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DHI GROUP, INC. (DHX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a clean beat on both revenue and non-GAAP EPS versus Wall Street consensus; revenue was $32.1M and non-GAAP EPS $0.09, aided by cost savings and a strong Dice margin uplift, while GAAP EPS was impacted by a $9.6M intangible impairment . Estimates context: revenue consensus $31.18M and EPS $0.04; actuals beat both by ~3% and ~$0.05 respectively.*
  • Management reiterated FY revenue guidance of $126–$128M and raised FY adjusted EBITDA margin guidance to 27%; Q4 revenue guided to $29.5–$31.5M, framing near-term expectations and strengthening profitability narrative .
  • ClearanceJobs remained resilient (revenue +1% YoY; 43% adj. EBITDA margin) despite bookings softness from federal budget uncertainty, while Dice profitability sharply improved (adj. EBITDA +56% YoY; margin 34%), with management cautioning some non-recurring benefits and capitalized development mix that should normalize next quarter .
  • Capital allocation supports the story: $5M buyback completed and a new $5M program authorized; combined with margin guidance raise and CJ’s defensible position against a record defense budget, these are likely stock reaction catalysts .

What Went Well and What Went Wrong

What Went Well

  • Dice margin expansion: adj. EBITDA rose to $6.2M with a 34% margin (from $4.0M, 19% YoY), driven by expense true-ups and higher capitalization of development tied to the DX platform release; management sees margins normalizing to mid-20s next quarter .
  • ClearanceJobs resilience: CJ revenue grew 1% YoY to $13.9M and maintained strong profitability (43% adj. EBITDA margin), underscoring pricing/ARPU strength and retention, even with government-related volatility .
  • Estimate beat and higher profitability guidance: Q3 revenue and non-GAAP EPS beat consensus; FY adjusted EBITDA margin raised to 27%, signaling durable operating efficiency despite top-line headwinds .

What Went Wrong

  • GAAP results pressured by non-cash impairment: a $9.6M intangible impairment drove GAAP diluted loss per share to $(0.10), versus $(0.00) in Q3 2024 .
  • Bookings and backlog softness: total bookings fell 12% YoY to $25.4M; backlog declined 10% vs 12/31 and 9% YoY, reflecting slower new demand and renewal pressure, particularly at Dice and smaller CJ accounts .
  • Dice demand remains below normal: Dice revenue down 15% YoY and bookings down 17% YoY; management cited tariffs, higher rates, and budget uncertainty affecting smaller customers’ renewal and new commitments .

Financial Results

Consolidated Performance vs Prior Periods and Estimates

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$32.301 $32.027 $32.123
GAAP Diluted EPS ($)$(0.21) $(0.02) $(0.10)
Non-GAAP EPS ($)$0.04 $0.07 $0.09
Adjusted EBITDA ($USD Millions)$6.981 $8.494 $10.273
Adjusted EBITDA Margin (%)22% 27% 32%
Net Income (Loss) Margin (%)(29%) (3%) (13%)
Estimates ComparisonQ1 2025Q2 2025Q3 2025
Revenue Consensus ($USD Millions)$32.227*$32.070*$31.180*
Revenue Actual ($USD Millions)$32.301 $32.027 $32.123
EPS Consensus ($)$(0.005)*$0.01*$0.04*
Non-GAAP EPS Actual ($)$0.04 $0.07 $0.09

Values marked with * retrieved from S&P Global.

Segment Breakdown (Revenue and Profitability)

Segment (Q3 2025)Revenue ($USD Millions)YoY %Seq %Adj. EBITDA ($USD Millions)Adj. EBITDA Margin (%)
ClearanceJobs$13.937 +1% +2% $5.947 43%
Dice$18.186 (15%) (1%) $6.221 34%
Total$32.123 (9%) ~flat $10.273 32%

Bookings, Backlog, and Liquidity

MetricQ1 2025Q2 2025Q3 2025
Total Bookings ($USD Millions)$42.125 $27.120 $25.384
Deferred Revenue ($USD Millions)$50.666 $46.858 $40.982
Backlog ($USD Millions)$107.760 $101.174 $94.271
Operating Cash Flow ($USD Millions)$2.248 $6.866 $4.763
Free Cash Flow ($USD Millions)$0.088 $4.841 $3.170
Capital Expenditures ($USD Millions)$2.160 $2.025 $1.593
Cash ($USD Millions)$2.655 $2.782 $2.296
Total Debt ($USD Millions)$33.000 $30.000 $30.000

KPIs and Customer Metrics

KPIQ1 2025Q2 2025Q3 2025
CJ Revenue Renewal Rate (%)92% 87% 85%
Dice Revenue Renewal Rate (%)70% 75% 69%
CJ Retention Rate (%)106% 103% 106%
Dice Retention Rate (%)92% 102% 92%
CJ Recruitment Package Customers1,891 1,868 1,822
Dice Recruitment Package Customers4,490 4,365 4,239
CJ Avg Annual Revenue per Customer ($)$25,806 $26,026 $26,601
Dice Avg Annual Revenue per Customer ($)$16,384 $15,434 $15,727

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$126–$128M (as of Q2) $126–$128M Maintained
Adjusted EBITDA Margin (%)FY 202526% (as of Q2) 27% Raised
Revenue ($USD Millions)Q4 2025N/A$29.5–$31.5M New
Capital Expenditures ($USD Millions)FY 2025$7–$8M (Q2) $7–$8M (reiterated) Maintained
Share RepurchaseProgram$5M authorized in Jan; remaining balance at Q2 $5M completed post-Q3 and new $5M authorized through Nov 2026 Completed and renewed

Earnings Call Themes & Trends

TopicQ1 2025 (Prior-2)Q2 2025 (Prior-1)Q3 2025 (Current)Trend
AI/technology initiatives10%→36% AI skills in Dice postings; AI adoption by enterprises ~38% AI skills; DX platform groundwork >50% of job postings tied to AI projects; Dice “go-to” for AI talent Rapidly rising AI demand
Gov’t budget/shutdown impactDoge/“DOGE” uncertainty; CJ bookings renewals at smaller customers affected Defense budget approved; CJ bookings flat; restructuring savings $1.1T defense budget; CJ bookings down 7% amid freeze/shutdown; optimism for large enterprise renewals Near-term headwind; medium-term tailwind
Product innovationCJ events & security; Dice web store plan DX self-service, credit card signups; AgileATS acquisition CJ integration with AgileATS; premium candidate subscription beta; Dice monthly $650 tier Execution milestones accruing
Tariffs/macro/higher ratesCommercial demand cautious; staffing more resilient Demand stabilizing; staffing green shoots Ongoing Dice headwinds from tariffs/budgets/rates Macro pressure persists
Capital allocationNew $5M buyback program (Jan) $2.5M remaining at Q2 $5M plan completed; new $5M authorized Supportive to equity

Management Commentary

  • “ClearanceJobs again demonstrated the strength of its market position… while Dice significantly improved its profitability as we continued streamlining operations and began transitioning customers to our modern self-service platform.” — Art Zeile, CEO .
  • “We are reiterating our full-year revenue guidance of $126 to $128 million… raising our full-year Adjusted EBITDA margin guidance to 27%.” — Greg Schippers, CFO .
  • On Dice margin expansion: “There are a few true-ups… more cost allocated to capitalized development costs… due to DX platform delivery… expect to return to a normalized margin in the mid-20s next quarter.” — Greg Schippers .
  • On defense tailwinds: “Proposed $1.1 trillion U.S. defense budget… NATO countries boosting defense spending to 5% of GDP… dynamics are promising for ClearanceJobs.” — Art Zeile .

Q&A Highlights

  • Dice margins and one-time items: Margin uplift benefited from expense true-ups and capitalized development; guidance for mid-20s margin next quarter clarifies sustainability .
  • Impairment details: $9.6M intangible impairment tied to the Dice trade name using relief-of-royalty valuation method, reflecting revenue declines in Dice .
  • CJ renewal vs new business: Larger customers bullish; smaller customers delayed; pipeline improved as budget clarity emerges .
  • Dice platform monetization: Monthly $650 tier increases sign-ups; advertising campaign to ramp; reporting of self-service vs managed likely updated in Q1 2026 .
  • Buyback appetite: Board comfortable with ~1x leverage; new $5M plan through Nov 2026; continued evaluation as 2026 plan develops .

Estimates Context

  • Q3 beat: Revenue $32.12M vs $31.18M consensus*, non-GAAP EPS $0.09 vs $0.04 consensus*; strength flowed from cost actions and Dice margin uplift despite bookings softness.
  • Prior quarters’ pattern: Q2 EPS beat ($0.07 vs $0.01*), revenue roughly in line/slight miss ($32.03M vs $32.07M*); Q1 EPS beat ($0.04 vs $(0.005)) and slight revenue beat ($32.30M vs $32.23M).
  • Forward look: Q4 consensus revenue $29.98M* and EPS $0.055* appear broadly consistent with company guidance; EPS estimates may drift up if margin discipline persists into Q4.
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q3 delivered a quality beat and margin step-up; management raised FY margin guidance to 27% without raising revenue, reinforcing an efficiency-driven thesis .
  • ClearanceJobs remains the profit engine with resilient ARPU and retention; defense spending inflection creates medium-term upside even as near-term bookings face government timing risk .
  • Dice’s profitability surge is real but partially aided by non-recurring items and capitalization mix; plan for margins to normalize to mid-20s in Q4 per CFO commentary .
  • Backlog and deferred revenue declines warrant attention; watch renewal rates, net retention, and self-service Dice adoption to gauge reacceleration .
  • Capital returns are supportive: $5M buyback completed and new $5M authorized through Nov 2026, signaling management’s confidence and sum-of-parts undervaluation view .
  • Near-term trading: focus on any Q4 margin outperformance vs the guided range and CJ large-enterprise renewals; medium-term thesis centers on AI-driven hiring and defense budget tailwinds ( ).
  • Note minor discrepancy: press release shows Q3 repurchases of 804k shares ($2.3M) while the call referenced 741k shares ($2.1M); rely on the filed press release figures for official reporting .
Bolded beats/misses above:
- Non-GAAP EPS beat vs consensus in Q3 (0.09 vs 0.04*).
- Revenue beat vs consensus in Q3 ($32.12M vs $31.18M*).