Q3 '26 Earnings Preview
DHI Group (DHX) reports Q3 ’26 results on Wednesday, November 4, after the market closes. Demand for technologists has exhibited steady improvement throughout 2026, and we believe that trend continued over the past calendar quarter. After returning to positive Y/Y growth in Q2 ’26, the Bureau of Labor Statistics’ monthly JOLTS data reflects sustained growth in job openings during July and August; we note that data for September will be released this coming Tuesday, November 3. In a similar vein and perhaps offering a preview of the upcoming JOLTS release, CompTIA’s Tech Jobs Report indicates that the number of new and active technology job postings continued to accelerate after a resounding rise in the prior quarter. After peaking at nearly 35% in August, new technology job postings increased 30% Y/Y in September, while the number of active postings were up 39% Y/Y in the final month of Q3. Importantly, recent quarterly results and guidance from large IT staffing providers, including Kforce, Everforth, Robert Half and Manpower’s Experis division, all corroborate the view that demand for IT professionals has turned the corner after being in the doldrums for the past few years. With this in mind, we remain comfortable with our Q3 projections, and we expect DHI Group to deliver results consistent with Street expectations. Our price target remains $5.00 based on a FY ’26 EV/Sales multiple of 2x.
Exhibit I: Our Estimates Versus Consensus
Sources: K. Liu & Company LLC; FactSet Estimates
Our Q3 estimates call for revenue and adjusted EBITDA of $30.6 million and $7.2 million, respectively, generally in line with Street expectations for $31.1 million and $7.0 million. By segment, we project ClearanceJobs revenue of $15.6 million (+11.7% Y/Y) and Dice revenue of $15.1 million (-17.2% Y/Y). We estimate bookings growth of 25.5% for ClearanceJobs and -9.5% for Dice, both of which reflect sequential improvement. We assume gross margin declines slightly from the prior quarter due to the revenue decline at Dice, while operating expenses remain relatively flat. With only one quarter remaining in the year, we do not anticipate any significant adjustments to management’s FY ’26 guidance aside from narrowing the outlook to tighten the range for Q4.
Exhibit II: U.S. Job Openings in Thousands
Source: U.S. Bureau of Labor Statistics Job Openings and Labor Turnover Survey
Exhibit III: New Technology Job Postings
Source: CompTIA Tech Jobs Report
Our report with model and disclosures is available here.
Disclosure(s):
K. Liu & Company LLC (“the firm”) receives or intends to seek compensation from the companies covered in its research reports. The firm has received compensation from DHI Group, Inc. (DHX) in the past 12 months for “Sponsored Research.”
Sponsored Research produced by the firm is paid for by the subject company in the form of an initial retainer and a recurring monthly fee. The analysis and recommendations in our Sponsored Research reports are derived from the same process and methodologies utilized in all of our research reports whether sponsored or not. The subject company does not review any aspect of our Sponsored Research reports prior to publication.