Hudson Global ((HSON)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Hudson Global’s recent earnings call presented a balanced sentiment, reflecting both positive and negative aspects of the company’s financial performance. While there were notable improvements in adjusted net revenue and EBITDA, alongside strategic acquisitions and new business wins, the overall revenue saw a slight decline, and net loss increased compared to the previous year. This mixed sentiment highlights the company’s ongoing challenges and achievements.
Growth in Adjusted Net Revenue and EBITDA
The second quarter of 2025 marked a significant achievement for Hudson Global, with adjusted net revenue reaching $18.6 million, a 5.1% increase year-over-year in constant currency. Adjusted EBITDA also showed improvement, rising to $1.3 million from $0.7 million a year ago, indicating enhanced operational efficiency.
APAC Region Performance
The Asia Pacific region was a standout performer, with adjusted net revenue increasing by 17% year-over-year. This growth was driven by a shift in revenue mix and improved business activity, showcasing the region’s strategic importance to Hudson Global’s overall performance.
Strategic Investments and Acquisitions
Hudson Global made strategic investments in sales, marketing, and technology, amounting to $1.4 million, to support its growth initiatives. The acquisition of Alpha Consulting Group in Japan and the integration of McKinsey CMO Group are expected to enhance the company’s capabilities and market reach.
New Business Wins and Expansions
The company secured approximately $31.1 million in adjusted net revenue from renewals and expansions, alongside $11.4 million from new logo wins over the past four quarters. These achievements reflect Hudson Global’s ability to attract and retain clients, contributing to its revenue growth.
Overall Revenue Decline
Despite the positive developments, Hudson Global’s second quarter 2025 revenue was $35.5 million, slightly down year-over-year in constant currency. This decline indicates challenges in maintaining consistent revenue growth across all regions.
Net Loss Increase
The company reported a net loss of $0.7 million or $0.23 per diluted share, compared to a net loss of $0.4 million or $0.15 per diluted share in the same period last year. This increase in net loss highlights ongoing financial challenges that Hudson Global needs to address.
EMEA Adjusted Net Revenue Decline
In the EMEA region, adjusted net revenue decreased by 9% year-over-year, despite a 6% increase in revenue. This decline suggests potential issues in the region that may require strategic adjustments to improve performance.
Forward-Looking Guidance
Looking ahead, Hudson Global provided guidance that suggests a positive trend expected to continue into 2026. The company highlighted a third consecutive quarter of growth in adjusted net revenue and EBITDA. With investments in organic expansion, targeted acquisitions, and service integration, Hudson Global is well-positioned for future growth. The company ended Q2 2025 with $17.5 million in cash and a working capital of $12.2 million, indicating a strong financial position to support its growth initiatives.
In summary, Hudson Global’s earnings call presented a mixed sentiment, with significant achievements in adjusted net revenue and strategic acquisitions, alongside challenges in overall revenue and net loss. The company’s forward-looking guidance suggests optimism for continued growth, supported by strategic investments and a strong financial position.