Hudson Global (HSON) AI Stock Analysis

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Hudson Global

(NASDAQ:HSON)

Rating:50Neutral

Price Target:

$9.00

▲(1.35%Upside)

Hudson Global's stock score is primarily affected by significant financial performance challenges, including declining revenues and negative cash flows. The technical analysis also indicates bearish momentum. However, the announced merger with Star Equity Holdings presents a potential positive strategic shift. Mixed results from the earnings call show some improvement, but ongoing challenges remain.

Hudson Global (HSON) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$24.62M

Dividend YieldN/A

Average Volume (3M)5.50K

Price to Earnings (P/E)―

Beta (1Y)0.87

Revenue Growth-9.28%

EPS Growth-244.22%

CountryUS

Employees980

SectorIndustrials

Sector Strength90

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)-0.46

Shares Outstanding2,750,735

10 Day Avg. Volume11,180

30 Day Avg. Volume5,495

Financial Highlights & Ratios

PEG Ratio-0.32

Price to Book (P/B)0.67

Price to Sales (P/S)0.00

P/FCF Ratio-13.43

Enterprise Value/Market Cap0.36

Enterprise Value/Revenue0.02

Enterprise Value/Gross Profit0.13

Enterprise Value/Ebitda-0.97

Forecast

1Y Price Target

$19.00

Price Target Upside113.96% Upside

Rating ConsensusHold

Number of Analyst Covering1

Hudson Global Business Overview & Revenue Model

Company DescriptionHudson Global, Inc. provides talent solutions for mid-to-large-cap multinational companies and government agencies under the Hudson RPO brand in the Americas, the Asia Pacific, and Europe. It offers recruitment process outsourcing (RPO) services, such as complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting for clients' permanent staff hires; and RPO contracting services, including outsourced professional contract staffing and managed services. The company was formerly known as Hudson Highland Group, Inc. and changed its name to Hudson Global, Inc. in April 2012. Hudson Global, Inc. was founded in 1999 and is headquartered in Old Greenwich, Connecticut.

How the Company Makes MoneyHudson Global generates revenue primarily through its recruitment process outsourcing (RPO) services, where it partners with client organizations to handle all or part of their recruitment activities. The company earns fees based on successful placements, management of recruitment processes, and consulting services provided. Hudson Global also benefits from long-term contracts with various clients, which provide a stable source of recurring revenue. Additionally, the company may engage in strategic partnerships with technology providers or industry-specific firms to enhance service delivery and expand its market reach, further contributing to its earnings.

Hudson Global Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: -11.29%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. On the positive side, the company showed improvement in adjusted EBITDA, growth in the Americas region, and progress in strategic initiatives like digital transformation and new business wins. However, challenges remain, including a decline in overall revenue, underperformance in the EMEA region, and continued net losses. The talent environment remains uncertain due to macroeconomic conditions, but the company is optimistic about future growth.

Q1-2025 Updates

Positive Updates

Revenue Growth in Americas

The Americas business reported a 15% increase in revenue and a 3% increase in adjusted net revenue year-over-year in constant currency.

Improved Adjusted EBITDA

Overall adjusted EBITDA for Q1 2025 improved to a loss of $700,000, compared to a loss of $1.5 million a year ago.

Positive Adjusted Net Revenue Growth

The company reported adjusted net revenue of $16.4 million, an increase of 2.2% year-over-year in constant currency.

Strategic Hires and Digital Division Launch

Hudson made strategic hires including a Chief Digital Officer to launch a new digital division aimed at enhancing digital capabilities.

Successful Renewals and New Business Wins

The company secured approximately $20 million in adjusted net revenue from renewals and extensions, plus $2.4 million from new logo wins in Q1 2025.

Negative Updates

Overall Revenue Decline

Total revenue for Q1 2025 was $31.9 million, down 3.3% year-over-year in constant currency.

EMEA Revenue and Adjusted Net Revenue Decline

Revenue for the EMEA business decreased by 7%, and adjusted net revenue decreased by 19% year-over-year.

Continued Net Loss

The company 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.

Challenges in China and Hong Kong

The company reported slower performance in China and Hong Kong, indicating significant challenges in these markets.

Increased Days Sales Outstanding

Days sales outstanding increased to 56 days at March 31, 2025, compared to 51 days at December 31, 2024.

Company Guidance

During the Hudson Global Conference Call for the first quarter of 2025, the company provided detailed guidance on its financial performance and strategic initiatives. The reported revenue was $31.9 million, reflecting a 3.3% decline year-over-year in constant currency, while adjusted net revenue rose by 2.2% to $16.4 million. The Asia Pacific region showed robust performance with a 14% increase in adjusted net revenue. The adjusted EBITDA loss improved to $700,000 from $1.5 million a year prior, with a net loss of $1.8 million or $0.59 per diluted share. Adjusted net loss per share was $0.46, better than the $0.72 loss in the previous year. The Americas business saw a 15% revenue increase, contributing to a $0.1 million adjusted EBITDA, while the EMEA region faced a 19% decrease in adjusted net revenue. The company ended the quarter with $17.2 million in cash, emphasizing its investment in strategic hires and digital capabilities. Hudson RPO secured approximately $20 million in renewals and extensions, along with $2.4 million in new logo wins, positioning itself for future growth despite ongoing macroeconomic uncertainties.

Hudson Global Financial Statement Overview

Summary

Hudson Global faces significant profitability and liquidity challenges, as reflected in declining revenues and negative cash flows. While the balance sheet remains relatively strong with low leverage, the negative trends in income and cash flow metrics could pose long-term risks if not addressed.

Income Statement

Neutral

Hudson Global's income statement shows declining revenue over the past years, with a significant drop from 2022 to 2025. The TTM data reveals negative EBIT and EBITDA margins, indicating operational challenges. Gross Profit Margin remains relatively stable, but the company struggles with profitability as seen in the negative Net Profit Margin.

Balance Sheet

Positive

The balance sheet reflects a strong equity position with a low Debt-to-Equity Ratio, suggesting financial stability. However, the decline in Total Assets and Stockholders' Equity over time is a concern. Despite this, the company maintains a healthy Equity Ratio, showing a strong financial structure.

Cash Flow

Negative

The cash flow statement indicates negative operating cash flow and free cash flow in the TTM period, highlighting liquidity issues. The Operating Cash Flow to Net Income Ratio is concerning due to negative cash flows. There is also a significant decline in Free Cash Flow compared to previous years, pointing to potential cash management challenges.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
138.03M	140.06M	161.34M	200.92M	169.21M	101.45M
	Gross Profit
69.90M	70.15M	78.80M	24.84M	67.56M	38.90M
	EBIT
-2.49M	-3.81M	1.38M	9.34M	4.39M	-2.65M
	EBITDA
-1.25M	-2.45M	2.85M	10.71M	4.99M	-2.47M
	Net Income Common Stockholders
-3.63M	-4.77M	2.20M	7.13M	3.23M	-1.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.19M	17.01M	22.61M	27.12M	21.71M	25.81M
	Total Assets
46.70M	52.58M	60.96M	67.94M	61.24M	45.39M
	Total Debt
406.00K	1.06M	1.43M	1.94M	2.48M	214.00K
	Net Debt
-30.78M	-15.95M	-21.18M	-25.19M	-19.23M	-25.59M
	Total Liabilities
10.67M	12.15M	12.40M	22.15M	21.93M	11.11M
	Stockholders Equity
36.03M	40.43M	48.55M	45.79M	39.32M	34.28M
Cash Flow		Free Cash Flow
-1.82M	-2.81M	216.00K	8.95M	2.22M	-1.45M
	Operating Cash Flow
-1.80M	-2.79M	315.00K	9.45M	2.51M	-1.43M
	Investing Cash Flow
-15.00K	1.06M	-2.15M	-1.33M	-6.30M	-4.02M
	Financing Cash Flow
-2.02M	-3.10M	-2.45M	-2.04M	-4.00K	-927.00K

Hudson Global Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.88

Price Trends

50DMA

9.67

Negative

100DMA

10.65

Negative

200DMA

12.94

Negative

Market Momentum

MACD

-0.29

Positive

RSI

42.06

Neutral

STOCH

30.90

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSON, the sentiment is Negative. The current price of 8.88 is below the 20-day moving average (MA) of 9.35, below the 50-day MA of 9.67, and below the 200-day MA of 12.94, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSON.

Hudson Global Risk Analysis

Hudson Global disclosed 26 risk factors in its most recent earnings report. Hudson Global reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

Changing rules, public disclosure regulations and stakeholder expectations on environmental, social and corporate governance ("ESG") related matters and diversity, equity and inclusion ("DEI") related matters expose us to potential liabilities, increased costs, reputational harm and other adverse effects on our business. Q4, 2024

Hudson Global Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
DHX	63 Neutral	$115.54M	268.89	-7.21%	―	-7.42%	-567.61%
BGSF	60 Neutral	$48.43M	―	-3.95%	4.69%	-12.93%	-159.19%
HSON	50 Neutral	$24.62M	―	-8.66%	―	-9.28%	-244.22%
JOB	49 Neutral	$21.34M	―	-70.70%	―	-17.38%	-1165.13%
IPDN	41 Neutral	$3.62M	―	-67.31%	―	-12.88%	53.73%
NIXX	34 Underperform	$46.23M	―	-633.62%	―	-89.25%	39.71%

* Industrials Sector Average

Performance Comparison

HSON

Hudson Global

8.88

-6.75

-43.19%

DHX

DHI Group

2.38

0.24

11.21%

JOB

GEE Group

0.20

-0.14

-41.18%

IPDN

Professional Diversity

1.70

-3.65

-68.22%

BGSF

4.41

-2.43

-35.53%

NIXX

Nixxy

2.20

0.05

2.33%

Hudson Global Corporate Events

M&A TransactionsBusiness Operations and Strategy

Hudson Global Announces Merger with Star Equity Holdings

Positive

May 22, 2025

On May 21, 2025, Hudson Global, Inc. and Star Equity Holdings, Inc. announced a definitive merger agreement where Star will merge into a wholly owned subsidiary of Hudson, forming NewCo. This merger aims to create a larger multi-sector holding company with pro-forma annualized revenues of $210 million and projected cost savings of $2 million within 12 months. The merger is expected to close in the second half of 2025, pending regulatory and shareholder approvals. The combined company will have four reporting segments and aims to utilize Hudson’s $240 million in net operating losses to maximize shareholder value.

The most recent analyst rating on (HSON) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Hudson Global stock, see the HSON Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.