DHI Group Inc. (NYSE: DHX) witnessed a significant uplift in its stock price, climbing approximately 29.5% during after-hours trading to reach $2.15 on Wednesday. The notable increase followed the release of the company's fourth-quarter financial results and the announcement of a fresh $10 million stock repurchase authorization.
Headquartered in Colorado, DHI Group serves as a provider of technology-focused career marketplaces utilizing artificial intelligence. This specialized positioning targets recruitment services predominantly within the technology sector. The company's board of directors declared a new share repurchase program, effective from February 9, 2026, extending through February 8, 2027. This program authorizes the purchase of shares worth up to $10 million.
Greg Schippers, the Chief Financial Officer of DHI Group, expressed strong confidence in the strategic direction of the company, emphasizing robust cash flow generation and a disciplined approach towards allocating capital resources. He commented, "This share repurchase authorization reflects our confidence in DHI’s strategic direction, the durability of our cash flows, and our disciplined approach to capital allocation."
In its latest quarterly results, DHI Group reported total revenue of $31.4 million, marking a 10% reduction compared to the fourth quarter of the previous year. Despite this top-line decrease, the company managed to increase its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $9.4 million, up 2% year-over-year. This resulted in EBITDA margins expanding from 26% to 30% during the same timeframe.
Breaking down revenue streams by business segment, ClearanceJobs, a subset of DHI Group focused on career opportunities in cleared defense and federal contractor roles, generated $13.9 million in revenue, a 1% increase over the prior period. It also exhibited robust profitability with EBITDA margins reaching 43%.
Conversely, Dice, another brand under DHI Group targeting the general technology job market, experienced a 17% decline in revenue to $17.4 million. However, this segment also improved its EBITDA margin, which climbed from 20% to 30%, indicating enhanced efficiency despite the revenue contraction.
Free cash flow generation improved notably, rising to $5.7 million in the fourth quarter, a substantial increase over $1.6 million recorded during the same quarter in the previous year. This rise in cash flow underpins the company's capacity for internal funding and supports strategic capital deployment measures such as share repurchases.
Looking ahead to fiscal year 2026, DHI Group has issued revenue guidance ranging from $118 million to $122 million. The company anticipates maintaining adjusted EBITDA margins around 25% for the full year.
Within this revenue outlook, ClearanceJobs is expected to contribute between $56 million and $58 million, while Dice projections stand at $62 million to $64 million. These forecasts reflect management’s expectations based on current market dynamics complemented by the company's operational strategies.
From a trading perspective, DHI Group's stock currently holds a Relative Strength Index (RSI) of 45.80, suggesting neutral momentum from a technical viewpoint. The firm’s market capitalization is approximately $78.28 million, and its share price has fluctuated within a 52-week range of $1.21 to $3.34.
However, the stock has faced headwinds over the past year, posting a 40.5% decline over 12 months and trading near the lower end of its annual price range at about 21.1%. These indicators reflect broader challenges and a period of subdued investor sentiment in the stock's longer-term perspective.
On the day of the earnings release, the stock closed at $1.66, registering a slight decrease of 1.78%. According to Benzinga's Edge Stock Rankings, the price trend for DHX remains negative across short, medium, and long-term intervals, signaling persistent market skepticism despite the positive after-hours reaction to the company’s announcements.
The stock's recent after-hours rally can be attributed primarily to the company’s improved profitability metrics, positive free cash flow trajectory, and the newly authorized $10 million buyback program reflecting management’s confidence. Nevertheless, the prevailing longer-term price trend remains a critical consideration for investors evaluating the security’s outlook.