DHI(US:DHX) ZACKS·2025-11-11 16:35Core Insights - DHI Group (DHX) reported third-quarter 2025 non-GAAP earnings of 9 cents per share, exceeding the Zacks Consensus Estimate by 50% and showing an 80% year-over-year improvement [1] - DHX's revenues for the third quarter reached $32.1 million, surpassing the Zacks Consensus Estimate by 3.6%, although this represents a 9% decline year-over-year [1] - The company's adjusted EBITDA increased by 19% year-over-year to $10.3 million, with an adjusted EBITDA margin expansion of 800 basis points to 32% [4][7] Revenue Breakdown - The ClearanceJobs segment generated revenues of $13.9 million, accounting for 43.3% of total revenues, reflecting a 1% year-over-year increase driven by demand for security-cleared technology professionals [3] - The Dice segment contributed $18.2 million, which is 56.7% of total revenues, but saw a 15% year-over-year decline; however, profitability improved due to restructuring and a transition to a self-service recruiting platform [4] Financial Position - DHX reported a cash reserve of $2.3 million for the quarter ended September 30, down from $2.8 million in the previous quarter, with total debt standing at $30 million [5] - The company generated free cash flow of $3.2 million and operating cash flows of $4.8 million in the third quarter [5] Guidance - For the full year 2025, DHX reaffirmed its revenue guidance of $126-$128 million, with the Zacks Consensus Estimate at $126 million, indicating an 11.2% year-over-year decline [6] - The expected revenue range for the fourth quarter of 2025 is between $29.5 million and $31.5 million, with the Zacks Consensus Estimate at $30.7 million, reflecting an 11.5% year-over-year decline [6] - DHX raised its adjusted EBITDA margin guidance to 27% for 2025 [6] Market Reaction - Following the better-than-expected results, DHX's shares rose by 18.3% in after-market trading on November 10 [2]