DHI Group (NYSE:DHX) reported stronger third-quarter bookings at its ClearanceJobs business and a narrower bookings decline at Dice, while raising its full-year profitability outlook and tightening its revenue guidance.
The technology recruiting platform operator said revenue was stable year over year as growth at ClearanceJobs offset a decline at Dice. Net income was $2.4 million, or $0.06 per diluted share, compared with a loss of $4.3 million, or $0.10 per share, a year earlier. The prior-year result included a $9.6 million impairment charge.
Adjusted EBITDA fell to $8.9 million from $10.3 million, with the margin declining to 28% from 32%. Non-GAAP earnings were $0.10 per share, up from $0.09.
ClearanceJobs bookings accelerate
ClearanceJobs, which connects employers with professionals holding active U.S. security clearances, generated revenue of $16.5 million, up 18% from a year earlier. Bookings rose 32% to $15.8 million.
Point Solutions Group, acquired at the end of February, contributed $2 million of both revenue and bookings in the quarter. Excluding the acquisition, ClearanceJobs bookings grew 15% and revenue rose 4%.
CEO Art Zeile said stronger sales execution and demand for cleared talent helped drive the results. He said the business recorded its strongest new-business bookings quarter in its 24-year history.
ClearanceJobs ended the quarter with 1,764 recruitment package customers, down 3% year over year but up 2% from the previous quarter. Its revenue renewal rate improved to 93% from 85%, while its retention rate rose to 111% from 106%.
CFO Greg Schippers said Point Solutions Group bookings generally convert immediately to revenue because the business operates on an hours-worked model rather than subscriptions. He said core bookings growth typically builds into revenue over roughly six months and, all else being equal, could lead to double-digit growth in the first part of 2027.
Zeile cited demand from traditional defense contractors, emerging defense technology companies and international defense firms expanding in the U.S. He cautioned that proposed increases in defense spending remain subject to the legislative process and may not immediately translate into bookings.
Dice renewal pressure continues
Dice revenue fell 13% year over year to $15.7 million and was flat sequentially. Bookings declined 9% to $12.1 million, an improvement from declines of 14% in the second quarter and 20% in the first.
The platform ended the quarter with 3,452 recruitment package customers, down 19% from a year earlier and 7% from the previous quarter. Schippers said smaller customers spending less than $15,000 annually accounted for approximately 80% of the year-over-year customer-count churn.
Zeile said some enterprise customers were reducing contract sizes to reflect their current recruiting needs, rather than ending their relationships with Dice. He said 49% of Dice’s annual recurring revenue is tied to contracts lasting two to three years, making it difficult to predict when those adjustments will end.
Management is using a self-service platform with monthly subscriptions to make Dice more affordable for smaller customers. Schippers said the cohort moved from sales-assisted service generated a little over $300,000 in revenue during the quarter. He said the improvement has been gradual as the company refines its marketing.
Zeile said Dice’s new-business bookings grew year over year, with new customer activity concentrated mostly in IT staffing. He also said technology job postings tracked through CompTIA and Lightcast were running about 30% above prior-year levels, though those indicators have not yet returned Dice to growth.
Guidance and cash flow
DHI narrowed its full-year 2026 revenue guidance to $124 million to $126 million from $124 million to $128 million. It expects ClearanceJobs and Dice each to contribute $62 million to $63 million.
The company raised its full-year adjusted EBITDA margin guidance to 26% from 25%. It maintained its 40% margin target for ClearanceJobs and raised its Dice target to 25% from 24%.
Third-quarter operating cash flow rose to $7.2 million from $4.8 million, while free cash flow increased to $5.3 million from $3.2 million. DHI reduced debt by $2 million to $30 million and repurchased approximately 900,000 shares for $3.8 million during the quarter. It had about $800,000 remaining under its $10 million repurchase program at quarter-end.
About DHI Group (NYSE:DHX)
DHI Group, Inc (NYSE: DHX) is a provider of specialized career marketplaces and recruiting solutions. The company connects employers with highly skilled professionals, with a primary focus on technology and security-cleared talent.
Its principal brands include Dice, a career platform serving technology professionals and employers, and ClearanceJobs, a marketplace focused on professionals who hold or are eligible for U.S. government security clearances. The company’s services include job postings, candidate sourcing, recruitment advertising, employer branding, and related data and analytics tools.
DHI Group was formerly known as Dice Holdings and adopted its current name in 2015.
