Hudson Global Reports 2025 Second Quarter Results
2025 Second Quarter Summary
Revenue of
$35.5 million decreased 0.5% from the second quarter of 2024 and 0.2% in constant currency.Adjusted net revenue of
$18.6 million increased 5.8% from the second quarter of 2024 and 5.1% in constant currency.Net loss was
$0.7 million , or$0.23 per diluted share, compared to net loss of$0.4 million , or$0.15 per diluted share, for the second quarter of 2024. Adjusted net income per diluted share (non-GAAP measure)* was$0.12 compared to adjusted net income per diluted share of$0.04 in the second quarter of 2024.Adjusted EBITDA (non-GAAP measure)* was
$1.3 million , an increase versus adjusted EBITDA of$0.7 million in the second quarter of 2024.- Total cash including restricted cash was
$17.5 million atJune 30, 2025 .
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in
Regional Highlights
All rate comparisons are in constant currency.
In the second quarter of 2025,
EMEA revenue in the second quarter of 2025 increased 6% to
Corporate Costs
In the second quarter of 2025, the Company's corporate costs were
Liquidity and Capital Resources
The Company ended the second quarter of 2025 with
Share Repurchase Program
As a reminder, the Company approved a
NOL Carryforward
As of
Conference Call/Webcast
The Company will conduct a conference call today,
If you wish to join the conference call, please use the dial-in information below:
- Toll-Free Dial-In Number: (833) 816-1383
- International Dial-In Number: (412) 317-0476
The archived call will be available on the investor information section of the Company's website at hudsonrpo.com.
About
For more information, please visit us at hudsonrpo.com or contact us at ir@hudsonrpo.com.
Investor Relations:
The Equity Group
212 836-9611 / lcati@theequitygroup.com
Forward-Looking Statements
This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the Company’s ability to successfully achieve its strategic initiatives ; risks related to potential acquisitions or dispositions of businesses by the Company; the risk that the conditions to the closing of the proposed Merger are not satisfied, including the failure to timely obtain stockholder approval for the transaction, if at all; uncertainties as to the timing of the consummation of the proposed Merger and the ability of each of Hudson and Star to consummate the proposed Merger; risks related to Hudson’s ability to manage its operating expenses and its expenses associated with the proposed Merger pending closing; risks related to the market price of Hudson’s common stock relative to the value suggested by the exchange ratio; unexpected costs, charges or expenses resulting from the transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Merger; risks related to the inability of the combined company to successfully operate as a combined business; risks associated with the possible failure to realize certain anticipated benefits of the proposed Merger, including with respect to future financial and operating results; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company’s operating results from quarter to quarter due to various factors such as rising inflationary pressures and interest rates; the loss of or material reduction in our business with any of the Company’s largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company’s markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company’s investment strategy; risks related to international operations, including foreign currency fluctuations, political events, trade wars, natural disasters or health crises, including the
Participants in the Solicitation
Hudson, Star, and their respective directors and certain of their executive officers and employees may be considered participants in the solicitation of proxies from Hudson’s stockholders with respect to the proposed merger transaction under the rules of the
This press release relates to the proposed merger transaction involving Hudson and Star and may be deemed to be solicitation material in respect of the proposed merger transaction. This press release is not a substitute for the Registration Statement, the Proxy Statement/Prospectus or for any other document that Hudson may file with the
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities nor a solicitation of any vote or approval with respect to the proposed transaction or otherwise. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U S. Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Additional Information and Where to Find It
Investors and security holders will be able to obtain free copies of the Registration Statement, the Proxy Statement/Prospectus and other documents filed by Hudson with the
Financial Tables Follow
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 35,541 | $ | 35,712 | $ | 67,407 | $ | 69,603 | ||||||||
| Operating expenses: | ||||||||||||||||
| Direct contracting costs and reimbursed expenses | 16,906 | 18,097 | 32,374 | 35,658 | ||||||||||||
| Salaries and related | 14,837 | 14,325 | 29,182 | 29,491 | ||||||||||||
| Office and general | 2,793 | 2,412 | 5,357 | 5,341 | ||||||||||||
| Marketing and promotion | 971 | 778 | 1,901 | 1,656 | ||||||||||||
| Depreciation and amortization | 245 | 287 | 528 | 684 | ||||||||||||
| Total operating expenses | 35,752 | 35,899 | 69,342 | 72,830 | ||||||||||||
| Operating loss | (211 | ) | (187 | ) | (1,935 | ) | (3,227 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest (expense) income, net | 54 | 94 | 125 | 187 | ||||||||||||
| Other expense, net | (186 | ) | (95 | ) | (257 | ) | (134 | ) | ||||||||
| Loss before income taxes | (343 | ) | (188 | ) | (2,067 | ) | (3,174 | ) | ||||||||
| Provision for income taxes | 345 | 253 | 377 | 165 | ||||||||||||
| Net loss | $ | (688 | ) | $ | (441 | ) | $ | (2,444 | ) | $ | (3,339 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.23 | ) | $ | (0.15 | ) | $ | (0.82 | ) | $ | (1.10 | ) | ||||
| Diluted | $ | (0.23 | ) | $ | (0.15 | ) | $ | (0.82 | ) | $ | (1.10 | ) | ||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 2,995 | 3,011 | 2,990 | 3,026 | ||||||||||||
| Diluted | 2,995 | 3,011 | 2,990 | 3,026 | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
, | , | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 16,837 | $ | 17,011 | ||||
| Accounts receivable, less allowance for expected credit losses of | 23,549 | 20,093 | ||||||
| Restricted cash, current | 497 | 476 | ||||||
| Prepaid and other | 2,410 | 2,560 | ||||||
| Total current assets | 43,293 | 40,140 | ||||||
| Property and equipment, net of accumulated depreciation of | 241 | 242 | ||||||
| Operating lease right-of-use assets | 931 | 1,024 | ||||||
| 5,760 | 5,703 | |||||||
| Intangible assets, net of accumulated amortization of | 2,026 | 2,491 | ||||||
| Deferred tax assets, net | 3,053 | 2,648 | ||||||
| Restricted cash, non-current | 189 | 180 | ||||||
| Other assets | 84 | 155 | ||||||
| Total assets | $ | 55,577 | $ | 52,583 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,344 | $ | 1,789 | ||||
| Accrued salaries, commissions, and benefits | 5,707 | 4,306 | ||||||
| Accrued expenses and other current liabilities | 5,884 | 4,504 | ||||||
| Operating lease obligations, current | 321 | 623 | ||||||
| Total current liabilities | 14,256 | 11,222 | ||||||
| Income tax payable | 96 | 93 | ||||||
| Operating lease obligations | 650 | 441 | ||||||
| Other liabilities | 445 | 399 | ||||||
| Total liabilities | 15,447 | 12,155 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, 4,033 shares issued; 2,755 and 2,750 shares outstanding, respectively | 4 | 4 | ||||||
| Additional paid-in capital | 494,838 | 494,209 | ||||||
| Accumulated deficit | (432,461 | ) | (430,017 | ) | ||||
| Accumulated other comprehensive loss, net of applicable tax | (1,169 | ) | (2,717 | ) | ||||
stock, 1,287 and 1,283 shares, respectively, at cost | (21,082 | ) | (21,051 | ) | ||||
| Total stockholders’ equity | 40,130 | 40,428 | ||||||
| Total liabilities and stockholders’ equity | $ | 55,577 | $ | 52,583 | ||||
| SEGMENT ANALYSIS - QUARTER TO DATE | |||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| For The Three Months Ended | EMEA | Corporate | Total | ||||||||||||||||
| Revenue, from external customers | $ | 7,138 | $ | 21,570 | $ | 6,833 | $ | — | $ | 35,541 | |||||||||
| Adjusted net revenue, from external customers (1) | $ | 6,299 | $ | 8,839 | $ | 3,497 | $ | — | $ | 18,635 | |||||||||
| Net loss | $ | (688 | ) | ||||||||||||||||
| Provision from income taxes | 345 | ||||||||||||||||||
| Interest income, net | (54 | ) | |||||||||||||||||
| Depreciation and amortization | 245 | ||||||||||||||||||
| EBITDA (loss) (2) | $ | 228 | $ | 1,427 | $ | (701 | ) | $ | (1,106 | ) | (152 | ) | |||||||
| Non-operating expense (income), including corporate administration charges | 265 | 220 | 120 | (419 | ) | 186 | |||||||||||||
| Stock-based compensation expense | 59 | 130 | (18 | ) | 72 | 243 | |||||||||||||
| Non-recurring severance and professional fees | 122 | 97 | 249 | 571 | 1,039 | ||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 674 | $ | 1,874 | $ | (350 | ) | $ | (882 | ) | $ | 1,316 | |||||||
| For The Three Months Ended | EMEA | Corporate | Total | ||||||||||||||||
| Revenue, from external customers | $ | 6,972 | $ | 22,649 | $ | 6,091 | $ | — | $ | 35,712 | |||||||||
| Adjusted net revenue, from external customers (1) | $ | 6,344 | $ | 7,627 | $ | 3,644 | $ | — | $ | 17,615 | |||||||||
| Net loss | $ | (441 | ) | ||||||||||||||||
| Provision for income taxes | 253 | ||||||||||||||||||
| Interest income, net | (94 | ) | |||||||||||||||||
| Depreciation and amortization | 287 | ||||||||||||||||||
| EBITDA (loss) (2) | $ | 402 | $ | 224 | $ | 149 | $ | (770 | ) | 5 | |||||||||
| Non-operating expense (income), including corporate administration charges | 81 | 287 | 78 | (351 | ) | 95 | |||||||||||||
| Stock-based compensation expense | 5 | 101 | 46 | 35 | 187 | ||||||||||||||
| Non-recurring severance and professional fees | 131 | 151 | — | 176 | 458 | ||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 619 | $ | 763 | $ | 273 | $ | (910 | ) | $ | 745 | ||||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. | ||||||||||||||||||
| (2) | Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income (expense), stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. | ||||||||||||||||||
| SEGMENT ANALYSIS - YEAR TO DATE (continued) | ||||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| For The Six Months Ended | EMEA | Corporate | Total | |||||||||||||||||
| Revenue, from external customers | $ | 13,990 | $ | 40,697 | $ | 12,720 | $ | — | $ | 67,407 | ||||||||||
| Adjusted net revenue, from external customers (1) | $ | 12,279 | $ | 16,050 | $ | 6,704 | $ | — | $ | 35,033 | ||||||||||
| Net loss | $ | (2,444 | ) | |||||||||||||||||
| Provision from income taxes | 377 | |||||||||||||||||||
| Interest income, net | (125 | ) | ||||||||||||||||||
| Depreciation and amortization | 528 | |||||||||||||||||||
| EBITDA (loss) (2) | $ | 87 | $ | 1,710 | $ | (1,339 | ) | $ | (2,122 | ) | (1,664 | ) | ||||||||
| Non-operating expense (income), including corporate administration charges | 440 | 354 | 242 | (779 | ) | 257 | ||||||||||||||
| Stock-based compensation expense | 122 | 261 | 25 | 221 | 629 | |||||||||||||||
| Non-recurring severance and professional fees | 122 | 151 | 249 | 904 | 1,426 | |||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 771 | $ | 2,476 | $ | (823 | ) | $ | (1,776 | ) | $ | 648 | ||||||||
| For The Six Months Ended | EMEA | Corporate | Total | |||||||||||||||||
| Revenue, from external customers | $ | 12,966 | $ | 44,158 | $ | 12,479 | $ | — | $ | 69,603 | ||||||||||
| Adjusted net revenue, from external customers (1) | $ | 12,149 | $ | 14,173 | $ | 7,623 | $ | — | $ | 33,945 | ||||||||||
| Net loss | $ | (3,339 | ) | |||||||||||||||||
| Provision for income taxes | 165 | |||||||||||||||||||
| Interest income, net | (187 | ) | ||||||||||||||||||
| Depreciation and amortization | 684 | |||||||||||||||||||
| EBITDA (loss) (2) | $ | (462 | ) | $ | (377 | ) | $ | 417 | $ | (2,255 | ) | (2,677 | ) | |||||||
| Non-operating expense (income), including corporate administration charges | 143 | 405 | 88 | (502 | ) | 134 | ||||||||||||||
| Stock-based compensation expense | 99 | 228 | 104 | 134 | 565 | |||||||||||||||
| Non-recurring severance and professional fees | 131 | 337 | 7 | 706 | 1,181 | |||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | (89 | ) | $ | 593 | $ | 616 | $ | (1,917 | ) | $ | (797 | ) | |||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. |
| (2) | Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. |
RECONCILIATION OF CONSTANT CURRENCY MEASURES
(in thousands) (unaudited)
The Company operates on a global basis, with the majority of its revenue generated outside of
| Three Months Ended | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| As | As | Currency | Constant | ||||||||||||
| reported | reported | translation | currency | ||||||||||||
| Revenue: | |||||||||||||||
| $ | 7,138 | $ | 6,972 | $ | (4 | ) | $ | 6,968 | |||||||
| 21,570 | 22,649 | (427 | ) | 22,222 | |||||||||||
| EMEA | 6,833 | 6,091 | 347 | 6,438 | |||||||||||
| Total | $ | 35,541 | $ | 35,712 | $ | (84 | ) | $ | 35,628 | ||||||
| Adjusted net revenue (1) | |||||||||||||||
| $ | 6,299 | $ | 6,344 | $ | (4 | ) | $ | 6,340 | |||||||
| 8,839 | 7,627 | (79 | ) | 7,548 | |||||||||||
| EMEA | 3,497 | 3,644 | 206 | 3,850 | |||||||||||
| Total | $ | 18,635 | $ | 17,615 | $ | 123 | $ | 17,738 | |||||||
| SG&A:(2) | |||||||||||||||
| $ | 5,874 | $ | 5,919 | $ | (15 | ) | $ | 5,904 | |||||||
| 7,124 | 7,025 | (71 | ) | 6,954 | |||||||||||
| EMEA | 4,080 | 3,450 | 171 | 3,621 | |||||||||||
| Corporate | 1,523 | 1,121 | — | 1,121 | |||||||||||
| Total | $ | 18,601 | $ | 17,515 | $ | 85 | $ | 17,600 | |||||||
| Operating income (loss): | |||||||||||||||
| $ | 290 | $ | 252 | $ | (5 | ) | $ | 247 | |||||||
| 1,611 | 465 | (4 | ) | 461 | |||||||||||
| EMEA | (586 | ) | 221 | 37 | 258 | ||||||||||
| Corporate | (1,526 | ) | (1,125 | ) | — | (1,125 | ) | ||||||||
| Total | $ | (211 | ) | $ | (187 | ) | $ | 28 | $ | (159 | ) | ||||
| EBITDA (loss): | |||||||||||||||
| $ | 228 | $ | 402 | $ | (4 | ) | $ | 398 | |||||||
| 1,427 | 224 | — | 224 | ||||||||||||
| EMEA | (701 | ) | 149 | 33 | 182 | ||||||||||
| Corporate | (1,106 | ) | (770 | ) | — | (770 | ) | ||||||||
| Total | $ | (152 | ) | $ | 5 | $ | 29 | $ | 34 | ||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. |
| (2) | SG&A is a measure that management uses to evaluate the segments’ expenses and includes salaries and related costs, office and general costs, and marketing and promotion costs. |
| HUDSON GLOBAL INCOME PER DILUTED SHARE (in thousands, except per share amounts) (unaudited) | ||||||||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Three Months Ended | Net Income | Outstanding | Share (1) | |||||||
| Net loss | $ | (688 | ) | 2,995 | $ | (0.23 | ) | |||
| Non-recurring severance and professional fees (after tax) | 1,039 | 2,995 | 0.35 | |||||||
| Adjusted net income (2) | $ | 351 | 2,995 | $ | 0.12 | |||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Three Months Ended | Net Income | Outstanding | Share (1) | |||||||
| Net loss | $ | (441 | ) | 3,011 | $ | (0.15 | ) | |||
| Non-recurring severance and professional fees (after tax) | 560 | 3,011 | 0.19 | |||||||
| Adjusted net income (2) | $ | 119 | 3,011 | $ | 0.04 | |||||
| (1) | Amounts may not sum due to rounding. |
| (2) | Adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies. |
Source: Hudson Global, Inc.
