Hudson RPO's Earnings Call: Conflicting Insights on Regional Performance, Acquisition Strategy, and Growth Prospects

Revenue and Earnings Performance:
- Hudson Global reported revenue of $35.5 million for Q2 2025, down slightly year-over-year in constant currency, while adjusted net revenue of $18.6 million increased by 5.1% year-over-year in constant currency.
- The company reported an adjusted net loss of $0.7 million or $0.23 per diluted share, improving from an adjusted net loss of $0.4 million or $0.15 per diluted share in the same period last year.
- This performance reflects Q2 2025 being the third consecutive quarter of year-over-year growth in adjusted net revenue and adjusted EBITDA, indicating a business turnaround.

Regional Performance:
- The Americas business saw a 2% increase in Q2 2025 revenue, with adjusted net revenue decreasing by 1% year-over-year in constant currency.
- Asia Pacific revenue decreased by 3%, but adjusted net revenue increased by 17% year-over-year in constant currency.
- EMEA revenue increased by 6%, with adjusted net revenue decreasing by 9%. These trends were attributed to shifts in revenue mix and temporary contracting work.

Strategic Acquisitions and Market Expansion:
- Hudson Global made strategic acquisitions, including Alpha Consulting Group (Japan) and McKinsey CMO Group (U.S.), to expand its global footprint and service offerings.
- These acquisitions are expected to generate immediate revenue and support the company's continued growth strategy.

Focus on Client Relationships and Digital Platform:
- Approximately $31.1 million in adjusted net revenue came from renewals and expansions at existing clients, highlighting the successful execution of a 'land and expand' strategy.
- The company is investing in its digital platform, Hudson Fusion, to enhance client offerings and improve operational efficiency, thereby increasing client satisfaction and retention.