GEE Group Inc. (NYSE American: JOB) reported consolidated revenues of $23.5 million for the fourth quarter and $96.5 million for the fiscal year ending September 30, 2025, a 10% decrease from the previous year.
The decline in revenues was influenced by macroeconomic weaknesses, tariffs, inflation, and AI's impact on hiring trends.
Professional contract staffing and direct hire placement revenues also experienced year-over-year declines of 11% and 3%, respectively.
Revenue Decline
Consolidated revenues decreased by 10% due to adverse macroeconomic conditions and reduced demand for staffing services.
Gross Profit Decrease
Gross profits for the fourth quarter and fiscal year were down 8%, mainly reflecting the revenue decline.
Adjusted EBITDA Improvement
Adjusted EBITDA showed improvement, reaching $(306) thousand for the fourth quarter and $(1.2) million for the fiscal year.
- The weakened labor market conditions and AI applications led to job terminations and reduced demand for certain labor types.
- Overall declines in the U.S. Staffing Industry performance were attributed to macroeconomic challenges and lower business volume.
Despite facing challenges, GEE Group demonstrated resilience with improved Adjusted EBITDA and positive free cash flow for the fiscal year 2025.