DHI Group Q2 Earnings Call Highlights

Key Points

• ClearanceJobs remained DHI Group’s main growth driver, with revenue up 14% year over year to $15.6 million and bookings up 24%, helped by the Point Solutions Group acquisition and strong organic sales growth.
• DHI returned to profitability, reporting $2.6 million in net income and $4.5 million in free cash flow, while maintaining a 27% adjusted EBITDA margin and reducing operating expenses by 17%.
• Dice showed early signs of recovery as technology job postings rose roughly 30%, though revenue and bookings still declined year over year. Management maintained its 2026 revenue outlook of $124 million to $128 million and expects improving—but not yet positive—Dice bookings growth.

DHI Group NYSE: DHX reported second-quarter 2026 results that reflected continued growth at its ClearanceJobs business and a slower, though improving, technology hiring environment for Dice. Total revenue declined year over year, but the company returned to profitability, maintained a 27% adjusted EBITDA margin and generated $4.5 million in free cash flow.

Chief Executive Officer Art Zeile said ClearanceJobs remained the company’s primary growth engine, while Dice was progressing in line with the recovery path management had anticipated at the beginning of the year. DHI operates the ClearanceJobs marketplace for professionals holding active U.S. security clearances and the Dice technology-talent marketplace.

Quarterly financial results

DHI recorded net income of $2.6 million, or $0.06 per diluted share, compared with a net loss of $800,000, or $0.02 per share, in the prior-year quarter. The year-ago loss included a $4.2 million restructuring charge. Non-GAAP earnings were $0.09 per share, compared with $0.07 per share a year earlier.

Adjusted EBITDA was $8.3 million, equal to a 27% margin, versus $8.5 million and a 27% margin in the second quarter of 2025. Operating expenses declined 17% year over year to $27.5 million, which Chief Financial Officer Greg Schippers said reflected the company’s operating-efficiency efforts.

Operating cash flow was $6.1 million, down from $6.9 million a year earlier, while free cash flow was $4.5 million, compared with $4.8 million in the prior-year period. Capital expenditures declined 20% to $1.6 million.

At quarter-end, DHI had $3.8 million in cash and $32 million in total debt, down $1 million from the prior quarter. The company spent $2 million on share repurchases during the quarter, buying approximately 700,000 shares. It had $4.5 million remaining under its $10 million repurchase authorization.

ClearanceJobs posts revenue and bookings growth

ClearanceJobs revenue rose 14% year over year and 11% sequentially to $15.6 million. Bookings increased 24% from a year earlier to $14.3 million. The Point Solutions Group acquisition, completed at the end of February, contributed $2 million of revenue and bookings during the quarter.

Zeile said that even excluding the acquisition, ClearanceJobs produced 7% organic bookings growth. New business sales increased approximately 75% year over year, and the pipeline reached its highest level in more than five years, according to management.

ClearanceJobs ended the quarter with 1,735 Recruitment Package customers, down 7% from a year earlier and flat sequentially. However, average annual revenue per customer rose 9% year over year and 4% sequentially to $28,255. Its revenue renewal rate was 87%, while retention was 110%.

During the call, Zeile said retention was supported by both subscriptions and usage of candidate profile views, which recruiters use to identify and contact prospective candidates. ClearanceJobs surpassed 2 million cleared candidate profiles during the quarter.

The platform added customers including Shield AI, York Space Systems and Texas Instruments. Zeile said Shield AI represented ClearanceJobs’ largest new-business customer in company history, with nearly $100,000 in annual contract value. Management said its opportunity is expanding beyond traditional defense contractors as more commercial and venture-backed companies pursue government and Department of Defense work.

ClearanceJobs generated adjusted EBITDA of $6 million, representing a 39% margin, compared with $6.1 million and a 45% margin a year earlier. Schippers said the lower gross-margin run rate reflected the Point Solutions Group acquisition and the labor costs associated with that business.

Dice sees improving hiring indicators, but revenue remains lower

Dice revenue was $15.8 million, down 14% year over year but up 1% from the first quarter. Bookings declined 14% to $13.4 million. The business ended the quarter with 3,702 Recruitment Package customers, down 15% year over year and 3% sequentially.

Dice’s revenue renewal rate was 66%, while retention was 98%. Schippers attributed most customer-count churn to smaller accounts spending less than $15,000 annually, which he said had been more exposed to the soft technology hiring market.

Average annual revenue per Dice Recruitment Package customer increased 3% from both the prior-year and prior-quarter periods to $15,899. Dice adjusted EBITDA was unchanged at $4.2 million, while its adjusted EBITDA margin improved to 26% from 23% a year earlier.

Zeile pointed to improving hiring-market indicators, including a roughly 30% year-over-year increase in new technology job postings during the second quarter. He said June postings approached 300,000, a level management associates with improving hiring conditions. About 75% of new technology postings required at least one AI-related skill, compared with approximately 38% a year ago, according to the company.

Dice launched a Model Context Protocol server during the quarter, allowing AI assistants including ChatGPT, Claude and Gemini to interact with Dice’s job database for candidate job searches. Zeile said the capability is not currently monetized, though DHI sees a future opportunity to offer a recruiter-focused capability behind its paywall.

The company also continued rolling out its self-service digital experience, including monthly subscription options intended to reduce upfront commitments for smaller customers. Zeile said the initiative did not have a meaningful effect on second-quarter financial results because marketing spending increased only in the final weeks of the quarter.

Guidance maintained for 2026

DHI expects full-year revenue of $124 million to $128 million, with third-quarter revenue of $30 million to $32 million. Management expects both ClearanceJobs and Dice to generate $62 million to $64 million of revenue for the full year, and $15 million to $16 million each in the third quarter.

The company expects ClearanceJobs bookings growth to accelerate in the second half and said it sees a path toward double-digit organic revenue growth for the business. For Dice, management expects year-over-year declines to continue improving but does not expect bookings growth to resume during 2026.

DHI maintained its target for a 25% full-year adjusted EBITDA margin and a 40% margin for ClearanceJobs, while raising its Dice margin target to 24%. Management also continues to target free cash flow of at least 10% of revenue.

About DHI Group (NYSE:DHX)

DHI Group, Inc NYSE: DHX is a specialized professional recruitment and career development company that operates digital platforms connecting technology and security-cleared professionals with employers worldwide. Founded in 1990 as a niche job board for technology talent, the company completed its initial public offering in 2007 and trades on the New York Stock Exchange under the ticker symbol DHX.

The company's primary offerings include Dice.com, a careers platform designed for technology professionals, and ClearanceJobs, a specialized service catering to candidates holding U.S.

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