Hudson Global(HSON) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter revenue was $48.0 million, an increase of 30.1% from Q3 2024[5] - Adjusted net income per diluted share was $0.02, compared to an adjusted net loss of $0.13 in Q3 2024, indicating a turnaround in profitability[4] - Adjusted EBITDA increased to $1.3 million from $0.8 million in Q3 2024; pro forma adjusted EBITDA was $3.1 million compared to $0.6 million in the prior year[5] - Total revenues for Q3 2025 reached $47,959,000, a significant increase from $36,853,000 in Q3 2024, representing a growth of 30% year-over-year[28] - Gross profit for Q3 2025 was $20,627,000, compared to $18,603,000 in Q3 2024, indicating a year-over-year increase of 11%[28] - The net loss for Q3 2025 was $1,764,000, which is higher than the net loss of $846,000 reported in Q3 2024[28] - Basic loss per share for Q3 2025 was $(0.54), compared to $(0.28) in Q3 2024, reflecting a deterioration in earnings per share[28] - Adjusted EBITDA for Q3 2025 was $1,335,000, compared to an adjusted EBITDA of $839,000 in Q3 2024, showing an improvement in operational performance[32] - The company reported a gross profit margin of approximately 43% for Q3 2025, up from 50% in Q3 2024, indicating a decline in profitability[28] Revenue Breakdown - Building Solutions revenue was $9.6 million with a gross profit of $1.7 million; pro forma revenue was $21.4 million, up from $13.7 million in Q3 2024[10] - Business Services revenue was $37.0 million, slightly up from $36.9 million in the prior year, while gross profit remained flat at $18.6 million[11] - Energy Services revenue was $1.3 million with a gross profit of $0.3 million; pro forma revenue was $3.7 million[12] - Total revenue from external customers for the nine months ended September 30, 2025, was $115,366 million, compared to $106,456 million for the same period in 2024, representing an increase of 8.5%[34] - Pro forma revenue for the three months ended September 30, 2025, was $62,136 million, an increase from $50,516 million in the same period of 2024, reflecting a growth of 22.9%[37] Cash and Equity - Total cash, including restricted cash, was $18.5 million at the end of Q3 2025[15] - Cash and cash equivalents decreased to $15,368,000 as of September 30, 2025, down from $17,011,000 at the end of 2024, reflecting a cash outflow[30] - The company has a total stockholders' equity of $67,771,000 as of September 30, 2025, an increase from $40,428,000 at the end of 2024, indicating growth in shareholder value[30] Liabilities and Assets - Total current assets increased to $67,845,000 as of September 30, 2025, up from $40,140,000 at the end of 2024, marking a growth of 69%[30] - Total liabilities rose to $49,369,000 as of September 30, 2025, compared to $12,155,000 at the end of 2024, indicating a significant increase in financial obligations[30] Strategic Focus - The company is focused on organic growth, disciplined capital allocation, and evaluating acquisition opportunities to drive long-term shareholder value[7] - The company repurchased approximately 8% of its outstanding shares in Q3 2025 and authorized a new $3 million share repurchase program[6][16] Backlog and Book-to-Bill Ratio - Building Solutions segment backlog was $20.0 million with a trailing 12-month book-to-bill ratio of 1.01[10] Nine-Month Performance - Gross profit for the nine months ended September 30, 2025, was $55,660 million, up from $52,548 million in 2024, indicating a growth of 4.0%[34] - The net loss for the nine months ended September 30, 2025, was $4,208 million, slightly higher than the net loss of $4,185 million in 2024[34] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,983 million, compared to $42 million in 2024, showing a significant improvement[34] Depreciation and Interest Income - Total depreciation and amortization for the nine months ended September 30, 2025, was $1,194 million, compared to $1,042 million in 2024, reflecting an increase of 14.6%[34] - Interest income, net for the nine months ended September 30, 2025, was $(206) million, compared to $(280) million in 2024, showing an improvement in interest income[34] Pro Forma Performance - Pro forma gross profit for the three months ended September 30, 2025, was $25,356 million, compared to $21,420 million in 2024, marking an increase of 18.3%[37] - The pro forma net loss for the three months ended September 30, 2025, was $1,852 million, compared to a net loss of $2,816 million in 2024, indicating a reduction in losses[37] - Pro forma adjusted net income for the three months ended September 30, 2025, was $707 million, compared to a pro forma adjusted net loss of $2,010 million in 2024, demonstrating a turnaround[41]