GEE Group Reports Q3 Revenues Down 9% YTD, Gross Margins Improve Amid Industry Challenges.

GEE Group reported a 9% and 10% decline in consolidated revenues for Q3 and year-to-date periods, respectively. Gross margins improved to 35.4% due to higher direct hire placements. The company recorded a net loss of $34.0 million for the nine-month period, affected by macroeconomic conditions and industry challenges. Despite the losses, GEE Group reduced SG&A expenses and maintains a healthy cash balance and zero long-term debt. The company remains optimistic about future growth prospects following the acquisition of Hornet Staffing.

GEE Group (NYSE American: JOB) reported its fiscal 2025 third quarter (Q3) and year-to-date (YTD) results, showing continued challenges amid volatile macroeconomic conditions. The company's consolidated revenues for Q3 2025 were $24.5 million, down 9% year-over-year, while YTD revenues reached $73.0 million, down 10% compared to the same period last year [1].

The revenue decline was primarily attributed to ongoing macroeconomic volatility, high interest rates, and clients delaying IT projects and capital investments. These factors contributed to a relatively subdued labor market, resulting in elongated hiring cycles and fewer job orders for GEE Group's services [1].

Despite the revenue decline, GEE Group reported a net loss from continuing operations of $0.4 million for Q3 2025, a significant improvement from the $18.1 million loss in Q3 2024. This improvement was driven by cost control measures, including a reduction in SG&A expenses by 8% for the quarter [2].

Gross margins improved to 35.4% in Q3 2025, up from 34.1% in the prior year period, primarily due to a higher mix of direct hire placement revenues, which carry 100% gross margins. The company also maintained a strong balance sheet with $18.6 million in cash, an undrawn $6.6 million credit facility, and zero long-term debt [2].

GEE Group's strategic repositioning includes the divestment of its Industrial Staffing Services segment, the acquisition of Hornet Staffing, Inc. to enhance capabilities with Fortune 1000 clients, and the implementation of AI tools to improve operational efficiency. The company remains optimistic about future growth prospects following the acquisition of Hornet Staffing and expects gradual improvement in the labor market [1].

GEE Group will hold an investor webcast/conference call on August 14, 2025, to discuss its Q3 2025 and YTD results in detail. Investors are encouraged to register in advance to participate in the event [2].

References:
[1] https://www.staffingindustry.com/news/global-daily-news/gee-group-revenue-falls-93-amid-labor-market-slump
[2] https://www.stocktitan.net/news/JOB/gee-group-announces-results-for-the-fiscal-2025-third-quarter-and-grzs9mk7x3u8.html