JOB
GEE Group Inc.0.1863
-0.0037-1.95%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
FY Q4 '25
Q&A favors M&A over buybacks
Q&A largely reaffirms the prepared script's emphasis on cost cuts, AI integration, and Hornet synergies amid soft staffing demand, but surfaces operational details like consolidating half a dozen offices and ramping an India offshore team plus LatAm nearshore options. Management clarified preferring M&A at 6-10x EBITDA—targeting AI, cybersecurity, and IT consulting—for scale over buybacks until profitability restores on positive free cash flow. No base salary hikes since 2023; bonuses forfeited. Insiders hold 25% stake. Scale trumps buybacks for now. Confident tone on mid-FY2026 breakeven; investors will eye deal flow and organic lift.
Key Stats
Market Cap
20.38MP/E (TTM)
-Basic EPS (TTM)
-0.34Dividend Yield
0%Recent Filings
8-K
Revenues down 10%, margins up
GEE Group reported Q4 and FY2025 continuing ops revenues of $23.5M and $96.5M, down 10% YoY amid macro weakness, tariffs, inflation, high rates, and AI dampening hiring. Gross margins rose to 35.8% and 34.6% from higher direct hire mix; SG&A fell 13% and 11%. Losses widened to $(0.32)/share on $22M goodwill impairment, yet adjusted EBITDA improved to $(1.2M), free cash flow hit $533K positive, cash $21.4M, no debt. Balance sheet holds firm.
10-K
FY2025 results
GEE Group's FY2025 revenues fell 10% y/y to $96.5M from $106.9M, with professional contract services down 11% to $84.7M (88% of total) amid persistent labor market weakness and AI disruption, while direct hire held steady at 12%. Gross margins edged up to 34.6% from 33.8% on a higher direct hire mix, but SG&A cuts of $4.2M couldn't offset $22M Q2 goodwill impairment, yielding a $25.3M operating loss. Q4 momentum stalled as a key $9M account terminated October 1; cash grew to $21.4M with $0.5M operating cash flow. No dividends or buybacks; $20M facility unused with $4.8M availability. Hornet acquisition added IT staffing scale. AI upends staffing models.
8-K
Annual meeting elects directors
GEE Group Inc. held its 2025 Annual Meeting on September 4, electing Peter Tanous, Thomas Vetrano, and Derek Dewan as Class III directors until 2028, with votes ranging from 37.3 million to 40.7 million for amid 7.4 million to 3.9 million withheld and 36.2 million broker non-votes. Stockholders also ratified Cherry Bekaert LLP as auditors for the fiscal year ending September 30, 2025, with 78.4 million for, 2.3 million against, and 86,000 abstentions. Continuity in board and audit oversight signals steady governance.
10-Q
Q3 FY2025 results
GEE Group's Q3 FY2025 revenues fell 9% y/y to $24.5M, with contract staffing down 10% to $21.3M while direct hire held steady at $3.2M; gross margins edged up to 35.4% from 34.1% on better pricing spreads. Operating loss narrowed sharply to $0.5M from $20.7M, excluding last year's $19.4M in non-cash impairments, thanks to cost cuts and productivity gains. The $0.00 diluted EPS loss reconciles to 109,413 weighted shares with no anti-dilution. Cash stood at $18.6M with $6.6M revolver availability and no debt, bolstered by the Jan 2025 Hornet acquisition for $1.5M (cash and notes) adding $1.4M intangibles (8-10 year lives) and $0.8M goodwill. Free cash flow not disclosed in the 10-Q. Industrial segment sale closed June 2025 for $1.0M total. Yet competition squeezes margins in a sluggish staffing market.
8-K
Q3 revenues drop 9%
GEE Group reported fiscal 2025 Q3 continuing operations revenues of $24.5 million, down 9% from last year amid volatile macro conditions and subdued labor demand. Gross margins rose to 35.4% thanks to a higher mix of high-margin direct hires, while SG&A fell 8%; yet losses widened year-to-date to $34.0 million due to ongoing industry weakness. The company sold its Industrial segment assets on June 2, 2025, for a $133 thousand gain, bolstering focus on professional staffing. Balance sheet stays solid with $18.6 million cash and zero debt. Management eyes gradual demand uptick via AI tools and cost cuts.
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