DHI Group Reports 10% Revenue Decline and $9.4 Million Net Loss in Q1 2025

DHI Group, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $32.3 million, a decrease of 10% from $36.0 million in the same period of 2024. The company experienced a net loss of $9.4 million, or $0.21 per share, compared to a loss of $1.5 million, or $0.03 per share, in the prior year. This downturn was attributed to lower revenues from its Dice segment, which saw an 18% drop, while ClearanceJobs revenue increased by 3%. The overall operating loss for the quarter was $8.9 million, a stark contrast to the operating income of $2.0 million reported in the previous year.

The company's financial results were impacted by several factors, including a restructuring charge of $2.3 million and a goodwill impairment of $7.4 million related to the Dice segment. Operating expenses rose to $41.2 million, up from $34.1 million in the prior year, driven by increased costs in revenue generation and restructuring efforts. The company also reported a decrease in recruitment package customers, with ClearanceJobs down 7% to 1,891 and Dice down 14% to 4,490, reflecting macroeconomic challenges affecting customer renewals.

In terms of strategic developments, DHI Group has undergone organizational restructuring aimed at streamlining operations and enhancing focus on its two primary brands, ClearanceJobs and Dice. This restructuring included a workforce reduction of approximately 8%. The company has also been investing in product enhancements, such as the Dice Technologist Dashboard and ClearanceJobs Live Enhancements, to improve user engagement and attract new customers.

Operationally, DHI Group reported a backlog of $107.8 million as of March 31, 2025, which represents a slight increase from the previous quarter but a decrease from the prior year. The company’s deferred revenue also increased by 11% to $50.7 million, indicating a positive trend in customer commitments despite the decline in active customers. The company’s cash position at the end of the quarter was $2.7 million, down from $3.7 million at the end of 2024, with $51 million available under its credit facility.

Looking ahead, DHI Group remains cautious about its outlook, citing ongoing macroeconomic uncertainties that could impact recruitment activity. The company plans to continue focusing on enhancing its product offerings and customer engagement strategies to drive future growth. Management believes that the existing cash reserves and available credit will be sufficient to meet operational needs over the next 12 months, although they acknowledge potential challenges in maintaining customer demand and managing operational costs.