DLH Holdings Corp., headquartered in Atlanta, Georgia, was established in 1969 and previously operated as TeamStaff, Inc. until its name change in 2012. The company specializes in delivering technology-enabled business process outsourcing, comprehensive program management solutions, and public health research and analytics services across the United States, with a primary ...DLH Holdings Corp., headquartered in Atlanta, Georgia, was established in 1969 and previously operated as TeamStaff, Inc. until its name change in 2012. The company specializes in delivering technology-enabled business process outsourcing, comprehensive program management solutions, and public health research and analytics services across the United States, with a primary focus on the federal health services market. A significant portion of DLH's work involves defense and veterans' health, where it provides integrated healthcare, technology, and logistical support. Key clients include the Department of Veterans Affairs (VA), the Defense Health Agency, the Telemedicine and Advanced Technology Research Center, the Navy Bureau of Medicine and Surgery, and the Army Medical Research and Material Command. The company also offers diverse human services and solutions, including rigorous monitoring and evaluation, efficient electronic medical records migration, robust data collection and management, and thorough nutritional and social health assessments. Additionally, DLH provides expert IT system architecture design, strategic migration planning, and continuous maintenance services. In the sphere of public health and life sciences, DLH undertakes crucial initiatives like clinical trials, epidemiological studies, and disease prevention, while actively promoting health among underserved and at-risk communities through strategic communication campaigns, research into emerging health trends, health informatics analyses, and application of proven best practices. As of the latest data, DLH has approximately 2,300 full-time employees and generates revenue of about $17.62 per share. The company is publicly traded on NASDAQ under the symbol 'DLHC'. Despite facing financial challenges as indicated by negative net income and return on equity, DLH remains a key player in the federal health services sector. Recent leadership transitions include Kathryn Johnbull serving as CEO since July 2026, and Zachary Parker also having held the role of CEO and President. With a mission to deliver improved health and national security readiness solutions, DLH continues to leverage science, technology, and engineering to solve complex problems for civilian and military customers.
Operator: Good day, and welcome to the DLH Holdings Corp. Fiscal 2026 Second Quarter Earnings Conference Call. All participants will be in listen-only mode. Please note this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Advisor. Please go ahead, Chris.
Chris Witty: Thank you, and good morning, everyone. On the call with me today is Zachary C. Parker, President and Chief Executive Officer, and Kathryn M. Johnbull, Chief Financial Officer. The company's earnings release and PowerPoint presentation are available on our website under the Investor page. I would now like to provide a brief Safe Harbor statement, which is also shown on Slide 3 of the presentation. This call may include forward-looking statements that relate to the company's outlook for fiscal 2026 and beyond. These statements are subject to various risks and uncertainties and could cause actual results and events to differ materially from such statements. Please refer to the risk factors contained in the company's Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements. On today's call, we will be referencing both GAAP and non-GAAP financial measures. A reconciliation of our non-GAAP results to our reported GAAP results is included in our earnings release and in the investor presentation on DLH Holdings Corp.'s website. President and CEO, Zachary C. Parker, will speak next, followed by CFO, Kathryn M. Johnbull, after which we will open it up for questions. With that, I would now like to turn the call over to Zachary C. Parker. Please go ahead, Zachary C. Parker.
Zachary C. Parker: Thank you, Chris Witty, and good morning, everyone. Welcome to our second quarter conference call. I am pleased for the opportunity to report our financial results and provide color regarding the current environment and our outlook. As I begin, I would like to recognize the performance of our highly skilled workforce. Our people are our number one asset as a company, and we lean on the passion, creativity, and expertise of our staff in order to succeed. This past quarter, you once again demonstrated the innovative thinking required to support our customers' critical missions and delivered excellence across the way. We continue to thank everyone at DLH Holdings Corp. for this execution. Now turning to Slide 4, I will provide an overview of the federal marketplace achievements and financial performance. The fiscal 2026 budget cycle is now complete, and the 2027 outlook is coming into full focus. We believe that the current federal funding environment is favorable to DLH Holdings Corp. Clients across our markets have increased funding capacity and improved budget visibility, allowing for a steadily improving procurement environment. Key federal health agencies received FY 2026 funding increases compared to FY 2025 levels, reversing in part the …
