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GEE Group (JOB)
XASE:JOB
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GEE Group
(NYSE MKT:JOB)
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Rating:48Neutral
Price Target:
$0.21
▲(5.50% Upside)
Action:ReiteratedDate:02/14/26
The score is held back primarily by severe earnings deterioration and ongoing losses despite only modestly positive cash flow. Strong liquidity and low leverage, plus earnings-call evidence of cost and margin progress with profitability guidance for FY26, provide partial support. Technicals and valuation remain mixed, with weak near-term momentum and a negative P/E.
Positive Factors
Balance Sheet Strength
A cash-rich, largely debt-free balance sheet materially lowers near-term solvency risk and gives management flexibility. This durable financial cushion supports operational restructuring, targeted M&A and technology investments while the company pursues a multi-quarter recovery to profitability.
Higher-Margin Mix & Gross Margin
Growth in direct-hire and a sustained mid-30% gross margin indicate favorable revenue mix and pricing power versus lower-margin contract staffing. If the company can scale higher-margin placements, that structural mix shift will help restore operating leverage and durable margin improvement.
Cost Discipline & EBITDA Improvement
Meaningful, sustained SG&A cuts and demonstrated improvement in adjusted EBITDA show management ability to right-size costs. Structural expense reductions combined with system modernizations and disciplined M&A raise the probability of a durable return to profitability if revenue stabilizes.
Negative Factors
Revenue Decline & Client Concentration
Material year-over-year revenue decline and reliance on a few large customers create persistent top-line vulnerability. Client loss-driven swings erode scale, amplify margin pressure and make multi-quarter recovery dependent on both new account wins and broader demand improvement.
Large Multi-Year Earnings Deterioration
Very large trailing losses are a structural drag: they reduce retained earnings and limit reinvestment capacity. Reversing deep negative margins requires sustained revenue growth plus continued margin discipline; until achieved, shareholder value and return on equity remain impaired.
Weak Cash Generation versus Losses
While cash flow is positive, its small magnitude relative to ongoing losses limits the firm's ability to fund growth or absorb shocks without using cash reserves. Limited free cash flow increases execution risk for investments (AI, systems, M&A) needed to deliver lasting recovery.
GEE Group (JOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.27M
Dividend YieldN/A
Average Volume (3M)267.17K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-15.43%
EPS Growth-43.45%
CountryUS
Employees210
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding109,870,690
10 Day Avg. Volume254,038
30 Day Avg. Volume267,167
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.45
Price to Sales (P/S)0.23
P/FCF Ratio42.43
Enterprise Value/Market Cap0.47
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.37
Enterprise Value/Ebitda-14.28
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
GEE Group Business Overview & Revenue Model
Company DescriptionGEE Group, Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments, Industrial Staffing Services and Professional Staffing Services. It offers placement of information technology, accounting, finance, office, engineering, and medical professionals for direct hire and contract staffing services; and temporary staffing services for light industrial clients. The company also provides medical scribes, who offer electronic medical record services for emergency departments, specialty physician practices, and clinics. It offers professional and commercial staffing services under the names of Access Data Consulting, Agile Resources, Ashley Ellis, GEE Group, Omni One, Paladin Consulting, and Triad; medical staffing services under the Scribe Solutions brand; and contract and direct hire professional staffing services under the Accounting Now, Staffing Now, SNI Banking, SNI Certes, SNI Energy, SNI Financial, and SNI Technology brands. The company was formerly known as General Employment Enterprises, Inc. and changed its name to GEE Group, Inc. in July 2016. GEE Group, Inc. was founded in 1893 and is based in Jacksonville, Florida.
How the Company Makes MoneyGEE Group generates revenue primarily through its staffing services, which include temporary staffing, permanent placements, and other workforce solutions. The company earns money by charging clients a fee for each candidate placed in a job, which can be a percentage of the candidate's salary or a flat fee. Additionally, significant revenue streams come from long-term contracts with corporate clients seeking ongoing staffing solutions. Partnerships with various businesses across multiple industries enhance its revenue potential, allowing GEE Group to capitalize on diverse market needs. Furthermore, the company may also benefit from ancillary services, such as training and development programs, which can provide additional income.
GEE Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management delivered notable operational improvements (direct-hire growth, margin expansion, cost reductions, stronger EBITDA and a solid liquidity position) and outlined disciplined strategic initiatives (AI integration, systems upgrades and targeted M&A). However, these positives were offset by meaningful revenue declines (15% overall, 17% in contract staffing), the loss of a large client, continued weakness in staffing demand driven by macroeconomic headwinds, and the company remaining unprofitable on a GAAP and adjusted EBITDA basis (albeit improved). Given the comparable weight of improvements and remaining challenges, the tone is cautiously constructive but pragmatic.Q1-2026 Updates
Positive Updates
Direct Hire Growth and Margin Improvement
Direct hire revenues increased 8% year-over-year to $2.7 million (100% gross margin). Consolidated gross profit was $7.4 million and gross margin improved to 36.1% from 33.0% in the prior-year quarter (approx. +310 basis points). January 2026 direct-hire revenue was $1.2 million, the strongest month of the fiscal year to date.
Improved EBITDA and Reduced Net Loss
Non-GAAP adjusted EBITDA improved to negative $97,000 versus negative $304,000 in the prior-year quarter. GAAP EBITDA improved to negative $303,000 from negative $513,000. Net loss from continuing operations narrowed to $150,000 (≈ $0.00 per diluted share) from a prior-year loss of $684,000 (≈ $0.01 per diluted share).
Cost Reductions and Operating Discipline
SG&A expenses declined $736,000 (≈ 9%) year-over-year to $7.7 million; management implemented estimated annualized SG&A reductions of $3.8 million in H2 2025. Management targets an SG&A ratio of 30% of revenue or less through systems upgrades and legal-entity consolidation.
Strong Liquidity and Debt-Free Balance Sheet
Company reported $20.1 million in cash, an undrawn ABL facility with $4.2 million availability, net working capital of $23.9 million, a current ratio of 5.3:1 and no outstanding debt. Net book value per share was $0.45 and net tangible book value per share was $0.22 as of Dec 31, 2025.
Strategic M&A Completion and Technology Initiatives
Completed acquisition of Hornet Staffing (fiscal 2025) and increased focus on VMS/MSP-sourced business. Company is integrating AI into recruiting, sales and operations and pursuing disciplined, targeted M&A (AI consulting, cybersecurity, IT consulting) to build future growth platforms.
Negative Updates
Quarterly Revenue Decline and Lost Large Client
Consolidated revenues were $20.5 million, down $3.5 million or 15% year-over-year. Contract staffing revenues fell to $17.8 million, down $3.7 million or 17%. One large, high-volume client moved to an acquirer's affiliate and accounted for $2.6 million of the decline; management indicated that, excluding that single customer, consolidated revenues declined about 3.8%.
Soft Demand in Staffing and Continued Market Headwinds
Hiring volumes remain below prior norms due to 2021–2022 overhiring, persistent inflation, high interest rates and corporate hiring freezes/layoffs. Management cited decreased job orders for both contract and direct-hire placements and noted that AI adoption is complicating HR/project planning and demand patterns.
Profitability Not Yet Restored
Although improved, results remain unprofitable: adjusted EBITDA was still negative $97,000 and GAAP net loss from continuing operations was $150,000. Management expects to restore profitability in fiscal 2026 but has not achieved it yet.
SG&A as Percentage of Revenue Remains Elevated
While SG&A fell in absolute dollars, SG&A as a percentage of revenue increased to 37.6% from 35.1% year-over-year, indicating operating leverage pressure given lower revenue levels.
Share-Price Pressure and Strategic Uncertainty
Management noted the stock trading near or slightly below tangible book value and disclosed unsolicited expressions of interest (including Star Equity commentary). The Board is evaluating strategic alternatives, creating near-term uncertainty for shareholders about value realization.
Company Guidance
Management guided toward restoring profitability in fiscal 2026, expecting contingent labor to stabilize and AI initiatives to begin delivering returns later this year; they reported Q1 revenue of $20.5M (down $3.5M, -15% YoY), contract staffing $17.8M (down $3.7M, -17%, with $2.6M attributable to one lost client), direct hire $2.7M (up $0.2M, +8%; January direct-hire was $1.2M), gross profit $7.4M and gross margin 36.1% (vs 33% prior), SG&A $7.7M (down ~$736k, -9% YoY) after an estimated $3.8M of H2 2025 annualized SG&A reductions, adjusted EBITDA -$97k (EBITDA -$303k), net loss from continuing operations -$150k (~$0.00/diluted share) versus prior -$684k (~$0.01), and strong liquidity with $20.1M cash, $4.2M undrawn ABL, net working capital $23.9M, working-capital ratio 5.3:1, no debt, net book value/share $0.45 and net tangible book $0.22; key targets include returning to profitability in FY26 and lowering SG&A to ≤30% of revenue while modernizing systems and pursuing disciplined M&A.GEE Group Financial Statement Overview
Summary
Financials are mixed but skew negative: the income statement shows sharp deterioration with multi-year revenue declines and very large TTM losses (net margin ~-36.8%). Offsetting this, leverage is low (debt-to-equity ~0.08) and free cash flow is slightly positive, but small versus the loss level and equity has been pressured by poor ROE.Income Statement
Profitability has deteriorated sharply. Revenue has been shrinking (TTM (Trailing-Twelve-Months) down 5.6% and annual declines since 2023), while the company swung from solid profits in 2022–2023 to very large losses in 2024–2025 (TTM net margin about -36.8%). Gross margin has held relatively steady in the mid-30% range, but operating results are deeply negative, indicating the core cost structure is not aligned with the current revenue base.18
Very Negative
Balance Sheet
Leverage is low and the balance sheet remains conservatively financed (TTM debt-to-equity ~0.08), which reduces near-term solvency risk. However, heavy losses are pressuring shareholder returns (TTM return on equity around -68%), and equity has declined materially versus prior years (notably from 2023 levels), highlighting ongoing value erosion if losses persist.58
Neutral
Cash Flow
Cash generation is positive but weak. TTM operating cash flow and free cash flow are slightly positive (~$0.47M and ~$0.46M), which is a stabilizing factor versus the income statement losses. That said, cash flow has fallen versus the prior annual period (TTM free cash flow down ~14%), and operating cash flow relative to net income is low in recent periods, suggesting limited cash support and potential working-capital volatility.46
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.00M | 96.50M | 116.48M | 152.44M | 165.11M | 148.88M |
| Gross Profit | 32.60M | 32.31M | 37.65M | 52.87M | 61.68M | 52.54M |
| EBITDA | -835.00K | -22.42M | -27.06M | 5.77M | 25.79M | 11.69M |
| Net Income | -34.20M | -34.75M | -24.10M | 9.42M | 19.60M | 6.00K |
Balance Sheet | ||||||
| Total Assets | 58.94M | 60.00M | 95.90M | 123.49M | 119.55M | 117.59M |
| Cash, Cash Equivalents and Short-Term Investments | 20.15M | 21.36M | 20.83M | 22.47M | 18.85M | 9.95M |
| Total Debt | 7.21M | 5.11M | 3.55M | 3.94M | 3.22M | 21.43M |
| Total Liabilities | 8.97M | 9.99M | 11.69M | 14.19M | 18.55M | 36.82M |
| Stockholders Equity | 49.97M | 50.01M | 84.21M | 109.30M | 101.00M | 80.77M |
Cash Flow | ||||||
| Free Cash Flow | 473.00K | 533.00K | 144.00K | 5.80M | 8.90M | 244.00K |
| Operating Cash Flow | 472.00K | 549.00K | 202.00K | 5.89M | 9.23M | 370.00K |
| Investing Cash Flow | 51.00K | 54.00K | -58.00K | -89.00K | -328.00K | -126.00K |
| Financing Cash Flow | -68.00K | -67.00K | -1.79M | -2.18M | -167.00K | -4.37M |
GEE Group Technical Analysis
Neutral
0.20
Price Trends
0.22
Positive
0.21
Positive
0.20
Positive
Market Momentum
<0.01
Positive
49.41
Neutral
54.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOB, the sentiment is Neutral. The current price of 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JOB.
GEE Group Risk Analysis
GEE Group disclosed 40 risk factors in its most recent earnings report. GEE Group 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
GEE Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $66.97M | -7.89 | -14.43% | 41.67% | -36.79% | -507.05% | |
60 Neutral | $13.97M | ― | ― | ― | ― | ― | |
48 Neutral | $25.27M | -0.74 | -51.65% | ― | -15.43% | -43.45% | |
44 Neutral | $6.20M | -0.64 | -78.12% | ― | -7.26% | -1.37% | |
34 Underperform | $13.12M | -0.47 | -213.28% | ― | 6913.31% | 72.35% |
* Industrials Sector Average
JOB
GEE Group
0.23
0.01
5.02%
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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.