Q2 '26 Earnings Preview
DHI Group (DHX) reports Q2 ’26 results on Wednesday, August 5, after the market closes. If the data is to be trusted, demand for technologists improved markedly over the past quarter, providing a favorable backdrop for DHI Group’s ClearanceJobs and Dice platforms. To wit, the Bureau of Labor Statistics’ monthly JOLTS data reflects a return to positive mid-single digit Y/Y growth in job openings in both April and May following slight Y/Y declines throughout Q1. Even so, the JOLTS data understates the strength in the market for technologists as CompTIA’s analysis of the jobs data points to robust growth in the number of new and active technology job postings, both of which exited June with growth in excess of 30% Y/Y. Lending further credence to our view that the labor market has bounced off the bottom are the recent earnings results from several large IT staffing providers, all of whom reported stabilization, if not renewed Y/Y growth, in Q2 driven by both contract staffing and an uptick in permanent placements. Worth noting, 66% of the 2,000+ U.S. hiring managers surveyed by Robert Half plan to increase permanent hiring during the latter half of this year; 78% of those hiring plans are tied to technology skills. All this considered, we remain comfortable with our Q2 projections, and we expect DHI Group to deliver results ahead of 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 estimates for Q2 include revenue and adjusted EBITDA of $31.5 million and $7.4 million, respectively, both of which are slightly above Street expectations for $30.9 million and $7.2 million. For ClearanceJobs, we project revenue of $15.6 million (+14.5% Y/Y) along with bookings growth of 31% Y/Y due to the first full quarter of contribution from the acquisition of Point Solutions Group. For Dice, we project revenue of $15.9 million (-13.6% Y/Y) along with a bookings decline of 10% Y/Y. Reflecting the impact of Point Solutions Group, we also assume gross margin declines sequentially, while operating expenses tick higher. Given that Q2 and Q3 are seasonally slower bookings periods for the company, we do not anticipate any material change to management’s prior FY ’26 guidance at this juncture.
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 Reports
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.