GEE Group (JOB) investor relations material

Executive summary

• Fiscal Q3 and year-to-date results reflect ongoing macroeconomic and labor market challenges, with revenue down 9% in Q3 and 10% year-to-date, and a narrowed net loss of $423K for Q3 2025 due to cost reductions and absence of large impairment charges.

• The company sold its industrial segment in June 2025, reclassifying it as discontinued operations and focusing on professional staffing.

• Strategic initiatives include cost reduction, business integration, AI adoption, and expansion of offshore recruiting to improve productivity and profitability.

• Acquisition of Hornet Staffing, Inc. in January 2025 for $1.5M is expected to be accretive, enhance competitive position, and expand the client base.

• Management remains optimistic about long-term prospects, emphasizing readiness for recovery and growth through organic means and acquisitions.

Financial highlights

• Q3 2025 net revenues were $24.5M, down 9% year-over-year; nine-month revenues were $73.0M, down 10%.

• Gross profit was $8.7M (35.4% margin) for Q3 and $25M (34.2% margin) year-to-date, with margins improving due to a higher mix of direct hire placements.

• Net loss from continuing operations was $0.4M for Q3 and $34M year-to-date, both impacted by non-cash write-offs of intangibles and goodwill.

• Adjusted EBITDA improved to negative $25K for Q3 and negative $918K year-to-date.

• Liquidity remains strong with $18.6M in cash, $6.6M undrawn credit, $24.1M net working capital, and no debt.

Outlook and guidance

• Management expects continued labor market volatility and industry headwinds but anticipates gradual improvement as new projects are initiated.

• Focus remains on AI integration, cost control, and targeting higher-value consulting and SOW business to offset traditional staffing declines.

• Hornet acquisition is expected to drive new business, especially with large enterprise clients and through offshore recruiting capabilities.