Core Insights - Atlantic International Corp. reported significant operational improvements and a strengthened financial position in Q2 2025, with a focus on profitability and cash flow generation [1][3] Financial Performance - Net loss narrowed by 81% to $10.7 million (or $0.20 per share) compared to a net loss of $54.9 million (or $1.96 per share) in Q2 2024 [6] - Service revenue was $102.9 million, with permanent placement services up 17% year-over-year [6] - Gross profit margin improved to 11.1%, reflecting pricing discipline and operational efficiency [6] - Operating cash flow was $5.0 million for the six months, improving from $(4.2) million a year ago [6] - Service revenue increased to $205.7 million from $205.3 million in the prior year period [6] - Gross profit improved 3.0% to $22.6 million, with gross margin expanding to 11.0% from 10.7% [6] - Net loss per share improved 82% to $(0.40) compared to $(2.23) in the prior year period [6] Business Segments - The permanent placement and other services segment grew by 16.9% in Q2 and 9.3% for the six-month period, contributing significantly to overall service revenue and gross profit improvements [3] Strategic Initiatives - The company secured a new $70 million asset-based lending facility, replacing the prior credit arrangement to support growth initiatives and working capital needs [6] - Positive momentum is expected to continue into Q3, driven by strong demand in both temporary and permanent placement services [3]

Financial Performance - Revenue decreased by 1% to $659.4 million compared to H1 2024[6,9] - Operating profit increased by 1% to $70.7 million compared to H1 2024[6,9] - Basic EPS increased by 2% to 197.4 cents[6,9] - Cash and bank deposits were $102.3 million[6,10] - Interim dividend remained stable at 80.0 cents[6] Income Statement Analysis - Gross profit increased by 1% to $216.5 million[9] - Marketing costs decreased by 3% to $84.7 million[9,24] - Admin and central costs increased by 12%[9] - Operating profit margin increased to 10.7% from 10.5% in H1 2024[9] Market and Operational Review - Industry sales declined by 3.6% and 3.2% in Q1 and Q2, respectively[18] - Over one million orders were received in H1 2025, a 2.8% decrease compared to H1 2024[18] - Total marketing spend was $84.7 million, a 3% reduction from H1 2024[24] - Revenue per marketing dollar increased to $7.79 from $7.64 in H1 2024[9,24]