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1. Company Snapshot

1.a. Company Description

DHI Group, Inc.provides data, insights, and employment connections through specialized services for technology professionals in the United States, the United Kingdom, rest of Europe, the Middle East, Africa, the Asia Pacific, and internationally.The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees.


It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology.The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies.The company was formerly known as Dice Holdings, Inc.


and changed its name to DHI Group, Inc.in April 2015.DHI Group, Inc.


was founded in 1991 and is headquartered in Centennial, Colorado.

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1.b. Last Insights on DHX

DHI Group, Inc.'s recent performance was driven by strong Q4 2024 earnings and revenue beat, with earnings of $0.07 per share, surpassing the consensus estimate of $0.03 per share. The company's ClearanceJobs revenue grew 7% year-over-year, while Dice revenue declined 14% year-over-year. The solid earnings surprise and positive revenue growth indicate improving business conditions and operational efficiency. Additionally, the company's focus on its core businesses, including ClearanceJobs and Dice, is likely contributing to its growth.

1.c. Company Highlights

2. DHI Group's Q3 Earnings: A Mixed Bag

DHI Group reported total revenue of $32.1 million for Q3 2025, down 9% year over year, but roughly flat compared to the previous quarter. The adjusted EBITDA margin expanded to 32%, driven by cost savings, with ClearanceJobs and Dice reporting adjusted EBITDA margins of 43% and 34%, respectively. Earnings per share (EPS) came in at $0.09, beating estimates of $0.06. The company's revenue guidance for the full year remains unchanged at $126 million to $128 million.

Publication Date: Nov -29

📋 Highlights
  • ClearanceJobs Resilience:: Maintained leadership with 43% EBITDA margin ($5.9M) despite 7% bookings decline due to government hiring freeze.
  • Dice Revenue Decline:: Revenue dropped 15% YoY to $18.2M, with 13% fewer customers (4,239) and 17% lower bookings ($13.4M).
  • Margin Expansion Success:: Dice EBITDA surged 56% to $6.2M (34% margin), driven by cost efficiencies and capitalized development spending.
  • Revised Guidance:: Full-year adjusted EBITDA margin raised to 27%, reflecting operational efficiency and cost management.
  • Liquidity Position:: Ended quarter with $2.3M cash, $30M debt, and leverage at 0.86x EBITDA, below target 1x leverage.

Segment Performance

ClearanceJobs revenue was $13.9 million, up 1% year over year, driven by its leadership position in the defense sector. Dice revenue, on the other hand, declined 15% year over year to $18.2 million, impacted by the tech industry slowdown. The company expects Dice's margin to normalize to the mid-twenties in the next quarter, down from the current 34%.

Bookings and Backlog

Total bookings for the quarter were $25.4 million, down 12% year over year, with ClearanceJobs experiencing a decline due to government hiring freezes. The total committed contract backlog stood at $94.3 million, down 9% from the same period last year. Deferred revenue was $41 million, down 13% year over year.

Valuation and Outlook

With a P/E Ratio of -9.1 and an EV/EBITDA of 26.63, the market is pricing in a significant recovery in earnings. Analysts estimate next year's revenue growth at -5.2%. Given the current valuation multiples, it is essential to monitor the company's progress in stabilizing the Dice business and leveraging opportunities in the GovTech space. The company's efforts to migrate customers to the new platform and its evaluation of adjacencies in the talent sourcing space are positive steps.

Cash Flow and Liquidity

Operating cash flow for Q3 was $4.8 million, and the company had $2.3 million in cash with $30 million in debt under its $100 million revolver, resulting in leverage at 0.86 times adjusted EBITDA. The company is targeting one times leverage and has reduced its capital expenditures guidance for 2025 to $7 million to $8 million.

3. NewsRoom

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DHI Group Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Nov -11

Source: zacks.com

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DHI Group, Inc. (DHX) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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DHI Group (DHX) Q3 Earnings and Revenues Beat Estimates

Nov -11

Source: zacks.com

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DHI Group Reports Third Quarter Financial Results; Raises Full Year Profitability Guidance While Reaffirming Revenue Target

Nov -10

Source: businesswire.com

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DHI Group to Report Q3 Earnings: What's in the Cards for the Stock?

Nov -07

Source: zacks.com

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D.R. Horton, Inc. $DHI Shares Sold by World Investment Advisors

Nov -04

Source: defenseworld.net

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Contrasting Shutterstock (NYSE:SSTK) & DHI Group (NYSE:DHX)

Oct -29

Source: defenseworld.net

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DR Horton: Positive Homebuilding Cycle All But Certain, Ignore Hiccups

Oct -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.72%)

6. Segments

Dice

Expected Growth: 15.4%

Growing demand for tech and engineering professionals, increasing adoption of online recruitment platforms, and Dice's strong brand presence drive growth in the career site market.

ClearanceJobs

Expected Growth: 10.2%

Growing demand for cybersecurity and defense professionals, increasing government spending on defense and intelligence, and the need for specialized talent with security clearances drive the growth of the clearance job market.

7. Detailed Products

Dice

A career hub that provides job postings, resume database, and career resources for technology and engineering professionals.

eFinancialCareers

A leading financial services career website that provides job postings, resume database, and career resources for finance professionals.

ClearanceJobs

A career website that specializes in providing job postings, resume database, and career resources for professionals with active security clearances.

Weblink

A recruitment platform that provides job postings, resume database, and career resources for professionals in the energy and engineering industries.

Rigzone

A career website that specializes in providing job postings, resume database, and career resources for professionals in the oil and gas industry.

8. DHI Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

DHI Group, Inc. operates in a niche market, providing specialized services and products to the oil and gas industry. While there are some substitutes available, they are not as effective or efficient as DHI's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

DHI Group, Inc.'s customers are primarily large oil and gas companies, which have limited bargaining power due to their dependence on DHI's specialized services and products.

Bargaining Power Of Suppliers

DHI Group, Inc. relies on a few key suppliers for critical components, giving them some bargaining power. However, DHI's strong relationships with these suppliers and its ability to negotiate favorable terms mitigate this risk.

Threat Of New Entrants

The oil and gas industry is highly regulated, and new entrants would face significant barriers to entry, including high capital costs and the need for specialized expertise, reducing the threat of new entrants.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with several established players competing for market share. DHI Group, Inc. must continually innovate and improve its services and products to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.21%
Debt Cost 7.76%
Equity Weight 69.79%
Equity Cost 8.79%
WACC 8.48%
Leverage 43.28%

11. Quality Control: DHI Group, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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HireQuest

A-Score: 4.2/10

Value: 3.9

Growth: 4.4

Quality: 7.2

Yield: 4.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

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DHI Group

A-Score: 3.9/10

Value: 6.9

Growth: 3.1

Quality: 3.3

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

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TrueBlue

A-Score: 3.6/10

Value: 9.8

Growth: 0.7

Quality: 4.8

Yield: 0.0

Momentum: 3.5

Volatility: 2.7

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ShiftPixy

A-Score: 3.5/10

Value: 10.0

Growth: 4.6

Quality: 4.9

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

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ZipRecruiter

A-Score: 3.0/10

Value: 6.0

Growth: 3.6

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Professional Diversity Network

A-Score: 3.0/10

Value: 8.4

Growth: 3.8

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.76$

Current Price

1.76$

Potential

-0.00%

Expected Cash-Flows