Hudson Global’s Mixed Earnings Call: Growth Amid Challenges

Hudson Global ((HSON)) has held its Q1 earnings call. Read on for the main highlights of the call.

Hudson Global’s recent earnings call presented a mixed sentiment, reflecting both optimism and challenges. The company showcased improvements in adjusted EBITDA, growth in the Americas region, and progress in strategic initiatives such as digital transformation and new business wins. However, the call also highlighted ongoing challenges, including a decline in overall revenue, underperformance in the EMEA region, and continued net losses. Despite uncertainties in the talent environment due to macroeconomic conditions, Hudson Global remains optimistic about future growth prospects.

Revenue Growth in Americas

The earnings call highlighted a significant achievement in the Americas region, where Hudson Global reported a 15% increase in revenue and a 3% increase in adjusted net revenue year-over-year in constant currency. This growth underscores the company’s successful strategies in this key market.

Improved Adjusted EBITDA

Hudson Global reported an improvement in its adjusted EBITDA for Q1 2025, with a loss of $700,000 compared to a loss of $1.5 million a year ago. This marks a positive trend in the company’s financial health, indicating effective cost management and operational efficiency.

Positive Adjusted Net Revenue Growth

The company achieved an adjusted net revenue of $16.4 million, representing a 2.2% increase year-over-year in constant currency. This growth reflects Hudson Global’s ability to adapt and thrive in a challenging economic environment.

Strategic Hires and Digital Division Launch

Hudson Global made strategic hires, including a Chief Digital Officer, to spearhead the launch of a new digital division. This initiative aims to enhance the company’s digital capabilities and drive future growth in an increasingly digital world.

Successful Renewals and New Business Wins

The company secured approximately $20 million in adjusted net revenue from renewals and extensions, along with $2.4 million from new logo wins in Q1 2025. These successes demonstrate Hudson Global’s strong client relationships and ability to attract new business.

Overall Revenue Decline

Despite positive developments, Hudson Global faced a 3.3% decline in total revenue for Q1 2025 year-over-year in constant currency. This decline highlights the challenges the company faces in maintaining revenue growth across all regions.

EMEA Revenue and Adjusted Net Revenue Decline

The EMEA region experienced a 7% decrease in revenue and a 19% decrease in adjusted net revenue year-over-year. This underperformance underscores the need for strategic adjustments in this market.

Continued Net Loss

Hudson Global reported a net loss of $1.8 million or $0.59 per diluted share, compared to a net loss of $2.9 million or $0.95 per diluted share in the same period last year. While the loss has narrowed, it remains a concern for the company’s financial stability.

Challenges in China and Hong Kong

The company reported slower performance in China and Hong Kong, indicating significant challenges in these markets. Hudson Global will need to address these issues to improve its performance in the Asia Pacific region.

Increased Days Sales Outstanding

Days sales outstanding increased to 56 days at March 31, 2025, compared to 51 days at December 31, 2024. This increase suggests potential cash flow challenges that the company needs to manage effectively.

Forward-Looking Guidance

During the earnings call, Hudson Global provided forward-looking guidance that emphasized its strategic focus and financial expectations. The company reported a 3.3% decline in revenue year-over-year, while adjusted net revenue rose by 2.2%. The Asia Pacific region showed robust performance with a 14% increase in adjusted net revenue. Hudson Global ended the quarter with $17.2 million in cash, highlighting its investment in strategic hires and digital capabilities. The company remains focused on securing renewals and new business wins to drive future growth, despite ongoing macroeconomic uncertainties.

In summary, Hudson Global’s earnings call presented a mixed outlook, balancing optimism with challenges. The company demonstrated growth in the Americas and progress in strategic initiatives, yet faced revenue declines and underperformance in certain regions. With a focus on digital transformation and strategic hires, Hudson Global is positioning itself for future growth, maintaining a cautiously optimistic outlook amidst economic uncertainties.