DLH(US:DLHC)2026-02-09 21:44Revenue Performance - Revenue for the three months ended December 31, 2025, was $68.892 million, a decrease of 24.2% compared to $90.782 million for the same period in 2024[8] - Total revenue for the three months ended December 31, 2025, was $68,892,000, a decrease of 24% from $90,782,000 in the same period of 2024[55] - Revenue from the Department of Health and Human Services was $34,630,000, down from $41,948,000, representing a decline of approximately 17%[55] - Revenue from Time and Materials contracts was $30,605,000, down from $49,400,000, indicating a decline of approximately 38%[55] - Prime Contractor revenue was $64,454,000 for the three months ended December 31, 2025, compared to $84,439,000 in 2024, reflecting a decrease of about 24%[55] Financial Losses - The company reported a net loss of $1.324 million for the three months ended December 31, 2025, compared to a net income of $1.115 million in the prior year[8] - Basic and diluted net loss per share was $(0.09) for the three months ended December 31, 2025, compared to earnings of $0.08 per share in the same period of 2024[8] - Net loss for the three months ended December 31, 2025, was $1,324 million, compared to a net income of $1,115 million for the same period in 2024[14] - The net loss for the three months ended December 31, 2025, was $1,324,000, compared to a net income of $1,115,000 for the same period in 2024, marking a significant shift in financial performance[87] Operating Costs - Total operating costs for the same period were $67.456 million, down 20.8% from $85.145 million year-over-year[8] - Total operating costs for the three months ended December 31, 2025, were $67.456 million, down from $85.145 million in the same period of 2024, reflecting a decrease of 20.8%[8] - Total lease costs for the three months ended December 31, 2025, were $857,000, down from $989,000 in the same period of 2024, reflecting a decrease of approximately 13.3%[57] Assets and Liabilities - Total assets decreased to $283.508 million as of December 31, 2025, from $290.663 million as of September 30, 2025[11] - Current liabilities decreased to $41.026 million as of December 31, 2025, from $42.671 million as of September 30, 2025[11] - Shareholders' equity decreased to $112.188 million as of December 31, 2025, from $112.958 million as of September 30, 2025[11] - Total liabilities decreased from $177,705 million in September 2025 to $171,320 million in December 2025, a reduction of approximately 3.1%[11] Cash Flow and Financing - Net cash used in operating activities for the three months ended December 31, 2025, was $4.770 million, an improvement from $11.538 million in the same period of 2024[14] - The company had cash of $257,000 at the end of the period, up from $125,000 at the beginning of the period[14] - The company had an unused borrowing capacity of $10.7 million as of December 31, 2025, from a secured revolving line of credit with a ceiling of $50 million[77] - Proceeds from the revolving line of credit amounted to $67,396 million, while repayments totaled $62,362 million during the same period[14] Stock-Based Compensation - The company recognized stock-based compensation expense of $647,000 for the three months ended December 31, 2025, compared to $193,000 in the same period of 2024[14] - Total stock-based compensation expense for the three months ended December 31, 2025, was $647,000, compared to $193,000 for the same period in 2024, representing a 235% increase[79] - The company granted 427,046 restricted stock units during the three months ended December 31, 2025, compared to 312,906 in the same period of 2024[79] - Unrecognized stock-based compensation expense as of December 31, 2025, was $4.073 million, down from $5.841 million in 2024[83] Debt Obligations - The company's net bank debt obligations increased to $133,475,000 as of December 31, 2025, from $128,033,000 as of September 30, 2025[68] - Interest expense for the three months ended December 31, 2025, was $3,396,000, a decrease from $4,133,000 in the same period of 2024, representing a reduction of approximately 17.9%[70] - The secured term loan balance was $123,500,000 as of December 31, 2025, with a fixed interest rate of 4.1%[72] - Total contractual obligations as of December 31, 2025, amounted to $156.228 million, with debt obligations of $136.601 million[88] Accounts Receivable - The company's accounts receivable as of December 31, 2025, totaled $35,842,000, a decrease from $38,394,000 as of September 30, 2025[60] - Accounts receivable decreased from $38,394 million in September 2025 to $35,842 million in December 2025, a decline of approximately 6.6%[11] Goodwill and Intangible Assets - Goodwill remained unchanged at approximately $138.2 million as of December 31, 2025, compared to September 30, 2025[62] - Total intangible assets, net, were $87,752,000 as of December 31, 2025, down from $91,865,000 as of September 30, 2025[63] Tax Positions - There were no uncertain tax positions reported at either December 31, 2025, or September 30, 2025[39] - The Company recognized no allowance for doubtful accounts at either December 31, 2025, or September 30, 2025[44]