DHI GROUP, INC.DHX

DHI GROUP, INC. Leases Disclosure

10-KFiled Feb 12, 20263 min read
LEASES
The Company has operating leases for corporate office space and certain equipment. The leases generally have terms from five years to ten years, some of which include options to renew the lease, and are included in the lease term when it is reasonably certain that the Company will exercise the option.

The components of lease cost were as follows (in thousands):

Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Operating lease cost1
$1,727 $1,648 $1,945 
Sublease income— (50)(399)
Total lease cost2
$1,727 $1,598 $1,546 
(1) Includes short-term and variable lease costs, which are immaterial.
(2) Total lease costs is recorded in general and administrative expenses in the consolidated statements of operations.

Supplemental cash flow information related to leases was as follows (in thousands):

Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases
$2,214 $1,664 $2,309 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$119 $2,930 $— 
Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):

December 31, 2025December 31, 2024
Operating lease right-of-use assets (as reported)1
$4,366 $6,518 
Operating lease liabilities - current (as reported)1,788 1,625 
Operating lease liabilities - non-current (as reported)7,390 8,995 
Total operating lease liabilities
$9,178 $10,620 
Weighted Average Remaining Lease Terms (in years)
       Operating leases6.8 years7.4 years
Weighted Average Discount Rate
       Operating leases5.3 %5.5 %

The Company reviews its right-of-use ("ROU") assets for impairment if indicators of impairment exist. The impairment review process compares the fair value of the ROU asset to its carrying value. If the carrying value exceeds the fair value, an impairment loss is recorded. During the year ended December 31, 2025, due to headcount reductions related to restructurings, the Company began a search to sublease certain office space. As a result, the Company has performed an impairment analysis of the respective lease agreement. The fair value was determined using the present value of the expected sublease rentals that the Company expects could be generated over the remaining lease term. As a result, the Company recorded an impairment charge of $1.4 million in the fourth quarter of 2025, of which the ClearanceJobs segment was allocated $0.6 million and the Dice segment was allocated $0.8 million. No impairment was recorded during the years ended December 31, 2024 and 2023.

As of December 31, 2025, future operating lease payments were as follows (in thousands):

Operating Leases
2026$2,239 
20271,359 
20281,304 
20291,333 
20301,345 
Thereafter3,513 
Total lease payments
11,093 
Less: imputed interest(1,915)
Total
$9,178 

As of December 31, 2025, the Company has no additional operating or finance leases that have not yet commenced. No leases include options to purchase the leased property. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any lease agreements with related parties.
Subsequent to December 31, 2025, the Company entered into a non-cancelable operating lease agreement for office space. The new lease term begins in January 2026 and continues through August 2031 and provides for the early termination of an existing lease in September 2026, four months prior to its stated expiration, and represents a decrease of leased space by approximately 70%. Initial monthly lease payments begin in September 2026 and continue through August 2031. Total future minimum lease payments under this agreement are approximately $1.1 million.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 12, 2025
2023Feb 8, 2024
2021Feb 11, 2022
2020Feb 10, 2021
2019Feb 6, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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