Atlantic 2025 Q2 Earnings Narrowed Losses with 89.8% EPS Improvement

Atlantic (ATLN) reported its fiscal 2025 Q2 earnings on August 15, 2025. The company narrowed its net loss significantly, reporting a $0.20 per share loss, an 89.8% improvement from a $1.96 per share loss in the same period last year. This marked a meaningful improvement, although the company remains in a seven-year streak of losses for the corresponding quarter.

Revenue
Total revenue for Atlantic declined by 1.7% to $102.90 million in 2025 Q2, compared to $104.64 million in the prior year. Temporary placement services remained the core revenue driver, generating $102.03 million, while permanent placement and other services contributed $863,532. Total service revenues, net, stood at $102.90 million.

Earnings/Net Income
The company’s net loss narrowed to $-10.72 million in Q2 2025, a reduction of 80.5% from $-54.91 million in Q2 2024. Despite this progress, Atlantic has yet to achieve profitability, continuing to report losses for the seventh consecutive fiscal quarter.

Price Action
Shares of Atlantic edged down 0.54% during the latest trading day but surged 145.70% for the week and 75.00% month-to-date, indicating strong short-term volatility.

Post-Earnings Price Action Review
A strategy of buying shares following a revenue increase quarter-over-quarter and holding for 30 days underperformed significantly, yielding a return of -60.82% versus a benchmark of 3.77%. The strategy recorded an excess return of -64.59% and a CAGR of -79.93% over three years. Although the strategy experienced no further drawdowns beyond initial costs, the overall performance highlighted the challenges of relying on earnings-driven strategies in the company’s volatile context.

CEO Commentary
Peter S. Sack, CEO, emphasized Atlantic’s unique positioning as the only BDC focused on lending to cannabis companies and underserved markets. He noted successful execution of a $39.1 million investment pipeline in Q2, with a focus on high-yield senior secured loans. Sack expressed optimism about cannabis sector growth, particularly if rescheduling efforts succeed, but remained cautious about regulatory uncertainties.

Guidance
The company expects continued portfolio growth, leveraging $780 million in deal pipeline and $125.4 million in liquidity as of August 14. Sack expressed confidence in scaling operations and growing shareholder returns despite ongoing sector-specific challenges.

Additional News
Three non-earnings related news items over the past three weeks include: 1. Beijing announced adjustments to its special education funding policies, increasing support for schools serving students with disabilities. 2. Guangzhou-based tech firm, ZTE, announced a new AI-driven customer service platform, marking its first major entry into the AI services sector. 3. A top-tier Chinese university extended its graduate student enrollment period, citing increased demand for research-based degrees and a need to reduce academic pressure.