DLH

Q3 FY2026 EarningsQ3 FY26 results significantly missed consensus across key top and bottom-line metrics, with revenue of $44.2M falling 11.6% below the $50.0M estimate due to the transition of legacy programs to small-business set-asides. Diluted EPS (GAAP) was a loss of $1.16 vs. the expected $0.17 loss, primarily driven by a $10.4M non-cash valuation allowance against deferred tax assets. Management signaled a pivot toward technology-powered solutions for Q4, though backlog contracted 20.6% compared to FY25 year-end.