Core 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]

Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year quarter [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million and a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14][15] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [14][15] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, reflecting macroeconomic headwinds [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The proposed $1.1 trillion U.S. defense budget for fiscal year 2026 represents a 13% increase over the previous year's budget, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on providing software tools for employers and recruiters to find tech talent, with over 90% of revenue coming from subscriptions [5] - The integration of Agile ATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is exploring additional opportunities in the GovTech space to expand its offerings [52] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite a mixed macro backdrop, with a significant trend towards AI-related job postings driving future demand [7][8] - The company remains optimistic about future growth driven by the defense budget and increased technology investments across industries [23] - Management highlighted the importance of the upcoming defense budget bills being passed to stimulate activity in the market [41] Other Important Information - The company repurchased 741,000 shares for $2.1 million during the quarter, with a total of 2.6 million shares repurchased for $6.2 million year-to-date [22] - The company is targeting total capital expenditures in 2025 to range between $7 million and $8 million, down from $13.9 million last year [21] Q&A Session Summary Question: What is driving the margin expansion in Dice? - Management indicated that the margin expansion was due to headcount vacancies being backfilled and efficient cost allocation to capitalized development costs [29] Question: What was the $9 million write-off related to? - The write-off was related to the Dice trade name, which experienced revenue declines [32] Question: How has renewal activity versus new business activity trended since the government shutdown? - Management noted solid renewal rates among larger customers, while smaller customers faced challenges [56] Question: What percentage of job postings are related to AI? - Over 50% of job postings on the platform are related to AI projects, a significant increase from earlier in the year [49] Question: Are there any other opportunities in the GovTech space? - Management is evaluating several opportunities in the GovTech space, indicating potential for future growth [52]

DHI Group (NYSE:DHX) Q3 2025 Earnings Call November 10, 2025 05:00 PM ET Company ParticipantsMax Michaelis - Equity Research AssociateTodd Kehrli - Head of Investor RelationsGreg Schippers - CFOArt Zeile - CEOGary Prestopino - Managing DirectorConference Call ParticipantsNone - AnalystNone - AnalystOperatorGood afternoon, everyone, and welcome to the DHI Group Third Quarter 2025 Financial Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a con ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter of 2025 was $32.1 million, down 9% year-over-year and roughly flat compared to the second quarter [14] - Total bookings for the quarter were $25.4 million, down 12% year-over-year [14] - Total recurring revenue decreased by 11% compared to the prior year, with bookings driving recurring revenue down 13% for the quarter [14] - The company recorded a net loss of $4.3 million, or $0.10 per diluted share, compared to a net loss of $200,000, or $0.00 per diluted share, in the prior year [18] - Adjusted EBITDA for the third quarter was $10.3 million, with a margin of 32%, compared to $8.6 million and a margin of 24% in the prior year [19] Business Line Data and Key Metrics Changes - ClearanceJobs revenue was $13.9 million, up 1% year-over-year and up 2% sequentially, with bookings down 7% year-over-year [14] - Dice revenue was $18.2 million, down 15% year-over-year and down 1% sequentially, with bookings down 17% year-over-year [15] - ClearanceJobs had an average annual revenue per customer of $26,600, up 7% year-over-year [15] - Dice's average annual revenue per customer was $15,727, down 4% year-over-year [16] Market Data and Key Metrics Changes - The number of new tech job postings on Dice remained around 70% of normal levels, indicating a mixed macro backdrop [11] - Approximately 10% of job postings on Dice required at least one AI skill at the beginning of 2024, which has now risen above 50% [8] - The defense budget for fiscal year 2026 is proposed at $1.1 trillion, marking a 13% increase over the previous year, which is expected to benefit ClearanceJobs significantly [9] Company Strategy and Development Direction - The company focuses on providing software tools for employers and recruiters to find tech talent, with over 90% of revenue coming from subscriptions [5] - The integration of Agile ATS with ClearanceJobs aims to enhance the hiring workflow for cleared professionals [10] - The company is optimistic about future growth driven by the defense budget and increasing investments in technology initiatives across industries [23] Management's Comments on Operating Environment and Future Outlook - Management noted that tech hiring has stabilized despite remaining under historical levels, with a significant trend towards AI-related job postings [7] - The company anticipates that the record-breaking defense budget will drive growth for ClearanceJobs, while technology investments will create opportunities for both brands [23] - Management expressed confidence in the resilience of their subscription model and margin structure [13] Other Important Information - The company repurchased 741,000 shares for $2.1 million under its stock repurchase program [22] - The company is targeting total capital expenditures in 2025 to range between $7 million and $8 million, down from $13.9 million last year [21] Q&A Session Summary Question: What is driving the Dice margin expansion? - Management indicated that the margin expansion was due to headcount vacancies being backfilled and efficient cost allocation to capitalized development costs [28] Question: What was the $9 million write-off related to? - The write-off was related to the Dice trade name, which experienced revenue declines [31] Question: How is the government shutdown impacting bookings? - Management noted that smaller and mid-sized defense contractors have become more conservative, but larger firms remain bullish due to their stronger balance sheets [39] Question: What is the status of the new Dice platform migration? - Over half of the customers have migrated to the new platform, and management does not foresee churn risk with the remaining customers [41] Question: How is the company addressing customer acquisition costs with the new platform? - The introduction of a monthly subscription option has made it easier for customers to sign up, leading to an increase in new customer signings [56]

NYSE: DHX Q3 2025 Investor Presentation November 10, 2025 Forward looking statements This presenation and oral statements made from time to time by our representatives contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not place undue reliance on those statements because they are subject to numerous uncertainties an ...

Core Insights - DHI Group (DHX) is set to report its third-quarter 2025 earnings on November 10, 2025, with a consensus estimate of 6 cents per share, indicating a year-over-year growth of 20% [1][9] - The expected revenue for the same quarter is $31 million, reflecting a year-over-year decline of 12.1% [1][9] - DHX has consistently surpassed earnings estimates in the past four quarters, achieving an average earnings surprise of 147.9% [2] Performance Factors - The strong profitability of the ClearanceJobs platform and the rising demand for tech talent with AI skills are likely to have positively impacted DHX's performance [3] - The recent acquisition of AgileATS has enhanced DHX's market share in the applicant tracking system market, contributing to improved top-line performance [4] - However, the Dice platform is facing challenges due to a weak hiring environment, which may offset gains from other areas [5] Challenges and Strategies - DHX's focus on cost optimization and restructuring is expected to support its bottom line amid revenue softness [6] - Persistent macroeconomic uncertainty and a sluggish non-AI tech hiring market are anticipated to negatively affect Dice bookings [6] - The current Zacks Rank for DHX is 4 (Sell), with an Earnings ESP of 0.00%, indicating uncertainty regarding an earnings beat this season [7]

Summary of DHI Group (NYSE:DHX) Conference Call - October 20, 2025 Company Overview - **Company**: DHI Group, Inc. - **Industry**: Technology recruitment and job marketplace, specifically focused on tech professionals and security clearance jobs Key Points and Arguments 1. **Revenue Model**: Approximately 92% of DHI's revenue is derived from subscription contracts lasting one year or more, indicating a strong recurring revenue model [2][18] 2. **Financial Performance**: - Revenue for the previous year was $142 million with bookings of $141 million, both showing a 6% compound annual growth rate (CAGR) over five years [2][19] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin, with a target of 26% for 2025 [3][20] - Operating cash flow was $21 million, with capital expenditures (CapEx) of $14 million, primarily for software development [3][22] 3. **Market Position**: - DHI's Dice platform competes with LinkedIn, while ClearanceJobs has no direct competitors due to its focus on candidates with security clearances [4][5] - The tech workforce in the U.S. has grown approximately 3% annually over the last 25 years, with a projected growth of 18% from 2024 to 2034, which is double the overall workforce growth rate [10][11] 4. **Client Base**: - DHI serves approximately 4,400 clients on Dice and 1,900 clients on ClearanceJobs, with a significant target addressable market remaining [14][15][16] - Notable clients include Montefiore Healthcare System and General Motors, with Montefiore doubling its spend over ten years [13][25] 5. **Hiring Trends**: - The elevated interest rate environment has reduced hiring demand across all sectors, including technology [9][30] - However, there is a notable increase in demand for AI-related skills, with 50% of Dice job postings now requiring AI skills, up from 10% a year prior [31][32] 6. **Investment in Technology**: DHI has acquired an applicant tracking system (ATS) for $2 million to enhance its service offerings, which has already doubled its customer base within three months [34][35] Additional Important Insights - **Share Buyback Program**: DHI initiated a share buyback program in January 2024, having previously suspended it in 2023, and ended 2024 with a debt leverage ratio of less than 1x EBITDA [4][23] - **Cash Flow and Liquidity**: DHI targets a free cash flow of 10% of revenue annually, with a current debt of $32 million and approximately $2 million in cash on hand [22][23] - **Market Dynamics**: The company emphasizes the importance of skills over job titles in its recruitment process, utilizing a patented taxonomy of over 100,000 technology skills [12] This summary encapsulates the essential aspects of DHI Group's conference call, highlighting its business model, financial performance, market position, and strategic initiatives.

DHI Group (NYSE: DHX) Conference Call Summary Company Overview - DHI Group operates AI-powered career marketplaces focused on technology roles through its brands Dice and ClearanceJobs, enabling efficient connections between recruiters and skilled technology professionals [1][2] - The company is headquartered in Denver, Colorado, and is listed on the NYSE under the symbol DHX [2] Core Business Model - DHI Group's platforms are two-sided marketplaces that serve both clients (recruiters and hiring managers) and candidates [3] - The company has over 8 million professionals profiled, representing two-thirds of skilled technologists in the U.S. [3] - More than 90% of DHI's revenue is recurring, primarily from subscription contracts [4][14] Financial Performance - In 2024, DHI reported $142 million in revenue and $141 million in bookings, with a five-year CAGR of 6% for both [5][17] - Adjusted EBITDA was $35 million, yielding a 25% margin [5] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [5] Market Position and Competitors - ClearanceJobs is the leading platform for technology professionals with government clearance, a niche not served by competitors like LinkedIn [8][28] - Dice competes with platforms like LinkedIn, Indeed, and ZipRecruiter but focuses specifically on high-end tech talent [26][28] Industry Trends - The U.S. tech workforce has grown by approximately 3-4% annually over the past 25 years, with forecasts predicting an 18% growth over the next decade [6][10] - The demand for tech professionals is driven by the increasing reliance on technology and automation across all sectors [10][11] Challenges and Opportunities - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [10][18] - The company is targeting a 26% adjusted EBITDA margin for 2025, despite challenging market conditions [18] - The anticipated $1.1 trillion defense budget for fiscal year 2026 is expected to provide a significant boost to ClearanceJobs [31] Unique Value Proposition - DHI's platforms utilize a patented skills taxonomy that categorizes over 100,000 tech skills, differentiating them from generalist platforms [11][12] - The company emphasizes the cost-effectiveness of its services compared to external recruiters, with subscription costs ranging from $8,000 to $15,000 for entry-level positions [9] Future Growth Strategies - DHI Group is exploring M&A opportunities adjacent to ClearanceJobs and has recently acquired Agile ATS to enhance its offerings [24][25] - The company is focused on expanding its talent acquisition capabilities and improving client engagement through new features and services [24][25] Summary - DHI Group is well-positioned to capture growth in tech hiring, supported by a strong subscription model, a unique candidate pool, and anticipated increases in defense spending [25][31]

Summary of DHI Group Inc. Q3 Investor Summit Company Overview - DHI Group Inc. is listed on the New York Stock Exchange under the symbol DHX and is headquartered in Denver, Colorado [2] - The company operates two tech-oriented recruiting platforms: ClearanceJobs and Dice, which connect recruiters and hiring managers with tech candidates [2][3] Industry Insights - The U.S. tech workforce has grown by approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is twice the overall employment growth rate [5][8] - The average salary for a tech worker in the U.S. was $111,000, compared to $50,000 for the average worker [6] Financial Performance - DHI reported $142 million in revenue and $141 million in bookings for the previous year, with a five-year CAGR of 6% for both metrics [4] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin [4] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [4] Revenue Model - Over 90% of DHI's revenue is recurring due to subscription contracts, with a one-year minimum contract and auto-renewal clauses [12] - DHI's platforms charge clients between $8,000 to $15,000 for entry-level year-long subscriptions [7] Market Position and Competitive Advantage - ClearanceJobs is the leading platform for accessing technology professionals with government clearance, a niche not served by LinkedIn [5][6] - DHI has a unique skills taxonomy that categorizes over 100,000 tech skills, which enhances candidate profiling and search capabilities [9][10] - The company has a significant total addressable market (TAM) with approximately 1,900 clients for ClearanceJobs and 4,400 clients for Dice [11][20] Recent Developments - DHI has restructured its operations to separate Dice and ClearanceJobs, aiming to maximize profitability and strategic options [15][16] - The company has reinstituted its share buyback program, allowing for the repurchase of up to $5 million of common stock through February 2026 [19] Future Outlook - Revenue guidance for 2025 is projected between $126 million and $128 million, with an expected EBITDA margin of 26% [26] - DHI is exploring new revenue lines, including an applicant tracking system (Agile ATS) and a premium candidate subscription for ClearanceJobs [28][29] Challenges and Market Conditions - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [8][16] - Dice's quarterly bookings have seen a decline of 16% year-over-year, reflecting challenges in the HR tech hiring environment [21] Key Differentiators - DHI differentiates itself from larger players like LinkedIn by focusing on tech skills rather than job titles, allowing for more relevant candidate engagement [32][34] - The platforms provide insights into candidate activity, such as the number of days since a candidate was last active, which is crucial for recruiters [34][35] Conclusion - DHI Group Inc. is well-positioned to capture growth in tech hiring, leveraging its unique platforms and expertise in technology recruitment [23]

Summary of DHI Group (DHX) Conference Call - August 20, 2025 Company Overview - **Company Name**: DHI Group - **Ticker Symbol**: DHX - **Headquarters**: Denver, Colorado - **Business Model**: DHI Group operates two tech-oriented recruiting platforms, ClearanceJobs and Dice, which connect recruiters with tech candidates [3][4] Industry Insights - **Market Position**: DHI Group's platforms are essential for recruiters seeking technology professionals, differentiating themselves from competitors like Indeed and ZipRecruiter through specialized search algorithms and a large database of tech professionals [4][5] - **Tech Workforce Growth**: The U.S. tech workforce has grown approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is double the overall employment growth rate [8][11] Financial Performance - **2024 Financials**: - Revenue: $142 million - Bookings: $141 million - Adjusted EBITDA: $35 million (25% margin) - Operating Cash Flow: $21 million - Capital Expenditures: $14 million [6][7] - **Recurring Revenue**: Over 90% of revenue is recurring due to subscription contracts, with a significant portion of revenue already under contract at the start of each year [16][18] - **Debt Management**: Ended 2024 with net debt of $28 million, equating to less than one times leverage [7][22] Business Segments - **ClearanceJobs**: - Revenue: $54 million in 2024 - Client Base: 1,900 clients, with a five-year CAGR of 15% in bookings [23][24] - Adjusted EBITDA Margin: Above 40% [25] - **Dice**: - Revenue: $88 million in 2024 - Client Base: 4,400 subscription clients, with a five-year CAGR of 2% in bookings [25][26] - Adjusted EBITDA Margin: Approximately 20% [27] Market Challenges and Opportunities - **Hiring Demand**: The elevated interest rate environment has suppressed hiring demand, but the tech industry is expected to recover, with ClearanceJobs projected to achieve double-digit growth soon [11][32] - **AI Integration**: AI is seen as an opportunity, with nearly 40% of jobs on Dice requiring AI skills, up from 10% the previous year [30][42] - **Client Retention**: Dice's renewal rate has faced challenges due to client losses, but ClearanceJobs has maintained a strong retention rate [36][38] Strategic Initiatives - **Acquisition of Agile ATS**: This acquisition enhances ClearanceJobs' offerings by integrating an applicant tracking system specifically designed for hiring security-cleared individuals, valued at $2 million [46][47] - **Cost Management**: Restructuring efforts have reduced operating costs by approximately $35 million, with a target adjusted EBITDA margin of 26% for 2025 [19][20] Future Outlook - **Growth Projections**: DHI Group anticipates returning to growth by mid-2026, driven by improvements in the tech hiring market and the performance of ClearanceJobs [32][33] - **Acquisition Pipeline**: The company is actively seeking tuck-in acquisitions to expand ClearanceJobs' footprint in the recruiting space [48] Additional Insights - **Client Pricing Trends**: There is potential for increased pricing on ClearanceJobs due to a lack of viable competitors, while Dice faces more macroeconomic pricing challenges [39][41] - **Candidate Availability**: The number of candidates remains steady, with 6 to 8 million candidates actively engaging on the platforms [34] This summary encapsulates the key points discussed during the DHI Group conference call, highlighting the company's position in the tech recruiting industry, financial performance, market challenges, and strategic initiatives for future growth.