Circle8 Group (CIRC) Q1 2025 earnings summary

Executive summary

• Completed merger with Lyneer Investments LLC, shifting primary business to staffing solutions and workforce management across the U.S.

• Company rebranded from SeqLL Inc. to Atlantic International Corp. and changed trading symbol to ATLN.

• Lyneer now operates as a wholly-owned subsidiary, with over 100 locations nationwide.

Financial highlights

• Service revenue for Q1 2025 was $102.8M, up 2.2% year-over-year; gross profit rose 6.9% to $11.2M.

• Net loss widened to $10.7M from $4.9M in Q1 2024, primarily due to higher SG&A and merger-related costs.

• Gross margin improved to 10.9% from 10.4% year-over-year.

• Interest expense dropped 74.4% to $1.3M due to deconsolidation of joint and several debt.

• Cash flow from operations was $14.6M, up from $11.2M in Q1 2024.

Outlook and guidance

• Management believes liquidity is sufficient for at least 12 months, supported by a new $70M ABL credit facility.

• Company expects continued focus on higher-margin accounts and operational efficiency.