GEE Group (JOB) investor relations material

Executive summary

• Net income for Q3 2026 was $566K and $430K year-to-date, reversing prior year losses, driven by improved gross profits and cost reductions.

• Direct hire placement revenues grew 16% year-over-year for Q3 2026 and 10% year-to-date, while contract staffing revenues declined 20% for Q3 and 21% year-to-date due to client loss and market headwinds.

• The company completed the sale of its Industrial Segment in June 2025, focusing on professional staffing and leveraging offshore recruiting for efficiency.

• Acquisition of Hornet Staffing in January 2025 expanded national service capability and is expected to be accretive to earnings.

• Strategic review with Roth Capital Partners is ongoing to maximize shareholder value, including M&A and other alternatives.

Financial highlights

• Consolidated revenues were $20.8M for Q3 2026 and $60.8M year-to-date, down 15% and 17% year-over-year.

• Gross profit was $8.3M for Q3 and $23.1M year-to-date; gross margins improved to 39.9% for Q3 and 38.0% year-to-date.

• Adjusted EBITDA was $570K for Q3 and $582K year-to-date, up from negative values in the prior year.

• SG&A expenses were $7.8M for Q3 and $23M year-to-date, down 12% and 14% year-over-year.

• Cash balance at June 30, 2026 was $20.3M, with $5.2M undrawn credit and no long-term debt.

Outlook and guidance

• Management is cautiously optimistic for continued improvement in the last quarter of fiscal 2026 and beyond, with stabilization in contingent labor demand and increased job orders.

• AI integration and process enhancements are expected to yield returns later in the year, driving future productivity and cost savings.

• Industry forecasts predict modest 1–2% growth for the U.S. staffing sector in 2026.