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Hudson Global Inc (HSON)
NASDAQ:HSON
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Hudson Global
(NASDAQ:HSON)
Rating:50Neutral
Price Target:
$9.00
▲(6.89%Upside)
Hudson Global (HSON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.27M
Dividend YieldN/A
Average Volume (3M)6.26K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-9.28%
EPS Growth-244.22%
CountryUS
Employees980
SectorIndustrials
Sector Strength88
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.46
Shares Outstanding2,750,735
10 Day Avg. Volume13,667
30 Day Avg. Volume6,259
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.49
Price to Sales (P/S)0.00
P/FCF Ratio7.62
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit0.61
Enterprise Value/Ebitda-4.78
Forecast
1Y Price Target
$19.00Price Target Upside125.65% Upside
Rating ConsensusHold
Number of Analyst Covering1
Hudson Global Business Overview & Revenue Model
Company DescriptionHudson Global, Inc. (HSON) is a recruitment and talent management solutions company that operates primarily in the professional staffing and recruitment industry. The company provides specialized recruitment outsourcing solutions, talent management, and recruitment process outsourcing (RPO) services to a diverse range of industries, including finance, technology, healthcare, and consumer goods. Hudson Global's core services focus on delivering customized recruitment strategies to help organizations find, attract, and retain top talent, thereby enhancing their operational efficiency and workforce effectiveness.
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: -15.88%|
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
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.45
Neutral
Balance Sheet
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.65
Positive
Cash Flow
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.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| 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 | ||||
| 16.55M | 17.01M | 22.61M | 27.12M | 21.71M | 25.81M | Total Assets |
| 53.19M | 52.58M | 60.96M | 67.94M | 61.24M | 45.39M | Total Debt |
| 872.00K | 1.06M | 1.43M | 1.94M | 2.48M | 214.00K | Net Debt |
| -15.68M | -15.95M | -21.18M | -25.19M | -19.23M | -25.59M | Total Liabilities |
| 13.71M | 12.15M | 12.40M | 22.15M | 21.93M | 11.11M | Stockholders Equity |
| 39.47M | 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
Negative
8.42
Price Trends
9.55
Negative
10.51
Negative
12.80
Negative
Market Momentum
-0.33
Positive
34.44
Neutral
12.88
Positive
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 8.42 is below the 20-day moving average (MA) of 9.15, below the 50-day MA of 9.55, and below the 200-day MA of 12.80, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 34.44 is Neutral, neither overbought nor oversold. The STOCH value of 12.88 is Positive, 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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.51B | 12.29 | 5.40% | 3.67% | 4.15% | -12.21% | |
63 Neutral | $119.44M | 268.89 | -7.21% | ― | -7.42% | -567.61% | |
60 Neutral | $46.55M | ― | -3.95% | 4.69% | -12.93% | -159.19% | |
50 Neutral | $23.27M | ― | -8.66% | ― | -9.28% | -244.22% | |
48 Neutral | $21.41M | ― | -70.70% | ― | -17.38% | -1165.13% | |
44 Neutral | $3.54M | ― | -67.31% | ― | -12.88% | 53.73% | |
34 Underperform | $39.62M | ― | -633.62% | ― | -89.25% | 39.71% |
* Industrials Sector Average
Performance Comparison
HSON
Hudson Global
8.42
-7.59
-47.41%
DHX
DHI Group
2.57
0.40
18.43%
JOB
GEE Group
0.19
-0.15
-44.12%
IPDN
Professional Diversity
1.66
-3.46
-67.58%
BGSF
BGSF
4.02
-2.71
-40.27%
NIXX
Nixxy
1.92
-0.36
-15.79%
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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.