GEE Group Inc. Reports Q3 2025 Earnings, Expects Future Growth

GEE Group Inc. (NYSE:JOB) reported Q3 2025 earnings, with Chairman and CEO Derek Dewan and Senior VP and CFO Kim Thorpe presenting the results. The company's fiscal 2025 third quarter and year-to-date ended June 30, 2025 results and outlook for the remainder of 2025 and the foreseeable future were discussed. Forward-looking statements were made, subject to risks and uncertainties that actual results may differ materially from expectations.

GEE Group Inc. (NYSE: JOB), a provider of professional staffing services and human resource solutions, announced its fiscal 2025 third quarter and year-to-date results, ending June 30, 2025. The company reported revenues of $24.5 million and $73.0 million for the three and nine-month periods, respectively, down 9% and 10% compared to the same periods in fiscal 2024. The decrease in revenues was primarily attributed to volatile macroeconomic conditions, weakness in the labor market, high interest rates, and unsettled trade policies. These factors led to a subdued labor market and elongated hiring cycles, resulting in fewer job orders and lower demand for GEE Group's services.

Professional contract staffing services revenues for the three and nine-month periods ended June 30, 2025, were $21.3 million and $64.3 million, down 10% and 11% compared to the same periods in fiscal 2024. Direct hire placement revenues were near breakeven at $3.2 million and $8.7 million for the same periods. Gross profits and gross margins were $8.7 million and 35.4%, and $25.0 million and 34.2% for the three and nine-month periods ended June 30, 2025, respectively. Selling, general, and administrative expenses (SG&A) were lower at $9.0 million and $26.7 million for the same periods, down 8% and 9% compared to fiscal 2024.

The company reported a net loss of $(0.4) million, or $(0.00) per diluted share, and $(34.0) million, or $(0.31) per diluted share, for the three and nine-month periods ended June 30, 2025, compared to losses of $(18.1) million, or $(0.17) per diluted share, and $(20.5) million, or $(0.19) per diluted share for the same periods in fiscal 2024. Adjusted EBITDA, a non-GAAP financial measure, improved to $(25) thousand and $(918) thousand for the three and nine-month periods ended June 30, 2025, compared to $(329) thousand and $(1.0) million for the same periods in fiscal 2024.

Free cash flow (a non-GAAP financial measure), including cash flows from discontinued operations, for the nine months ended June 30, 2025, was negative $(1.9) million, compared to negative $(1.2) million for the same period in fiscal 2024. As of June 30, 2025, the company had cash balances of $18.6 million, borrowing availability under its bank ABL credit facility of $6.6 million, and net working capital of $24.1 million. The company's current ratio was 4.2, shareholders' equity was $50.4 million, and long-term debt was zero. Net book value per share and net tangible book value per share were $0.46 and $0.23, respectively, as of June 30, 2025.

Chairman and CEO Derek E. Dewan commented on the results, stating that the company delivered a resilient quarter and is adjusting its business plan to target new revenue-generating opportunities. He noted that the use of AI is becoming a disruptor in the staffing industry, and GEE Group has implemented AI tools to enhance its recruiting and sales efforts. Dewan also mentioned that the company expects the demand environment for the remainder of 2025 to be somewhat volatile but anticipates gradual improvement. The company plans to increase its market share and provide clients with more value-added services, including HR consulting, IT statement of work projects, and resource process outsourcing.

GEE Group Inc. will hold an investor webcast/conference call on Thursday, August 14, 2025, at 11:00 a.m. EDT to review and discuss the fiscal 2025 third quarter and year-to-date results. The company's prepared remarks will be posted on its website prior to the call.

References:
[1] https://www.marketscreener.com/news/gee-release-q3-2025-ce7c51d8d88df124