DLH Holdings Secures CMMC Level 2 Certification
Certification Achievement: DLH Holdings has achieved Cybersecurity Maturity Model Certification (CMMC) Level 2, demonstrating its commitment to cybersecurity standards.
Purpose of CMMC: The CMMC Program aims to protect sensitive unclassified information shared by the Department of Defense with its contractors.
Audit Requirements: To obtain Level 2 certification, DLH underwent a rigorous audit to verify compliance with over one hundred security requirements.
National Defense Data Security: The certification confirms DLH's capability to secure national defense data effectively.
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- Revenue Performance: DLH reported revenue of $81.2 million for Q4 FY2025, reflecting a 15.8% decline year-over-year, which highlights the impact of shifting budgetary priorities despite an 8.8% growth in its National Security contract portfolio.
- EBITDA Decline: The company's EBITDA for the quarter was $6.6 million, down 38.3% from $10.7 million in the same period last year, indicating challenges in profitability amid ongoing investments in new business and scaling initiatives.
- Free Cash Flow: DLH generated $10.7 million in free cash flow this quarter, driven by strong customer collections, which supports the company's financial stability and capacity for future investments.
- Debt Reduction: As of September 30, 2025, DLH's debt was reduced to $131.6 million, a 14.9% decrease from the previous year, which strengthens the balance sheet and enhances operational stability through an aggressive deleveraging strategy.
Financial Performance Overview: DLH Holdings Corp. reported a mixed revenue performance for Q4 2025, with an 8.8% growth in its National Security contract portfolio, but an overall revenue decline of 15.8% compared to Q4 2024.
EBITDA and Cash Flow: The company delivered an EBITDA of $6.6 million and generated free cash flow of $10.7 million, supported by strong customer collections, despite facing near-term market challenges.
Debt Reduction Strategy: DLH successfully reduced its debt to $131.6 million, marking a total reduction of $23 million for the year, which strengthens its balance sheet and operational stability.
Future Outlook: CEO Zach Parker emphasized the company's strategic positioning to capitalize on expanding demand for technology solutions, particularly in advanced AI and cybersecurity, as it aims to remain a trusted partner for federal customers.

Earnings Reports Overview: Several companies, including Oracle, Adobe, and Synopsys, are set to report their earnings for the quarter ending November 30, 2025, with varying forecasts and historical performance metrics.
Oracle Corporation (ORCL): Expected to report earnings per share (EPS) of $1.29, reflecting a 12.17% increase year-over-year, despite missing previous consensus estimates.
Adobe Inc. (ADBE): Forecasted EPS of $4.39, indicating a 7.86% increase from last year, with a strong track record of beating expectations in previous quarters.
Other Companies: Various firms like Nordson Corporation and Vail Resorts are also reporting, with some showing significant decreases in EPS forecasts compared to last year, while others like Skillsoft Corp. are expected to show substantial increases.
Financial Results Announcement: DLH Holdings Corp. is set to announce its financial results for the fiscal fourth quarter ending September 30, 2025, on December 5, 2025.
Company Overview: DLH is a government services provider specializing in health IT, public health, cybersecurity, and defense readiness, serving agencies like the Department of Defense.
Previous Quarter Performance: For the fourth quarter of fiscal 2024, DLH reported revenue of $96.4 million, net income of $2.3 million, and EBITDA of $10.7 million.
Stock Performance: DLHC's stock has fluctuated between $2.72 and $9.47 over the past year, closing at $5.85, down 0.17% in the latest trading session.
Implied Volatility in Options Market: DLH Holdings Corp. (DLHC) has seen significant implied volatility in its options, particularly the Nov 21, 2025 $2.50 Put, indicating that investors expect a major price movement, potentially due to an upcoming event.
Analyst Sentiment and Earnings Estimates: The company currently holds a Zacks Rank #4 (Sell) with no analysts increasing earnings estimates recently, leading to a downward revision of the consensus estimate from 3 cents to 2 cents per share for the current quarter.

DLH Holdings Corp. Award: DLH Holdings Corp. has been awarded a task order worth up to $46.9 million to provide IT services, including cyber security and cloud computing, to the National Institutes of Health's Office of Information Technology over a three-year period.
Company's Commitment: DLH aims to leverage its expertise in digital transformation and technology innovation to support NIH's health missions, enhance customer experience, and integrate emerging technologies like artificial intelligence.









