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Hudson (NYSE:HUD) Global Inc (NASDAQ:HSON) presented its first quarter 2025 earnings results on May 13, revealing signs of gradual recovery despite ongoing revenue headwinds. The recruitment services provider reported improved profitability metrics and regional performance divergence as it continues navigating a challenging global hiring environment.
Quarterly Performance Highlights
Hudson Global reported Q1 2025 revenue of $31.9 million, representing a 6.0% decrease (3.3% in constant currency) compared to the same period last year. Despite this decline, the company showed improvement in several key profitability metrics, with adjusted net revenue increasing slightly by 0.4% to $16.4 million and net loss narrowing to $1.8 million from $2.9 million in Q1 2024.
The company’s adjusted EBITDA improved significantly to -$0.7 million from -$1.5 million in the prior-year period, representing a 56.7% improvement. Similarly, basic and diluted earnings per share improved to -$0.59 from -$0.95 a year earlier.
As shown in the following consolidated financial results:
These results come after a challenging fourth quarter of 2024, when the company missed analyst expectations with an EPS of -$0.05 against a forecasted $0.35. The stock has been trading near its 52-week low, closing at $10.01 on May 12, 2025, down 1.86% for the day.
Regional Performance Analysis
Hudson Global’s regional performance showed significant variation, with the Americas and Asia Pacific regions demonstrating strength while EMEA faced challenges.
The Americas region posted impressive results with revenue increasing 14.3% to $6.9 million and adjusted EBITDA improving dramatically to $0.1 million from -$0.7 million in Q1 2024. This represents a turnaround for the region, which achieved a positive adjusted EBITDA margin of 1.6% compared to -12.2% a year earlier.
As illustrated in the Americas financial results:
Similarly, the Asia Pacific region showed resilience with adjusted net revenue increasing 10.2% to $7.2 million despite an 11.1% decrease in overall revenue. The region’s adjusted EBITDA improved substantially to $0.6 million from -$0.2 million in Q1 2024, resulting in an adjusted EBITDA margin of 8.3% compared to -2.6% a year earlier.
The Asia Pacific performance is detailed in the following chart:
In contrast, the EMEA region faced significant headwinds with revenue declining 7.8% to $5.9 million and adjusted net revenue decreasing 19.4% to $3.2 million. The region swung from a positive adjusted EBITDA of $0.3 million in Q1 2024 to a loss of $0.5 million in Q1 2025.
The regional distribution of Hudson Global’s business highlights the importance of Asia Pacific, which accounts for 60% of revenue and 44% of adjusted net revenue, as shown in the following chart:
Service Mix and Strategic Focus
Hudson Global’s business is divided between Recruitment Process Outsourcing (RPO) and Contracting services, with a stark contrast in their contribution to adjusted net revenue. While RPO accounts for 49% of revenue, it generates a remarkable 94% of adjusted net revenue, underscoring its strategic importance to the company’s profitability.
The following chart illustrates this critical business dynamic:
The company’s RPO business showed signs of recovery in Q1 2025 after a difficult fourth quarter. New business totaled $22.5 million in Q1 2025, significantly higher than recent quarters, while adjusted EBITDA improved to $226,000 from -$535,000 in Q4 2024.
The RPO operating dashboard provides a comprehensive view of the business’s trajectory:
This focus on RPO aligns with the company’s previously announced strategic initiatives, including the launch of a new digital division to boost innovation and plans to increase annual hires from 20,000 to 60,000, as mentioned in earlier communications.
Financial Position and Outlook
Hudson Global maintains a solid financial position with $16.6 million in cash as of Q1 2025, slightly down from $17.0 million at the end of 2024. The company’s working capital stood at $28.4 million, providing adequate liquidity to fund operations and strategic initiatives.
The company’s balance sheet remains strong, as shown in the following summary:
Cash flow from operations improved to -$0.8 million in Q1 2025 from -$1.8 million in the same period last year, indicating better operational efficiency despite continued challenges.
While Hudson Global did not provide specific forward guidance in the presentation, the improvement in profitability metrics and new business wins in the RPO segment suggest a potential path to recovery. However, the company continues to face headwinds from global economic uncertainty and regional challenges, particularly in EMEA.
The stock’s current trading level near its 52-week low reflects investor caution, but the improving operational metrics may signal a turning point if the company can sustain this momentum in upcoming quarters.
Full presentation:
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