GEE Group Reports Q2 and YTD Fiscal 2025 Results

GEE Group Inc., a provider of staffing services, reported fiscal 2025 second quarter and year-to-date results, marked by a revenue decline due to economic challenges and trade uncertainty. Revenue for the quarter was $24.5 million, down 4% from 2024, mainly due to reduced job orders and hiring caution from companies.

Professional contract staffing services saw revenue declines, while direct hire placement revenue increased slightly due to opportunities in engineering and IT sectors. Gross profits were consistent, with improvements in margins attributed to high-margin direct hire placements.

SG&A expenses decreased but remained high relative to revenues. A $22 million goodwill impairment and a $9.9 million tax asset valuation allowance led to significant losses from continuing operations. Adjusted EBITDA showed a slight decline, and free cash flow was negative for the period.

The company divested its Industrial Segment and acquired Hornet Staffing to bolster competitiveness. GEE Group remains cautiously optimistic, aiming to leverage AI and streamline operations to navigate future uncertainties.