Hudson Global (HSON) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $31.9M, down 6% year-over-year (3.3% in constant currency), while adjusted net revenue rose 0.4% (2.2% in constant currency).

• Adjusted EBITDA loss improved to $0.7M from $1.5M loss a year ago; net loss narrowed to $1.8M ($0.59/share) from $2.9M ($0.95/share) in Q1 2024.

• Adjusted net loss per diluted share improved to $0.46 from $0.72 year-over-year.

• Asia-Pacific led with a 14% increase in adjusted net revenue; Americas saw 15% revenue growth and 3% adjusted net revenue growth.

• Management remains confident in future growth and outperformance despite macroeconomic uncertainty.

Financial highlights

• Cash and equivalents stood at $17.2M at quarter-end, including $700,000 restricted cash.

• Cash outflow from operations was $0.8M, improved from $1.8M outflow in Q1 2024.

• Working capital (excluding cash) was $11.9M, flat versus year-end 2024.

• SG&A expenses decreased 4.5% year-over-year, excluding stock compensation and non-recurring items.

• Gross margin (adjusted net revenue/revenue) was 51.5% in Q1 2025 vs. 48.2% in Q1 2024.

Segment performance

• Americas: Revenue up 15% to $6.9M; adjusted net revenue up 3% to $6.0M; adjusted EBITDA improved to $0.1M from a $0.7M loss.

• Asia Pacific: Revenue down 7% to $19.1M; adjusted net revenue up 14% to $7.2M; adjusted EBITDA improved to $0.6M from a $0.2M loss.

• EMEA: Revenue down 7% to $5.9M; adjusted net revenue down 19% to $3.2M; adjusted EBITDA loss of $0.5M vs. $0.3M gain in Q1 2024.

• Asia Pacific contributed 60% of total revenue, Americas 22%, and EMEA 18%.

• Corporate costs were $0.9M, down from $1.0M, excluding non-recurring expenses.