Question · Q4 2025
Joe Holmes with Noble Capital inquired about the status of the Head Start program, specifically if DLH Holdings Corp. participated in any protest regarding its transfer to small businesses, and sought an update on the CMOP contract transitions, including potential subcontracts and the timeline for remaining awards. He also asked when the company expects to return to historical growth and EBITDA margins and the current size of the pipeline.
Answer
President and CEO Zach Parker clarified that DLH did not protest the Head Start program's transition, having anticipated the move due to administration policies. Regarding CMOP, he noted DLH withdrew joint venture bids but supported small business partners on pending awards, with decisions expected in the next one to two quarters. CFO Kathryn Johnbull added that DLH continues to operate the three remaining CMOP locations during the VA's transition. Both executives emphasized that returning to historical growth and EBITDA margins is contingent on new contract awards, particularly in higher-margin technical and solutioning work for the VA and DoD, with a strong pipeline exceeding $3 billion over 24 months.
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