DHI Group Q3 Revenue Flat as ClearanceJobs Growth Offsets Dice Decline

DHI Group Inc. (NYSE: DHX) reported nearly unchanged third-quarter fiscal 2026 revenue as continued growth at ClearanceJobs counterbalanced a double-digit decline at Dice. The diverging performance reinforced the company’s reliance on its cleared-talent platform for growth while its commercial technology-recruiting business remained under pressure.

Revenue was $32.2 million for the quarter ended in fiscal Q3 2026, compared with $32.1 million a year earlier. Bookings rose about 10% to roughly $28 million, supported by strong demand at ClearanceJobs.

Adjusted EBITDA, a non-GAAP measure, declined to $8.9 million from $10.3 million in the prior-year quarter. Adjusted EBITDA margin narrowed to 28% from 32%. GAAP net income was $2.4 million, representing a 7% net income margin.

ClearanceJobs drives growth

ClearanceJobs generated revenue of $16.5 million, up 18% year over year, while bookings increased 32% to $15.8 million. The platform’s revenue retention rate was 111%, indicating that customers renewing annual recruitment packages increased their aggregate contract value. Its revenue renewal rate was 93%.

The business reported adjusted EBITDA of $6.7 million, up from $5.9 million a year earlier, with a 41% adjusted EBITDA margin compared with 42% in the prior-year period. Capital expenditures were $0.8 million, including $0.7 million of capitalized development costs.

ClearanceJobs ended the quarter with 1,764 recruitment-package customers, down from 1,822 a year earlier. However, average annual revenue per recruitment-package customer increased to $29,228 from $26,601. DHI positions the platform around demand for professionals with government clearances, cybersecurity expertise and other specialized technology skills. It serves more than 10,000 cleared employers and over 100 government agencies.

Dice remains under pressure

Dice revenue fell 13% year over year to $15.7 million, while bookings declined 9% to $12.1 million. Its revenue retention rate was 92%, and the revenue renewal rate was 67%.

The number of Dice recruitment-package customers dropped to 3,452 from 4,239 a year earlier. Average annual revenue per customer increased to $16,399 from $15,727, partially mitigating the effect of the smaller customer base.

Dice produced adjusted EBITDA of $4.0 million, down from $6.2 million in the year-earlier quarter. Its adjusted EBITDA margin contracted to 25% from 34%. Capital expenditures totaled $1.1 million, including $0.9 million of capitalized development costs.

Management described Dice as a cash-generating business positioned to benefit if technology hiring stabilizes. The presentation cited 272,000 new technology job postings in September 2026, up 32% year over year, but the company did not provide formal revenue or earnings guidance tied to that data.

Cash flow and capital allocation

Operating cash flow was $7.2 million in the quarter, up from $4.8 million a year earlier, while total capital expenditures were $1.9 million. Capitalized development costs accounted for more than 90% of capital spending. DHI maintained a long-term target of generating free cash flow equal to at least 10% of revenue; free cash flow is defined as operating cash flow minus fixed-asset purchases.

At quarter-end, DHI had $3 million of cash and $30 million of debt. Its leverage ratio, calculated as debt divided by adjusted EBITDA, was 0.86. The company said it had returned $79 million through share repurchases since 2021 and had a $10 million repurchase authorization in place through February 2027.

DHI said approximately 90% of its revenue is recurring, providing visibility through subscription-based recruitment packages. Its operating priorities include expanding ClearanceJobs, maintaining cash generation at Dice, reducing capitalized development spending and using free cash flow for repurchases and deleveraging.

The company identified several uncertainties that could affect future results, including macroeconomic weakness, changes in government spending or agency structures, continued softness in technology hiring, competition, customer-retention challenges and the potential for artificial intelligence to reduce demand for some technology professionals. Other risks include indebtedness, cybersecurity incidents, technology infrastructure failures and the possibility that bookings or backlog may not accurately represent future revenue.