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Hudson Global (HSON)
NASDAQ:HSON
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Hudson Global (HSON) AI Stock Analysis

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HSON

Hudson Global

(NASDAQ:HSON)

Rating:60Neutral
Price Target:
$10.50
▲(11.23% Upside)
Hudson Global's overall stock score reflects a mix of challenges and opportunities. Financial performance is a concern with declining revenues and negative cash flows. However, technical indicators show bullish momentum, and recent corporate events, including a strategic merger, provide a positive outlook for future growth.

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

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 services, which include permanent placement, temporary staffing, and contractor services. The company charges clients a fee for successfully placing candidates in roles, which can be a percentage of the candidate's first-year salary for permanent placements or a markup on hourly wages for temporary staffing. Additionally, Hudson offers consulting services in talent management and workforce planning, contributing to its revenue streams. Strategic partnerships with businesses and organizations in various sectors enhance its client base and service offerings, further supporting its earnings potential.

Hudson Global Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative metrics. While there was growth in adjusted net revenue, improvements in adjusted EBITDA, and strategic acquisitions indicating a positive outlook, the company faced challenges with an overall revenue decline, increased net loss, and an EBITDA loss in the EMEA region.
Q2-2025 Updates
Positive Updates
Adjusted Net Revenue Growth
Adjusted net revenue increased by 5.1% year-over-year in constant currency, marking the third consecutive quarter of growth in this metric.
Improvement in Adjusted EBITDA
Adjusted EBITDA for the second quarter was $1.3 million, up from $0.7 million a year ago.
Strategic Investments and Acquisitions
Investments of $1.4 million in sales, marketing, and technology were made to enhance future growth. Acquisitions of Alpha Consulting Group and McKinsey CMO Group expand geographic and service offerings.
Cash Flow and Financial Position
The company generated a cash inflow of $0.1 million from operations during Q2 2025, compared to an outflow of $4.3 million in Q2 2024. Cash reserves stood at $17.5 million.
New Business Wins and Sales Pipeline
Secured approximately $31.1 million in adjusted net revenue from renewals and expansions and $11.4 million from new logo wins over the prior 4 quarters.
Negative Updates
Overall Revenue Decline
Revenue for the second quarter of 2025 was $35.5 million, slightly down year-over-year in constant currency.
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 share in the same period last year.
EMEA Business EBITDA Loss
EMEA business reported an adjusted EBITDA loss of $0.4 million compared to an adjusted EBITDA of $0.3 million in Q2 2024.
Company Guidance
During the Hudson Global Conference Call for the second quarter of 2025, the company provided guidance indicating a positive trajectory in its financial performance. The call revealed that Hudson Global reported revenue of $35.5 million, slightly down year-over-year in constant currency, but adjusted net revenue increased by 5.1% to $18.6 million. Adjusted EBITDA improved to $1.3 million from $0.7 million the previous year. The company experienced 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. However, on an adjusted basis, net income per share rose to $0.12 from $0.04. Hudson's growth strategy, which emphasizes organic expansion, targeted acquisitions, and cross-regional integration, appears to be yielding results, as evidenced by three consecutive quarters of year-over-year growth in adjusted net revenue and EBITDA. Moreover, Hudson invested approximately $1.4 million in sales, marketing, and technology in the first half of 2025 to bolster future growth. The company also highlighted strategic acquisitions and integrations, such as the addition of the Alpha Consulting Group and McKinsey CMO Group, to enhance its service offerings and geographic reach. Hudson expects continued growth through 2025 and into 2026, despite mixed macroeconomic conditions in the talent market.

Hudson Global Financial Statement Overview

Summary
Hudson Global faces significant profitability and liquidity challenges, with declining revenues and negative cash flows. Despite a strong balance sheet with low leverage, the negative trends in income and cash flow metrics pose long-term risks.
Income Statement
45
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
65
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
40
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue138.03M140.06M161.34M200.92M169.21M101.45M
Gross Profit69.90M70.15M78.80M24.84M15.12M38.90M
EBITDA-1.25M-2.45M2.85M10.71M4.99M-2.47M
Net Income-3.63M-4.77M2.20M7.13M3.23M-1.24M
Balance Sheet
Total Assets53.19M52.58M60.96M67.94M61.24M45.39M
Cash, Cash Equivalents and Short-Term Investments16.55M17.01M22.61M27.12M21.71M25.81M
Total Debt872.00K1.06M1.43M1.94M2.48M214.00K
Total Liabilities13.71M12.15M12.40M22.15M21.93M11.11M
Stockholders Equity39.47M40.43M48.55M45.79M39.32M34.28M
Cash Flow
Free Cash Flow-1.82M-2.81M216.00K8.95M2.22M-1.45M
Operating Cash Flow-1.80M-2.79M315.00K9.45M2.51M-1.43M
Investing Cash Flow-15.00K1.06M-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
Neutral
Last Price9.44
Price Trends
50DMA
8.97
Positive
100DMA
9.14
Positive
200DMA
10.76
Negative
Market Momentum
MACD
0.18
Negative
RSI
53.51
Neutral
STOCH
82.64
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSON, the sentiment is Neutral. The current price of 9.44 is above the 20-day moving average (MA) of 9.23, above the 50-day MA of 8.97, and below the 200-day MA of 10.76, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 82.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.75B15.697.62%2.01%2.75%-15.14%
60
Neutral
$33.04M-9.37%-3.58%-89.07%
57
Neutral
$142.59M268.89-8.83%-8.31%-445.30%
49
Neutral
$68.63M-9.13%4.69%-24.36%-393.95%
48
Neutral
$20.80M-53.10%-15.53%-67.84%
46
Neutral
$16.10M-68.25%-11.76%48.03%
34
Underperform
$32.92M-643.77%2009.96%-74.25%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSON
Hudson Global
9.44
-7.01
-42.61%
DHX
DHI Group
2.97
1.37
85.63%
JOB
GEE Group
0.19
-0.06
-24.00%
IPDN
Professional Diversity
4.28
-0.32
-6.96%
BGSF
BGSF
6.15
-1.47
-19.29%
NIXX
Nixxy
1.59
-0.61
-27.73%

Hudson Global Corporate Events

Delistings and Listing ChangesExecutive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Hudson Global Announces Name Change to Star Equity
Positive
Sep 4, 2025

On September 2, 2025, Hudson Global, Inc. appointed new officers in connection with its acquisition of Star Equity Holdings, Inc., including Hannah Bible as Chief Compliance Officer and Corporate Secretary, Matthew K. Diamond as Chief Accounting Officer, and Shawn Miles as Executive Vice President – Finance. Subsequently, on September 4, 2025, Hudson Global announced a name change to Star Equity Holdings, Inc., effective September 5, 2025, reflecting its strategic direction and commitment to building a diversified portfolio of businesses. The company’s stock will trade under new ticker symbols STRR and STRRP on NASDAQ, marking a significant milestone in its evolution and growth strategy.

Executive/Board ChangesM&A Transactions
Hudson Global Completes Merger with Star Equity Holdings
Positive
Aug 22, 2025

On August 22, 2025, Hudson Global and Star Equity Holdings announced the completion of their merger, forming a larger, diversified holding company. The merger, approved by stockholders of both companies, aims to leverage increased size, diversified revenue streams, and improved profitability, positioning the combined entity for potential inclusion in the Russell 2000 index. Hudson Global’s board expanded to seven members, including three new independent directors, and the company plans to change its name to Star Equity Holdings, Inc. The merger is expected to have no material impact on clients, employees, or brand names of the operating businesses.

M&A TransactionsDividends
Hudson Global Announces Partial Cash Dividend Post-Merger
Positive
Aug 22, 2025

On August 22, 2025, Hudson Global, Inc. announced a partial cash dividend of $0.025 per share for its 10% Series A Cumulative Perpetual Preferred Stock, covering the period from its issuance on the same date. This follows the merger with Star Equity Holdings, whose preferred stock was converted into Hudson Global Series A preferred stock, now trading under the ticker ‘HSONP’. The dividend’s record date is September 1, 2025, with payment on September 10, 2025, marking a significant step in the integration process post-merger.

Executive/Board ChangesM&A TransactionsShareholder Meetings
Hudson Global Approves Acquisition of Star Equity
Positive
Aug 21, 2025

Hudson Global, Inc. held its Annual Meeting of Stockholders on August 21, 2025, where stockholders approved several key proposals, including the issuance of shares to facilitate the acquisition of Star Equity Holdings, Inc. This move, set to be finalized on August 22, 2025, will result in Star becoming a wholly owned subsidiary of Hudson under the new name ‘Star Operating Companies, Inc.’ Additionally, stockholders elected four directors, approved executive compensation, ratified the appointment of an independent auditor, and amended the stock plan to increase the number of issuable shares.

Executive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
Hudson Global CEO Compensation Structure Revised
Neutral
Aug 18, 2025

Hudson Global, Inc. announced a change in the compensation structure for its CEO, Jeffrey Eberwein, where his base salary will now be paid half in cash and half in equity grants of the company’s common stock, with the total annual compensation remaining unchanged. Additionally, Hudson is involved in a proposed merger transaction with Star Equity Holdings, Inc., and both companies’ directors and officers may participate in proxy solicitations related to this merger, which is under review by the SEC.

M&A Transactions
Hudson Global Appoints Exchange Agent Post-Merger
Neutral
Aug 14, 2025

On May 21, 2025, Hudson Global, Inc. entered into a Merger Agreement with Star Equity Holdings, Inc., where Hudson’s subsidiary will merge with Star, making Star a wholly owned subsidiary of Hudson. On August 14, 2025, Hudson appointed Computershare Trust Company as the Exchange Agent to manage the distribution of shares and cash payments for fractional shares to Star stockholders, following the merger’s approval by the stockholders of both companies.

M&A TransactionsShareholder Meetings
Hudson Global Announces Merger with Star Equity Holdings
Neutral
Jul 22, 2025

On May 21, 2025, Hudson Global, Inc. entered into a merger agreement with Star Equity Holdings, Inc., where Star will merge into a wholly owned subsidiary of Hudson. As part of the merger, Star’s common and preferred stock will be converted into Hudson’s stock, and Hudson will hold a meeting on August 21, 2025, to seek stockholder approval for the issuance of new shares. The merger will result in taxable transactions for U.S. federal income tax purposes.

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.Date of analysis: Sep 05, 2025