DLH Holdings Corp.DLHC

DLH Holdings Corp. Revenue Disclosure

10-KFiled Dec 10, 20252 min read
Revenue Recognition
The following table summarizes the contract balances recognized in accounts receivable within the Company's consolidated balance sheets at September 30, 2025 and 2024 (in thousands):
20252024
Contract assets$22,000 $23,945 

Contract assets are included as part of accounts receivable on the consolidated balances sheets. The change from prior period was primarily due to invoice timing. There were no contract liabilities as of September 30, 2025 and September 30, 2024.

The opening balance for contract assets for the fiscal year ended September 30, 2024 was $20,542.

Disaggregation of revenue from contracts with customers

We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or subcontractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories:
Revenue by customer for the years ended September 30, 2025 and 2024 (in thousands):
20252024
Department of Health and Human Services$171,717 $184,544 
Department of Veterans Affairs116,422 139,945 
Department of Defense53,241 64,128 
Other3,117 7,320 
Revenue
$344,497 $395,937 

Revenue by contract type for the years ended September 30, 2025 and 2024 (in thousands):
20252024
Time and Materials$177,067 $215,341 
Firm Fixed Price93,746 101,115 
Cost Reimbursable73,684 79,481 
Revenue
$344,497 $395,937 

Revenue by whether the Company acts as a prime contractor or a subcontractor for the years ended September 30, 2025 and 2024 (in thousands):
20252024
Prime Contractor$315,505 $355,147 
Subcontractor28,992 40,790 
Revenue
$344,497 $395,937 

Historical Timeline

Fiscal YearFiled
2025Dec 10, 2025Showing above
2024Dec 4, 2024
2023Dec 6, 2023
2022Dec 5, 2022
2021Dec 6, 2021
2020Dec 7, 2020
2019Dec 11, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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