DHI Group, Inc.

What they do

DHI operates two primary career marketplaces: Dice, for technology professionals, and ClearanceJobs, for security-cleared talent. It sells recruitment packages to employers, with offerings including job postings, database access, and branding solutions. The acquisition of AgileATS added an applicant tracking system service for the GovTech recruiting market.

Revenue drivers

• ClearanceJobs — Revenue was $15.6 million in Q2 2026, up 14% year-over-year; bookings grew 24%. It serves defense contractors and commercial companies pursuing government work.
• Dice — Revenue was $15.8 million in Q2 2026, down 14% year-over-year; bookings declined 14%. It targets technology hiring and is seeing early recovery signs.
• AgileATS — Acquired in 2025, it provides an end-to-end applicant tracking solution, expanding ClearanceJobs' total addressable market. Point Solutions Group, part of ClearanceJobs, exceeded expectations in Q2 2026.

Recent performance

For Q2 2026, total revenue was $31.3 million, down 2% year-over-year, with net income of $2.6 million (8% margin) compared to a net loss of $0.8 million in the prior year. Adjusted EBITDA was $8.3 million, flat margin at 27%. Free cash flow was $4.5 million. For fiscal 2025, revenue declined 10% to $127.8 million, with a net loss of $13.5 million, but Adjusted EBITDA margin improved to 27%.

Strategy

Management is focused on modernizing the Dice platform to reduce technical debt and enable self-service tools, while expanding ClearanceJobs' offerings through AgileATS and the Premium Candidate Experience subscription. The company is investing in AI-driven talent acquisition and sees AI as increasing demand for tech professionals. They target a leverage ratio of ~1.0x Adjusted EBITDA and repurchased shares in Q2 2026.

Risks

• Tech hiring downturn — Revenue decline in 2025 was driven by a softened technology hiring market and headwinds in government hiring, with Dice revenue falling 14% in Q2 2026.
• Macro and government policy — Government shutdowns and initiatives like DOGE (Department of Government Efficiency Workforce Optimization) could reduce hiring demand, particularly for ClearanceJobs.
• Goodwill and intangible impairment — As of December 31, 2025, goodwill and acquired intangibles were $120.6 million and $15.5 million, respectively, and past impairments have occurred; future write-offs could hurt results.
• AI replacement risk — The company cites the risk that AI models could reduce demand for technology professionals, though management currently sees AI increasing demand.

Outlook

For fiscal 2026, DHI reaffirmed full-year revenue guidance and maintained consolidated Adjusted EBITDA margin guidance of 25%, with ClearanceJobs at 40%. It raised Dice's full-year Adjusted EBITDA margin outlook to 24% from 22%. Third-quarter guidance was provided, and management says the tech hiring market is in early recovery with AI-related skills in ~75% of new tech postings.