Q3 2025 DHI Group Inc Earnings Call

Good afternoon everyone and welcome to the DHI Group Inc. Third quarter, 2025 Financial results conference call.

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Thank you, operator. Good afternoon and welcome to DHI Group's third quarter earnings conference call for 2025. Joining me today are DHI's CEO, Art Zeile, and CFO Greg Schippers.

Before I hand the call over to Art, I'd like to address a few quick items. This afternoon, DHI issued a press release announcing its financial results. For the third quarter of 2025, the release is available on the company's website at dhigroupinc.com.

Uh this call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that during today's call management will make forward-looking statements that involve risk and uncertainties. Please note that except for the historical information statements on today's call May constitute for looking statements within the meeting of the federal Securities laws. These forward-looking statements, reflect DHI Management's. Current views concerning future events and financial performance and are subject to risks and uncertainties and actual results May differ materially from the outcomes contained in any 4 looking statements,

Factors that could cause these 4 looking statements to differ from actual results, include the risk and uncertainties discussed in the company's periodic reports on form 10K and 10q and other filings with the Securities and Exchange Commission.

Which are not prepared in accordance with us. Gaap information, regarding these non-gaap measures and reconciliations to the most directly comparable, gaap measures are available in our earnings release which can be found on our website at DHI group inc.com in the investor relations section.

With that, I'll now turn the call over to artzy CEO of DHI group.

Thank you, Todd. Good afternoon, everyone, and thank you for joining us today.

I'm Mark zailey CEO of DHI group and with me is Greg Skippers. Our CFO

if you're new to the story, welcome at DHI. Our mission is simple. We help employers find and connect with the technology professionals who drive Innovation across the US economy,

Our model is straightforward. More than 90% of our revenue comes from annual or multi-year subscriptions.

Customers who are employers or recruiters use our platforms to search engage and recruit Tech Talent.

Our exclusive focus on tech occupations.

Brand longevity.

The scale of our communities, data, insights, and continued product innovation gives us a durable competitive advantage.

Clear's jobs is the leading Marketplace for professionals with active US security. Clearances serving over 1,800 customers, including, Lockheed Booze. Allen Hamilton Lidos rathvon and many others.

Dice is essentially LinkedIn for Tech hiring.

While LinkedIn emphasizes a person's title, we focus on Tech skills.

Tech professionals on Dice actively update their profiles with new tech skills, making it the most relevant platform for recruiters who need to source tech talent.

Both businesses generate strong, recurring revenue and robust ibida margins particularly at clearance jobs where margins run above 40%.

Investors often mistake us for a staffing and recruiting firm, but we are an Essential Software tool used by employers and recruiters to find top Tech talent for their open positions.

Over 6,000, employers and staffing companies. Subscribe to our 2 SAS platforms.

Despite a mixed macro backdrop and recent headlines, Tech hiring has stabilized this year, although remaining under historical levels.

While we don't have updated, BLS Tech job posting figures due to the government shutdown. We know from our alternative Source, like cast that new tech job postings were roughly the same as second quarter.

The most notable Trend driving current and future Tech worker demand is AI.

At the beginning of 2024, approximately 10% of job postings on dice required at least 1 AI skill.

As of last month that number has risen about 50%.

As companies expand their use of AI, the need for skilled technologists. That Implement these projects will only increase

Platforms like clearance jobs and dice with their combined, databases of over 9 million Tech professionals, are an essential tool for employers, seeking to find attract and higher the tech Talent. They need to fill these projects.

Now, I would like to provide an overview of our brand performance, this quarter and outline, the steps. We've taken to improve our position. Moving forward, clearance jobs continues to generate strong margins and retain. Its leadership position, despite a bookings, decline of 0.8 million, or 7% due to the government hiring freeze and eventual shutdown.

But the long-term Outlook is very favorable.

Budget for fiscal year, 2026 marks the largest single-year. Increase in peacetime. History representing a 13% increase over the previous year's budget.

Historically, the defense budget has grown roughly in line with GDP growth rates of around 3%. So this is a significant year-over-year increase.

Also NATO countries are boosting defense spending with a target of 5% of their gdps which would represent a spending increase of more than 500 billion dollars.

with us contractors likely to secure a s significant portion of this incremental, spend

Traditionally over 60% of EU Defence procurement spending goes to US military contractors.

These Dynamics are promising for clearance jobs, with over 10,000 employers of cleared Tech professionals and more than 100 government agencies. Also need of cleared Tech professionals. CJ has a significant growth opportunity as government contractors, look to staff new projects,

On the product side, we've integrated agile, ATS with our clearance jobs offering and our beta testing our premium candidate. Subscription ahead of its General release in q1 of 2026, our first candidate monetization opportunity

As we announced last quarter agile ATS is the only applicant tracking system in the market, designed specifically for the cleared recruiting environment.

With agile ATS. Now integrated with clearance jobs, we have begun offering a bundled solution to customers who want a seamless end-to-end cleared, hiring workflow.

Based on our analysis, we believe approximately half of our CJ customers today meet the target profile for this solution.

With a historical average contract value of around 7,000 annually. We see strong incremental, recurring Revenue potential for agile. ATS, both from our existing, CJ customer base and from new customers in the broader govtech Market.

We will be looking to roll out a similar offering on dice in the future.

As a result the number of new tech job postings remain around 70% of normal.

Resulting in dice, bookings, being down, 17% year-over-year.

We are seeing significant interest in AI related job postings which we believe will drive future, Tech hiring demand.

During the quarter, we made meaningful progress with our Dice platform from a product perspective.

More than half of our 4,200 customers primarily smaller accounts have now migrated to the new platform with all customers expected to be migrated by the end of q1 2026.

This new platform allows existing customers to add new products to their existing subscription online.

It also allows new customers to sign up for a subscription, with a swipe of a credit card.

The price point is 650 a month for the lowest tier subscription package which is easier for a smaller customers to manage than an annual upfront charge.

This move to a more self-service model allowed us to reduce dice operating expenses significantly moving forward.

Looking ahead, even though the past few years have been difficult, we have successfully laid the foundation for future growth.

Dice is increasingly becoming the go-to destination for AI talent in clear's jobs operates in a specialized high barrier Market at the intersection of Defense security and Technology with significant upside from defense budget growth and NATO spending.

Our subscription model and margin structure. Give us resilience. We continue to believe the market doesn't fully reflect the value of each distinct brand today, which is why our board, authorized a new 5 million buyback program. Starting this month.

Over time as we execute modernize our platforms and grow our customer base. We see a clear path to meaningful continued, shareholder value creation.

Solid profits and robust, free cash flow for our shareholders.

With that, I'll turn the call over to Greg to walk you through the financial results and our guidance in more detail, Greg.

Thank you, art and good afternoon everyone.

Jumping right in, we reported total revenue of 32.1 million which was down 9% on a year-over-year basis and roughly flat compared to the second quarter.

Total bookings for the quarter. Were 25.4, million down, 12% year-over-year,

In Revenue was down, 11% compared to the prior year and the bookings that drive our recurring Revenue were down 13% for the quarter.

Clearance jobs Revenue was 13.9 Million up 1% year-over-year and up 2% sequentially.

Bookings for CJ were 12 million down 7% year-over-year.

This reduction is attributable to churn with smaller customers, whereas the number of CJ accounts spending greater than 15,000 in annual recurring Revenue increased versus prior year.

Also, as art mentioned, CJ's new business teams were impacted by uncertainty surrounding the federal budget, freeze, and eventual shutdown.

Our average annual revenue per CJ recruitment package, customer was up 7% year-over-year and up 2% sequentially to 26,600.

Approximately 90% of CJ revenue is recurring and comes from annual or multi-year contracts.

For the quarter, CJ's Revenue renewal rate was 85% and CJ's. Retention rate was 106% this solid retention rate, demonstrates, the continued value, CJ delivers in the recruitment of cleared professionals.

Dice Revenue was 18.2 Million which was down 15% year-over-year endowed. 1% sequentially.

Diced. Bookings or 13.4 million down 17% year-over-year.

Based Revenue, renewal rate was 69% for the quarter and its retention rate was 92%.

The reduction in customer count, indices renewal rate from the prior year. Quarter is mainly attributable to churn with smaller customers spending less than 15,000 per year representing over 75% of the total churn on count and who are more likely to be impacted by the difficult macro environment and uncertainty.

We believe the introduction of our new dice platform, which offers customers the flexibility of monthly subscriptions, will help reduce future churn among smaller accounts by lowering upfront commitment and improving affordability.

Our average annual revenue per dice recruitment package. Customer was 15,727 down 4% year-over-year and up 2% sequentially.

As with CJ approximately, 90% of dice revenues recurring and comes from annual or multi-year contracts.

Despite this churn both brands on boarded notable clients in the third quarter for CJ this includes blue origin. Boston fusion and CDW while dice landed high IQ robotics Cloud. AI Technologies and mango analytics as customers in Q3.

Now let's move to operating expenses for the third quarter. Our operating expenses increased 1.9 million to 36.6 million when compared to 34.7 million in a year ago, quarter and includes a 9.6 million impairment of the intangible assets.

Excluding the impairment, our third quarter, operating expenses declined 7.6 million or 22%.

Because of the difficult market conditions over the past 2 and a half years. We have reduced costs through restructuring in the second quarter of 2023 and the third quarter of 2024 in January of this year and most recently in June,

Together. These restructurings have reduced our annual operating expenses and capitalized development costs by approximately 35 million.

For the quarter, we had an income tax benefit of dollars on a loss before taxes of 5 million.

Rate of 25% due to deduction limitations on executive compensation.

The new tax law signed in early July allows for the immediate deduction of R&D costs which will reduce our income tax payments in 2025 by over 2 million dollars. While also providing an incentive for technology spending in the broader US market thereby increasing Tech hiring.

Moving on to the bottom line, we recorded a net loss of 4.3 million or 10 cents per diluted share in the third quarter.

For the prior year quarter, we reported a net loss of $200,000 or 0 cents per diluted share.

Net loss for the quarter was impacted. By the previously, mentioned 9.6 million impairment

non-gaap earnings per share for the quarter was 9 cents per share compared to 5 cents per share for the prior year quarter.

Diluted shares outstanding for the quarter. Were 44.8 million shares down slightly from the prior year quarter.

Adjusted. Even though for the third quarter it was 10.3 million, a margin of 32% compared to 8.6% in the third quarter. A year ago.

Margin for the quarter benefited from certain expense savings that are not expected to recur.

On a segmented basis, CJ adjusted, Eva remains strong at 5.9 million in the third quarter representing a 43% adjustable margin as compared to adjusted Eva of 6.3 million or a margin of 46% in the prior year period.

Dice's adjusted, Eva thought increased 2.2 million or 56% to 6.2 million representing a 34% adjusted ebit on margin, which compares to 4.0 million and a 19% margin last year.

Operating cash flow for the third quarter was $4.8 million, compared to $5.5 million in the prior year period.

Free cash flow which is operating cash. Flow is less Capital expenditures was 3.2 million for the third quarter, compared to 2.3 million in the third quarter of last year.

Our Capital expenditures which consists primarily of capitalized development costs, where 1.6 million in the third quarter, compared to 3.2 million in the third quarter. Last year, a savings of 1.6 million or 51%

Capitalized development costs in the third quarter of 2025 were $400,000 for CJ and $1.1 million for Dice, as compared to those for CJ and $2.5 million for Dice in the 2024 period.

We are targeting total Capital expenditures in 2025 to range between 7 and 8 million as compared to 13.9 Million last year.

From a liquidity perspective. At the end of the quarter we had 2.3 million in cash and our total debt was $30 million under our 100 million revolver, resulting in leverage at 0.86 times, our adjusted e with the

We continue to target 1 times leverage for the business.

Deferred revenue at the end of the quarter was 41 million down 13% from the third quarter. And of last year, our total committed contract backlog at the end of the quarter was 94.3 million which was down 9% from the end of the third quarter last year.

short-term backlog was 72 million at the end of the third quarter, the decrease of 2.2 million or 3% year-over-year,

Long-term backlog that is revenue to be recognized in 13 or more months was 22.3 Million. At the end of the quarter, a decrease of 500,000 or 2% from the prior year quarter,

for the year, we've repurchased a total of 2.6 million shares for 6.2 million under our stock repurchase program and from the vesting of share-based awards,

Following the close of the third quarter. We completed the $5 million plan authorized in January. And last week, our board approved a new $5 million stock repurchase program which will begin this month and will run through November of 2026.

Moving to guidance, we are reiterating our annual revenue guidance of $126 million to $128 million.

9.5 million to 31.5 million.

We are raising our full year adjusted debit on margin, guidance to 27% reflecting our cost management and operational efficiency.

To wrap up although the higher end environment over the past 2 plus years has impacted our Revenue growth. We remain optimistic about the road ahead.

We anticipate the record-breaking defense budget will be a growth driver for CJ and that companies are cross. All Industries will steadily increase their investments in technology initiatives creating a strong growth or opportunity for both clearance jobs and dice.

We remain focused on strengthening our industry-leading solutions, optimizing our go-to-market strategy, and executing it with efficiency. We are all well positioned to capitalize on the opportunities that lie ahead.

And with that, let me turn the call back to Art.

Thank you, Greg. I want to thank all of our employees. Once again for their outstanding work, this quarter, it has been a pleasure to be part of such a great team. That said we are happy to answer your questions.

Ladies and gentlemen, at this time, we'll begin the question and answer session.

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Again, that is star and then 1. You join the question queue.

We'll pause momentarily to assemble the roster.

In our first question today, comes from Gary press the pinots, um, barington research. Please go ahead with your question.

hey, um,

Art, Greg, how are you?

Good good. Thanks, appreciate it. How are you good? Just fine. Thanks. Um, several questions but I won't ask them all at 1 time. Some of the else can get in the queue, but the, the dice margin expansion is just fantastic. And I guess there's no 1 time. Or is there anything in there, right? It's that is just pure adjusted. I

numbers quarter to quarter.

So yeah, Gary I'll take that uh there there are a few uh I would call true-ups in there. Um and so so really. What's driving? That is uh we had some headcount vacancies uh during the third quarter that have, you know, now largely been backfilled. Um, and then we also had a few

and what I would call year to date expense true-ups, um, that, uh, you know, where the results of some of our margin changes, um, throughout the year and and forecasts on the revenue side,

Um and then also is it relates to dice the um the tech team.

Um, we had a very efficient quarter. Therefore, there was more um.

more cost allocated to the capitalized development costs in the quarter is opposed to operating expenses. Um and really that was a result of the delivery of the DX platform that we've been talking about. That was delivered in in September and you know, another release in October and so that team really zeroed in and as a result there was a classification, you know, from Opex down to capitalize development. But from a dollar perspective, there was no change um to free cash flow on that. So I would expect that, you know, we're going to return to a little bit more of a normalized uh margin on dice next quarter.

And and what would that be?

so on dice, uh,

You know, we had been running in the uh um mid 20s. So I would say we're going to stay in that range.

Okay, yeah, okay, thank you. That's that's helpful. Um, and then um,

what was the, um,

Write off for 9 million was that in dice clearance shop or yep. It was the dice trade name. So, um, which is directly related to dice Revenue. Um, trade name valuation uses a technique called a relief of royalty rate, and so you apply a third party, royalty rate to a revenue stream, and discount that back. And so that's the nature of that test. That has to be done every year and, uh, you know, it resulted in impairment. Um, in this case, given the revenue declines at dices experienced.

Okay. And then last

Million for this year. Given what's going on in the market, particularly with dice, do you see that changes in any way to the upside in, uh, next year?

Or spending on captive, will it get better next year, as in decrease?

Okay.

Is that your question? Are you talking about it? Yeah, yeah, yeah. I'm just trying to get an idea if you're a kind of a steady state with all that's going on market and then all you've done. Yep. Yep. I I don't, I don't anticipate uh, you know, we're going to have a significant decrease next year because our teams are are pretty well. Um, I think uh, put together now, I think we have the right Staffing levels and so you know we'll continue largely at a level similar to what you would see this year. Um maybe slightly less given that the first part of the year. We had more employees before the restructure that happened in June.

Okay, thank you.

And our next question comes from Zach, comments from B. Riley. Please, go ahead with your question.

Hi, this is Ethan Modell calling in for Zack's comments. Thanks for taking my questions. I guess to start with.

um,

With the, I think you said 70% bookings declined from government volatility. Maybe can you speak to how much of that impact you're seeing from government shutdown? Versus? Um maybe government efficiency initiatives just broader volatility and how do you view that Dynamic being offset going forward in light of the the robust defense budget.

so ultimately I think that um we have seen a lot of the smaller and mid-size defense, contractors become more conservative, over the last

Let's say, 3 to 6 months, we're entering a period of time right now, specifically in December and January, where we have seasonal, um, high amount of our larger Enterprise bookings, take place. And these are with firms like Lockheed and Raytheon and Booze Allen Hamilton. Uh, they are actually feeling much more bullish because they can obviously, withstand the government shutdown. They could withstand kind of the turbulence of the market in general. Uh, they have larger balance sheets. So, I, I personally think that we're getting now to the point where people acknowledge that the 1.1 trillion dollar budget is going to be um a big benefit to the defense establishment in the United States in in total we mentioned also the impact of NATO spending is positive for the US military establishment. Um I would say that we have to get to the actual

Bills being passed and, and signed into law by President Trump. So there's still a process of reconciliation between the house. Bill, the Senate bill, and they've got to be in, you know, they've got to be debating this. They have to essentially, make sure that the reconciliation process happens this year. It took until February March for the, um, reconciliation to take place, so we don't really have an estimate as to when this is going to happen for fiscal year 2026, but there seems to be more urgency. Um, I have to say, also, with, with the administration, uh, the Articles you read just about every day, indicate that, um, secretary Hexxit wants speed, uh, to be part of the equation for getting more military gear and weaponry and and uh, preparedness um, into the hands of our war, our war Fighters.

Got it, that's some uh helpful color there. Thank you. Um and then in terms of the, the new platform migration, it's it's nice to see that you're seeing traction there. I I guess, um, are there any particular actions that need to be taken to on board the remaining customers that you have um, by by first quarter? And do you expect any uptick in turn with your final customers on the Legacy platform?

So I would say that much like any major technology, uh, implementation in any feature that's delivered on, either 1 of the platforms. We always make the migration to our smaller of our smaller customers first, because it's just a risk off kind of, um, way of, you know, kind of moving through waves of customer migrations. And so we've had a very good experience with those customers. Moving over, we've, we've moved over half of them. I personally do not perceive that there is churn risk with the remainder of the customers that we move. Now, they become, uh, the mid and large-sized customers. So the stakes are higher, but I think that we've also honed the process by virtue of these small customer migrations.

Thank you. That's, uh, that's all really helpful. Appreciate it.

Thank you, Abby.

Our next question comes from Max.

Max Michaela from Lake Street. Please go ahead with your question.

Hey guys, thanks for taking my questions. Few for me first kind of want to start with, just the macro in general. Um, I know you said dice seems to be stabilizing, uh, play Devil's Advocate just a little bit here. The bookings seem to booking declined, seem to increase from last quarter. So, down, 17% for down 16%.

Can you kind of characterize the stabilization you are seeing in the market? Just to kind of give me a better sense.

That's a good point to say that it ticked up by 1 percentage point versus, um,

The last quarter, I would say the two things that are giving me confidence personally, and then I'll turn it over to Greg, are that, you know, we are seeing this.

Slow and steady increase in the number of new tech job postings and they are very much AI related. So I believe that that is indicative that the United States economy is moving towards 1. That is going to accept AI at ever larger scale and then I'd say the third quarter is traditionally our, um, smallest renewal book for the the business and it it consists of our smaller customers. So I I don't think that it's necessarily. Um, a matter of the percentage Point decrease that really

Should be focused on but Greg, do you have additional?

Yeah, the 1 other thing I'd mention is the uh the amount of inbound um opportunities has started to pick up a bit um that doesn't necessarily translate quite yet to uh to bookings. But there is a little more activity in that area too.

Okay. And there have been for a while.

Makes sense. And if I may ask, you brought up AI. What percentage of your job postings on your platform mention AI? I know a lot of postings probably reference it, but how many are actually related to AI jobs? I guess I don't know how to characterize that, but I'll let you take it.

So, uh, over 50%, as of October, are related to an AI project. The person is being hired specifically to tackle an AI project for the firm that's hiring them. Um, and that's grown from 25% at the beginning of the year and 10% at the beginning of 2024. So, it is a very significant trend from our perspective.

Wow, that's a lot. Um, and then the last 1 for me, it's a little um, if we look out kind of into the future, I know you guys acquired agile APS few months ago, but I mean is there any other opportunities out in the gov tax space that you guys can go after and that's it for me.

Yeah. That's a a great question. I would say that we are evaluating a number of them. We think that CJ is a great platform, it has a great reputation with its customer Community has high credibility, um, has uh, always been the platform of choice for anybody that is hiring uh cleared technology professionals. So I I do think that there are ajac's. In fact we always show a diagram to our board. That's that says that, you know, Talent sourcing is just 1 part of the whole end-to-end process for hiring, an individual on boarding them, and then managing them uh, in the clear context or any context. So I I think that there are, there will be more opportunities for us in the future. Yes.

Thank you, appreciate it.

Once again, if you would like to ask a question, please press star and then 1 to withdraw your questions. You may press star and do...

Our next question comes from.

Kevin Lou from Kevin Liu Company please, go ahead with your question.

Hey, good afternoon guys. Um maybe just starting with CJ and I apologize if you addressed this and you're prepared remarks. I joined a little bit late but um can you put a finer point in terms of how kind of renewal activity versus new business activity? Has kind of trended uh since the shutdown and then your sense of any sort of pent-up demand uh that could come through a assuming the shutdown ends shortly.

That has been more challenged even with, um, new business activity, but I'd say new business activity has picked up, and we have seen a bigger pipeline than we have in a long time. Speaking to the second part of your question, which is, I think that once we get back to, um, the business of running the government, um, I do think—and we have to have a defense bill passed, or actually it's a multitude of different bills that constitute the defense budget—then there will be more activity, more projects that will allow these smaller defense contractors to feel really good about where they stand with regard to, um, their future, uh, success. And therefore, their willingness to purchase a platform like ClearanceJobs.

Got it. Um and maybe Switching gears to the new dice platform um can you talk? I know it's still early days but maybe talk a little bit about what you're seeing in terms of new customer signs and in particular how that kind of impacts your your cost per required customer. Um, and then anything notable in terms of, you know, uh, customers that have migrated over and, and kind of their, uh, their renewal rates or or

A self potential.

Yeah, I think that obviously this is pretty new for us and I have to say that with regard to the idea of swiping, a credit card. Um, what we found is that the customers are less willing to do that for an annual subscription, even the lowest tier of package because it involves roughly about 6 to 7 thousand dollars. And so that's a, that's a large charge at 1 point in time. Once we rolled out the, uh, monthly option, which I mean is, is you're well aware as part of a lot of different B2B and b2c experiences. Uh, that's when we saw the number of um, people signing up start to escalate. So, you know, 650 for a month.

Worth of dice seems like it's a lot more tolerable, a lot more kind of like from a psychology perspective more acceptable. So that's that's what we've seen so far. I know that Greg is working on how to um essentially report that for the future because the most of our reporting metrics in the past have been associated with subscription activity. We do have what we call transactional, or non-subscription activity. But um I think that's going to be a part of how we

We essentially report progress in the future. A lot of people will be taking, especially new customers, this monthly option. But Greg, do you have any additional thoughts?

Uh, yeah, um, I would just point out that at this stage, we have an advertised, anything new around, uh, the, the platform, and that is going to get kicked off this week. So we're we're very interested to see how that takes off with, uh, with an advertising campaign that's coming up, but, but we're getting, uh, we're getting new customer relationships on there, uh,

Literally every day, um, with no advertising, kind of know, know, focus on it yet. So it's only been out there a few weeks and, uh, I think early results are pretty good in that respect.

Interesting and and just so I can clarify, um, it sounds like your current reporting metrics around customer recruitment packages uh, since that's on an annual basis. You're not increasing any of these weapons customers. Yeah, we're working out still, the kind of fine-tuning, the best way to report that information. Um, if you think about a self-service versus a managed customer relationship, for instance, it's going to, it's going to change a little bit on how, uh, how we think about the business and, you know, how we report it, um, through, you know, our calls and, and through investors and analysts. So, we'll, uh, we'll be forthcoming with that. And probably, you know, in our q1 call.

Off the call in February.

All right, and just lastly for me. Uh, you know it's good to see the the buyback authorization the other day. Um, can you talk a little bit about kind of your appetite for being aggressive on that given where the stock price is currently and, and trying to balance that with some of the ongoing uncertainty, both with the the shutdown, as well as the macro conditions.

Yeah, there's there's always a balance with capital allocation of course um and you know, our uh, our board is comfortable with this 1 times leverage. Um and so we're going to continue to Target in that neighborhood where you know a bit under it. Uh right now um we're a bit over it last quarter I think. Um, and so, you know, we're we're comfortable with this million dollar plan and, uh, you know, it definitely, um, will keep continue to evaluate it as we, uh, move through the next couple of quarters and as we evaluate our 2026 plan,

And uh, and kind of see where it takes us. But right now, I think we're, we're pretty comfortable with that mix.

Okay, thanks for taking the questions. Uh, nice job on the keep, the dough performance this quarter.

Thank you, thanks Kevin. Thank you, appreciate it.

Ladies and gentlemen, we'll be concluding today's question and answer session. I'd like to turn the floor back over to artillery for any closing remarks.

Thank you, operator. And thank you all for joining us today. As always, if you have any questions about our company or would like to speak with management, please reach out to Todd Kehrli, and he will assist in arranging a meeting. Thank you, everyone, for your interest in DHI Group. Hope you have a great day and a wonderful week to come.

And the conference has now concluded. We would like to thank you for attending today's presentation. You may now disconnect your lines.