DLH Holdings Corp.

Good day and welcome to the DLH Holdings Corp Fiscal 2025 Fourth Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Chris Witte, Investor Relations Advisor. Please go ahead.

Thank you, and good morning, everyone. On the call with me today is Zach Parker, President and Chief Executive Officer, and Catherine John Bull, 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 three 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, which 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's website. President and CEO Zach Parker will speak next, followed by CFO Catherine John Bull, after which we'll open it up to questions. With that, I'd now like to turn the call over to Zach. Please go ahead, Zach.

Thank you, Chris, and good morning, everyone. Welcome to the fourth quarter conference call. I'm pleased for the opportunity to report our financial results and provide color regarding the current environment and our outlook. Before getting into the meat of the presentation, I'd like to take a moment to state how important our people have been to DLH this past year. It has been a time of transformation with both challenges and opportunities, and we have relied relentlessly on our excellent staff to get us through. They continually surpass our expectations due to their passion, persistence, and work ethic. So once again, I want to say thank you to everyone at DLH. Throughout the year, we have achieved great success and national award recognition for major accomplishments in developing innovative countermeasures for diseases and health risks to citizens, service members, and veterans. We also elevated the readiness posture of our naval fleet, and we have made major advancements in developing top commercial data science and analytics platforms to drive solutions in digital transformation and cybersecurity. I'll address that a little bit later. We are, again, very much indebted to our great talent. We ended the fiscal year 2025 in position for the opportunities of tomorrow, completing a pivotal year that involved, of course, the transition of several contracts to small business set-aside contractors, as we had articulated and anticipated over the recent years, while we at the same time have developed additional capabilities and found additional industry providers. We were impacted by the change in priorities that come with every new administration. However, what did not change was our commitment to investing in talent, tools, and technologies to develop solutions for our pursuit of higher value-added, technology-powered applications and our utilization of the company's prodigious cash generation to pay down debt and strengthen our balance sheet. As we begin fiscal 2026, we're optimistic about the growth opportunities in our addressable market. Now, turning to slide four, I'll provide an overview of our achievements and outlook. We accomplished a great deal this past year and remain on track for enhanced performance going forward. We've expanded our role in various leading industry organizations and research consortiums. More recently, I met with the administration's leaders at the White House, enabling us to collaborate with the top strategic decision makers and more closely align our business with national priorities and emerging security needs. We achieved cybersecurity maturity model level two certification, CMMC, an important credential for our industry. The CMMC program is designed to enhance the protection of sensitive but unclassified information shared by the Department of War with its contracting base. Level 2 certification demonstrates overall excellence in cybersecurity, positioning DLH to compete for higher value business opportunities within our addressable market, including the C6ISR community. that is command, control, communications, computers, cyber, combat systems, intelligence, surveillance, and reconnaissance. The achievement validates our ability to carry out national security missions with efficiency, security, and agility. Customers know that DLH can leverage its core competencies and capabilities along with commercial best practices to deploy resilient systems built to withstand the rigors of the modern cyber threat environment. These capabilities are present also in a recent award with the National Institute of Health. Our specialized staff will design and implement cloud security migration strategies built on agility and impactful security. Our experts will deliver full project management lifecycle solutions to modernize information technology, to improve the customer experience and business processes, to optimize system performance, and to integrate emerging technologies such as artificial intelligence. It is a great program that will continue to showcase many of our leading cutting edge transformational capabilities. In addition, As Catherine will review further momentarily, we were recently awarded an extension of our IDIQ contract by the VA to continue providing pharmaceutical and medical logistics services at multiple VA mail order regional distribution centers. The ordering period for this vehicle runs through November of 2026. Strong cash flow during the quarter, resulted in further significant debt reduction of $10.7 million, resulting in a fiscal year-end debt balance of $131.6 million. Suffice it to say that our steadfast commitment to delevering the balance sheet means that all mandatory term debt payments have been made through September 30th of 2026, a year ahead of schedule. Let's turn to slide five for a review of our ongoing strategic transformation heading into fiscal 2026 and beyond. As we discussed earlier this fiscal year, DLH's transformation into a leading technology, engineering, and scientific research solutions provider is illustrated through our core capability pillars, which are described in three areas, digital transformation and cybersecurity, systems engineering and integration, and science research and development. Across each of these, DLH professionals and our world-class data science cell have applied impactful cutting-edge solutions on behalf of our customers' mission-critical and evolving challenges. To complement these capabilities, DLH has developed a suite of branded competitive differentiators which help customers across all target markets execute their missions with increased speed, reduced costs, and enhanced precision. Investing in proprietary tools within our DLH Innovation Labs framework further differentiates our company and advances our organic growth aims. To that end, I am pleased to report that fiscal 2025 brought significant progress towards refining these differentiators and bringing our value solutions to market. Today, I will add further color to one of those tools, DLH Cyclone, an AIML-powered data science engine. Cyclone unleashes the infinite power of our clients' data. Cyclone is a disruptive, competitive force challenging traditional norms for large-scale data analytics. It transforms the environment in which data ETL processes occur. It includes data warehouses, data lakes, building blocks, and so on. It uniquely harnesses the power of optimizing data science and evolving technology tools. In short, Cyclone accelerates the speed of actionable intelligence and visualization for users and decision makers at reduced cost, particularly when compared to existing government systems and commercial platforms. Cyclone specifically can ingest and process data from a nearly unlimited number of potential sources. spanning scientific and operational domains, including clinical, electronic health records, geospatial, atmospheric, tactical, logistical, and beyond, all while maintaining robust data prominence. Leveraging our advanced machine language expertise, Cyclone organizes unstructured, diverse, and vast data elements into real-time analytics. Having seen DLH Cyclone in action at trade shows, live demonstrations, and transformational value propositions, several current and potential adjacent clients have expressed interest in transitioning to our Cyclone platform to improve efficiency, transparency, and reduce costs. DLH Cyclone, Neura, and DLH Nexus Labs exemplify the strategic transformation of our company. These tools are expected to continue to be valuable resources to our customers across our markets, looking for efficient, cost-effective solutions to navigate big data challenging budget cycles, system disruptions, and the like. They cover a wide range of use cases, providing digital secure sandboxes to pilot and test new tools and products, to ingest data in simulated environments to support logistics decision making, research and development, or training, as well as advancing the biomedical research initiatives such as precision medicine, bio-data catalyst applications, and chronic disease eradication. We are confident that with our top talent, our strategic differentiators, and best practices, DLH will soon return to low double-digit organic growth in the future. With that, I would like to turn the call over to our Chief Financial Officer, Catherine Johnville. Catherine?