Financial Performance - Consolidated revenues for Q4 and fiscal year 2025 were $23.5 million and $96.5 million, down 10% compared to fiscal 2024[4] - Professional contract staffing services revenues for Q4 and fiscal year 2025 were $20.4 million and $84.7 million, both down 11% year-over-year[4] - Gross profits for Q4 and fiscal year 2025 were $8.4 million and $33.4 million, down 8% compared to the same periods in fiscal 2024[4] - Losses from continuing operations for Q4 and fiscal year 2025 were $(613) thousand and $(34.7) million, compared to $(2.1) million and $(22.7) million for the same periods in fiscal 2024[4] - Adjusted EBITDA for Q4 and fiscal year 2025 was $(306) thousand and $(1.2) million, an improvement from $(924) thousand and $(2.0) million in fiscal 2024[4] - Net revenues for the three months ended September 30, 2025, were $23,461,000, a decrease of 10.3% compared to $26,162,000 for the same period in 2024[21] - Gross profit for the twelve months ended September 30, 2025, was $33,372,000, down from $36,142,000 in 2024, reflecting a decline of 7.1%[21] - The company reported a consolidated net loss of $513,000 for the three months ended September 30, 2025, compared to a net loss of $2,253,000 for the same period in 2024[21] - The company experienced a loss from continuing operations of $613,000 for the three months ended September 30, 2025, compared to a loss of $2,134,000 in 2024[21] Cash Flow and Assets - Free cash flow for fiscal year 2025 was positive $533 thousand, compared to $144 thousand in fiscal 2024[9] - Non-GAAP free cash flow for the twelve months ended September 30, 2025, was $533,000, significantly higher than $144,000 in 2024[21] - Cash and cash equivalents increased to $21,364,000 as of September 30, 2025, from $20,735,000 in 2024, indicating a growth of 3.1%[23] - As of September 30, 2025, cash balances were $21.4 million, with a current ratio of 4.1 and zero long-term debt[9] - Total assets decreased to $59,997,000 as of September 30, 2025, from $95,902,000 in 2024, representing a decline of 37.4%[23] - The company's accumulated deficit increased to $60,479,000 as of September 30, 2025, compared to $25,732,000 in 2024[23] Strategic Initiatives - The Company acquired Hornet Staffing, Inc. on January 3, 2025, enhancing its competitive position in the staffing market[9] - The Company plans to implement AI tools to enhance recruiting and sales processes, aiming to increase market share despite industry volatility[10] - The company plans to continue focusing on specialized staffing solutions in various sectors, including healthcare and technology, to drive future growth[25] Expenses - Selling, general and administrative expenses (SG&A) were $8.9 million and $35.6 million for Q4 and fiscal year 2025, down 13% and 11% respectively[4]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 and the fiscal year were $23.5 million and $96.5 million, respectively, both down 10% from the prior year periods [10][11] - Gross profits for Q4 and the fiscal year were $8.4 million and $33.4 million, with gross margins of 35.8% and 34.6%, respectively, compared to 35.1% and 33.8% in the prior year [11][12] - Loss from continuing operations for Q4 was $613,000 or negative $0.01 per diluted share, and for the fiscal year, it was $34.7 million or negative $0.32 per diluted share [14][15] - Non-GAAP adjusted EBITDA was negative $306,000 for Q4 and negative $1.2 million for the fiscal year, showing improvement compared to the prior year [15][16] Business Line Data and Key Metrics Changes - Professional contract staffing services revenues for Q4 and the fiscal year were $20.4 million and $84.7 million, both down 11% from the prior year [10][11] - Direct hire revenues for Q4 and the fiscal year were $3.1 million and $11.8 million, down 9% and 3%, respectively, compared to the prior year [10][11] Market Data and Key Metrics Changes - The hiring environment for staffing services has been challenging since the second half of 2023, with many businesses implementing layoffs and hiring freezes [3][4] - The impact of macroeconomic uncertainty, interest rate volatility, and inflation has led to a cooling effect on U.S. employment [3][4] Company Strategy and Development Direction - The company is focusing on streamlining core operations and improving productivity to match lower business volumes, with a goal to restore profitability in fiscal 2026 [7][13] - There is a renewed focus on VMS and MSP sourced business, including the integration of AI technology into recruiting and sales processes [7][13] - The company aims to pursue acquisition opportunities, particularly in AI consulting, cybersecurity, and IT consulting [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being positioned to meet increased demand from existing customers and win new business as economic uncertainty subsides [8][9] - The company has paused share repurchases and is focused on restoring growth and profitability [8][9] Other Important Information - The company has a strong balance sheet with $21.4 million in cash and no outstanding borrowings, indicating substantial liquidity [15][16] - The company has consolidated or closed about six offices in response to lower demand [25][26] Q&A Session Summary Question: What is the company's timeline for achieving your goal of $1 billion in revenue per year? - The timeline is uncertain due to changes in the market and the pandemic, but the company is committed to returning to growth [20] Question: What changes are going to be made to raise the stock price? - The first step is to return to profitability, followed by pivoting the business to grow despite current challenges [21] Question: Are you consolidating offices given lower demand? - Yes, the company has consolidated or closed about six offices over the last two to three years [25] Question: Will you consider initiating a buyback once you have visibility into achieving profitability again? - This option is evaluated at every board meeting, and restoring profitability will influence this decision [27] Question: Can you elaborate on why there is such a focus on growing the company via acquisitions versus increasing future earnings per share? - The focus on acquisitions is to position the company for better growth and profitability rather than immediate buybacks [28]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 and the fiscal year were $23.5 million and $96.5 million, respectively, both down 10% from the prior year periods [10][11] - Gross profits for Q4 and the fiscal year were $8.4 million and $33.4 million, with gross margins of 35.8% and 34.6%, respectively, compared to 35.1% and 33.8% in the prior year [11][12] - Loss from continuing operations for Q4 was $613,000 or negative $0.01 per diluted share, and for the fiscal year, it was $34.7 million or negative $0.32 per diluted share [14][15] - Non-GAAP adjusted EBITDA was negative $306,000 for Q4 and negative $1.2 million for the fiscal year, showing improvement compared to the prior year [15][16] Business Line Data and Key Metrics Changes - Professional contract staffing services revenues for Q4 and the fiscal year were $20.4 million and $84.7 million, both down 11% from the prior year [10][11] - Direct hire revenues for Q4 and the fiscal year were $3.1 million and $11.8 million, down 9% and 3%, respectively, compared to the prior year [10][11] Market Data and Key Metrics Changes - The company continues to face challenging conditions in the hiring environment, with many client initiatives on hold and a focus on layoffs and hiring freezes [4][5] - The staffing industry is experiencing a cooling effect due to macroeconomic uncertainties, interest rate volatility, and inflation [3][4] Company Strategy and Development Direction - The company aims to restore profitability and growth by focusing on cost reduction, streamlining operations, and integrating AI technology into processes [7][16] - There is a commitment to pursuing acquisition opportunities, particularly in AI consulting, cybersecurity, and IT consulting [16][30] - The company has paused share repurchases and is considering them as a future capital allocation strategy once profitability is restored [8][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet increased demand as economic conditions improve [8][17] - The focus remains on returning to profitability as soon as possible, with a goal set for mid-fiscal 2026 [13][16] Other Important Information - The company has a strong liquidity position with $21.4 million in cash and no outstanding borrowings [15] - The working capital ratio as of September 30, 2025, was 4.1 to 1, indicating a solid financial position [15] Q&A Session Summary Question: What is the company's timeline for achieving your goal of $1 billion in revenue per year? - The timeline is uncertain due to changes in the market and the pandemic, but the company is committed to returning to growth [20] Question: What changes are going to be made to raise the stock price? - The first step is to return to profitability, followed by a pivot in the business to grow despite current challenges [21] Question: Are you consolidating offices given lower demand? - Yes, the company has consolidated or closed about 6 offices over the last two to three years [25] Question: Will you consider initiating a buyback once you have visibility into achieving profitability again? - This is a strategic option that is evaluated regularly at the board level [27] Question: Can you elaborate on why there is such a focus on growing the company via acquisitions versus increasing future earnings per share? - The focus on acquisitions is to position the company for better growth and profitability rather than immediate buybacks [28] Question: What multiples do you realistically want to buy at for acquisitions? - Multiples range from six to ten times EBITDA, depending on the growth rate of the business [29] Question: Is the company committed to leveraging offshore or international sales and recruiting? - Yes, the company currently has an offshore team in India and aims to expand its utilization [31]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were $23.5 million, down 10% from the prior year, and $96.5 million for the fiscal year, also down 10% [11][12] - Gross profits for Q4 were $8.4 million with a gross margin of 35.8%, while for the fiscal year, gross profits were $33.4 million with a gross margin of 34.6% [5][12] - Loss from continuing operations for Q4 was $613,000 or $0.01 per diluted share, and for the fiscal year, it was $34.7 million or $0.32 per diluted share [6][16] - Non-GAAP adjusted EBITDA was negative $306,000 for Q4 and negative $1.2 million for the fiscal year, showing improvement compared to the prior year [5][17] - The company had a working capital ratio of 4.1 to 1 and positive free cash flow of $533,000 for the fiscal year [17] Business Line Data and Key Metrics Changes - Professional contract staffing services revenues for Q4 were $20.4 million, down 11%, and for the fiscal year, $84.7 million, also down 11% [11][12] - Direct hire revenues for Q4 were $3.1 million, down 9%, and for the fiscal year, $11.8 million, down 3% [11][12] - The decrease in gross profit dollars was mainly due to lower volumes in professional contract staffing services, while gross margins improved due to a higher mix of direct hire placements [12] Market Data and Key Metrics Changes - The staffing industry continues to face challenges due to macroeconomic uncertainties, interest rate volatility, and inflation, leading to a cooling effect on U.S. employment [3][4] - Many businesses have implemented layoffs and hiring freezes, impacting job orders for both contract and direct hire placements [4][5] Company Strategy and Development Direction - The company aims to restore profitability and growth by focusing on cost reduction, streamlining operations, and integrating AI technology into recruiting and sales processes [8][15] - The acquisition of Hornet Staffing is seen as a strategic move to enhance growth and profitability, with plans for further acquisitions in AI consulting and IT sectors [10][18] - The company is exploring opportunities in offshore and nearshore recruiting to expand its capabilities [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet increased demand as economic conditions stabilize [9] - The focus remains on returning to profitability as soon as possible, with expectations for improvements in mid-fiscal 2026 [15][18] - Management acknowledged the importance of AI in both reducing workforce needs and enhancing business growth [40] Other Important Information - The company has paused share repurchases and is considering them as a future capital allocation strategy once profitability is restored [9][30] - The liquidity position remains strong with $21.4 million in cash and no outstanding borrowings [17] Q&A Session Summary Question: What is the company's timeline for achieving your goal of $1 billion in revenue per year? - The timeline is uncertain due to changes in the market and the pandemic, but the company is committed to returning to growth [22] Question: What changes are going to be made to raise the stock price? - The first step is to return to profitability, followed by a pivot in the business to leverage AI and automation [23] Question: Are you consolidating offices given lower demand? - Yes, the company has closed about 6 offices over the past two to three years [28] Question: Would you consider initiating a buyback once you have visibility into achieving profitability again? - This is a strategic option evaluated at every board meeting, but profitability must be restored first [30] Question: Can you elaborate on why there is such a focus on growing the company via acquisitions versus increasing future earnings per share? - The focus on acquisitions is to enhance growth and profitability, which is seen as a better return than stock buybacks at this time [31]

Financial Performance - Consolidated net revenues for the year ended September 30, 2025, were $96.5 million, a decrease of 9.5% from $106.9 million in 2024[269] - Gross profit for the year ended September 30, 2025, was $33.4 million, down from $36.1 million in 2024, reflecting a gross margin of 34.6%[269] - The company reported a consolidated net loss of $34.7 million for the year ended September 30, 2025, compared to a net loss of $24.1 million in 2024[269] - Net revenues for the year ended September 30, 2025, decreased to $98,092 thousand from $112,599 thousand in 2024, representing a decline of approximately 12.9%[330] - Gross profit for the same period was $33,602 thousand, down from $36,916 thousand in 2024, indicating a decrease of about 8.4%[330] - The loss from operations increased to $(34,577) thousand in 2025 compared to $(22,527) thousand in 2024, reflecting a worsening of approximately 53.5%[330] - Revenue from the discontinued Industrial Segment for fiscal 2025 was $4,609 thousand, down from $9,547 thousand in 2024, a decline of approximately 51.7%[335] Assets and Liabilities - Total current assets decreased to $31.7 million as of September 30, 2025, from $35.4 million in 2024, primarily due to a decline in accounts receivable[264] - The total liabilities of the company as of September 30, 2025, were $9.99 million, a decrease from $11.69 million in 2024[268] - The company's accumulated deficit increased to $60.5 million as of September 30, 2025, compared to $25.7 million in 2024[268] - The company’s total assets decreased to $60.0 million as of September 30, 2025, from $95.9 million in 2024[264] - As of September 30, 2025, total other current liabilities decreased to $595 from $899 in 2024, reflecting a reduction of approximately 33.8%[353] Cash Flow - Cash flows from operating activities for the year ended September 30, 2025, were $549,000, an increase from $202,000 in 2024[271] - The net change in cash for the year was an increase of $536 million, compared to a decrease of $1,643 million in the prior year[272] - Cash at the end of the year was $21,364 million, up from $20,828 million at the beginning of the year[272] - Net cash provided by investing activities was $54 million, compared to a cash outflow of $58 million in the previous year[272] Impairment Charges - The company recognized a goodwill impairment charge of $22 million for the year ended September 30, 2025, compared to $14.2 million in 2024[269] - The Company recorded provisions for credit losses of $9 thousand in fiscal 2025, down from $74 thousand in fiscal 2024[286] - A non-cash impairment charge of $5.2 million on intangible assets was recorded during fiscal 2024 due to low gross cash flows[296] - A non-cash goodwill impairment charge of $22,000 thousand was recognized during fiscal 2025, following an interim assessment indicating the carrying value exceeded estimated fair value[346] Acquisitions - The total consideration paid for the acquisition of Hornet Staffing, Inc. was $1,500, consisting of a $1,100 cash payment and $400 in promissory notes[324][325] - Liabilities assumed in the acquisition included a $151 deferred tax liability recorded post-acquisition due to a tax election made during fiscal 2025[328] - The total intangible assets acquired from Hornet were valued at $1,394, including customer relationships valued at $564 and goodwill valued at $751[329] Operational Metrics - The Company operates from 19 branch offices across ten states as of September 30, 2025[274] - Falloffs during fiscal 2025 were approximately $571, compared to $401 in fiscal 2024, indicating an increase in estimated losses due to applicants not remaining employed[305] - The company recorded liabilities for falloffs of $72 and $102 as of September 30, 2025 and 2024, respectively[305] - The Company matched 10% of employee contributions to its 401(k) Plan, totaling $526 thousand in fiscal 2025, up from $260 thousand in 2024[391] Stock and Compensation - The Company entered into a Stock Repurchase Program with a maximum aggregate amount of $20 million, which continued through December 31, 2023[358] - The Company granted 1,550 stock options during fiscal 2025, with share-based compensation expense attributable to stock options recognized at $331[372] - As of September 30, 2025, there were 4,412 stock options outstanding, with a weighted average exercise price of $0.78[373] - Share-based compensation expense attributable to restricted stock was $215 in fiscal 2025, with approximately $89 of unrecognized compensation expense related to restricted stock outstanding[367] Tax and Valuation - The Company recorded a total income tax expense of $9,588 thousand for the year ended September 30, 2025, compared to a benefit of $(2,619) thousand in 2024[377] - As of September 30, 2025, the Company had federal net operating loss carryforwards of approximately $28.2 million and state net operating loss carryforwards of approximately $29.5 million[379] - The Company has recorded a valuation allowance of $12,757 thousand as of September 30, 2025, due to uncertainty in the realization of deferred tax assets[380] Internal Controls - Management concluded that disclosure controls and procedures were effective as of September 30, 2025[401] - Internal control over financial reporting was evaluated and deemed effective as of September 30, 2025[402] - There were no changes in internal controls over financial reporting during fiscal 2025 that materially affected their effectiveness[403]

Core Viewpoint - GEE Group Inc. announced its consolidated results for the fiscal year and fourth quarter ended September 30, 2025, highlighting its performance in professional staffing services and human resource solutions [1] Financial Performance - The company reported consolidated results for the fiscal year and fourth quarter, indicating a focus on contract and placement services [1]

Core Viewpoint - GEE Group Inc. will hold an investor webcast/conference call to discuss its fiscal year and fourth quarter results for the period ending September 30, 2025 [1] Company Summary - GEE Group Inc. is a provider of professional staffing services and human resource solutions [1] - The investor webcast/conference call is scheduled for December 18, 2025, at 11 a.m. EST [1]

Group 1 - The Annual Meeting of Stockholders for GEE Group, Inc. was called to order by the Chairman, Derek E. Dewan [1] - Key attendees included the Chief Financial Officer, independent public accountants, securities counsel, and the transfer agent, all participating virtually [2] - Voting procedures were outlined, indicating that polls are open for stockholders to vote on various matters [3][4]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $24.5 million, down 9.1% from the prior year period, and year-to-date revenues were $73 million, down 10.1% [6][11] - Gross profits for the quarter were $8.7 million with a gross margin of 35.4%, compared to $9.2 million and 34.1% in the prior year quarter [7][12] - The net loss from continuing operations for the quarter was $400,000, or $0.00 per diluted share, while the year-to-date loss was $34 million, or $0.31 per diluted share [7][14] - Non-GAAP adjusted EBITDA was negative $25,000 for the quarter and negative $918,000 year-to-date, showing improvements compared to the prior year [7][15] Business Line Data and Key Metrics Changes - Professional contract staffing services revenues for Q3 were $21.3 million, down 10.1% year-over-year, and year-to-date revenues were $64.3 million, down 10.1% [11] - Direct hire revenues for the quarter were $3.2 million, near breakeven, and year-to-date revenues were $8.7 million, also near breakeven [11] Market Data and Key Metrics Changes - The staffing industry is facing significant challenges due to macroeconomic uncertainties, interest rate volatility, and inflation, leading to a cooling effect on U.S. employment [4][5] - Many clients have paused hiring initiatives and focused on retaining existing employees, resulting in fewer job orders for staffing services [5] Company Strategy and Development Direction - The company is focusing on streamlining core operations, improving productivity, and integrating AI technology into recruiting and sales processes [8][14] - There is a renewed focus on Vendor Management Systems (VMS) and Managed Service Provider (MSP) business models to enhance operational efficiency [8][14] - The company is preparing for a recovery in the labor market and anticipates increased demand from existing customers [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about navigating current challenges and emphasized the importance of revenue growth and cost reduction [9][18] - The company is well-positioned with a strong balance sheet and substantial liquidity, allowing for potential growth and acquisitions in the future [9][16] Other Important Information - The company has paused share repurchases since December 31, 2023, but considers it a potential future strategy [9][18] - The liquidity position remains strong with $18.6 million in cash and no outstanding debt [16] Q&A Session Summary Question: Update on the sale of Triad - The company will update the website regarding the sale of Triad and other current activities [19] Question: Capital allocation strategy - The company is considering both acquisitions and share repurchases, with a focus on restoring positive cash flow before making decisions [21][24] Question: Status of M&A target list - Several potential deals are under consideration, but the company is cautious due to the current stagnant market conditions [22][24] Question: Competitors' performance comparison - Competitors are facing similar challenges, with some emphasizing consulting services to buffer declines in traditional staffing roles [34][36] Question: Impact of AI on staffing demand - AI is seen as both a challenge and an opportunity, with the company focusing on high-demand skill sets while adapting to changes in the labor market [30][42]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) GEE Group reported declining Q3 and YTD FY2025 revenues, improved gross margins, reduced SG&A, a net loss from continuing operations, and maintained strong liquidity Q3 & YTD FY2025 Key Financial Metrics (Continuing Operations) | Metric | Q3 2025 | Q3 2024 | YoY Change | YTD 2025 | YTD 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $24.5 million | $27.0 million | -9% | $73.0 million | $80.8 million | -10% | | **Gross Profit** | $8.7 million | $9.2 million | -5% | $25.0 million | $27.0 million | -7% | | **Gross Margin** | 35.4% | 34.1% | +1.3 percentage points | 34.2% | 33.4% | +0.8 percentage points | | **SG&A Expenses** | $9.0 million | $9.8 million | -8% | $26.7 million | $29.5 million | -9% | | **Loss from Continuing Ops** | $(0.4) million | $(18.1) million | N/A | $(34.0) million | $(20.5) million | N/A | | **Adjusted EBITDA** | $(25) thousand | $(329) thousand | N/A | $(918) thousand | $(1.0) million | N/A | - The decrease in consolidated revenues was primarily attributed to volatile macroeconomic conditions, high interest rates, and client caution, leading to elongated hiring cycles and fewer job orders; artificial intelligence (AI) replacing certain tasks contributed to a lesser extent[4](index=4&type=chunk) - Gross margins improved year-over-year for both the three and nine-month periods, mainly due to a higher mix of direct hire placement revenues, which have a **100% gross margin**[4](index=4&type=chunk) - The Industrial Staffing Services segment was sold during the quarter and its results are reclassified as discontinued operations, with the sale resulting in a net gain of **$133 thousand**[1](index=1&type=chunk)[5](index=5&type=chunk) Balance Sheet and Liquidity as of June 30, 2025 | Metric | Value | | :--- | :--- | | Cash Balances | $18.6 million | | ABL Credit Facility Availability | $6.6 million (undrawn) | | Net Working Capital | $24.1 million | | Current Ratio | 4.2 | | Long-Term Debt | Zero | | Shareholders' Equity | $50.4 million | | Net Book Value per Share | $0.46 | | Net Tangible Book Value per Share | $0.23 | [Management Commentary and Business Outlook](index=2&type=section&id=Management%20Commentary%20and%20Business%20Outlook) Management focuses on adapting the business plan with new revenue opportunities, AI tools, and expense reduction, expecting gradual demand improvement - CEO Derek E. Dewan stated the company is adjusting its business plan to navigate the challenging environment by targeting new revenue, using AI to boost efficiency, and cutting expenses[10](index=10&type=chunk) - The company has implemented and incorporated AI into its strategic plan to enhance recruiting and sales, and to support clients' own AI implementation needs[10](index=10&type=chunk) - The demand environment for the remainder of 2025 is expected to be volatile but gradually improve; the company plans to increase market share through several initiatives[12](index=12&type=chunk) - Aggressive AI-assisted sales process - Increased use of offshore recruiting to maximize fill rates - Expansion into value-added services like HR consulting, IT statement of work (SOW) projects, and resource process outsourcing (RPO) - On January 3, 2025, the company acquired Hornet Staffing, Inc. to enhance its ability to compete for business from Fortune 1000 companies, leveraging Hornet's expertise with MSPs and VMSs and its offshore recruiting team[11](index=11&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company uses non-GAAP measures like Adjusted EBITDA and free cash flow for performance evaluation, with detailed GAAP reconciliations provided - The company uses non-GAAP measures like adjusted net loss, EBITDA, adjusted EBITDA, and free cash flow for internal evaluation of operating performance, financial planning, and other management purposes[15](index=15&type=chunk) Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | Description | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss from continuing operations | $(401) | $(18,105) | $(34,041) | $(20,541) | | Non-cash goodwill impairment | - | $14,201 | $22,000 | $14,201 | | **Non-GAAP EBITDA** | **$(270)** | **$(524)** | **$(1,728)** | **$(2,533)** | | **Non-GAAP Adjusted EBITDA** | **$(25)** | **$(329)** | **$(918)** | **$(1,028)** | Reconciliation to Non-GAAP Free Cash Flow (in thousands) | Description | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,884) | $(1,117) | | Acquisition of property and equipment | $(16) | $(58) | | **Non-GAAP free cash flow** | **$(1,900)** | **$(1,175)** | [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents GEE Group's unaudited consolidated financial statements, including Q3 and YTD FY2025 statements of operations and balance sheets [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) GEE Group's net revenues decreased for the nine months ended June 30, 2025, resulting in a significant loss from continuing operations due to a goodwill impairment Consolidated Statements of Operations Highlights (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | **$24,523** | **$27,048** | **$73,043** | **$80,774** | | Contract staffing services | $21,301 | $23,761 | $64,310 | $71,977 | | Direct hire placement services | $3,222 | $3,287 | $8,733 | $8,797 | | **Gross Profit** | **$8,681** | **$9,229** | **$24,967** | **$26,958** | | Goodwill impairment charge | $0 | $14,201 | $22,000 | $14,201 | | **Loss from Operations** | **$(544)** | **$(20,717)** | **$(24,537)** | **$(24,303)** | | **Loss from Continuing Operations** | **$(401)** | **$(18,105)** | **$(34,041)** | **$(20,541)** | | **Consolidated Net Loss** | **$(423)** | **$(19,286)** | **$(34,234)** | **$(21,849)** | | **Diluted EPS (Continuing Ops)** | **$(0.00)** | **$(0.17)** | **$(0.31)** | **$(0.19)** | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, GEE Group's total assets decreased to $60.6 million, primarily due to reduced goodwill, while maintaining strong cash and shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash | $18,622 | $20,735 | | Accounts receivable, net | $11,752 | $12,751 | | Total current assets | $31,678 | $35,401 | | **Non-Current Assets** | | | | Goodwill | $24,762 | $46,008 | | **Total Assets** | **$60,564** | **$95,902** | | **Current Liabilities** | | | | Total current liabilities | $7,566 | $9,322 | | **Total Liabilities** | **$10,169** | **$11,691** | | **Total Shareholders' Equity** | **$50,395** | **$84,211** | | **Total Liabilities & Equity** | **$60,564** | **$95,902** | [Corporate Information](index=2&type=section&id=Corporate%20Information) GEE Group Inc. provides specialized staffing solutions and will host an investor webcast to discuss results, with standard forward-looking statement disclaimers - GEE Group provides professional staffing services in information technology, engineering, finance, accounting, and healthcare through brands like Access Data Consulting, Agile Resources, Omni-One, Paladin Consulting, Scribe Solutions, and various SNI brands[30](index=30&type=chunk) - The company will host an investor webcast and conference call on Thursday, August 14, 2025, at 11 a.m. EDT to discuss the fiscal 2025 third quarter and YTD results[8](index=8&type=chunk) - The press release contains forward-looking statements subject to risks and uncertainties, and readers are advised to consult the company's SEC filings for a more detailed understanding of these risk factors[31](index=31&type=chunk)[32](index=32&type=chunk)