ENGLEWOOD CLIFFS, N.J., Oct. 06, 2025 (GLOBE NEWSWIRE) -- Atlantic International Corp. (Nasdaq: ATLN), a leading provider of strategic staffing outsourced services and workforce solutions, today announced that its subsidiary Lyneer Staffing Solutions has successfully renewed its partnership with the premier food production company, first announced in October 2024. This renewal comes with a significant strategic advantage: the client's decision to consolidate its staffing partnerships from three providers to ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $139.3 million, with a gross margin of 40.2%, both exceeding the high end of the outlook range [29][36] - Adjusted EBITDA was $9.8 million, representing a 7.1% adjusted EBITDA margin, marking the strongest quarterly performance in fiscal 2025 [29] - Average bill rate increased by 4% year over year, with the enterprise-wide average bill rate reaching $125, reflecting a disciplined value-based pricing strategy [11][32] Business Line Data and Key Metrics Changes - Consulting segment revenue was $51 million, a decline of 14% year over year, with adjusted EBITDA of $8.3 million, a margin of 16% [34] - On-demand segment revenue was $53 million, down 16% compared to the prior year, with adjusted EBITDA of $6.4 million, maintaining a 12% margin [35] - Outsourced services segment revenue grew by 4% year over year to $11.3 million, with adjusted EBITDA of $3.1 million, a margin of 28% [35] Market Data and Key Metrics Changes - Europe and Asia Pacific segment revenue was $21.3 million, flat compared to the prior year, with adjusted EBITDA of $1.9 million, a margin of 9% [35] - The UK was highlighted as a strong market within Europe, contributing to revenue stability and high client retention at 90% year over year [13] - Asia Pacific revenue growth was 3% sequentially, primarily driven by Japan, despite challenges in China [13] Company Strategy and Development Direction - The company is focused on evolving from a staffing-centric model to a value-added consulting and digital solutions firm, enhancing shareholder value through disciplined operations and capital allocation strategies [17] - There is a strong emphasis on integrating AI technologies to improve operational efficiency and client engagement [10] - The strategy includes deepening client relationships and expanding cross-selling opportunities, particularly in consulting and outsourced services [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the professional services marketplace in North America, anticipating growth driven by digital transformation initiatives [9] - The company is focused on pipeline generation and conversion, with expectations for revenue in Q1 2026 to be between $115 million and $120 million [38] - Management acknowledged macroeconomic uncertainties but remains committed to executing their strategy to deliver value to clients [28] Other Important Information - The company appointed two new board members to strengthen alignment with long-term investors and support its strategic evolution [16] - A non-cash goodwill impairment charge of $69 million was recorded in the consulting segment due to business performance and market capitalization reduction [36] Q&A Session Summary Question: Can you provide more color on the gross margin beat? - Management attributed the gross margin improvement to higher average bill rates and favorable medical claims [44][47] Question: How is cross-selling progressing? - Management noted an uplift in existing clients where on-demand talent has transitioned to deeper consulting capabilities, indicating potential for future growth [49][50] Question: What are the expected trends for consulting and on-demand talent? - Management expects stability in the on-demand segment but acknowledges that consulting is impacted by project delays [60][62] Question: Can you clarify the pipeline shrinkage? - Management explained that the pipeline contracted due to a focus on funnel discipline and the abandonment of deals as clients reassess their needs [66]

Core Insights - Atlantic International Corp. has been added to the Russell 3000® Index, effective June 30, 2025, indicating continued growth and market momentum [1][3] - Membership in the Russell 3000® Index provides automatic inclusion in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, along with appropriate growth and value style indexes [2] Company Overview - Atlantic International Corp. is a publicly traded global provider of outsourced services and workforce solutions, focusing on tailored staffing, recruiting, and strategic outsourcing across various industries [5] - The company aims to expand its global footprint while driving value for clients, employees, and shareholders [5] Industry Context - The Russell U.S. indexes capture the 4,000 largest U.S. stocks ranked by total market capitalization, with approximately $10.6 trillion in assets benchmarked against these indexes as of June 2024 [2][3] - FTSE Russell, which maintains the Russell indexes, is a global index provider that calculates thousands of indexes covering 98% of the investable market globally, with about $18.1 trillion benchmarked to its indexes [6]