GEE Group (JOB) investor relations material

Executive summary

• Net income from continuing operations was $14,000 for Q2 2026, reversing a $33 million loss in Q2 2025, driven by cost reductions, improved direct hire revenues, and absence of prior non-cash charges.

• Direct hire placement revenues increased 7% year-over-year and 17% sequentially, contributing to higher gross margins.

• Contract staffing revenues declined due to the loss of a high-volume, low-margin client, improving the business mix.

• Cost reduction initiatives and productivity improvements implemented in late fiscal 2025 positively impacted results.

• Strategic review process underway, with multiple unsolicited expressions of interest and engagement of Roth Capital Partners to explore alternatives.

Financial highlights

• Consolidated revenues were $19.5 million for Q2 2026 and $40 million year-to-date, down 20% and 18% year-over-year, mainly due to the loss of a major contract and macroeconomic headwinds.

• Gross profit margin improved to 38.1% for Q2 2026 and 37.1% year-to-date, up from 34.1% and 33.6% in the prior year.

• SG&A expenses were $7.4 million for Q2 2026 and $15.1 million year-to-date, down 20% and 15% year-over-year, reflecting cost reduction initiatives.

• Adjusted EBITDA was $108,000 for Q2 2026 and negative $28,000 year-to-date, both improved from prior year.

• No outstanding debt; liquidity position includes $20.3 million in cash and $4.9 million undrawn credit as of March 31, 2026.

Outlook and guidance

• Management is cautiously optimistic for fiscal 2026, expecting stabilization in contingent labor and continued growth in direct hire placements.

• Strategic focus on AI integration and operational enhancements to drive future productivity and profitability.

• Management remains cautious in the near-term outlook due to ongoing macroeconomic and labor market uncertainties.