DHI Group's stock experienced a significant after-hours surge, climbing over 29% following the release of its fourth-quarter earnings report and the announcement of a new share repurchase initiative. The company, which specializes in AI-powered career marketplaces for technology professionals, revealed a $10 million stock buyback program, set to commence in February 2026. This move, coupled with an increase in adjusted EBITDA margins despite a revenue dip, underscores management's confidence in the firm's long-term strategy and financial stability. Investors reacted positively to the news, signaling renewed optimism for DHI Group's future.
The Colorado-based company, DHI Group, has authorized a substantial $10 million stock repurchase program, effective from February 9, 2026, through February 8, 2027. This decision, as articulated by Chief Financial Officer Greg Schippers, reflects a strong belief in the company's strategic path, its consistent cash flow generation, and its disciplined approach to managing capital. Such a program typically aims to reduce the number of outstanding shares, thereby increasing earnings per share and often boosting investor confidence.
In its fourth-quarter financial disclosure, DHI Group reported revenues of $31.4 million, marking a 10% decrease compared to the previous year's corresponding period. However, the company demonstrated improved operational efficiency, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growing by 2% to $9.4 million. This led to a notable expansion in EBITDA margins, rising from 26% to 30% year-over-year. Free cash flow also saw a significant improvement, reaching $5.7 million in the fourth quarter, a substantial increase from $1.6 million in the same period of 2024.
Delving into its segments, ClearanceJobs, a crucial online career community owned by DHI Group, contributed $13.9 million in revenue, showing a modest 1% increase, and boasted strong EBITDA margins of 43%. Conversely, Dice, another core asset focused on connecting technology professionals with employers, experienced a 17% revenue decline to $17.4 million. Despite this, Dice managed to boost its margins from 20% to 30%, indicating successful cost management or strategic pricing adjustments within that segment.
Looking ahead, DHI Group has provided fiscal year 2026 revenue guidance, anticipating figures between $118 million and $122 million, with adjusted EBITDA margins projected to be around 25%. Specifically, ClearanceJobs is expected to generate revenues ranging from $56 million to $58 million, while Dice is forecasted to contribute between $62 million and $64 million. These projections offer a glimpse into the company's anticipated performance and strategic focus for the upcoming fiscal year.
Considering the market metrics and technical analysis, DHI Group currently holds a Relative Strength Index (RSI) of 45.80. The company's market capitalization stands at $78.28 million, with its shares fluctuating between a 52-week high of $3.34 and a low of $1.21. Despite a challenging year, evidenced by a 40.5% decline in performance over the past 12 months, the stock's current position near the lower end of its 52-week range, at approximately 21.1%, could signal potential for future movement. Traders are advised to closely monitor for signs of either a reversal or continued weakness, as the overall sentiment has leaned negative.
The latest financial disclosures from DHI Group, particularly the approval of a share repurchase program and the growth in margins despite a revenue decrease, have provided a much-needed boost to investor confidence. The stock's subsequent rally in after-hours trading suggests that the market views these strategic moves and operational efficiencies favorably, indicating a potential turning point for the company's valuation and market perception.