EarningsQ2 2026 Earnings Report
DE:TS8A Q2 2026 EPS Results
Actual EPS-€0.15
Consensus EPS-€0.14
Beat/MissMissed by -<€0.01
One Year Ago EPS€0.05
DE:TS8A Q2 2026 Revenue Results
Actual Revenue€52.64M
Expected Revenue€51.51M
Beat/MissBeat by +€1.12M
YoY Revenue Growth-33.57%
Earnings Announcement Details
QuarterQ2 2026
Date05/06/2026
TimeAfter Close
Conference CallWednesday, May 6, 2026
DE:TS8A Upcoming Earnings
DLH Holdings's next earnings date is estimated for December 7, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:TS8A Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call communicated a mixed picture: material near-term financial headwinds with a steep year-over-year revenue decline (~33.5%) and a sharp drop in adjusted EBITDA (~43.6%), largely driven by program transitions to small business set-asides and contract completions. Offsetting these negatives, management reported margin resilience (9% adjusted EBITDA margin), positive free cash flow (~$3.8M), resumed deleveraging (debt reduced to $132.7M), a two-year NIH contract extension adding revenue visibility, recognition for technology capabilities, and an improving pipeline as delayed procurements return to market. Risks remain around federal health reprioritization and typical government procurement timing uncertainty, but the company appears to be stabilizing its cost structure and positioning for upcoming opportunities.Company Guidance
Adjusted EBITDA Margin Maintained
Delivered adjusted EBITDA of $5.3 million and an adjusted EBITDA margin of 9% for the quarter, demonstrating margin resilience despite lower revenue.
Positive Free Cash Flow
Generated approximately $3.8 million of free cash flow in the quarter, supporting liquidity and deleveraging efforts.
Debt Reduction and Deleveraging Resumed
Total debt reduced to $132.7 million from $136.6 million the prior quarter (a reduction of ~$3.9 million, ~2.9%), with management expecting to convert ~50%–55% of fiscal 2026 EBITDA toward debt reduction by year-end and remaining in compliance with financial covenants.
Two-Year NIH Sole-Source Extension
Awarded a two-year sole-source extension to continue providing clinical research support services to the National Institutes of Health, adding short-term revenue visibility in the public health portfolio.
Improving Federal Funding Environment and Pipeline
Management highlighted that FY2026 budget outcomes and FY2027 requests show increased funding for defense/intelligence and some federal health agencies, improved procurement clarity, accelerating solicitations, and a healthy pipeline with multiple delayed procurements now coming to bid.
Recognition for Technology and Program Performance
Recent industry and customer recognitions for projects in automation, AI, scientific research, data science, and IT underline DLH's technical capabilities and differentiators (Cyclone, Nexus Labs digital sandbox).
Operational Right-Sizing Completed
Company implemented cost-scaling and right-sizing initiatives in Q2; management indicates the material reductions needed to align cost structure with near-term revenue have been achieved, with ongoing evaluation of leases and footprint.
DE:TS8A Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed