DHI Group, Inc. (DHX) AI Stock Analysis
DHX AI stock analysis summary
AI ResearchDHI Group, Inc. (DHX) provides data-driven career marketplaces and recruiting connections for technology, defense, and finance professionals. Over the trailing twelve months, the company generated $124.5M in revenue with an operating margin of 12.2% and a profit margin of 1.0%. Despite annual revenue declining 9.9% in FY2025, the stock has delivered a 1-year return of 135.4%.
- Market cap
- $209.5M
- Revenue (TTM)
- $124.5M
- P/E
- 161.7x fwd 15.3x
- 1Y return
- 135.4% S&P 500 16.8%
- Avg. target
- $6.75 39.2% vs last close
Bull case
- The stock has shown strong price momentum, advancing 135.4% over the past year and trading 44.4% above its 200-day average.
- Analysts maintain an average price target of $6.75, pointing to a potential upside of 39.2% from the last close of $4.85.
- Free cash flow improved to $13.8M in FY2025 from $7.1M in FY2024, supported by an 84.7% gross margin.
Bear case
- Annual revenue decreased 9.9% in FY2025 to $127.8M after dropping 6.6% in FY2024.
- Operating margin turned negative to -8.9% in FY2025, producing net income of -$13.5M.
- The company maintains net debt of $37.0M against cash and short-term investments of only $3.8M as of June 30, 2026.
What DHI does
Headquartered in Centennial, Colorado, DHI Group, Inc. delivers data-driven insights and employment connections for technology professionals across global markets. The company operates specialized platforms including Dice, which connects software engineers, big data professionals, systems administrators, database specialists, and project managers with employers. It also manages ClearanceJobs, an online career network matching security-cleared talent with companies in the defense and government sectors. In addition, its eFinancialCareers platform serves financial services professionals across asset management, risk management, investment banking, and information technology. DHI Group serves small, mid-sized, and large employers, as well as staffing companies and recruiting agencies.
Growth and profitability
DHI Group posted a 5-year revenue CAGR of 2.8% from FY2020 to FY2025. Annual revenue peaked at $151.9M in FY2023 before falling 6.6% in FY2024 to $141.9M and declining 9.9% in FY2025 to $127.8M. Operating margin moved from 4.5% in FY2024 to -8.9% in FY2025, resulting in net income of -$13.5M. Gross margin stood at 84.7% in FY2025, and free cash flow reached $13.8M. For the latest quarter ended June 30, 2026, revenue fell 2.1% year-over-year, while quarterly earnings grew 36.8%. Over the trailing twelve months, revenue was $124.5M and EPS was $0.03.
Balance sheet and cash flow
As of June 30, 2026, DHI Group held $3.8M in cash and short-term investments alongside total debt of $40.7M, resulting in net debt of $37.0M. Total assets stood at $188.7M, while shareholders' equity reached $94.1M, representing a debt-to-equity ratio of 0.43 and a current ratio of 0.44. During FY2025, the company produced $21.1M in operating cash flow, allocating $7.3M to capital expenditures and $11.3M to share buybacks. Its share count has been reduced 13.6% over the past 5 years.
Valuation and performance
With a market cap of $209.5M and an enterprise value of $236.7M, DHI Group trades at a trailing P/E of 161.7x, well above the 28.1x median of its US-listed Technology peers. Conversely, its forward P/E of 15.3x sits below the peer median of 18.8x, and its EV/EBITDA of 13.3x is lower than the peer median of 16.6x. The stock trades at a price-to-sales multiple of 1.7x compared to the peer median of 2.8x. Over the past year, DHX returned 135.4%, outperforming the S&P 500 return of 16.8%, although its 5-year return of -1.8% trailed the index return of 83.0%.
What analysts expect
Wall Street coverage consists of 2 Strong Buy ratings and 1 Buy rating, with no Hold, Sell, or Strong Sell ratings. The mean price target is $6.75, representing a 39.2% upside from the last close of $4.85. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $125.3M and EPS of $0.28. For the next fiscal year, 2 analysts project revenue of $128.2M and EPS of $0.23. DHI Group beat EPS estimates in all 4 of the last 4 quarters. The next earnings date is November 9, 2026.
Key risks and what to watch
- Liquidity is tight, evidenced by a current ratio of 0.44 and cash reserves of $3.8M against total debt of $40.7M.
- Quarterly revenue fell 2.1% year-over-year in the quarter ended June 30, 2026, trailing the peer median growth rate of 11.6%.
- Analyst consensus expects EPS to decline 21.1% to $0.23 in the next fiscal year.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DHX AI stock analysis
This page is an AI-written research summary of DHI Group, Inc. (DHX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DHX income statement, DHX balance sheet, DHX key metrics, DHX analyst forecast, DHX chart. See the DHX stock overview for the latest quote and news.
DHX AI stock analysis FAQ
What career platforms does DHI Group operate?
DHI Group operates Dice for technology professionals, ClearanceJobs for security-cleared defense and government personnel, and eFinancialCareers for financial services candidates.
Does DHI Group pay a dividend?
DHI Group does not pay a dividend. Capital allocation in FY2025 focused on $11.3M in share buybacks and $7.3M in capital expenditures.
What are analysts estimating for DHI Group's upcoming earnings?
For the fiscal year ending December 31, 2026, analysts estimate revenue of $125.3M and EPS of $0.28. For the next fiscal year, 2 analysts project revenue of $128.2M and EPS of $0.23.
How has DHX performed against the S&P 500?
Over the past year, DHX gained 135.4%, outpacing the S&P 500 return of 16.8%. Over a 5-year period, DHX returned -1.8% compared to an 83.0% gain for the S&P 500.