Here are a few analogies for DLH Holdings Corp.:

• A specialized Booz Allen Hamilton for federal health agencies.
• Like Leidos, but focused exclusively on healthcare and technology solutions for the U.S. government.

• Defense and Veterans' Health Solutions: Provides comprehensive healthcare, technology, and logistics solutions primarily to the VA and other federal defense health agencies.
• Human Services and Solutions: Delivers a range of services including monitoring and evaluation, electronic medical records migration, data management, and IT system support for federal human services programs.
• Public Health and Life Sciences Services: Offers specialized services such as clinical trials, epidemiology studies, disease prevention, and health promotion campaigns to federal health initiatives.

Major Customers of DLH Holdings Corp. (DLHC)

DLH Holdings Corp. primarily serves the federal health services market. Its major customers are various U.S. government agencies and departments:

• VA (Department of Veterans Affairs)
• Defense Health Agency
• Tele-medicine and Advanced Technology Research Center
• Navy Bureau of Medicine and Surgery
• Army Medical Research and Material Command

Zachary Parker, President, CEO, and Director

Zachary Parker has served as DLH's President, Chief Executive Officer, and board director since 2010. During his tenure, he has spearheaded four strategic acquisitions: Danya International, Inc. (2016), Social & Scientific Systems, Inc. (2019), Irving Burton Associates, LLC (2020), and Grove Resource Solutions, Inc (2022), expanding DLH's service portfolio to include a broader range of technology-enabled Federal services and public health capabilities. Before joining DLH, Mr. Parker held leadership roles within Northrop Grumman Corporation, VT Group, GE Government Services (now Lockheed Martin), and VSE Corporation. Northrop Grumman Mission Systems & IT was acquired by Peraton in 2020, and GE Government Services was acquired by Lockheed Martin. He also served as President & VP-Business Development at VT Griffin Services, Inc. from 2008 to 2010 and as CEO at Brightlane.Com, Inc. He possesses over 25 years of government services leadership experience across the Department of Defense (DoD) and federal civilian markets.

Kathryn JohnBull, Chief Financial Officer

Kathryn JohnBull has served as the Chief Financial Officer and Treasurer at DLH Holdings Corp. since June 25, 2012. She has worked alongside DLH President and CEO Zach Parker for over a decade.

Mary Dowdall, President, Advanced Mission Services

Mary Dowdall is President of DLH's Advanced Mission Solutions (AMS) Operating Center, where she leads DLH's Military Health services portfolio, specializing in technology, systems engineering and integration, business solutions, and research and development. She has over 25 years of experience in strategic and tactical leadership of small to mid-size business operations and corporate goals. Her expertise includes program and project management mission support with the Department of Defense (DoD) Health Affairs (HA) and various Defense Health clients. Ms. Dowdall was the president of Irving Burton Associates (IBA) prior to its acquisition by DLH in 2020 and remained with DLH in leadership of the IBA organization.

Jeanine Christian, President, Public Health & Scientific Research

Jeanine Christian serves as the President of DLH's Public Health & Scientific Research operating unit. She is a senior executive with nearly 30 years of experience helping clients advance their public health goals. Before joining DLH in July 2020, she led a team of over 300 scientists, clinicians, researchers, and data analysts at Battelle Memorial Institute's Public Health Research Division. Prior to that, she was a Senior Study Director at Westat, where she directed large, complex public health research projects in areas such as alcohol and drug abuse, and social service programs.

Billy Burnett, President, National Security Programs

Billy Burnett serves as President of DLH's National Security Programs operations center, overseeing all defense and intelligence programs and leading operational and business development activities. He brings over 25 years of industry experience in client engagement, business development, program management, and systems engineering. Mr. Burnett first joined DLH through its subsidiary Grove Resource Solutions, Inc. in 2012. He is a Veteran of the U.S. Navy, having served from 1979 to 1987. Before his time at GRSi, he held roles at Atlas Executive Consultants, LLC, rKay Services Group, EMA/SAIC, and ManTech.

The key risks to DLH Holdings Corp. (DLHC) primarily stem from its financial leverage, dependence on federal contracts, and the challenges associated with integrating recent acquisitions.

1. High Debt and Interest Coverage: DLH Holdings Corp. carries a significant amount of debt, with a reported US$162.2 million in debt as of December 2024 and a low interest coverage ratio of 1.4 times, indicating potential difficulty in covering interest expenses with its earnings before interest and taxes (EBIT). The company's debt-to-equity ratio was approximately 119%, and its interest payments were not well covered by EBIT at 0.9x coverage. This financial leverage is a concern, especially if the company's EBIT continues to decline.
2. Dependence on Federal Government Contracts and Budgetary Changes: As a company primarily serving the federal health services market, DLH Holdings Corp. is exposed to risks related to government contract procurement processes, including intense competition for new business and re-competes for existing contracts. Risks also include potential changes in client budgetary priorities, the impact of government contract procurement issues (such as bid protests or small business set-asides), and contract termination risks. Furthermore, federal budget volatility poses a principal risk to the company's financial stability and growth prospects.
3. Acquisition Integration Challenges: DLH Holdings Corp. engages in strategic acquisitions, such as the recent acquisition of GRSi in December 2022. Such acquisitions introduce risks that include the potential inability to realize the anticipated benefits, financial performance, and results from these integrations. Other challenges involve diverting management's attention from daily operations, managing larger and more widespread operations, and retaining both employees and customers of the acquired entities. Successful integration execution and achieving expected synergies are crucial for mitigating these risks.

Emergence of highly sophisticated artificial intelligence (AI) and automation solutions capable of performing data collection, management, analysis, program monitoring, and health research and analytics tasks with greater efficiency and lower cost, potentially reducing the need for DLH's human-intensive business process outsourcing and consulting services in the federal health market.

Addressable Markets for DLH Holdings Corp. (DLHC)

DLH Holdings Corp. primarily serves the federal health services market in the United States. The addressable markets for its main products and services in the U.S. region are detailed below:

Defense and Veterans' Health Solutions

• The broader U.S. federal healthcare contracting market, which includes services for agencies like the Department of Defense (DoD) and the Department of Veterans Affairs (VA), represented approximately $105 billion in fiscal year 2023, based on federal healthcare spending comprising nearly 14% of over $750 billion in total federal contract obligations.
• The U.S. defense market, encompassing contract spending by the Department of Defense (DoD), stood at USD 354.48 billion in 2026. Overall DoD contract obligations exceeded $470 billion in fiscal year 2023.
• For the Department of Veterans Affairs (VA), total contract spending is projected to be $82 billion in 2025. Specifically, contract spending for veterans' medical services increased to $34.6 billion in fiscal year 2025.
• Military logistical support and infrastructure, relevant to DLH's logistics solutions, sees the U.S. Department of Defense (DoD) allocating approximately $25 billion annually for military infrastructure and logistical support.

Human Services and IT Solutions

• The U.S. federal civilian IT services market, which includes electronic medical records migration, data collection and management, and IT system architecture services, is estimated at $128 billion in 2025. The VA alone obligated over $25 billion for IT products and services from fiscal years 2017-2021.
• The broader U.S. public sector consulting and advisory services market, which may include monitoring and evaluation and health assessments, was approximately $80 billion in 2023.

Public Health and Life Sciences Services

• U.S. federal public health spending amounted to $35.5 billion in 2024.
• Contract spending by the Department of Health and Human Services (HHS), which covers a wide array of public health and life sciences services, is projected to account for $128 billion, or 17%, of federal contract spending in 2025.
• The overall U.S. life science market, which encompasses clinical trials, epidemiology studies, and health informatics, was valued at US$31.58 billion in 2025 and is expected to grow to US$35.39 billion in 2026.
• The U.S. life science analytics market, directly relevant to health informatics analyses, was valued at USD 11.96 billion in 2025 and is projected to reach approximately USD 28.66 billion by 2034.

DLH Holdings Corp. (DLHC) anticipates future revenue growth over the next two to three years driven by several key factors within its federal health services market focus.

Here are 3-5 expected drivers of future revenue growth for DLH Holdings Corp.:

1. Increased Federal Funding and Budget Stability: The recently enacted federal budget is expected to provide increased funding capacity and improved visibility for DLH's federal health agency clients. This reversal of previous funding reductions and enhanced budget clarity are anticipated to positively impact the company's organic growth initiatives and overall demand across its core markets.
2. Digital Transformation and Modernization-Driven Awards: DLH is strategically positioned to secure new contracts related to digital transformation and modernization efforts within federal agencies. The company's expertise in areas such as cybersecurity, including Zero Trust applications, cloud migration, and artificial intelligence (AI) adoption, aligns with the federal government's priorities for modernizing its health systems.
3. Expansion of Technology-Powered Solutions and New Contract Acquisitions: The company aims to expand its technology-powered solutions portfolio, targeting growth within its core technology sectors. While recent revenue has been affected by transitions to small business set-aside contracts, DLH expects to see increased bid opportunities and is focused on winning larger, broader contracts, including through IDIQ (Indefinite Delivery, Indefinite Quantity) and GWAC (Government-Wide Acquisition Contract) prime vehicles.
4. Strategic Initiatives and Integration of Acquired Capabilities: Strategic acquisitions, such as the purchase of GRSi in December 2023, have significantly enhanced DLH's scale and digital capabilities. The company's growth strategy includes the ongoing integration of these acquired capabilities and a focus on cross-selling its cloud and cybersecurity services into existing legacy health contracts.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• DLH Holdings Corp. did not hold any treasury stock as of June 30, 2025, and September 30, 2024, indicating no significant share repurchases during this period.
• An older share repurchase program authorized for up to $1,000,000 was approved on September 12, 2019, with no expiration date. However, recent filings suggest this program has not resulted in treasury stock being held in the last 3-5 years.

Share Issuance

• The company granted 312,906 shares of restricted stock units during the nine months ended June 30, 2025.
• During the nine months ended June 30, 2024, DLH Holdings Corp. granted 169,544 shares of restricted stock units.

Outbound Investments

• DLH Holdings Corp. completed the acquisition of GRSi in 2022 for approximately $185 million, expanding its capabilities in cybersecurity, C5ISR, and digital modernization.

Capital Expenditures

• DLH Holdings Corp. invested approximately $39 thousand in capital expenditures in the first quarter of fiscal year 2026.