DLH Holdings Corp. reported its financial results for the first quarter ended December 31, 2025. Revenue for the period was USD 68.89 million. Adjusted EBITDA reached USD 6.5 million, representing 9.5 percent of revenue, while EBITDA was USD 5.7 million with an EBITDA margin of 8.3 percent. The company reported an income from operations of USD 1.44 million. Cash used in operating activities totaled USD 4.8 million, and free cash flow was also negative USD 4.8 million. Debt stood at USD 136.6 million as of December 31, 2025, and backlog was USD 517.4 million. Key highlights for the quarter include a revenue variance reflecting the transition of certain programs to small-business set-aside contractors. Adjusted EBITDA benefited from initiatives to reduce costs and streamline operations. The company’s operating cash usage improved significantly compared to the prior year, and debt rose modestly due to short-term working capital needs. DLH remains on track for further delevering during fiscal 2026.
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