DHI(US:DHX)2025-11-10 21:22Revenue 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].