DHI(US:DHX)2026-02-05 19:02DHI Group (NYSE: DHX) Conference Summary Company Overview - DHI Group operates two tech-oriented recruiting platforms: ClearanceJobs and Dice, which connect employers with tech talent in the U.S. [4][5] - The company is headquartered in Denver, Colorado, and is listed on the New York Stock Exchange under the symbol DHX [4]. Financial Performance - In 2025, DHI Group reported $128 million in revenue and $126 million in bookings, with a five-year CAGR of 2% for revenue and a decline of 1% for bookings [7]. - Adjusted EBITDA was $35 million, resulting in a 27% Adjusted EBITDA margin [7]. - The company generated $21 million in operating cash flow and $14 million in free cash flow [7]. - Over 90% of revenue is recurring, with a significant portion coming from subscription contracts [6][20]. Market Dynamics - The tech staffing sector, which constitutes over 80% of Dice's revenue, is beginning to recover after a hiring recession [7][32]. - The U.S. tech workforce has grown by approximately 3% annually over the past 30 years, with a forecasted growth of at least 15% over the next decade [9][14]. - The average salary for tech professionals in the U.S. is around $111,000, significantly higher than the average worker's salary of $50,000 [11]. Competitive Advantages - DHI Group differentiates itself through specialized search algorithms that focus on tech skills rather than job titles [5]. - The company has a unique skills taxonomy that categorizes over 100,000 tech skills, which is patented and central to its value proposition [16]. - ClearanceJobs is the leading platform for accessing technology professionals with government clearances, a niche not served by competitors like LinkedIn [10]. Recent Developments - DHI Group has introduced a self-service option for managing Dice subscriptions and is testing a premium candidate experience for ClearanceJobs [6]. - The company acquired Agile ATS, an applicant tracking system optimized for government hiring, which has seen revenue growth since its integration [6][35]. - A share buyback program was reinstated, with $11.4 million worth of shares repurchased in 2025 [8]. Future Outlook - The U.S. defense budget is expected to increase significantly, providing opportunities for ClearanceJobs to expand its services to existing contractors [13][36]. - DHI Group aims to achieve a 25% Adjusted EBITDA margin for 2026 and is targeting growth in a normalized demand environment [23][30]. - The company plans to continue exploring tuck-in acquisitions to enhance its service offerings [36]. Challenges - The HR tech space has faced challenging market conditions, with bookings and revenue declining year-over-year [23][30]. - Dice's bookings have a five-year CAGR of -7%, with recent quarters showing a decline in revenue [29]. Key Metrics - ClearanceJobs revenue in 2025 was $55 million, with a five-year CAGR of 12% [28]. - Dice revenue in 2025 was $73 million, with a five-year CAGR of -4% [28]. - ClearanceJobs has a 90% revenue renewal rate and a 109% retention rate [28]. Conclusion - DHI Group is positioned to capture growth in tech hiring, supported by a strong subscription model and a focus on specialized tech recruitment [31].