DLH Holdings Corp. (DLHC): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the mechanics of a major federal contractor, and DLH Holdings Corp.'s business model is defintely worth a close look right now. Honestly, their success hinges on deep relationships with the VA and DoD, turning specialized talent-over 2,400 employees-into mission-critical support across digital transformation and health R&D. We've distilled their entire operation into the Business Model Canvas below, showing you exactly how they manage a contract backlog of about $555.3 million as of mid-2025 and generate their $359.72 million in trailing twelve-month revenue; check out the details to see the structure behind those numbers.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Key Partnerships

You're looking at how DLH Holdings Corp. (DLHC) builds value by leaning on external relationships, which is critical when you're executing complex federal work. These alliances aren't just nice-to-haves; they are often mandatory for winning and performing on large government contracts.

Subcontractors and joint venture partners on federal bids

DLH Holdings Corp. relies on a network of partners to execute across its diverse federal portfolio. While specific 2025 subcontract dollar figures are part of ongoing contract performance reporting, historically, the company has managed significant subcontract activity. For context, DLH Holdings Corp. has historically received approximately $124.2M in Subcontracts across its federal award history. Securing positions on large vehicles like the OASIS+ GWAC ID/IQ contract, which DLH announced securing a prime awardee spot on in January 2025, opens the door for substantial subcontracting opportunities across all five domains they bid on: Research and Development Services, Technical and Engineering Services, Intelligence Services and Solutions, Logistics Services and Solutions, and Management and Advisory Services.

Small business partners via Mentor Protégé Program

The Mentor Protégé Program is a key mechanism for DLH Holdings Corp. to build relationships with and support smaller businesses, often required or favored in federal contracting. Specific metrics on the number of active protégés or the total dollar value of work flowed down through the Mentor Protégé Program for the 2025 fiscal year were not publicly itemized in the latest disclosures. This structure is vital for expanding capabilities and meeting small business set-aside goals on larger prime contracts.

Department of Defense (DoD) for the SkillBridge military transition program

DLH Holdings Corp. actively partners with the Department of Defense (DoD) to support the SkillBridge program, which allows transitioning service members to gain civilian work experience during their final 180 days of service. DLH Holdings Corp. offers this program to facilitate a smooth transition to civilian employment, leveraging the skills of active military personnel in areas aligning with its core capabilities like digital transformation, artificial intelligence, and systems engineering. The company views this as an important part of building its team with experienced veterans. Specific annual participation numbers for 2025, such as the number of service members hosted, are generally tracked internally or reported in aggregate workforce statistics.

Technology vendors for AI, cloud, and cybersecurity solutions

The push toward digital transformation requires deep partnerships with leading technology providers. A concrete example of this is the task order DLH Holdings Corp. secured from the National Institutes of Health's Office of Information Technology (OIT) in August 2025, valued at up to $46.9 million over a three-year period. As part of this effort, DLH Holdings Corp. explicitly plans to leverage a comprehensive suite of solutions built on partnerships with commercial Cloud Service Provider (CSP) vendors, including Azure, AWS, and Google, to support cloud migration strategies and deliver cybersecurity and IT modernization.

Biomedical Advanced Research and Development Authority (BARDA) network

DLH Holdings Corp.'s work in science, research and development, and health operations suggests involvement within the broader federal health ecosystem, which includes entities like the Biomedical Advanced Research and Development Authority (BARDA). While specific, itemized financial data or a named network structure involving BARDA for the 2025 fiscal year is not detailed in the immediate public filings, the company's focus on public health and science R&D solutions for federal programs indicates reliance on established agency relationships and networks to execute its mission support. The company's historical federal funding also includes approximately $271.1M in Grants.

Here's a quick look at some of the key contractual and partnership vehicles DLH Holdings Corp. utilizes:

• OASIS+ GWAC ID/IQ contract award secured in January 2025.
• Partnerships with major CSPs: Azure, AWS, and Google for cloud migration.
• NIH task order up to $46.9 million for IT services.
• Historical federal contracts total over $5.3 billion.
• Active participation in the DoD SkillBridge program.

Finance: review Q3 2025 subcontractor spend against historical averages by next Tuesday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Key Activities

You're looking at the core engine of DLH Holdings Corp. as of late 2025, focusing on where the actual work and revenue generation happen. It's all about execution on federal contracts, so let's look at the numbers driving these activities.

Digital transformation and cybersecurity service delivery

This area is clearly a growth driver. DLH Holdings Corp. secured a task order from the National Institutes of Health's Office of Information Technology ("OIT") valued at up to $46.9 million. This effort involves supporting approximately 7,000 end-customers. The company also achieved CMMC Level 2 Certification as of October 22, 2025.

Science, research, and development (R&D) for federal health

The R&D focus is strong, especially within military health technology. DLH Holdings Corp. won a five-year task order, valued up to $37.7 million, to support the Telemedicine and Advanced Technology Research Center ("TATRC"), a unit of the US Army Medical Research & Development Command ("MRDC"). This work leverages AI modeling and biomedical engineering. Also, the company has held a contract with the National Institute of Environmental Health Sciences ("NIEHS") since 1986, which was valued around $13 million as of a 2022 award.

Systems engineering and integration for complex platforms

This activity supports readiness missions across civilian and military sectors. The company's total contract backlog stood at $555.3 million as of June 30, 2025. This backlog was down from $646.9 million as of March 31, 2025. DLH Holdings Corp. also secured an award to deliver advanced C5ISR services to the US Navy.

Clinical and allied health staffing (e.g., VA CMOPs)

Healthcare Delivery Solutions remains a strategic focus area, serving the DVA and DoD for over a decade. The company leverages a network of over 400 active clinicians and other healthcare workers. A specific contract ID is associated with the Department of Veterans Affairs (VA) NATIONAL CMOP OFFICE.

Federal contract bidding and proposal management

Managing the pipeline is key, especially given the recent revenue shifts. The company reported total debt of $142.3 million as of June 30, 2025. Management is focused on converting EBITDA to debt reduction, anticipating a target of 50-55% over the fiscal year. The company is navigating small business conversion headwinds.

Here's the quick math on the recent financial performance tied to these activities:

The company has over 2,400 employees dedicated to its mission. Anyway, the market valued the firm at approximately $80.4M in market cap as of August 4, 2025.

Finance: draft 13-week cash view by Friday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Key Resources

You're looking at the core assets DLH Holdings Corp. (DLHC) relies on to deliver on its federal contracts. These aren't just line items; they are the engine room for their service delivery as of late 2025.

The human capital is substantial, featuring over 2,400 mission-focused, specialized employees dedicated to the idea that "Your Mission is Our Passion."

Access to federal work is secured through an extensive portfolio of contract vehicles, enabling DLH Holdings Corp. to serve key agencies like the Department of Health and Human Services (HHS), the Department of Veterans Affairs (VA), and the Department of Defense (DoD).

A critical credential for their cybersecurity and technology offerings is the Cybersecurity Maturity Model Certification (CMMC) Level 2 compliance, which DLH Holdings Corp. demonstrated in October 2025.

The firm's intellectual property and technical capabilities are concentrated in high-demand areas for federal clients, specifically:

• Digital transformation
• Artificial intelligence (AI)
• Advanced analytics
• Cloud-based applications
• Telehealth systems

The financial commitment from customers, reflected in the contract backlog, provides significant revenue visibility. As of June 30, 2025, the total contract backlog stood at $555.3 million. This backlog is broken down to show the immediate and future revenue pipeline:

To give you some context on recent financial performance supporting these resources, the revenue for the fiscal third quarter ended June 30, 2025, was $83.3 million, with an EBITDA of $8.1 million for that same period. Also, total debt was managed down to $142.3 million as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Value Propositions

You're looking at the core value DLH Holdings Corp. delivers to its federal clients as of late 2025. It's all about providing essential, high-stakes support where failure isn't an option.

Mission-critical support for federal health and national security.

DLH Holdings Corp. focuses its entire operation on supporting federal programs that directly impact health and national security readiness. This isn't just a segment; it's the core business, with 98.7% of the company's revenue derived from major agencies like the Department of Health and Human Services (HHS), the Department of Veterans Affairs (VA), and the Department of Defense (DoD). The company maintains a large, dedicated workforce, with over 3,000 employees committed to these missions.

The value proposition here is deep domain expertise married to a proven track record across the entire program lifecycle, from initial planning through ongoing operations and maintenance.

Expertise in digital transformation and advanced analytics (AI/ML).

DLH Holdings Corp. is actively delivering next-generation capabilities, evidenced by recent contract wins that specifically call out advanced technology integration. For instance, a five-year task order awarded in May 2025, valued at up to $37.7 million, centers on delivering scientific R&D, modeling & simulation, artificial intelligence, and machine learning solutions for the US Army Medical Research & Development Command (MRDC). Furthermore, a new $46.9 million task order from the NIH in August 2025 emphasizes cloud and AI services. The company is also developing its proprietary InfiniBite cloud product to enhance its versatility for large-scale data analytics in secure federal environments, incorporating tools like AI/ML.

Reliable, compliant access to complex professional services via GWACs.

Accessing complex services reliably is streamlined through strategic contract vehicles. DLH Holdings Corp. secured a position on the expansive One Acquisition Solution for Integrated Services (OASIS+) Governmentwide Acquisition Indefinite Delivery/Indefinite Quantity (GWAC ID/IQ) contract in January 2025. This vehicle is critical because it has no ceiling nor cap on awards.

The revenue generated across all contract types as of the six months ended March 31, 2025, shows how work is delivered:

Improved Warfighter readiness through innovative medical technology (e.g., TRON).

The value proposition here is directly tied to tangible improvements in military healthcare outcomes. DLH Holdings Corp. solutions are recognized for pushing the technology envelope, with three of its projects winning 2025 FORUM Innovation Awards. The flagship technology mentioned is the TRON (Telerobotic Operator Network), which combines virtual reality, digital twin, AI, and robotics to allow surgeons to remotely operate on patients in hazardous conditions. This directly addresses Warfighter readiness challenges from modeling and simulation all the way to the battlefield.

Scalable, technology-enabled business process outsourcing.

DLH Holdings Corp. provides scalable support through ongoing, large-scale logistics and pharmacy services, though some contracts are transitioning. For example, the company was awarded a sole-source ID/IQ to continue pharmacy and logistics services for 4 CMOP (Community Care Pharmacy) locations, with a ceiling value of $90 million and performance through April 2027. Management noted that they managed 5 of the remaining CMOP locations through October 2025 and one through August 2025. The company's Q2 2025 revenue of $89.2 million reflected impacts from small business set-aside transitions, including $6.9 million from CMOP revenue.

You should note that the company lost the Head Start contract, which generated $28.4 million in revenue in the first nine months of fiscal 2025.

Finance: draft 13-week cash view by Friday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Customer Relationships

You're looking at how DLH Holdings Corp. (DLHC) locks in its federal agency clients. It's not about quick sales; it's about deep, sustained partnership, which is typical when you're dealing with mission-critical government work.

Dedicated, long-term, high-touch engagement with federal program offices.

DLH Holdings Corp. (DLHC) focuses on solving complex and critical missions for federal customers, leveraging its workforce of over 2,400 employees dedicated to the idea that "Your Mission is Our Passion." This level of commitment supports the dedicated, long-term nature of these relationships. The company's business is heavily weighted toward service delivery timing on key contracts, as seen when Q3 Fiscal 2025 revenue of $83.3 million reflected service delivery timing on key contracts. The total contract backlog as of June 30, 2025, stood at $555.3 million, showing a significant amount of future work already secured with these offices. This backlog is split into funded backlog of approximately $92.3 million and unfunded backlog of $463.0 million as of that date.

The nature of the work dictates the relationship structure, which is evident in how revenue is generated:

• Time and materials contracts: 54.4% of revenue.
• Firm fixed price contracts: 25.6% of revenue.
• Cost reimbursable contracts: 20.0% of revenue.

Relationship management through direct business development teams.

The management focus is clearly on protecting the revenue base and focusing on new business and organic growth with key opportunities. The company's strategy involves leveraging its core capabilities-digital transformation, cybersecurity, R&D, and systems engineering-to penetrate across new programs and agencies. The last twelve months revenue, ending June 30, 2025, totaled $359.72 million. Management is actively navigating market dynamics, with goals set to protect this revenue base and focus on organic growth, which directly ties to the business development effort.

Performance-based relationships tied to contract outcomes.

The success in securing and maintaining these contracts is inherently performance-based, especially given the focus on delivering mission-critical impact. The company has a strong legacy of making programs more efficient for customers, producing millions of dollars in cost savings to the government. The financial health metrics reflect this focus on operational execution; for instance, the company anticipated converting 50-55% of EBITDA to debt reduction over the fiscal year 2025, showing a commitment to financial performance that underpins client confidence. Total debt as of June 30, 2025, was $142.3 million, and deleveraging remains a top priority.

Continuous compliance and certification maintenance (e.g., CMMC).

For DLH Holdings Corp. (DLHC), maintaining compliance is a direct requirement for relationship continuation within the Department of Defense (DoD) space. The company achieved Cybersecurity Maturity Model Certification (CMMC) Level 2 in October 2025. This certification validates compliance with over 100 security requirements outlined by the National Institute of Standards and Technology (NIST). This was a timely achievement, as CMMC 2.0 requirements were expected to start appearing in new DoD solicitations as early as November 2025. This positions DLH Holdings Corp. (DLHC) to compete for new business across the federal contracting landscape where security standards are paramount.

The alignment of DLH Holdings Corp. (DLHC)'s capabilities with federal demand in technology integration and cybersecurity is seen as a key driver for future organic growth opportunities.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Channels

You're looking at how DLH Holdings Corp. gets its services-digital transformation, cybersecurity, science R&D, and engineering-into the hands of federal clients. It's all about securing those prime spots on major government contracting vehicles, so you can see the pipeline in the numbers.

Direct prime contractor awards via Indefinite Delivery/Indefinite Quantity (ID/IQ) vehicles

DLH Holdings Corp. actively pursues and secures positions on large, multi-award ID/IQ vehicles, which are crucial for long-term organic growth. These vehicles allow the company to bid on future task orders across a broad scope of work without a set ceiling on the total value.

A significant recent example is the award of the One Acquisition Solution for Integrated Services (OASIS+) GWAC ID/IQ contract vehicle, announced in January 2025. This contract vehicle has a base period of five years with one option period of five additional years, and importantly, OASIS+ has no ceiling nor cap on awards. DLH Holdings Corp. secured positions across all five domains for which it bid through this vehicle.

Government-Wide Acquisition Contracts (GWACs) like OASIS+ and CIO-SP3

GWACs are a primary channel for accessing a wide array of federal agencies. The success on OASIS+ directly feeds into this channel, expanding the addressable market for DLH Holdings Corp.

The specific domains won under the OASIS+ GWAC demonstrate the breadth of services DLH Holdings Corp. can deliver through this channel:

• Research and Development Services
• Technical and Engineering Services
• Intelligence Services and Solutions
• Logistics Services and Solutions
• Management and Advisory Services

The company views securing spots on these high-value, multiple-award ID/IQ contracts as vital to its strategy.

Direct contract services to specific federal agencies

While GWACs open doors broadly, DLH Holdings Corp. also services specific agencies directly through task orders awarded under these vehicles or other direct contract mechanisms. Key users of the OASIS+ vehicle include the Defense Health Agency, the Centers for Disease Control and Prevention, and the Department of Defense, indicating direct service delivery to these major federal entities.

The company's backlog figures give you a sense of the current work flowing through these channels as of late 2025:

For the nine months ended June 30, 2025, DLH Holdings Corp. reported total revenue of $263.337 million.

Subcontracting roles under larger prime contractors

Subcontracting remains a necessary component, especially as the company navigates transitions like small business set-aside conversions. Revenue for the second quarter of fiscal 2025 of $89.2 million reflected the impact of these set-aside transitions, including $6.9 million of revenue from CMOP (Community Care Medical Operations Program) and $3.6 million from the previous administration's unbundling of contracts for small businesses.

The company's revenue performance in Q3 Fiscal 2025 was $83.3 million, down from $100.7 million in Q3 Fiscal 2024, which management attributed primarily to small business conversions and program timing, showing the dynamic nature of this channel.

Here's a quick look at the revenue context for the most recent reported periods:

Finance: draft 13-week cash view by Friday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Customer Segments

DLH Holdings Corp. serves a customer base concentrated within the U.S. Federal Government, primarily focused on health and national security missions.

The total revenue for the trailing 12 months ending June 30, 2025, was reported as $359.72M. For the third quarter of fiscal 2025, which ended June 30, 2025, revenue was $83.3 million.

Based on reported federal award data, the distribution across key agencies is as follows:

As of June 30, 2025, the total contract backlog stood at $555.3 million, which included $92.3 million in funded backlog and $463.0 million in unfunded backlog.

U.S. Department of Veterans Affairs (VA) for health and logistics support.

The VA represents the largest single customer segment based on reported federal award amounts.

• Award amount from VA: $116.08M.
• This segment accounted for 46.44% of the total reported awards in the data set.

Department of Defense (DoD) and its agencies (e.g., DHA, TATRC).

DLH Holdings Corp. supports the DoD through science, research and development, and systems engineering.

• Reported award amount from DoD: $24.83M.
• The company partners with the DoD on initiatives like the SkillBridge program for transitioning service members.
• DLH was awarded an Indefinite Delivery/Indefinite Quantity (ID/IQ) multiple award contract to provide health-related research and development and support services to the DoD.

National Institutes of Health (NIH) and other Health and Human Services (HHS) agencies.

This segment is a significant driver of the company's Health IT business line.

Total reported awards from HHS agencies were $107.94M, representing 43.18% of the total reported awards.

Specific NIH contract activity includes:

• Reported award amount from NIH: $100.77M.
• A recent task order for IT services to the NIH Office of Information Technology was valued up to $46.9 million over a three-year period of performance.
• This $46.9 million task order supports approximately 7,000 end-customers with services including enterprise IT systems management, cybersecurity, and cloud computing strategy using Azure, AWS, and Google.
• DLH Holdings Corp. also supports the National Institute on Aging through an award of $18.6 million (as previously reported).

Federal civilian agencies requiring digital and public health solutions.

DLH Holdings Corp. delivers solutions to various federal civilian programs, leveraging its digital transformation and cyber security capabilities.

• The company's experts solve complex problems for civilian health agencies using digital transformation, artificial intelligence, and advanced analytics.
• The company has reported contract activity with the Centers for Disease Control and Prevention (CDC) totaling $7.17M in reported awards.
• The company has over 2,400 employees supporting these federal missions.

Finance: draft 13-week cash view by Friday

DLH Holdings Corp. (DLHC) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive DLH Holdings Corp.'s operations as of late 2025. For a company deeply embedded in federal IT and health services, a significant portion of the cost structure is tied directly to the specialized talent required to execute complex contracts.

High personnel and labor costs for specialized technical staff represent a primary expenditure. While specific salary line items aren't always broken out granularly in public filings, the company's focus on areas like systems engineering, digital transformation, and cybersecurity necessitates employing a large pool of experts. As of October 2025, DLH Holdings Corp. has approximately 1.4K employees across 6 continents, indicating substantial recurring payroll and benefits costs to maintain this technical workforce. This is a fixed cost that scales with contract wins but is essential for delivering on their value propositions.

General and administrative (G&A) expenses show active management, reflecting a scaling down of indirect costs during industry transitions. For the third quarter of fiscal 2025, General and administrative expenses were reported at $7.9 million. This compares to $9.0 million in the third quarter of fiscal 2024, showing a year-over-year reduction of $1.1 million for that specific quarter.

The balance sheet structure dictates a notable cost related to servicing debt. DLH Holdings Corp. carried total debt of $142.3 million as of June 30, 2025. This level of leverage directly translates into interest payments, which are a non-operational expense but a mandatory cash outflow. For the third quarter of fiscal 2025, the interest expense, net, was reported as $3,540 thousand (or $3.54 million). This expense was lower than the prior year's period, reflecting the impact of lower debt outstanding due to proactive debt reduction efforts.

You can see a snapshot of these key financial cost indicators below:

Technology investment and maintenance costs are embedded within the operating structure, supporting their core competencies. DLH Holdings Corp. explicitly lists capabilities such as Cybersecurity, Cloud, Data Analytics, and Software Development, all of which require continuous investment in tools, platforms, and infrastructure to remain competitive in the federal technology space. While a specific dollar amount for technology spend isn't isolated in the summary data, these capabilities are critical cost drivers.

Costs associated with contract compliance and bidding are also inherent to their business model, given their reliance on government contracts. The company notes risks related to government contract procurement, such as bid and award protests, and small business set asides, which implies significant pre-award costs for proposal development and compliance assurance. These efforts are necessary to secure future revenue streams, but they are sunk costs if a bid is unsuccessful. You should track the ratio of new business development spending against total revenue to gauge efficiency here.

The structure of these costs suggests a high degree of fixed and semi-fixed expenses:

• Personnel Costs: High due to specialized, cleared technical staff.
• G&A Expenses: Actively managed, showing a reduction to $7.9 million in Q3 FY2025.
• Debt Servicing: Driven by $142.3 million in debt, resulting in quarterly interest expense.
• Technology & Compliance: Necessary overhead for maintaining security clearances, certifications, and advanced technical capabilities.

Finance: draft 13-week cash view by Friday.

DLH Holdings Corp. (DLHC) - Canvas Business Model: Revenue Streams

You're looking at how DLH Holdings Corp. (DLHC) brings in its money, which is heavily tied to its work with the U.S. government and its agencies. The revenue streams are structured around different contract mechanisms for delivering technology-enabled business process outsourcing, program management, and public health research and analytics.

The overall revenue picture for the trailing twelve months ending June 30, 2025, shows a total of $359.72 million. That's the big number to keep in mind for the overall scale of the business right now. For context, the revenue in the third quarter of fiscal 2025 was $83.34 million, which was down from the $100.7 million reported in the third quarter of fiscal 2024.

Here's a quick look at those key revenue figures as of the most recent reporting date:

DLH Holdings Corp. secures its revenue through several distinct contract models, which you need to track closely as they affect cash flow and risk profiles differently. Honestly, knowing the mix helps you understand the near-term stability of that revenue.

• Revenue from Time and Material (T&M) contracts.
• Revenue from Firm Fixed Price (FFP) contracts.
• Revenue from Cost Option/Cost-Reimbursable contracts.

The core service delivery is centered on technology-enabled solutions and professional services, which is how they support federal agencies. This service revenue is the engine behind those contract types listed above. For example, their offerings include digital transformation, artificial intelligence, analytics, and telehealth systems.

• Service revenue from technology-enabled solutions and professional services.

If onboarding for new contracts takes longer than expected, margin delivery could get choppy, so watch the contract timing mentioned in their Q3 2025 results. Finance: draft 13-week cash view by Friday.