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DHI GROUP, INC. (DHX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue of $32.0M declined 11% YoY; non-GAAP EPS of $0.07 and Adjusted EBITDA margin of 27% showed resilient profitability despite a $4.2M restructuring charge .
  • Versus estimates: revenue was essentially in line ($32.03M consensus vs $32.03M actual), while non-GAAP EPS delivered a significant beat ($0.01 consensus vs $0.07 actual). Bold: EPS beat by $0.06; revenue in-line/slight miss. Values retrieved from S&P Global.*
  • Guidance cut: FY25 revenue reduced to $126–$128M (from $131–$135M), while FY25 Adjusted EBITDA margin raised to 26%; Q3 revenue guided to $31–$32M. Bold: Revenue guidance lowered; margin guidance raised .
  • Strategic catalysts: AgileATS acquisition strengthens ClearanceJobs with an integrated ATS in GovTech; Dice restructuring (~25% workforce reduction) targets ~$15M annual savings and improved margins .

What Went Well and What Went Wrong

  • What Went Well

    • ClearanceJobs sustained high profitability: Q2 Adjusted EBITDA $6.1M with a 45% margin; revenue grew 1% YoY .
    • Company-level margin durability: Adjusted EBITDA $8.5M and 27% margin in Q2 despite restructuring; free cash flow rose to $4.8M as capitalized development fell 41% YoY .
    • Management positioning: CEO emphasized AI-powered platforms and integration of AgileATS to expand GovTech footprint; “With defense spending on the rise and AI adoption accelerating, we are confident that DHI is well-positioned…” .

  • What Went Wrong

    • Dice weakness persisted: revenue down 18% YoY; bookings down 16%; ARPU fell 5% YoY, and two large customers (>$1M renewal bookings) churned due to macro/government hiring freeze .
    • Top-line pressure and backlog softening: total bookings down 10% YoY; backlog dipped to $101.2M from $107.8M in Q1 .
    • Guidance reduced: management cut FY25 revenue outlook citing a still-soft tech hiring environment; CJ bookings were flat as Q2 renewals/new business were “choppy” amid federal budget uncertainty .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$34.785 $32.301 $32.027
Diluted EPS (GAAP) ($)$0.02 $(0.21) $(0.02)
Non-GAAP EPS ($)$0.07 $0.04 $0.07
Adjusted EBITDA ($USD Millions)$9.153 $6.981 $8.494
Adjusted EBITDA Margin (%)26% 22% 27%
Cash from Operations ($USD Millions)$4.369 $2.248 $6.866
Free Cash Flow ($USD Millions)$1.583 $0.088 $4.841

Segment performance

MetricQ1 2025Q2 2025
ClearanceJobs Revenue ($USD Millions)$13.377 $13.626
Dice Revenue ($USD Millions)$18.924 $18.401
ClearanceJobs Bookings ($USD Millions)$16.817 $11.569
Dice Bookings ($USD Millions)$25.308 $15.551
ClearanceJobs Adjusted EBITDA ($USD Millions)$5.705 $6.072
ClearanceJobs Adjusted EBITDA Margin (%)43% 45%
Dice Adjusted EBITDA ($USD Millions)$3.428 $4.169
Dice Adjusted EBITDA Margin (%)18% 23%

KPIs

KPIQ1 2025Q2 2025
Total Bookings ($USD Millions)$42.125 $27.120
CJ Revenue Renewal Rate (%)92% 87%
Dice Revenue Renewal Rate (%)70% 75%
CJ Retention Rate (%)106% 103%
Dice Retention Rate (%)92% 102%
CJ Avg Annual Rev/Recruitment Pkg Customer ($)$25,806 $26,026
Dice Avg Annual Rev/Recruitment Pkg Customer ($)$16,384 $15,434
CJ Recruitment Pkg Customers (Count)1,891 1,868
Dice Recruitment Pkg Customers (Count)4,490 4,365
Deferred Revenue ($USD Thousands)$50,666 $46,858
Backlog ($USD Thousands)$107,760 $101,174
Cash ($USD Thousands)$2,655 $2,782
Total Debt ($USD Thousands)$33,000 $30,000
Share Repurchases (Shares/$)886k / $2.1M 900k / $1.8M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$131–$135 $126–$128 Lowered
Adjusted EBITDA Margin (%)FY 202524% 26% Raised
Revenue ($USD Millions)Q3 2025N/A$31–$32 New
Capital Expenditures ($USD Millions)FY 2025$9–$10 $7–$8 Lowered

Earnings Call Themes & Trends

TopicQ4 2024 (prior)Q1 2025 (prior)Q2 2025 (current)Trend
AI/Technology adoptionExpectation tech postings rising; margin improvement focus New tech postings +16% YoY; AI projects expanding; 9.1M profiles Dice jobs requiring AI skills rose to ~36% (from ~10% at start of 2024) Strengthening demand narrative
GovTech/Defense budgetCJ bookings flat YoY; positioning for 2025 improvement CJ impacted by DoD/Dodge uncertainty; leadership expects higher defense budget First $1T+ defense budget; CJ bookings flat; confidence post-approval Improving visibility
Dice restructuring/costNoted restructurings and margin focus January restructuring; $20M annualized cost reductions June restructuring (~25% workforce); targets ~$15M annual savings Accelerating efficiency
Product-led growth (Dice DX)N/AWeb store strategy outlined DX launched with credit card sign-up; progressive rollout; upsell triggers Executing
Macro tech hiringSoft environment; cautious outlook Stabilizing postings; staffing forecast modest growth Stabilization signs at staffing firms (Robert Half, Kforce, Adecco) Gradual stabilization

Management Commentary

  • CEO positioning: “Our purpose-built platforms, ClearanceJobs and Dice, offer access to over 9 million tech professionals… With defense spending on the rise and AI adoption accelerating, we are confident that DHI is well-positioned for long-term growth” .
  • CJ profitability and strategy: “CJ reported another quarter of strong profitability… The acquisition of AgileATS… enabling us to deliver even greater value to our customers” .
  • CFO guidance rationale: “We are reducing our full-year revenue guidance to $126 to $128 million… With the recently announced restructuring, we are raising our full-year Adjusted EBITDA margin guidance to 26%” .
  • Capex outlook: “We are targeting total capital expenditures in 2025 to range between $7 million and $8 million as compared to $13.9 million last year” .

Q&A Highlights

  • CJ bookings outlook: Budget uncertainty created a “choppy” Q2 for renewals and new business; confidence improved post approval of a $1T+ defense budget, with potential acceleration into Q3/Q4 .
  • AgileATS integration: Purpose-built ATS for cleared hiring; pricing around $7,000 per seat annually; expected to be accretive over time without materially diluting CJ margins in 2H25 .
  • Dice stabilization: Staffing segment shows early “green shoots” (Robert Half +4% sequential, Kforce +1.4% sequential; Adecco strong Americas) supporting stabilization narrative .
  • Customer churn: Two large Dice customers (>$1M renewal bookings) were lost (one out of business; one impacted by government hiring freeze), with potential win-back later .
  • Dice DX platform: Newly launched web store enabling self-serve sign-up and renewals with embedded upsell prompts (e.g., job boost after 45 days), progressing to full rollout .

Estimates Context

Q2 2025 actuals vs Wall Street consensus (S&P Global)*

MetricConsensusActualSurprise
Revenue ($USD Millions)$32.070*$32.027 $(0.043)*
Primary EPS ($)$0.01*$0.07 +$0.06*

Company guidance vs Q3 2025 consensus (S&P Global)*

MetricCompany GuidanceConsensus
Revenue ($USD Millions)$31–$32 $31.180*
Primary EPS ($)N/A$0.04*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Non-GAAP EPS beat consensus meaningfully; resilient margins and free cash flow offset revenue pressure. Bold: EPS beat; margin strength despite restructuring .
  • ClearanceJobs remains the profit engine (45% margin) with GovTech tailwinds; AgileATS expands addressable market and workflow integration .
  • Dice trends remain challenging but show early stabilization; June restructuring should lift margins and lower capex, improving cash conversion .
  • Guidance reset lowers FY25 revenue but raises margin, anchoring on cost discipline; near-term trading likely pivots on bookings trajectory and CJ demand post-budget .
  • Watch KPIs: renewal/retention rates, ARPU trends, backlog/deferred revenue, and share repurchases supporting per-share metrics .
  • Narrative drivers: defense budget execution timing, AI job mix expansion, DX-led self-serve momentum, and potential Dice customer win-backs .
  • Risk checks: macro hiring softness, small customer churn, and timing of GovTech spend translation into bookings .