Financial Data and Key Metrics Changes - Reported revenue for the quarter was $4.6 billion, down 2% year over year in constant currency, while system-wide revenue was $4.9 billion [10] - Reported EBITDA for the quarter was $74 million, with adjusted EBITDA at $96 million, representing a decrease of 22% in constant currency year over year [10][14] - Adjusted earnings per share decreased 39% year over year in constant currency, with reported earnings per diluted share at $0.38 and adjusted earnings per diluted share at $0.83 [10][11] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth in organic constant currency year over year, while the Experis brand declined by 7% and Talent Solutions declined by 8% [16] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing a 40 basis point reduction due to a shift towards enterprise accounts [17][18] - The consolidated gross profit decreased by 4% on an organic constant currency basis year over year, showing slight improvement from a 5% decline in the second quarter [18] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% year-over-year increase on a constant currency basis [21] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [26] - The Asia Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [32] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations to improve efficiency and reduce costs [38] - The introduction of the AI platform, SoFi AI, is expected to enhance capabilities and client outcomes, with approximately 30% of new client revenue derived from AI-rated probability [40][41] - The leadership team is committed to managing current challenges while positioning the business for future growth through cost containment and strategic initiatives [12] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions and economic softening continue to impact hiring, but there are signs of stabilization in demand [6][7] - The outlook for the fourth quarter anticipates ongoing stability in most markets, with earnings per share projected to be in the range of $0.78 to $0.88 [35] - Management expressed cautious optimism about future growth, particularly in Europe and North America, as economic conditions are expected to improve [58][59] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, but positive cash flow is expected to continue [33] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [34] Q&A Session Summary Question: Expectations for flexible staffing volumes with improved business confidence - Management noted that the current labor market is "frozen," with little hiring or workforce reductions, but there are signs of stabilization and potential growth if employer confidence returns [44][46] Question: Trends observed in the quarter and any volatility due to economic conditions - Management indicated that there was an improvement in trends during the third quarter, particularly in France and Italy, while the U.S. market remained stable [49][51] Question: Insights on gross margin pressures and pricing - Management explained that the primary driver of gross margin pressure is a mix shift towards enterprise clients, with no significant pricing changes observed [54][56] Question: Indicators of demand stabilization across regions - Management highlighted that demand is stabilizing in Europe and North America, with growth opportunities emerging in sectors like financial services and logistics [62][63] Question: Impact of political turmoil in France on business sentiment - Management acknowledged that political uncertainty in France is not helpful, but clients are navigating through the environment pragmatically [88][92]