DHI Group (NYSE:DHX) executives highlighted the company’s subscription-based recruiting platforms, recent product initiatives, and 2025 financial results during an investor presentation led by CEO Art Zeile and CFO Greg Scapas.
Business overview and differentiation
Zeile described DHI as a holding company for two “tech-oriented recruiting platforms,” ClearanceJobs and Dice, which he said are leading platforms for employers to find and engage U.S. tech talent. He characterized both brands as two-sided marketplaces serving recruiters and hiring managers on one side and candidates on the other.
Zeile also emphasized the company’s proprietary skills taxonomy, saying DHI has categorized more than 100,000 distinct tech skills and received a patent for the taxonomy. He added that “AI” comprises more than 360 distinct skills within that system, and argued that this skills-based approach differentiates DHI from broader platforms that are more title-centric.
Product updates and monetization initiatives
Management outlined several 2025 initiatives intended to keep the platforms relevant. Zeile said DHI launched a new self-service option that lets customers buy and manage Dice online on a monthly basis. For ClearanceJobs, he said the company is testing a “premium candidate experience,” describing it as the first effort to monetize candidates on the platform.
Zeile also said DHI acquired an applicant tracking system, Agile ATS, which is optimized for government hiring, and integrated it into the ClearanceJobs platform.
In the Q&A, Zeile said Agile ATS had “roughly doubled” since the acquisition, noting the revenue base was small (less than $1 million when purchased in summer 2025). He said DHI is “very bullish” on Agile’s prospects and is building a dedicated sales team for the product, instead of selling it solely through the existing ClearanceJobs sales organization.
2025 financial results, margins, and cash flow
Zeile reported that DHI generated $128 million in revenue and $126 million in bookings in 2025. He said five-year compound annual growth rates were 2% for revenue and negative 1% for bookings, which he attributed largely to a multi-year “hiring recession,” while adding that conditions were changing, particularly in tech staffing.
The company reported 2025 adjusted EBITDA of $35 million, representing a 27% adjusted EBITDA margin. Zeile said DHI produced $21 million in operating cash flow and $14 million in free cash flow. Scapas explained that most of the company’s capital expenditures are capitalized software development labor, and said capitalized development costs fell to $7 million in 2025 from $12 million in 2024 due to lower internal headcount following restructurings.
Scapas said DHI’s restructurings in 2023, 2024, and 2025 reduced operating costs by about $35 million in total. He also said the early 2025 restructure separated Dice and ClearanceJobs organizations, which he said was designed to improve shareholder outcomes, maximize profitability, and provide stronger long-term strategic options. Management is targeting a 25% adjusted EBITDA margin for 2026.
Scapas characterized DHI’s subscription business as predictable, stating that about 50% of each year’s revenue is already under contract at the start of the year. Both Zeile and Scapas said more than 90% of revenue is recurring, driven by annual subscription contracts. Zeile said more than 90% of contracts include auto-renewal clauses with automatic price escalators. In Q&A, Scapas said the standard auto-renewal includes a 10% price increase, describing it as a “no-touch process” if a customer renews.
Capital allocation and buybacks
Zeile said DHI repurchased $11.4 million of shares in 2025 after reinstating the buyback program, which had been suspended since mid-2023 as the company focused on debt reduction. He said DHI ended 2025 with net debt of $27 million, equating to less than 1x leverage. Scapas added that debt at year-end 2025 was $30 million, with leverage at 0.85 times adjusted EBITDA, and said DHI generally maintains about $2 million of cash while using a $100 million revolver for liquidity.
Management also noted a new $10 million buyback program for 2026, and Scapas said the program allows repurchases through February 2027.
Brand performance: ClearanceJobs vs. Dice
Scapas said ClearanceJobs generated $55 million of revenue in 2025 and operates in “gov tech.” He said ClearanceJobs bookings have a five-year CAGR of 9%, and that fourth-quarter bookings were up 3% year-over-year, alongside a 90% revenue renewal rate and a 109% retention rate. He said ClearanceJobs revenue has a five-year CAGR of 12%, with fourth-quarter 2025 revenue up 1% year-over-year. Scapas also described ClearanceJobs as “very profitable,” with an adjusted EBITDA margin above 40%.
Dice generated $73 million of revenue in 2025, Scapas said, but has faced a more challenging demand environment. He reported Dice bookings have a five-year CAGR of negative 7%, with fourth-quarter bookings down 11% year-over-year. Dice’s fourth-quarter renewal rate was 78% and retention rate was 94%, he said. Dice revenue has a five-year CAGR of negative 4%, with the most recent quarter down 17% year-over-year. Scapas said Dice’s adjusted EBITDA margin was 30% in the most recent quarter, benefiting from restructurings, and that Dice capitalized development costs totaled $1 million in the fourth quarter.
In the Q&A, Zeile said the decline in tech hiring has been particularly impactful to tech staffing, which he said accounts for about 80% of Dice’s revenue. He cited Staffing Industry Analysts data indicating tech staffing revenue declines of 10% in 2023, 6% in 2024, and 2% in 2025, while adding that some firms returned to positive revenue growth late in 2025. Zeile said he believes some companies are using staffing as a “risk-off” approach to implement AI-related projects.
Looking ahead, management said ClearanceJobs and Dice are positioned for growth in a “normalized demand environment,” citing large addressable markets, increased defense spending, contract talent solutions, and Dice’s new employer experience. Zeile also said ClearanceJobs intends to pursue additional tuck-in acquisitions to “expand the mission” and provide more services to its customer base.
About DHI Group (NYSE:DHX)
DHI Group, Inc (NYSE: DHX) is a specialized professional recruitment and career development company that operates digital platforms connecting technology and security-cleared professionals with employers worldwide. Founded in 1990 as a niche job board for technology talent, the company completed its initial public offering in 2007 and trades on the New York Stock Exchange under the ticker symbol DHX.
The company’s primary offerings include Dice.com, a careers platform designed for technology professionals, and ClearanceJobs, a specialized service catering to candidates holding U.S.
