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DLH Holdings reports Q2 revenue drop and net loss amid contract transitions but expects growth in digital and cybersecurity sectors.

Company Fundamentals
06 May 2026
GlobeNewsWire
View Source
Neutral
pluang ai news

DLH Holdings Corp. announced a 33.5% revenue decline to $59.3 million in Q2 2026 due to transitioning legacy contracts to small-business contractors, resulting in a net loss of $2.5 million. Despite the revenue drop, adjusted EBITDA margin held at 9.0%, supported by cost scaling initiatives. The company reduced its debt slightly and secured a two-year contract extension with NIH, positioning itself for growth in digital modernization, cybersecurity, and AI. Management expects improved cash flow and profitable growth in the second half of fiscal 2026 as it completes contract transitions and leverages government demand.

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