01) | | Non-GAAP earnings per share | $0.07 | $0.06 | $0.11 | $0.12 | - The non-GAAP blended statutory income tax rate used for calculating tax impacts of non-GAAP adjustments was 25% for all periods presented[48] Free Cash Flow Reconciliation Free Cash Flow for Q2 2025 was $4.8 million, a decrease from $5.6 million in Q2 2024, despite a significant reduction in capitalized development costs and other fixed asset purchases, with year-to-date Free Cash Flow, however, increasing substantially Free Cash Flow Reconciliation (in thousands) | Reconciliation Item | Q2 2025 | Q2 2024 | $ Change | % Change | | :--------------------------------- | :------ | :------ | :------- | :------- | | Cash provided by operating activities | $6,866 | $9,063 | ($2,197) | (24)% | | Less: Capitalized development costs | $1,900 | $3,224 | ($1,324) | (41)% | | Less: Other fixed asset purchases | $125 | $247 | ($122) | (49)% | | Total fixed asset purchases | $2,025 | $3,471 | ($1,446) | (42)% | | Free Cash Flow | $4,841 | $5,592 | ($751) | n.m. | Free Cash Flow Reconciliation (YTD, in thousands) | Reconciliation Item | YTD 2025 | YTD 2024 | $ Change | % Change | | :--------------------------------- | :------- | :------- | :------- | :------- | | Cash provided by operating activities | $9,114 | $11,150 | ($2,036) | (18)% | | Less: Capitalized development costs | $3,868 | $6,644 | ($2,776) | (42)% | | Less: Other fixed asset purchases | $317 | $1,269 | ($952) | (75)% | | Total fixed asset purchases | $4,185 | $7,913 | ($3,728) | (47)% | | Free Cash Flow | $4,929 | $3,237 | $1,692 | 52% | Adjusted EBITDA Reconciliations Adjusted EBITDA for Q2 2025 was $8.5 million, a 5% decrease YoY, while the Adjusted EBITDA margin improved to 27%, with the reconciliations detailing adjustments from net income (loss) and cash flows from operating activities, highlighting significant restructuring and impairment charges in 2025, and ClearanceJobs maintaining a strong Adjusted EBITDA margin, while Dice's margin also improved Reconciliation from Net Income (Loss) (in thousands) | Reconciliation Item | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------------------------------------- | :------ | :------ | :------- | :------- | | Net income (loss) | ($841) | $943 | ($10,592) | ($569) | | Interest expense | $619 | $845 | $1,279 | $1,791 | | Income tax expense (benefit) | ($1,080) | $383 | ($1,206) | $2,652 | | Depreciation | $3,761 | $4,586 | $7,745 | $9,042 | | Non-cash stock based compensation | $1,536 | $2,160 | $2,599 | $4,304 | | Impairment of goodwill | — | — | $7,800 | — | | Restructuring | $4,216 | — | $6,486 | — | | Adjusted EBITDA | $8,494 | $8,972 | $15,475 | $17,541 | Adjusted EBITDA by Segment (Q2 2025, in thousands, except percentages) | Adjusted EBITDA by Segment | ClearanceJobs | Dice | Corporate | Total | | :------------------------------------------------- | :------------ | :--- | :-------- | :---- | | Revenue | $13,626 | $18,401 | — | $32,027 | | Adjusted EBITDA | $6,072 | $4,169 | ($1,747) | $8,494 | | Adjusted EBITDA margin | 45% | 23% | n.m. | 27% | Adjusted EBITDA by Segment (Q2 2024, in thousands, except percentages) | Adjusted EBITDA by Segment | ClearanceJobs | Dice | Corporate | Total | | :------------------------------------------------- | :------------ | :--- | :-------- | :---- | | Revenue | $13,528 | $22,305 | — | $35,833 | | Adjusted EBITDA | $5,957 | $4,829 | ($1,814) | $8,972 | | Adjusted EBITDA margin | 44% | 22% | n.m. | 25% | Guidance DHI Group provided full-year Adjusted EBITDA margin guidance but stated that it is unable to reconcile this non-GAAP measure to its nearest GAAP equivalent without unreasonable efforts due to the unpredictable nature of certain adjusting items - The company is raising its full-year Adjusted EBITDA margin guidance to 26%[6] - Reconciliation of expected Adjusted EBITDA margin to GAAP measures is not provided due to the inability to predict with reasonable certainty the impact of non-cash stock-based compensation, impairments, income tax expense, and restructuring charges[62]