What changed in this filing

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Item 1. Business

2025-12-10 compared with 2024-12-04 · 25 added, 33 removed, 140 unchanged (29% of the section changed)

15 unchanged sentences

Solutions and Services

We primarily focus on improved deployment of large-scale health and defense initiatives for multiple agencies within the federal government, including the Department of Health and Human Services ("HHS"), the Department of Veterans Affairs ("VA"), Department of Defense ("DoD"), and many of their sub-agencies.

We primarily focus on improved deployment of large-scale, technology-powered health and defense initiatives for multiple agencies within the federal government, including the Department of Health and Human Services ("HHS"), the Department of Veterans Affairs ("VA"), Department of Defense ("DoD"), and many of their sub-agencies.

We deliver services primarily through prime contracts awarded by the federal government through competitive bidding processes.

9 unchanged sentences

IT modernization and cyber security maturity are priority initiatives throughout our customer set.

Our customers, including numerous institutes and centers within the National Institutes of Health ("NIH"), the Defense Health Agency ("DHA"), Telemedicine and Advanced Technology Research Center ("TATRC"), and US Navy Naval Information Warfare Center ("NIWC"), rely on our information technology support to enable their vital missions.

We work with these customers to reduce risk and build resilience to cyber and physical threats to the federal government’s infrastructure, providing the full spectrum of cyber capabilities, cryptographic and true cyber engineering, Certified Information Security Officer ("CISO") / Information System Security Officer ("ISSO") support, risk management frameworks, Continuity of Operations ("COOP") / Disaster Recovery, and enterprise infrastructure and cloud governance focused on designing and implementing zero trust architecture.

Our customers, including numerous institutes and centers within the National Institutes of Health ("NIH"), the Defense Health Agency ("DHA"), US Army Medical Research & Development Command ("MRDC"), and US Navy, rely on our information technology support to enable their vital missions.

We work with these customers to reduce risk and build resilience to cyber and physical threats to the federal government’s infrastructure, providing the full spectrum of cyber capabilities, cryptographic and true cyber engineering, Certified Information Security Officer ("CISO") / Information System Security Officer ("ISSO") support, risk management frameworks, Continuity of Operations ("COOP") / Disaster Recovery, services under Cybersecurity Maturity Model Certification ("CMMC") Level 2, and enterprise infrastructure and cloud governance focused on designing and implementing zero trust architecture.

Science Research and Development

We advance scientific knowledge and understanding through our extensive research portfolio and domain expertise.

We primarily provide large-scale data analytics, testing and evaluation, clinical trials research services, and epidemiology studies to support multiple operating divisions within HHS, including NIH and the Center for Disease Control and Prevention ("CDC"), the Military Health System, and leading academic institutes.

Our employees support innovative, cutting-edge research on emerging trends, health informatics analyses, and the application of best practices including mobile, social, and interactive media.

5 unchanged sentences

Our employees specialize in delivering engineering solutions that support our customers' evolving needs by rapidly deploying resources, solutions, and services.

This includes specialized engineering expertise, encompassing areas of pharmaceutical delivery logistics, fire protection engineering, biomedical equipment, and technology engineering on behalf of the VA, NIWC, HHS and other federal customers.

This includes specialized engineering expertise, encompassing areas of Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance ("C5ISR"), modeling, simulation & training, performance based logistics, system modernization, technology-powered health solutions and software engineering on behalf of the US Navy, HHS, VA, and other federal customers.

We utilize automation to accelerate infrastructure innovation and help customers define a lifecycle for automation assets, as well as set standards for version control, testing, and release processes that proved a robust foundation for their customers.

DLH delivers IT operational resilience and efficiency in parallel with technology innovation integration, via hybrid and multi-cloud solutions, leveraging integrated services, process automation, advanced tool stacks, and mature quality processes.

employees engineer, implement, and operate solutions that demonstrate measurable results to satisfy our customer’s management requirements, thus helping customers to confidently deploy secure platforms and technologies that reduce operational costs.

delivers IT operational resilience and efficiency in parallel with technology innovation integration, via hybrid and multi-cloud solutions, leveraging integrated services, process automation, advanced tool stacks, and mature quality processes.

Our employees engineer, implement, and operate solutions that demonstrate measurable results to satisfy our customer’s management requirements, thus helping customers to confidently deploy secure platforms and technologies that reduce operational costs.

We have invested in agile software development credentials for our technical staff and have achieved Capability Maturity Model Integration ("CMMI") level 3.

4 unchanged sentences

A major customer is defined as a customer from whom we derive at least 10% of our revenues.

The following table summarizes the revenues by customer for the years ended September 30, 2024 and 2023, respectively (in thousands):

The following table summarizes the revenues by customer for the years ended September 30, 2025 and 2024, respectively (in thousands and percent):

Revenue Percent of total revenue Revenue Percent of total revenue

13 unchanged sentences

• CMOP pharmacy and logistic services represent approximately $116.4 million and $139.9 million of revenues for the years ended September 30, 2025 and 2024, respectively

• After the close of fiscal 2024, we received new tasks orders to continue providing services to seven CMOP locations.

The new task orders were issued under the contract awarded in April 2024 and have varying durations of up to four months.

At the conclusion of these task orders, the customer may extend these task orders or award new task orders if they have not yet awarded the new contracts.

As previously reported, the VA issued separate requests for proposals for healthcare pharmacy and logistic services for each of its eight CMOP locations.

Each of these procurements is being evaluated separately and may be subject to differing timelines for award.

The procurements were set-aside for a service-disabled veteran owned small business (“SDVOSB”) as the prime contractor.

During the quarter ended March 31, 2024, the VA began the process of evaluating these and subsequently made an award decision for the Chelmsford CMOP Staffing Services location to an SDVOSB unrelated to DLH.

In support of DLH’s continuing performance as the prime contractor during the ongoing acquisition evaluation, the VA awarded us a sole-source IDIQ contract effective May 1, 2024.

The IDIQ has a ceiling value of $200.0 million and a maximum period of performance through April 30, 2025, with the potential for orders placed within that period to extend performance through October 2025.

During the quarter ended June 30, 2024, the VA issued amendments to the requests for proposals for the seven remaining CMOP locations.

The amendments required a current or potentially new bidder to respond to the solicitations' changes with a compliant proposal.

As with all proposal opportunities, DLH evaluated the revised CMOP requests for proposal for suitability of terms and conditions.

As a result, we elected to not pursue certain of the opportunities.

Proposals were due for four of the seven locations during the quarter ended September 30, 2024.

The remaining three locations have not yet had their proposal due dates assigned.

While the acquisition process is being conducted, DLH continues to operate as the prime contractor for all seven CMOP locations that it currently manages.

As previously disclosed, the VA issued solicitations for performance of the CMOP program under separate contracts for each of its eight locations, with the awards limited to service-disabled veteran owned small business (“SDVOSB”) prime contractors.

As this ongoing acquisition evaluation is occurring, DLH was awarded a new sole-source Indefinite Quantity/Indefinite Delivery ("IDIQ") contract effective October 28, 2025.

The IDIQ has ceiling value of $90.0 million, and a maximum ordering period through October 2026, with the potential for orders placed within that period to extend performance through April 2027.

Depending on the timing of the acquisition process, revenue recognized under the IDIQ may be less than the awarded value..

With respect to the remaining four locations, the VA has made an award for one location which transitioned to a new prime contractor effective November 30, 2025, issued solicitations to evaluate for two locations and has not yet assigned a proposal due date for the remaining location's solicitation.

Until the VA has completed its procurement and transition processes, we expect to continue providing pharmacy and logistics services at these locations.

DLH intends to provide additional updates to the progression of these solicitations as a part of its regular quarterly and annual filings.

The Company's contract with HHS in support of its Head Start program generated $40.4 million and $36.0 million of revenues for the years ended September 30, 2024 and 2023, respectively.

This contract has a period of performance through April 2025.

In addition, as previously disclosed, we performed monitoring, evaluation and compliance services for the Office of Head Start (“OHS”).

The contract term for these services ended on October 31, 2025.

The revenue earned on this contract was $37.6 million for the fiscal year ended September 30, 2025, representing approximately 10.9% of total revenues for the fiscal year.

Consistent with the policies of the Biden administration promoting unbundling and setting aside contracts for small businesses, OHS conducted a competitive procurement for renewal of the services we have been performing, which was set aside for qualifying small businesses.

Our small business partners were not selected by OHS;

thus performance transitioned to unaffiliated contractors at the end of the contract term.

On September 30, 2025, our backlog was approximately $514.3 million, of which $114.1 million was funded backlog.

On September 30, 2024 our backlog was $690.3 million, of which $155.1 million was funded backlog.

We define backlog as our estimate of remaining future revenue from existing signed contracts, assuming the exercise of all options relating to such contracts and including executed task orders issued under Indefinite Quantity/Indefinite Delivery ("IDIQ") contracts or if the contract is a single award IDIQ contract.

We define backlog as our estimate of remaining future revenue from existing signed contracts, assuming the exercise of all options relating to such contracts and including executed task orders issued under IDIQ contracts or if the contract is a single award IDIQ contract.

We define funded backlog as the portion of backlog for which funding is appropriated and allocated to the contract by the customer and authorized for payment by the customer, once specified work is completed.

12 unchanged sentences

Our competitors include operating units within:

Accenture Federal Services LLC, BAE Systems plc, Booz Allen Hamilton Holding Corp., CACI International, Inc., Deloitte, ECS Federal, LLC, The Emmes Company, LLC, General Dynamics Information Technology, Inc., Guidehouse, IBM Federal, ICF International, Inc., Information Management Services, Inc., Leidos Holdings, Inc., LMI Consulting, LLC, ManTech International Corp., NexGen Data Systems Inc., Peraton, Inc., PPD Inc., Scientific Research Corp, Rho, Inc., RTI International, SAIC Inc., The Informatics Applications Group Inc.

(TIAG), UnitedHealth Group, Inc.

and Westat, Inc.

We compete with these companies by leveraging our differentiating suite of tools and uniquely integrating people and processes and a solid track record of past performance, resulting in highly competitive proposals.

We believe that our proprietary tools and processes, including e-PRAT ® and SPOT-m ® , along with our Infinibyte ® cloud-based management system differentiate us from our competitors.

We believe that our proprietary tools and processes and our Infinibyte ® cloud-based management system differentiate us from our competitors.

We compete for awards through a full and open competition on a best-value basis.

20 unchanged sentences

We claim copyright, trademark and other proprietary rights in a variety of intellectual property, including each of our proprietary computer software and data products and the related documentation.

We hold the trademarks, e-PRAT ® and SPOT-m ® , for our offerings that optimize resource allocation and supply chain management processes in connection with our business process management services, as well as the registered trademark, Infinibyte ® , for our cloud-based solution.

We hold the trademark, Infinibyte ® , for our cloud-based solution.

We maintain a number of trade secrets that contribute to our success and competitive distinction and endeavor to accord such trade secrets adequate protection to ensure their continuing availability.

3 unchanged sentences

As of September 30, 2025, we employed approximately 2,300 employees performing throughout the U.S.

and one location overseas.

Management believes that it has good relations with its employees.

21 unchanged sentences

We have used targeted equity-based grants with performance and service based vesting conditions to facilitate attracting and retaining key personnel.

We also invest in talent development initiatives including industry-leading learning management solutions, professional credentialing, and licensures.

We also invest in talent development initiatives including industry-leading learning management solutions, professional credentialing, licensures and continuing education.

These benefits will further enhance our talented employee base and augment our efforts to infuse proven best practices into our operations through world-class talent acquisition and talent management tools.

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business