DLH Holdings Corp logo

DLH Holdings Corp(DLHC)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$3.88
09/17/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for DLHC

09/17/2026: DLHC (1-star) is currently NOT-A-BUY. Pass it for now.

DLH Holdings Corp is a focused provider of technology-enabled health and logistics services to US federal government agencies. Its strengths include a specialized clinical domain expertise and a steady revenue base underpinned by long-term government contracts. The company's primary investment story centers on capturing increased federal spending for digital health and public health research modernization. However, it faces risks related to client concentration, intense competition from much larger industry peers, and federal budget volatility. The stock may best suit growth-oriented investors interested in government services, though those seeking dividends should look elsewhere. Investors should monitor future contract wins and M&A integration success.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers moderate growth potential driven by federal contracting cycles rather than explosive market disruption.
Momentum investorMixed fitMomentum fits only during periods of significant contract win announcements or sector-wide federal budget tailwinds.
Value investorStrong fitThe stock often trades at valuations that reflect the steady, long-term nature of federal service contracts.
Dividend investorWeak fitDLH does not currently provide a dividend yield, making it unsuitable for income-focused portfolios.
Low-risk investorMixed fitWhile the business model is steady due to government backing, small-cap volatility and contract concentration present risks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highAs a smaller-cap stock, DLH experiences higher price swings compared to larger, more diversified peers.
Valuation riskMediumThe stock's valuation is sensitive to changes in federal budget outlooks and M&A execution.
Competition risk (Large prime contractors)HighThe company competes with much larger firms that have greater resources and lobbying power.
Business qualityMediumThe reliance on government contracting creates a steady, though often margin-constrained, business environment.
Dividend incomeLow / noneInvestors should not rely on this stock for dividend-based cash flows.
Execution riskMediumSuccess depends on the effective integration of past acquisitions and the ability to win recompetes for existing contracts.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -3.82%
Avg. Invested days 41
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/17/2026

Upturn Scorecard

Upturn Star Rating

DLHC receives a 3-star rating, supported by solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

DLHC has moderate overall fundamentals (3 stars), with moderate financial health, soft growth momentum, and solid ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 6.7%) is partially offset by negative earnings growth (-81.6%), negative revenue growth (-13.0%), soft profitability (net margin 0.4%).

Financial Health Rating

DLHC's financial health is supported by solid cash strength, including free-cash-flow generation (6.7% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

DLHC's growth profile is soft, with the least-weak measure being revenue growth at -13.0% FY2025 versus FY2024. By comparison, while earnings growth (-81.6%, negative) and free-cash-flow growth (-13.4%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 69.9% and approximately 42.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 13.30% supports management-shareholder alignment.

Top 5 Institutional Investors

Wynnefield Capital Inc 25.40%
Mink Brook Asset Management LLC 19.43%
Minerva Advisors LLC 7.70%
Vanguard Capital Management, LLC 3.05%
Merit Financial Group, LLC 1.74%

Unit Economics (Per $1K Revenue)

DLHC generates approximately $189 of gross profit, $49 of operating income, and $67 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 22.39%

Quantitative Style Profile

DLHC has a Value-Oriented profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap Risk

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 56.23M USD
Price to earnings Ratio -
1Y Target Price 7
Price to earnings Ratio -
1Y Target Price 7
Volume (30-day avg) 12.6K shares
Beta 1.44
52 Weeks Range 3.61 - 8.10
Updated Date 09/17/2026
52 Weeks Range 3.61 - 8.10
Updated Date 09/17/2026
Dividends yield (FY) -
Basic EPS (TTM) -1.49

How Company Makes Money

Business areaWhat it includesRetail investor read
Federal Health ServicesClinical and professional health support for agencies like the VA and HHS.The company earns revenue primarily through multi-year government contracts for medical and health-IT services.
GeographyOperations almost exclusively within the United States.Exposure is tied entirely to US federal spending, shielding it from international macroeconomic fluctuations.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 17.45
Enterprise Value 198.74M
Price to Sales(TTM) 0.22
Enterprise Value 198.74M
Price to Sales(TTM) 0.22
Enterprise Value to Revenue 0.78
Enterprise Value to EBITDA 13.28
Shares Outstanding 14.49M
Shares Floating 6.13M
Shares Outstanding 14.49M
Shares Floating 6.13M
Percent Insiders 13.3
Percent Institutions 69.95

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About DLH Holdings Corp

Exchange NASDAQ
Headquarters Atlanta, GA, United States
IPO Launch date 1995-08-18
President, CEO & Director Ms. Kathryn M. JohnBull CPA
Sector Industrials
Industry Specialty Business Services
Full time employees 2300
Full time employees 2300

DLH Holdings Corp. provides technology-enabled business process outsourcing, program management solutions, and public health research and analytics services in the United States. It offers digital transformation and cyber security solutions, including artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation to the National Institutes of Health (NIH), Defense Health Agency (DHA), US Army Medical Research and Development Command (MRDC), and US Navy. The company also provides science research and development services and solutions, such as data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions, including NIH and the Center for Disease Control and Prevention, as well as the Military Health System. In addition, it offers systems engineering and integration solutions in the areas of command, control, communications, computers, cyber, intelligence, surveillance, and reconnaissance (C5ISR); modeling, simulation and training, performance-based logistics, and system modernization; and technology-powered health solutions and software engineering on behalf of the US Navy, HHS, VA, and other federal customers. Further, the company holds the trademark, Infinibyte, for cloud-based solution. The company was formerly known as TeamStaff, Inc. and changed its name to DLH Holdings Corp. in June 2012. DLH Holdings Corp. was incorporated in 1969 and is headquartered in Atlanta, Georgia.