DHI Group Inc (NYSE:DHX) reported mixed second-quarter results, with revenue falling short of analyst expectations while adjusted earnings per share (EPS) exceeded estimates. The company also announced a strategic acquisition and revised its full-year guidance, reflecting ongoing challenges in the broader tech hiring market.
Q2 2025 Earnings vs. Estimates
- Revenue: $32.0 million, down 11% year-over-year and slightly below the consensus estimate of $32.5 million.
- Adjusted EPS: $0.07, beating expectations of $0.024.
- Net Loss: $0.8 million, or $0.02 per diluted share, primarily due to a $4.2 million restructuring charge expected to yield $14–16 million in annualized cost savings.
The revenue decline was driven by an 18% drop in Dice bookings, while ClearanceJobs remained stable with a 1% year-over-year increase. Adjusted EBITDA margins improved to 27%, up from 25% in the prior-year quarter, reflecting cost discipline.
Market Reaction
Following the earnings release, DHX shares dipped slightly in after-hours trading, down ~0.37%. The muted reaction suggests investors are weighing the earnings beat against broader revenue softness and uncertainty in tech hiring demand. Over the past month, the stock has declined ~9%, reflecting broader sector pressures.
Strategic Moves & Outlook
DHI Group’s acquisition of AgileATS aims to strengthen its GovTech recruitment offerings, aligning with rising defense spending. However, management lowered full-year revenue guidance to $126–128 million (from prior expectations), citing persistent weakness in tech hiring.
- Q3 2025 Revenue Guidance: $31–32 million, slightly below analyst estimates of $33.2 million.
- Adjusted EBITDA Margin Forecast: Raised to 26% for the full year, up from previous projections, due to cost-cutting measures.
Key Takeaways from the Press Release
- ClearanceJobs Resilience: Revenue grew 1% YoY, with strong profitability (45% Adjusted EBITDA margin).
- Dice Struggles: Bookings fell 16% amid broader tech hiring slowdowns.
- Restructuring Impact: One-time charges are expected to improve future profitability.
- Free Cash Flow: $4.8 million, down from $5.6 million YoY but supported by reduced capital expenditures.
For more detailed earnings estimates and historical performance, see DHI Group’s earnings data.
Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.
