DLH net loss turns to $16.8 million in FY26 Q3; revenue drops 46.9% to $44.2 million
DLHC•Fiscal third-quarter results
DLH posted fiscal Q3 revenue of $44.2 million, down 46.9% year over year as legacy programs shifted to small-business set-aside contractors.
Net loss widened to $16.8 million from profit a year earlier, reflecting a $10.4 million valuation allowance against deferred tax assets.
Operating results swung to a $3.9 million loss from operating income a year earlier; GAAP diluted loss per share was $1.16.
Margins, balance sheet and leadership changes
Adjusted EBITDA fell 58% to $3.4 million, with margin narrowing 2.1 percentage points to 7.6%.
Debt eased to $128.7 million, while backlog dropped 20.6% to $408.5 million.
Kathryn JohnBull became CEO, and Steve Oroho was named CFO.
