Revenue Performance - Revenue for the three months ended March 31, 2025, was $31.9 million, a decrease of $2.0 million, or 6.0%, compared to $33.9 million in the same period in 2024[134] - Adjusted net revenue increased to $16.4 million for the three months ended March 31, 2025, compared to $16.3 million for the same period in 2024, reflecting a growth of $0.1 million, or 0.4%[134] - Contracting revenue in the Americas increased by $0.9 million, or 483%, while RPO revenue decreased by $0.1 million, or 1%, compared to the same period in 2024[143] - The company reported a decrease in contracting revenue of $1.3 million, or 7.2%, on a constant currency basis, partially offset by a $0.2 million, or 1.1%, increase in RPO revenue[134] - For the three months ended March 31, 2025, adjusted net revenue in the Americas was $6.0 million, an increase of $0.2 million or 3% compared to $5.8 million in 2024[144] - In Asia Pacific, total revenue decreased by $1.5 million, or 7%, to $19.1 million for the three months ended March 31, 2025, compared to $20.6 million in 2024[149] - Adjusted net revenue in Asia Pacific increased by $0.9 million, or 14%, to $7.2 million for the three months ended March 31, 2025, compared to $6.3 million in 2024[152] - In EMEA, adjusted net revenue decreased by $0.7 million, or 19%, to $3.2 million for the three months ended March 31, 2025, compared to $3.9 million in 2024[162] Expense Management - SG&A and Non-Op expenses decreased to $17.9 million for the three months ended March 31, 2025, down $1.1 million, or 5.8%, from $19.0 million in the same period in 2024[134] - SG&A and Non-Op expenses in the Americas decreased by $0.5 million, or 8%, to $6.2 million for the three months ended March 31, 2025, compared to $6.7 million in 2024[146] - SG&A and Non-Op expenses in EMEA increased by $0.2 million, or 5%, to $3.8 million for the three months ended March 31, 2025, compared to $3.7 million in 2024[165] Profitability and Loss - EBITDA loss improved to $1.5 million for the three months ended March 31, 2025, compared to a loss of $2.7 million for the same period in 2024, a decrease in loss of $1.2 million[134] - Net loss for the three months ended March 31, 2025, was $1.8 million, a reduction of $1.1 million from a net loss of $2.9 million in the same period in 2024[134] - The operating loss in the Americas improved to $0.2 million for the three months ended March 31, 2025, a reduction of $0.9 million or 82% from the operating loss of $1.2 million in 2024[147] - The EBITDA loss in the Americas improved to $0.1 million for the three months ended March 31, 2025, a reduction of $0.7 million or 84% from the EBITDA loss of $0.9 million in 2024[147] - For the three months ended March 31, 2025, operating loss was $0.5 million, a decrease from operating income of $0.3 million in the same period in 2024, representing a change of (293)%[167] - EBITDA loss for the same period was $0.6 million, or 11% of revenue, compared to an EBITDA loss of $0.3 million, or 4% of revenue in 2024, indicating a change of (338)%[167] - Basic and diluted loss per share were both $0.59 for the three months ended March 31, 2025, down from $0.95 in the same period in 2024[172] Cash and Liquidity - Cash, cash equivalents, and restricted cash totaled $17.2 million as of March 31, 2025, a slight decrease from $17.7 million as of December 31, 2024[173] - Net cash used in operating activities was $0.8 million for the three months ended March 31, 2025, a decrease of $1.0 million from $1.8 million used in the same period in 2024[174] - As of March 31, 2025, the Company had cash and cash equivalents on hand of $16.6 million, with $6.8 million held in the U.S.[179][180] - The Company expects to make capital expenditures of less than $0.5 million for the full year 2025[179] - The Company has the capability to borrow an additional 4 million Australian dollars under the NAB Facility Agreement[179] - There were no off-balance sheet arrangements that could materially affect the Company's financial condition as of March 31, 2025[181] Market Outlook and Strategic Initiatives - The company anticipates continued challenging market conditions into the next quarter of 2025 due to persistent inflation and higher interest rates[129] - The company is exploring strategic alternatives to maximize shareholder value, including potential acquisitions and share repurchases[125] - The company aims to enhance its service offerings and delivery capabilities to improve client satisfaction and operational efficiency[124] - In Asia, revenue increased by $0.9 million, or 29%, for the three months ended March 31, 2025, compared to the same period in 2024, driven by higher demand from existing clients[151] - Total adjusted net revenue as a percentage of revenue in the Americas decreased to 87% for the three months ended March 31, 2025, down from 97% in 2024, attributed to a lower mix of RPO to contracting revenue[145]
Hudson Global(HSON) - 2025 Q1 - Quarterly Report