Atlantic International Corp. reported third‑quarter 2025 results on November 17, 2025, showing service revenue of $110.1 million, up 2.2% from $107.8 million in Q3 2024, and a nine‑month revenue total of $315.8 million. The company’s net loss narrowed to $32.3 million, or $0.59 per share, compared with a $66.8 million loss, or $2.04 per share, in the same period last year. Adjusted EBITDA improved to a negative $0.7 million from a negative $2.7 million in 2024, and total assets stood at $110.3 million as of September 30, 2025.
Sequentially, the quarter also showed progress. Net loss for Q3 2025 was $10.82 million, a decline from the $10.7 million loss reported in Q2 2025, indicating a steady improvement in operating performance. Revenue for Q3 2025 rose 2.2% year‑over‑year, but the company also reported a 28% increase in permanent placement and other services revenue, driven by heightened demand from existing clients.
Segment analysis reveals that permanent placement and other services were the primary growth engine, while temporary placement services contributed modestly to the overall revenue increase. The 28% surge in permanent placement revenue reflects a shift toward higher‑margin, long‑term contracts, which has helped offset the modest revenue growth in temporary placement services.
CEO Jeffrey Jagid highlighted that the narrowing loss and improved EBITDA result from a proactive recruitment strategy and targeted efficiency initiatives. He noted that the company’s cost‑control measures have reduced operating expenses, while the recruitment strategy has expanded the client base and increased placement volumes. Jagid also emphasized the company’s focus on maintaining high customer satisfaction levels, which he believes will support continued growth.
Despite the positive trajectory, Atlantic International remains unprofitable, with a negative adjusted EBITDA and a low Altman Z‑Score of 0.85, signaling potential financial distress. The company’s debt‑to‑equity ratio of –4.22 indicates a high leverage position. Management remains cautious, acknowledging economic headwinds that could impact demand for staffing services, but remains optimistic about the growing human‑resources services sector and the company’s ability to scale through operational efficiencies and technology‑driven service delivery.
The company’s guidance for the remainder of 2025 and into 2026 remains unchanged, with management expressing confidence in continued improvement in profitability as cost controls mature and demand for permanent placement services strengthens. Atlantic International’s strategy focuses on selective expansion, technology investments, and maintaining a disciplined capital structure to support operational needs.
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