# EDGAR Filing Document

**Accession Number:** 0000785557
**File Stem:** 0000785557-25-000161
**Filing Date:** 2025-12
**Character Count:** 25404
**Document Hash:** 70bd340fa5527e9f8f4e7a7784014c37
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000785557-25-000161.hdr.sgml**: 20251210

**ACCESSION NUMBER**: 0000785557-25-000161

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251210

**ITEM INFORMATION**: Results of Operations and Financial Condition

**FILED AS OF DATE**: 20251210

**DATE AS OF CHANGE**: 20251210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DLH Holdings Corp.
- **CENTRAL INDEX KEY:** 0000785557
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-HELP SUPPLY SERVICES [7363]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 221899798
- **STATE OF INCORPORATION:** NJ
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18492
- **FILM NUMBER:** 251562368

**BUSINESS ADDRESS:**
- **STREET 1:** 3565 PIEDMONT ROAD, NE
- **STREET 2:** BUILDING 3, SUITE 700
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305
- **BUSINESS PHONE:** 8669521647

**MAIL ADDRESS:**
- **STREET 1:** 3565 PIEDMONT ROAD, NE
- **STREET 2:** BUILDING 3, SUITE 700
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TEAMSTAFF INC
- **DATE OF NAME CHANGE:** 19990216

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIGITAL SOLUTIONS INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? dlhc-20251210

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549** 

    

**FORM 8-K**

    

**CURRENT REPORT** 

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of report (Date of earliest event reported)**: **December 10, 2025**

    

**<u>DLH Holdings Corp.</u>** 

**(Exact name of Registrant as Specified in its Charter)** 

    

---

| | | |
|:---|:---|:---|
| **<u>New Jersey</u>** | **<u>0-18492</u>** | **<u>22-1899798</u>** |
| **(State or Other Jurisdiction of Incorporation** | **(Commission File Number)** | **(I.R.S. Employer Identification No.)** |

---

**3565 Piedmont Road, NE, Building 3, Suite 700**

**Atlanta, GA 30305**

**(Address of Principal Executive Offices, and Zip Code)**

**<u>(770) 554-3545</u>**

**Registrant's telephone number, Including Area Code**

   

**(Former Name or Former Address, if Changed Since Last Report)**

Securities registered pursuant to Section 12(b) of the Act:

---

| | | | |
|:---|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** | **Name of each exchange on which registered** |
| Common Stock | DLHC | Nasdaq | Capital Market |

---

CHECK THE APPROPRIATE BOX BELOW IF THE FORM 8-K FILING IS INTENDED TO SIMULTANEOUSLY SATISFY THE FILING OBLIGATION OF THE REGISTRANT UNDER ANY OF THE FOLLOWING PROVISIONS:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐&nbsp;&nbsp;&nbsp;&nbsp;

------

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |
| On December 10, 2025 , DLH Holdings Corp. announced by press release its financial results for its fourth fiscal quarter and fiscal year ended September 30, 2025. A copy of the press release is attached hereto as <u>[Exhibit 99.1](exhibit991-dlhxfy25q4xearn.htm)</u>. | On December 10, 2025 , DLH Holdings Corp. announced by press release its financial results for its fourth fiscal quarter and fiscal year ended September 30, 2025. A copy of the press release is attached hereto as <u>[Exhibit 99.1](exhibit991-dlhxfy25q4xearn.htm)</u>. |
| The information furnished pursuant to Item 2.02 of this Current Report, including <u>[Exhibit 99.1](exhibit991-dlhxfy25q4xearn.htm)</u>, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.  | The information furnished pursuant to Item 2.02 of this Current Report, including <u>[Exhibit 99.1](exhibit991-dlhxfy25q4xearn.htm)</u>, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.  |
| **Item 9.01** | **Financial Statements and Exhibits** |
| *(d) Exhibits* | *(d) Exhibits* |
| The following exhibit is attached to this Current Report on Form 8-K: | The following exhibit is attached to this Current Report on Form 8-K: |
| **Exhibit** <br>**<u>Number</u>** | **<u>Exhibit Title or Description</u>** |
| <u>[99.1](exhibit991-dlhxfy25q4xearn.htm)</u> | <u>[Press Release dated](exhibit991-dlhxfy25q4xearn.htm)</u> December 10, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

---

| | |
|:---|:---|
| | **DLH Holdings Corp.**<br>By: /s/ Kathryn M. JohnBull |
| | Name: Kathryn M. JohnBull |
| | Title: Chief Financial Officer |
| Date: December 10, 2025 |  |

---

## Ex-99

![image_0a.jpg](image_0a.jpg)

**DLH Reports Fiscal 2025 Fourth Quarter Results**

ATLANTA, Dec. 10, 2025 – DLH Holdings Corp. (NASDAQ: DLHC) ("DLH" or the "Company"), a leading provider of digital transformation and cybersecurity, systems engineering and integration, and science research and development, today announced financial results for its fiscal fourth quarter ended September 30, 2025.

**Q4 Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue performance mixed as budgetary priorities continue to come into focus; solid revenue growth of 8.8% in National Security contract portfolio this quarter as compared to fiscal 2024 Q4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivered EBITDA of $6.6 million as investment in new business continued and company executed scaling initiatives at the end of the quarter and into fiscal 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free cash flow of $10.7 million driven by strong customer collections

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt reduced to $131.6 million as deleveraging strategy continued

"I am incredibly proud of the robust foundations we have built. We've transformed DLH into a federal health and national security leader by organizing around three technology-driven pillars. Despite facing near-term market headwinds that have impacted revenue, our strategy, which utilizes proprietary advanced tools and commercial best practices, provides us the capability and agility to effectively navigate today's environment and drive long-term value." said Zach Parker, DLH President and Chief Executive Officer.

"We generated $10.7 million of free cash flow in the quarter, which capped the $23 million total reduction in indebtedness for the year. The aggressive deleveraging strengthens our balance sheet and supports our operational stability. With expected expanding demand from key agencies for technology powered solutions—especially in advanced AI and mission-critical cybersecurity—we believe there are tremendous opportunities. We have strategically prepared DLH to identify and seize these new opportunities, ensuring we remain the trusted, forward-thinking partner, dedicated to advancing our customers' missions."

---

| | | | |
|:---|:---|:---|:---|
| **Operating Financial Summary** | **Operating Financial Summary** | **Operating Financial Summary** | **Operating Financial Summary** |
| | **Three Months Ended**<br>**September 30,** | **Three Months Ended**<br>**September 30,** | **Three Months Ended**<br>**September 30,** |
| **$ million** | **2025** | **2024** | **% Change** |
| Revenue | **$81.2** | $96.4 | (15.8)% |
| Income from operations | **$2.3** | $6.4 | (64.1)% |
| Net (loss) income | **$(0.9)** | $2.3 | (139.1)% |
| Diluted Earnings Per Share | **$(0.06)** | $0.16 | (137.5)% |
| EBITDA | **$6.6** | $10.7 | (38.3)% |
| EBITDA margin on Revenue | **8.1%** | 11.1% | (27.0)% |
| Cash provided by Operating Activities | **$10.7** | $12.4 | (13.7)% |
| Free Cash Flow | **$10.7** | $12.2 | (12.3)% |
| **Additional Financial Metrics** | **Additional Financial Metrics** | **Additional Financial Metrics** | **Additional Financial Metrics** |
|  | **September 30, 2025** | **September 30, 2024** | **% Change** |
| Debt | **$131.6** | $154.6 | (14.9)% |
| Backlog | **$514.3** | $690.3 | (25.5)% |

---

------

![image_0a.jpg](image_0a.jpg)

**Earnings Webcast:**

DLH management will discuss third quarter results and provide a general business update, including current competitive conditions and strategies, during a conference call beginning at 10:00 AM Eastern Time tomorrow, December 11, 2025. Interested parties may listen to the conference call by dialing 888-347-5290 or 412-317-5256. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call.

A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID #7526746.

**About DLH:**

DLH (NASDAQ: DLHC) enhances technology, public health, and cyber security readiness missions through science, technology, cyber, and engineering solutions and services. Our experts solve some of the most complex and critical missions faced by federal customers, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that "Your Mission is Our Passion," DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to innovative solutions to improve the lives of millions. For more information, visit www.DLHcorp.com.

**Contact Information:**

Investor Relations

Chris Witty

(646) 438-9385

<u>cwitty@darrowir.com</u> 

***Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995***

*This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or DLH`s future financial performance. Any statements that refer to expectations, projections or other characterizations of future events or circumstances or that are not statements of historical fact (including without limitation statements to the effect that the Company or its management "believes", "expects", "anticipates", "plans", "intends" and similar expressions) should be considered forward looking statements that involve risks and uncertainties which could cause actual events or DLH's actual results to differ materially from those indicated by the forward-looking statements. Forward-looking statements in this release include, among others, statements regarding estimates of future revenues, operating income, earnings and cash flow. These statements reflect our belief and assumptions as to future events that may not prove to be accurate. Our actual results may differ materially from such forward-looking statements made in this release due to a variety of factors, including: the risk that we will not realize the anticipated benefits of acquisitions (including anticipated future financial performance and results); the diversion of management's attention from normal daily operations of the business and the challenges of managing larger and more widespread operations; the inability to retain employees and customers; contract awards in connection with re-competes for present business and/or competition for new business; our ability to manage our debt obligations; compliance with bank financial and other covenants; changes in client budgetary priorities; government contract procurement (such as bid and award protests, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; the impact of inflation and higher interest rates; and other risks described in our SEC filings. For a discussion of such risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's periodic reports filed with the SEC, including our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 as well as subsequent reports filed thereafter. The forward-looking statements contained herein are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry and business.* 

*Such forward-looking statements are made as of the date hereof and may become outdated over time. The Company does not assume any responsibility for updating forward-looking statements, except as may be required by law.*

------

![image_0a.jpg](image_0a.jpg)

**DLH HOLDINGS CORP. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

(Amounts in thousands except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenue** | $81160 | $96386 | $344497 | $395937 |
| Cost of Operations |  |  |  |  |
| &nbsp;&nbsp;Contract costs | 67319 | 77492 | 279333 | 318447 |
| &nbsp;&nbsp;General and administrative costs | 7263 | 8234 | 31199 | 35538 |
| &nbsp;&nbsp;Depreciation and amortization | 4299 | 4284 | 17179 | 17052 |
| &nbsp;&nbsp;**Total operating costs** | 78881 | 90010 | 327711 | 371037 |
| &nbsp;&nbsp;**Income from operations** | **2279** | **6376** | **16786** | **24900** |
| Interest expense | 3481 | 4162 | 15031 | 17153 |
| **(Loss) Income before provision for income taxes** | **(1202)** | **2214** | **1755** | **7747** |
| Provision for income taxes | (282) | (81) | 393 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net (loss) income** | $**(920)** | $**2295** | $**1362** | $**7397** |
| Net (loss) income per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.06) | $0.16 | $0.09 | $0.52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.06) | $0.16 | $0.09 | $0.51 |
| Weighted average common shares outstanding |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 14388 | 14198 | 14387 | 14169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 14457 | 14378 | 14458 | 14405 |

---

------

![image_0a.jpg](image_0a.jpg)

**DLH HOLDINGS CORP. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

(Amounts in thousands except par value of shares)

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2024** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $125 | $342 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 38394 | 49849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 4018 | 2766 |
| **Total current assets** | 42537 | 52957 |
| &nbsp;&nbsp;Goodwill | 138161 | 138161 |
| &nbsp;&nbsp;Intangible assets, net | 91865 | 108321 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 8764 | 6681 |
| &nbsp;&nbsp;Deferred income taxes, net | 7947 | 6245 |
| &nbsp;&nbsp;Equipment and improvements, net | 1274 | 1830 |
| &nbsp;&nbsp;Other long-term assets | 115 | 186 |
| **Total assets** | $**290663** | $**314381** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $19246 | $25290 |
| &nbsp;&nbsp;Accrued payroll | 12153 | 12848 |
| &nbsp;&nbsp;Debt obligations - current, net of deferred financing costs | 8067 | 12058 |
| &nbsp;&nbsp;Operating lease liabilities - current | 2918 | 2652 |
| &nbsp;&nbsp;Other current liabilities | 287 | 394 |
| **Total current liabilities** | **42671** | **53242** |
| Long-term liabilities: |  |  |
| &nbsp;&nbsp;Debt obligations - long-term, net of deferred financing costs | 119966 | 137316 |
| &nbsp;&nbsp;Operating lease liabilities - long-term | 14022 | 12789 |
| &nbsp;&nbsp;Other long-term liabilities | 1046 | 902 |
| **Total long-term liabilities** | **135034** | **151007** |
| **Total liabilities** | **177705** | **204249** |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;Common stock, $0.001 par value; authorized 40,000 shares; issued and outstanding 14,498 and 14,391 at September 30, 2025 and 2024, respectively | 14 | 14 |
| &nbsp;&nbsp;Additional paid-in capital | 101734 | 100270 |
| &nbsp;&nbsp;Retained earnings | 11210 | 9848 |
| **Total shareholders' equity** | **112958** | **110132** |
| **Total liabilities and shareholders' equity** | $**290663** | $**314381** |

---

------

![image_0a.jpg](image_0a.jpg)

**DLH HOLDINGS CORP. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

(Amounts in thousands except par value of shares)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **September 30,** | **September 30,** |
| | **2025** | **2024** |
| **Operating activities** |  |  |
| &nbsp;&nbsp;**Net income** | $1362 | $7397 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 17179 | 17052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs charged to interest expense | 1742 | 1839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 1464 | 1898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes, net | (1702) | (3175) |
| &nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 11455 | 9270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (3190) | 3276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (6043) | (4414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payroll | (697) | (946) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 1646 | (4831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **23216** | **27366** |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of equipment and improvements | (241) | (836) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(241)** | **(836)** |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving line of credit | 253181 | 361720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of revolving line of credit | (257171) | (359208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of debt obligations | (19000) | (27313) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of deferred financing costs | (202) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock upon exercise of options and warrants |  | 261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of tax obligations resulting from net exercise of stock options |  | (1863) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities** | **(23192)** | **(26403)** |
| Net change in cash | (217) | 127 |
| Cash - beginning of year | 342 | 215 |
| **Cash - end of year** | $**125** | $**342** |
| **Supplemental disclosures of cash flow information** |  |  |
| &nbsp;&nbsp;Cash paid during the year for interest | $13505 | $16043 |
| &nbsp;&nbsp;Cash paid during the year for income taxes | $2053 | $3264 |
| **Supplemental disclosures of non-cash activity** |  |  |
| &nbsp;&nbsp;Common stock surrendered for the exercise of stock options | - | $2822 |
| &nbsp;&nbsp;Lease liability recognized to acquire a right-of-use asset | $4187 | 839 |

---

------

![image_0a.jpg](image_0a.jpg)

**Non-GAAP Financial Measures**

The Company uses EBITDA, EBITDA as a percent of revenue as supplemental non-GAAP measures of performance. The Company uses Free Cash Flow as a supplement non-GAAP liquidity measure. We define the measures as the following:

EBITDA is net (loss) income excluding depreciation and amortization, interest expense and provision for income taxes

EBITDA as a percent of revenue is EBITDA for the measurement period divided by revenue for the same period.

Free cash flow is net cash provided by operating activities less the impact of purchases of equipment and improvements.

EBITDA and EBITDA as a percent of revenue are non-GAAP measures of performance and are used by management to conduct and evaluate its business during its review of operating results for the periods presented. Free Cash Flow, a non-GAAP liquidity measure, is used by management to assess our ability to generate cash from our business operations and plan for future operating and capital actions.

Management and the Company's Board utilize these non-GAAP measures to make decisions about the use of the Company's resources, analyze performance between periods, develop internal projections and measure management performance. We believe that these non-GAAP measures are useful to investors in evaluating the Company's ongoing operating and financial results and understanding how such results compare with the Company's historical performance.

EBITDA, EBITDA as a percent of revenue, and free cash flow are not recognized measurements under accounting principles generally accepted in the United States, or GAAP, and when analyzing our performance and liquidity investors should (i) evaluate adjustments in our reconciliation to the nearest GAAP financial measures and (ii) use non-GAAP measures in addition to, and not as an alternative to, measures of our operating results, as defined under GAAP.

**Reconciliation of GAAP net income to EBITDA (in thousands):**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** |
| | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Net (loss) income | $(920) | $2295 | $(3215) | $1362 | $7397 | $(6035) |
| Depreciation and amortization | 4299 | 4284 | 15 | 17179 | 17052 | 127 |
| Interest expense | 3481 | 4162 | (681) | 15031 | 17153 | (2122) |
| Provision for income taxes | (282) | (81) | (201) | 393 | 350 | 43 |
| **EBITDA** | $**6578** | $**10660** | $**(4082)** | $**33965** | $**41952** | $**(7987)** |
| Net (loss) income as a % of revenue | (1.1)% | 2.4% | (3.5)% | 0.4% | 1.9% | (1.5)% |
| EBITDA as a % of revenue | 8.1% | 11.1% | (3.0)% | 9.9% | 10.6% | (1)% |
| Revenue | $81160 | $96386 | $(15226) | $344497 | $395937 | $(51440) |

---

**Reconciliation of Free Cash Flow (in thousands):**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** | **Twelve Months Ended<br>September 30,** |
| | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
| Net cash provided by operating activities | $10681 | $12435 | $(1754) | $23216 | $27366 | $(4150) |
| Less: Purchases of equipment and improvements | (27) | (209) | 182 | (241) | (836) | 595 |
| **Free Cash Flow** | $**10654** | $**12226** | $**(1572)** | $**22975** | $**26530** | $**(3555)** |

---

<br>