DLH Holdings Corp. (DLHC)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and sell below intrinsic value. DLH fails the first test today. It provides technology, program management, and public-health analytics to U.S. health and defense agencies, which sounds durable, but the numbers show severe strain. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $44.2M and net income was -$16.8M, or diluted EPS -$1.16. That follows fiscal Q2 2026, ended 2026-03-31, with revenue $59.3M and net income -$2.5M, and fiscal Q1 2026, ended 2025-12-31, with revenue $68.9M and net income -$1.3M. The full fiscal year 2025, ended 2025-09-30, had revenue $344.5M and net income $1.4M, while fiscal 2024 revenue was $395.9M and net income $7.4M. Revenue and profits have deteriorated sharply. FairStock's calculated debt-to-equity is 1.51, its Altman Z-Score is 0.22, and its ROE is -20.84%. Free cash flow of $13.8M and a 23.8% FCF yield are encouraging, but cash generation alongside large accounting losses deserves scrutiny. At the $4.01 close on 2026-10-13, FairStock's P/B is 0.62 and P/E is -2.69, making this a Lynch asset play. Yet EV/EBITDA is 13.30 and Piotroski is 3/9 under FairStock's calculations. A cheap asset can stay cheap if it keeps burning value. Government customer relationships may provide some stickiness, but no clear moat is visible in these results. I would demand stabilization in revenue and a return to positive net income before calling this a genuine bargain.

In plain English: DLH Holdings sells technology, research, and program support services to U.S. health and defense agencies. The business looks weak right now: in the quarter ended June 30, 2026, it reported a large loss, and sales have been shrinking. The stock price looks cheap compared with the company's assets and cash flow, but the losses make it risky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q4 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer