DHI Group (DHX) investor relations material

Executive summary

• Q1 2026 revenue was $29.7 million, down 8% year-over-year, with ClearanceJobs up 5% and Dice down 17%.

• Net income was $1.5 million (5% margin), reversing a net loss of $9.8 million in Q1 2025, driven by lower costs and absence of prior-year impairment and restructuring charges.

• Adjusted EBITDA rose 17% to $8.1 million (27% margin), up from $7.0 million (22% margin) in Q1 2025.

• Approximately 90% of revenue is recurring, driven by annual subscription contracts with auto-renewal and price escalators.

• Recent acquisitions (Point Solutions Group, AgileATS) are expanding platform capabilities and outperforming expectations.

Financial highlights

• Cash from operations was $8.4 million, up from $2.2 million year-over-year; free cash flow surged to $6.8 million from $0.1 million year-over-year.

• Cash balance at quarter-end was $3.0 million; total debt increased to $33.0 million.

• Deferred revenue rose 11% to $44.5 million; backlog decreased 1% sequentially and 8% year-over-year to $99.0 million.

• Operating expenses decreased 36% to $26.6 million.

• Gross margin remained strong at 84%.

Outlook and guidance

• FY 2026 revenue guidance: $124M–$128M; Q2 2026 revenue expected at $30M–$32M.

• Adjusted EBITDA margin guidance reaffirmed at 25% for FY 2026; ClearanceJobs at 40%, Dice at 22%.

• Management expects continued investment in product innovation and infrastructure.

• Capital expenditures for 2026 are projected at $7–8 million, funded by operating cash flows.

• Liquidity is expected to be sufficient for at least the next 12 months.