DHI(US:DHX) Yahoo Finance·2026-02-06 06:36Core Insights - DHI Group emphasizes its proprietary skills taxonomy, categorizing over 100,000 tech skills, including 360 distinct skills related to AI, which sets it apart from title-centric platforms [1] - The company has over 9 million tech professionals profiled, representing more than two-thirds of skilled technologists in the U.S., attributed to its long-standing history with Dice and ClearanceJobs [2] Company Overview - DHI Group operates two tech-oriented recruiting platforms, ClearanceJobs and Dice, which serve as two-sided marketplaces for recruiters and candidates [3] - The company reported $128 million in revenue for 2025, with a 27% adjusted EBITDA margin and $21 million in operating cash flow [7][12] Financial Performance - ClearanceJobs generated approximately $55 million in revenue with over 40% adjusted EBITDA margin, while Dice reported $73 million but faced declines in bookings and revenue [5][18] - DHI's overall revenue is over 90% recurring, driven by annual subscription contracts, with a target of 25% adjusted EBITDA margin for 2026 [14][13] Product Initiatives - Recent product initiatives include a new self-service monthly offering for Dice and a premium candidate experience on ClearanceJobs [6][8] - DHI acquired Agile ATS, a government-focused applicant tracking system, which has seen significant growth since the acquisition [9] Market Conditions - The company noted a multi-year "hiring recession," particularly affecting tech staffing, which constitutes about 80% of Dice's revenue [11][19] - Management believes that the demand environment is normalizing, with expectations for growth driven by large addressable markets and increased defense spending [20] Capital Allocation - DHI repurchased $11.4 million in shares in 2025 and announced a new $10 million buyback program for 2026 [15][16] - The company ended 2025 with net debt of approximately $27 million, maintaining a leverage ratio of less than 1x [15]