What is the market's earnings forecast for GEE Group next quarter?

What were the key takeaways from GEE Group's earnings call?

What is GEE Group's latest dividend and current dividend yield?

Did GEE Group beat or miss consensus estimates last quarter?

What is GEE Group's gross profit margin?

What is the revenue and EPS growth rate for GEE Group year over year?

What factors drove the changes in GEE Group's revenue and profit?

What does GEE Group do and what are its main business segments?

- **Revenue decline persists**: Q3 2025 revenue down 9% YoY to $24.5 million, driven by 10% drop in contract staffing.
- **Profit improvement**: Near breakeven adjusted EBITDA (-$25k) vs. negative $329k YoY, aided by 8% SG&A reduction.
- **AI and offshore growth**: Investing in AI tools for recruiting/sales and doubling offshore recruiting capacity to 80+.
- **M&A focus**: Pursuing consulting/SP firms with AI capabilities, avoiding pure staffing acquisitions.
- **Cash position strong**: $18.6 million cash, no debt, targeting positive cash flow within 6 months.

**【CEO Opening Remarks】**
- The company faces challenging macroeconomic conditions, including a cooling U.S. employment market and cautious business spending on contingent labor.
- The Industrial segment was sold in June 2025, with results now classified as discontinued operations.
- Q3 2025 revenue was $24.5 million (down 9% YoY), with contract staffing services declining 10% and direct hire placements stable.
- Gross margin improved to 35.4% (up 1.3ppts YoY) due to higher direct hire mix.
- Non-GAAP adjusted EBITDA was negative $25,000 (near breakeven) vs. negative $329,000 YoY, driven by cost reductions.
- The company is investing in AI, offshore recruiting, and VMS/MSP business to adapt to market conditions.

**【CFO Financial Commentary】**
- Q3 2025 consolidated revenue: $24.5 million (down 9% YoY)
- Gross profit: $8.7 million (down 5% YoY), gross margin: 35.4% (up 1.3ppts YoY)
- SG&A expenses: $9 million (down 8% YoY)
- Net loss from continuing ops: $400,000 (vs. $18.1 million YoY)
- Cash position: $18.6 million (unchanged QoQ), no debt
- Free cash flow: negative $1.9 million YTD (vs. negative $1.2 million YoY)

**【Q&A Highlights】**
- **Capital Allocation**: Share buybacks will resume when cash flow positive, but M&A remains priority for growth.
- **M&A Strategy**: Seeking consulting/SP services firms with AI capabilities, avoiding pure staffing firms.
- **AI Impact**: Displacing low-skill roles but creating demand for AI specialists; using AI in recruiting/sales automation.
- **Offshore IT**: Expanded Hornet platform to 80+ recruiters, enabling rapid project execution.
- **Competitive Position**: Gross margins (35.4%) outperform peers despite revenue decline.
- **Cash Flow Target**: Expect positive cash flow within 6 months.


GEE (JOB)-14 Aug 25-2025 Q3 Earnings call transcript

- **Challenges**: Q2 revenue down 4% YoY due to macroeconomic headwinds and industry-wide hiring freezes.
- **Strategic Actions**: 
  - Completed Hornet Staffing acquisition; multiple M&A deals expected in 2025
  - Cutting costs via AI, offshore recruiters, and SG&A reductions (10% YoY)
  - Targeting breakeven in late 2025/early 2026
- **Financial Health**: Strong liquidity ($18.7M cash) despite $33M net loss (non-cash impairments)
- **Shareholder Focus**: Board prioritizing M&A and buybacks; management holds significant equity

**【CEO Opening Remarks】**
- Q2 2025 revenue: $24.5M (down 4% YoY), driven by macroeconomic challenges (hiring freezes, AI disruption) in the staffing industry.
- Key initiatives: 
  - Accelerated M&A (e.g., Hornet Staffing acquisition completed in Q2)
  - Cost-cutting: Streamlining operations, reducing SG&A by 10% YoY
  - AI integration: Using offshore recruiters and AI tools to improve sales and recruiting efficiency
- Profitability outlook: Targeting breakeven in late 2025/early 2026
- Balance sheet strength: $18.7M cash, $7.4M undrawn credit facility

**【CFO Financial Highlights】**
- Q2 2025 metrics:
  - Revenue: $24.5M (-4% YoY)
  - Gross profit: $8.4M (34.1% margin)
  - Net loss: $33M (-$0.30/share) due to $22M goodwill impairment and $9.9M tax valuation allowance
  - EBITDA: -$900K (non-GAAP)
  - Free cash flow: -$1.1M
- Year-to-date trends:
  - Revenue: $48.5M (-10% YoY)
  - Gross margin: 33.6%
  - Net loss: $33.6M (-$0.31/share)

**【Q&A Key Takeaways】**
1. **M&A Pipeline**: 
   - "Robust pipeline" with multiple LOIs
   - 2025 acquisitions expected to close
   - Focus on accretive deals with flatlined performance
2. **Share Repurchases**: 
   - Paused since Dec 2023
   - Reassessed when cash flow positive
   - Board supports dual strategy: M&A + buybacks
3. **Industrial Division Sale**: 
   - Actively negotiating, expects closure soon
   - Proceeds to fund growth initiatives
4. **Cost Reduction**: 
   - Offshore recruiters and AI tools to cut costs
   - Targeting 35-40% SG&A/Revenue ratio
5. **Shareholder Value**: 
   - Management holds significant equity
   - Board focused on maximizing returns through M&A and buybacks

GEE Group Inc. (JOB) Q2 2025 Earnings Call Transcript

- **Revenue decline**: $26M (-15% YoY) due to industry hiring freeze
- **Cost cuts & acquisition**: $3M annual savings + Hornet acquisition to boost IT/industrial capabilities
- **AI adoption**: Testing tools to automate sales and recruitment
- **Margins stable**: 31.9% gross margin despite top-line pressure
- **Liquidity strong**: $19.7M cash with no debt
- **Key risks**: Prolonged labor market weakness, macroeconomic uncertainty

**【CEO Opening Remarks】**
- Q1 2025 revenue: $26 million (-15% YoY) due to industry-wide hiring freeze and project delays.
- Key initiatives: 
  - $3M annual SG&A cost cuts implemented in Q4 2024
  - Acquired Hornet Staffing to expand IT, professional, and industrial staffing capabilities
  - Testing AI tools for sales targeting and recruitment
- Hornet acquisition: Accretive to earnings, adds MSP/VMS expertise, and leverages offshore recruiting team
- Liquidity: $19.7M cash, $7M undrawn credit facility

**【CFO Financial Highlights】**
- Revenue breakdown: 
  - Contract services: $23.5M (-15% YoY)
    - Professional: $21.5M (-14% YoY)
    - Industrial: $2M (-20% YoY)
  - Direct hire: $2.5M (-18% YoY)
- Margins: 
  - Gross margin: 31.9% (stable vs. prior quarter)
  - Professional gross margin: 25.2% (+20bps)
  - Industrial gross margin: 18.5% (+250bps)
- Expenses: SG&A $8.8M (-17% YoY), 31.9% of revenue (vs. 34.6% prior quarter)
- Earnings: Net loss $0.7M (-$0.01/share), adjusted EBITDA -$0.3M

**【Q&A Key Takeaways】**
1. **Sales Strategy**: 
   - Field teams targeting new clients and upselling to existing accounts
   - Revised commission plan rewards higher production
   - AI agents for lead generation and customer engagement
2. **AI Implementation**: 
   - Testing AI for recruitment and client targeting
   - Potential to reduce costs and accelerate candidate placement
3. **Industry Trends**: 
   - IT and finance verticals most impacted; industrial and healthcare mixed
   - Competitors struggling but some outperforming via consultative services
4. **Hornet Impact**: 
   - Immediate contribution to IT and professional services
   - Long-term goal to integrate Hornet's offshore recruiting across all verticals

JOB

JOB fundamentals

Earnings Call

You can ask Aime