DHI Group 2025 Q3 Earnings Widened Net Loss of 2034.5% Despite Revenue Beat

DHI Group (DHX) reported Q3 2025 earnings with revenue of $32.12M, exceeding estimates by 3.58%, while net losses widened to $4.27M (2034.5% YoY). The company raised full-year Adjusted EBITDA margin guidance to 27% and announced a $5M stock buyback program.

Revenue

Total revenue declined 9.0% YoY to $32.12M, with ClearanceJobs maintaining a 43% EBITDA margin despite 7% bookings decline. Dice revenue fell 15% to $18.2M, offset by improved profitability from operational efficiency.

Earnings/Net Income

The net loss widened to $4.27M (-$0.10/share), a 2034.5% increase from $0.2M (-$0.00/share) in 2024 Q3. While adjusted EPS of $0.09 beat estimates, the core losses reflect a $9.6M intangible asset impairment.

Post-Earnings Price Action Review

Shares fell 5.06% on the day and 26.52% month-to-date, reflecting investor concern over macroeconomic headwinds and sector volatility. Despite beating revenue expectations, the significant impairment charge and deepened losses pressured sentiment. The stock’s underperformance contrasts with its 10x forward P/E, down from 19x three months ago.

CEO Commentary

Art Zeile emphasized resilience in defense sector demand and AI-driven tech hiring, while acknowledging challenges from government shutdowns and interest rates. Strategic moves like AgileATS integration and a premium candidate subscription aim to drive long-term value.

Guidance

DHI reaffirmed 2025 revenue guidance of $126–128M and raised EBITDA margin guidance to 27%. Q4 revenue is expected between $29.5–31.5M, with capital expenditures reduced to $7–8M.

Additional News

1. DHI authorized a $5M stock buyback program through 2026, signaling confidence in liquidity.

2. A $9.6M impairment charge on the Dice trade name, driven by revenue declines, impacted Q3 results.

3. AI-related job postings surged to 50% of October’s listings, highlighting long-term growth potential.

Image: DHI Group’s Q3 2025 Earnings Highlights

Visual representation of revenue decline, margin expansion, and strategic initiatives.