Core Viewpoint - A class action lawsuit has been filed against KBR, Inc. for allegedly misleading investors regarding the capabilities of its joint venture, HomeSafe Alliance, to fulfill a significant contract with the U.S. Department of Defense [1][2][3]. Group 1: Allegations and Contract Issues - HomeSafe Alliance, a joint venture in which KBR holds a 72% economic interest, was awarded the Global Household Goods Contract by TRANSCOM, which assists U.S. military personnel and their families with relocations [2]. - The complaint alleges that KBR was aware of TRANSCOM's concerns about HomeSafe's ability to meet contract obligations but continued to assert that the partnership was functioning well and would improve in future quarters [3]. Group 2: Stock Price Impact - Following the announcement of issues between TRANSCOM and HomeSafe, KBR's stock price dropped by $3.85 per share (7.29%) to close at $48.93 on June 20, 2025, and fell further by $1.30 (2.65%) to close at $47.63 on June 23, 2025 [4]. Group 3: Class Action Participation - Shareholders interested in leading the class action must submit their papers by November 18, 2025, and can choose to remain absent from the case while still being eligible for recovery [5].

Core Insights - DLH Holdings Corp. reported a decline in revenue for Q3 fiscal 2025, totaling $83.3 million compared to $100.7 million in Q3 fiscal 2024, primarily due to small business set-aside transitions and contract adjustments [5][8][11] - The company experienced a reduction in operating income to $3.8 million, with an operating margin of 4.5%, down from 5.7% in the previous year [6][8] - DLH's total debt decreased to $142.3 million as of June 30, 2025, reflecting a $9.4 million reduction during the quarter [11][12] Financial Performance - Revenue for the three months ended June 30, 2025, was $83.3 million, a decrease of approximately $17.4 million year-over-year [5][8] - Net income for Q3 fiscal 2025 was approximately $0.3 million, or $0.02 per diluted share, compared to $1.1 million, or $0.08 per diluted share, in Q3 fiscal 2024 [9][10] - EBITDA for Q3 fiscal 2025 was $8.1 million, representing 9.7% of revenue, down from $10.0 million or 10.0% of revenue in the prior year [10][26] Operational Highlights - The company managed to reduce general and administrative expenses by $1.1 million year-over-year, reflecting effective management of operating costs [6][11] - DLH's contract backlog as of June 30, 2025, was approximately $555.3 million, a decrease from $690.3 million as of September 30, 2024 [12][11] - Interest expense decreased to $3.5 million in Q3 fiscal 2025 from $4.1 million in the prior-year period, attributed to lower outstanding debt [7][11] Strategic Outlook - Management expressed optimism about future growth opportunities, citing expected increases in defense spending and a focus on advanced technologies and public health initiatives [4][3] - The company anticipates a return to robust bid activity and funding across key service areas for fiscal 2026 and beyond [3][4] - DLH is positioned to leverage its capabilities in cybersecurity, digital transformation, and public health to support federal agencies [4][3]