GEE Group(US:JOB)2026-02-13 17:02Financial Data and Key Metrics Changes - Consolidated revenues for the quarter were $20.5 million, down $3.5 million or 15% from the prior year quarter [13] - Gross profit was $7.4 million with a gross margin of 36.1%, compared to $7.9 million and 33% from the prior year quarter [15] - Net loss from continuing operations was $150,000 or $0.00 per diluted share, an improvement from a loss of $684,000 or $0.01 per diluted share in the prior year quarter [18] - Adjusted EBITDA was -$97,000 for the quarter, compared to -$304,000 for the prior quarter [19] Business Line Data and Key Metrics Changes - Contract staffing services revenues were $17.8 million, down $3.7 million or 17% from the prior year quarter [13] - Direct hire revenues were $2.7 million, up $200,000 or 8% from the prior year quarter [14] - Selling, general and administrative expenses were $7.7 million, down $700,000 or 9% from the prior year quarter [16] Market Data and Key Metrics Changes - The hiring environment for staffing services has been challenging due to over-hiring in 2021 and 2022, macroeconomic weakness, and persistent inflation [3][4] - Many businesses are implementing layoffs and hiring freezes, leading to lower volumes of business [4] Company Strategy and Development Direction - The company is focusing on integrating AI into its operations to enhance recruiting and sales processes [6] - Plans to restore profitability during fiscal 2026 include streamlining operations and improving productivity [17] - The company is also pursuing acquisitions in a disciplined manner, particularly in AI consulting and IT consulting [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through current challenges and restore growth and profitability [10] - The company believes its stock is undervalued and anticipates upward movement in share price once normal economic conditions return [11] Other Important Information - The company has a strong liquidity position with $20.1 million in cash and no outstanding debt [19] - The acquisition of Hornet Staffing is seen as a valuable opportunity for growth [22] Q&A Session Questions and Answers Question: What incentives would need to be put in place for management to consider a value realization event? - Management has existing employment agreements that provide necessary incentives, so no additional incentives are needed [24] Question: Is an activist investor takeover the only route towards getting a return for shareholders? - No, the board and management are committed to acting in the best interest of shareholders [25] Question: If the company was sold at a comparable multiple to peers, why is it not actively pursuing this? - There are non-public actions being taken that have not yet been disclosed, and the company believes any offer will be better than the suggested 150% increase [26] Question: When is it time for dramatic changes to correct the lower stock value? - The company is working on several new initiatives to address this concern [27] Question: Can you provide more color on what multiple offers you mentioned? - Specific details cannot be disclosed at this time, but they are being evaluated [27]