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DHI Group Q1 Earnings Surpass Estimates, Revenues Fall Y/Y
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Key Takeaways
DHX expects 2026 revenues of $126M-$128M and reaffirmed a 25% adjusted EBITDA margin target.
DHX posted 27% adjusted EBITDA margin as operating expenses fell 36% year over year.
DHX beat Q1 estimates as ClearanceJobs growth and lower expenses boosted profitability.
DHI Group, Inc. (DHX - Free Report) delivered first-quarter 2026 earnings of 6 cents per share, beating the Zacks Consensus Estimate of 2 cents by 200%. The company’s results reflected continued momentum at ClearanceJobs and tighter cost execution.
Revenues came in at $30 million, topping the consensus mark by 2.16%. On a year-over-year basis, revenues declined 7.1%. DHX’s subscription-heavy model continues to support a high level of recurring revenues.
DHX Clearance Jobs Offsets Ongoing Dice Pressure
ClearanceJobs revenues were $14 million, up 5% year over year. Management cited improving demand trends tied to a more favorable government spending environment, with early benefits from recent strategic initiatives.
Dice revenues totaled $15.7 million, down 17% from the year-ago quarter. The segment continued to face a softer tech hiring backdrop, even as management pointed to improving leading indicators and engagement trends.
DHI Group Tracks Customer Metrics Across Both Platforms
DHX ended the quarter with 1,741 ClearanceJobs recruitment package customers, down 8% year over year. Despite the lower count, average annual revenue per ClearanceJobs recruitment package customer increased 6% to $27,286, pointing to better monetization within the base.
Dice recruitment package customers were 3,832 at quarter end, reflecting a 15% year-over-year decline. Average annual revenue per Dice recruitment package customer was $15,466, down 6%, as smaller customers remained more sensitive to macro uncertainty.
DHX Renewal Trends and Backlog Provide Added Context
ClearanceJobs posted a revenue renewal rate of 88% in the quarter, while Dice recorded 71%. DHX also reported retention rates of 105% for ClearanceJobs and 100% for Dice, reflecting solid contract value preservation among renewing customers.
Deferred revenues ended the quarter at $44.5 million, down 12% from the first quarter of 2025. Total committed contract backlog was $99.0 million, down 8% year over year, giving investors a snapshot of contracted revenue visibility across the business.
DHI Group Expands Margins as Expenses Drop Sharply
Operating expenses fell 36% year over year to $26.6 million, due to efficiency actions and the ongoing shift in Dice toward a modern recruiting platform and a leaner operating model. The improved cost structure helped DHX generate operating income of $3.1 million versus an operating loss a year earlier.
Adjusted EBITDA increased 17% to $8.1 million, translating into a 27% margin compared with 22% in the year-ago quarter. Net income was $1.5 million, a sharp turnaround from the prior-year loss that included a goodwill impairment charge and restructuring expense.
DHX Cash Generation Fuels Repurchases and Sets Guidance
Operating cash flow was $8.4 million, up from $2.2 million in the year-ago period. Free cash flow improved to $6.8 million, supported by lower fixed asset purchases and continued discipline around capitalized development spending.
DHX ended the quarter with $3 million in cash and $33.0 million of total debt. The company repurchased 2 million shares for $4.7 million during the quarter and had $6.4 million remaining under its $10 million authorization. For outlook, DHX expects second-quarter revenues of $30 to $32 million and full-year revenues of $124 million to $128 million, while maintaining its full-year adjusted EBITDA margin target of 25%.
DHX’s Guidance for Q2 and 2026
For fiscal 2026, DHI Group’s revenues are expected to be between $126 million and $128 million. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $119 million, indicating a year-over-year decline of 6.7%.
DHX’s second-quarter 2026 revenues are expected to be in the range of $30-$32 million. The Zacks Consensus Estimate for the second quarter of fiscal 2026 revenues is pegged at 27 cents, indicating a year-over-year decline of 6.9%.
ClearanceJobs and Dice are each expected to generate quarterly revenues between $15 million and $16 million in the second quarter of 2026. DHX reaffirmed its adjusted EBITDA margin to be 25% for 2026, with ClearanceJobs expected to deliver margins of 40% and Dice 22%.
Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.
Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.
Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.
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DHI Group Q1 Earnings Surpass Estimates, Revenues Fall Y/Y
Key Takeaways
DHI Group, Inc. (DHX - Free Report) delivered first-quarter 2026 earnings of 6 cents per share, beating the Zacks Consensus Estimate of 2 cents by 200%. The company’s results reflected continued momentum at ClearanceJobs and tighter cost execution.
Revenues came in at $30 million, topping the consensus mark by 2.16%. On a year-over-year basis, revenues declined 7.1%. DHX’s subscription-heavy model continues to support a high level of recurring revenues.
DHX Clearance Jobs Offsets Ongoing Dice Pressure
ClearanceJobs revenues were $14 million, up 5% year over year. Management cited improving demand trends tied to a more favorable government spending environment, with early benefits from recent strategic initiatives.
Dice revenues totaled $15.7 million, down 17% from the year-ago quarter. The segment continued to face a softer tech hiring backdrop, even as management pointed to improving leading indicators and engagement trends.
DHI Group, Inc. Price, Consensus and EPS Surprise
DHI Group, Inc. price-consensus-eps-surprise-chart | DHI Group, Inc. Quote
DHI Group Tracks Customer Metrics Across Both Platforms
DHX ended the quarter with 1,741 ClearanceJobs recruitment package customers, down 8% year over year. Despite the lower count, average annual revenue per ClearanceJobs recruitment package customer increased 6% to $27,286, pointing to better monetization within the base.
Dice recruitment package customers were 3,832 at quarter end, reflecting a 15% year-over-year decline. Average annual revenue per Dice recruitment package customer was $15,466, down 6%, as smaller customers remained more sensitive to macro uncertainty.
DHX Renewal Trends and Backlog Provide Added Context
ClearanceJobs posted a revenue renewal rate of 88% in the quarter, while Dice recorded 71%. DHX also reported retention rates of 105% for ClearanceJobs and 100% for Dice, reflecting solid contract value preservation among renewing customers.
Deferred revenues ended the quarter at $44.5 million, down 12% from the first quarter of 2025. Total committed contract backlog was $99.0 million, down 8% year over year, giving investors a snapshot of contracted revenue visibility across the business.
DHI Group Expands Margins as Expenses Drop Sharply
Operating expenses fell 36% year over year to $26.6 million, due to efficiency actions and the ongoing shift in Dice toward a modern recruiting platform and a leaner operating model. The improved cost structure helped DHX generate operating income of $3.1 million versus an operating loss a year earlier.
Adjusted EBITDA increased 17% to $8.1 million, translating into a 27% margin compared with 22% in the year-ago quarter. Net income was $1.5 million, a sharp turnaround from the prior-year loss that included a goodwill impairment charge and restructuring expense.
DHX Cash Generation Fuels Repurchases and Sets Guidance
Operating cash flow was $8.4 million, up from $2.2 million in the year-ago period. Free cash flow improved to $6.8 million, supported by lower fixed asset purchases and continued discipline around capitalized development spending.
DHX ended the quarter with $3 million in cash and $33.0 million of total debt. The company repurchased 2 million shares for $4.7 million during the quarter and had $6.4 million remaining under its $10 million authorization. For outlook, DHX expects second-quarter revenues of $30 to $32 million and full-year revenues of $124 million to $128 million, while maintaining its full-year adjusted EBITDA margin target of 25%.
DHX’s Guidance for Q2 and 2026
For fiscal 2026, DHI Group’s revenues are expected to be between $126 million and $128 million. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $119 million, indicating a year-over-year decline of 6.7%.
DHX’s second-quarter 2026 revenues are expected to be in the range of $30-$32 million. The Zacks Consensus Estimate for the second quarter of fiscal 2026 revenues is pegged at 27 cents, indicating a year-over-year decline of 6.9%.
ClearanceJobs and Dice are each expected to generate quarterly revenues between $15 million and $16 million in the second quarter of 2026. DHX reaffirmed its adjusted EBITDA margin to be 25% for 2026, with ClearanceJobs expected to deliver margins of 40% and Dice 22%.
Zacks Rank and Stocks to Consider
Currently, DHX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Samsara (IOT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.
Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.
Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.