DLH Holdings Corp. (NASDAQ: DLHC)

DLH Holdings Corp. delivers improved health and readiness solutions for federal government customers through digital transformation and cyber security, science research and development, and systems engineering and integration. The company leverages advanced technologies such as artificial intelligence, cloud-based applications, and telehealth systems to address complex problems faced by civilian and military customers. DLH's unique combination of government sector experience, proven methodology, and unwavering commitment positions it as a key player in the federal contracting industry.

DLH generates revenue through a diverse mix of contract vehicles with various agencies of the federal government. The company's revenue is distributed across time and materials contracts, firm fixed price contracts, and cost reimbursable contracts. DLH's primary customers include the Department of Health and Human Services (HHS), the Department of Veterans Affairs (VA), and the Department of Defense (DoD), along with their sub-agencies. The company's services are aligned with the long-term needs of these customers, focusing on digital transformation and cyber security, science research and development, and systems engineering and integration.

• Digital Transformation and Cyber Security: DLH provides critical solutions across the federal civilian and cyber defense communities. The company leverages advanced technology to modernize obsolete systems, protect sensitive information, manage large datasets, and enhance operational efficiency. Key tools include artificial intelligence and machine learning, cloud enablement, cybersecurity ecosystem, big data analytics, and modeling and simulation. DLH's customers, such as the National Institutes of Health (NIH), the Defense Health Agency (DHA), US Army Medical Research & Development Command (MRDC), and US Navy, rely on the company's information technology support to enable their vital missions. DLH works to reduce risk and build resilience to cyber and physical threats, offering a full spectrum of cyber capabilities, cryptographic and true cyber engineering, Certified Information Security Officer (CISO) / Information System Security Officer (ISSO) support, risk management frameworks, Continuity of Operations (COOP) / Disaster Recovery, services under Cybersecurity Maturity Model Certification (CMMC) Level 2, and enterprise infrastructure and cloud governance focused on designing and implementing zero trust architecture.

• Science Research and Development: DLH advances scientific knowledge and understanding through its extensive research portfolio and domain expertise. The company provides large-scale data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions within HHS, including NIH and the Center for Disease Control and Prevention (CDC), as well as the Military Health System. DLH's employees support innovative, cutting-edge research on emerging trends, health informatics analyses, and the application of best practices including mobile, social, and interactive media. The company leverages evidence-based methods and web technology to drive health equity to vulnerable populations through public engagement. Projects often involve highly specialized expertise and transformative R&D support services, with decades of experience designing, conducting, and analyzing studies for a diverse customer base.

• Systems Engineering and Integration: DLH specializes in delivering engineering solutions that support customers' evolving needs by rapidly deploying resources, solutions, and services. This includes specialized engineering expertise in areas such as Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR), modeling, simulation & training, performance-based logistics, system modernization, technology-powered health solutions, and software engineering. The company's customers include the US Navy, HHS, VA, and other federal agencies. DLH utilizes automation to accelerate infrastructure innovation and helps customers define a lifecycle for automation assets, setting standards for version control, testing, and release processes. The company delivers IT operational resilience and efficiency in parallel with technology innovation integration, via hybrid and multi-cloud solutions, leveraging integrated services, process automation, advanced tool stacks, and mature quality processes. DLH's employees engineer, implement, and operate solutions that demonstrate measurable results to satisfy customers' management requirements, helping them confidently deploy secure platforms and technologies that reduce operational costs. The company has invested in agile software development credentials for its technical staff and has achieved Capability Maturity Model Integration (CMMI) level 3.

DLH Holdings Corp. holds a strong position within the federal contracting industry, competing with several large and small-business companies. The company's competitive advantages include a highly credentialed workforce, predominantly performing as the prime contractor, a strong past performance record across government contracts, and strong bipartisan support for key contracts. DLH has invested in leading credentials and capabilities, including the development of secure IT platforms, sophisticated data analytic tools and techniques, and implementation process improvement and quality assurance programs and techniques. The company is actively pursuing additional credentials to support its customers' ever-evolving missions. DLH competes with operating units within Accenture Federal Services LLC, BAE Systems plc, Booz Allen Hamilton Holding Corp., CACI International, Inc., Deloitte, ECS Federal, LLC, The Emmes Company, LLC, General Dynamics Information Technology, Inc., Guidehouse, IBM Federal, ICF International, Inc., Information Management Services, Inc., Leidos Holdings, Inc., LMI Consulting, LLC, ManTech International Corp., NexGen Data Systems Inc., Peraton, Inc., PPD Inc., Scientific Research Corp, Rho, Inc., RTI International, SAIC Inc., The Informatics Applications Group Inc., UnitedHealth Group, Inc., and Westat, Inc. DLH's differentiating suite of tools, integration of people and processes, and solid track record of past performance enable it to submit highly competitive proposals. The company's proprietary tools and processes, along with its Infinibyte cloud-based management system, set it apart from competitors. DLH's recent and future success hinges on its ability to uniquely integrate people, processes, and technology tools to deliver best-value solutions for targeted customers.

DLH's major customers include the Department of Health and Human Services (HHS), the Department of Veterans Affairs (VA), and the Department of Defense (DoD). The company's revenue is concentrated in these key customers, with a significant portion derived from each. For the fiscal year ended September 30, 2025, HHS accounted for approximately 49.8% of DLH's total revenue, VA accounted for 33.8%, and DoD accounted for 15.5%. The remaining revenue came from customers with less than a 10% share of total revenue. DLH remains dependent on the continuation of its relationships with these major customers, as a significant portion of its revenue is concentrated in each of them. The company's results of operations, cash flows, and financial condition would be materially adversely affected if it were unable to continue its relationship with any of these customers, if it were to lose any of its material contracts, or if the amount of services it provides to them is materially reduced.