GEE Group Inc. announced consolidated results for the fiscal second quarter ended March 31, 2025, reporting net revenues of $24.5 million, a 4% decrease from $25.6 million in the prior year quarter. Professional contract services revenue declined 7% to $21.5 million, while direct hire placement revenue increased 22% to $3.0 million.
The company reported a consolidated net loss of $33.1 million, or $0.30 per diluted share, significantly wider than the $1.0 million loss, or $0.01 per diluted share, in the prior year quarter. This increased loss was primarily due to a $22.0 million non-cash goodwill impairment charge and a $9.9 million non-cash charge for a deferred tax asset valuation allowance.
Despite the reported losses, GEE Group maintained a strong liquidity position with $18.7 million in cash and $7.4 million available under its undrawn credit facility as of March 31, 2025. The company is actively pursuing a multi-pronged strategy, including targeting $3 million in annual SG&A cost reductions and a robust M&A pipeline, with a goal to return to profitability in late 2025 or early/mid-2026.
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