Staffing 360 revenue down 9% in Q2
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Staffing 360 Solutions (NASDAQ: STAF) reported revenue fell 9.1% year over year to $44.2 million in the second quarter ended June 29. The New York-based company reported earnings in a filing with the US Securities and Exchange Commission on Aug. 12.
The company’s commercial staffing business was down by 16.5% year over year with professional staffing down by 1.7%.
Gross margin narrowed to 13.2% in the second quarter from 14.5% in the year-ago quarter. Staffing 360 noted the decline was mainly driven by the proportion of the revenue driven by lower-margin employer-of-record business being 38.6% in the first half of the year compared to 32.1% in the prior-year period.
Net loss improved to $2.0 million from $2.9 million in the second quarter of 2023.
Staffing 360 provides staffing in finance/accounting, IT, engineering, office/clerical and light industrial. In June, it announced a reverse stock split that provided one share for every 10 shares pre-split in a move aimed at regaining compliance with Nasdaq minimum bid requirements.
Staffing 360 Solutions - Q2 2024
(US$ thousands) | Q2 2024 | Q2 2023 | % change |
Revenue | 44,177 | 48,615 | -9.1% |
Gross profit | 5,815 | 7,027 | -17.2% |
Gross margin | 13.2% | 14.5% | - |
Net loss | -1,970 | -2,879 | nm |
Revenue by Type
(US$ thousands) | Q2 2024 | Q2 2023 | % change |
US professional temp | 23,967 | 24,283 | -1.3% |
US professional perm | 48 | 187 | -74.3% |
US commercial temp | 20,110 | 24,106 | -16.6% |
US commercial perm | 52 | 39 | 33.3% |
Share Price
Shares in Staffing 360 were down 6.04% to $1.41 as of 11:01 a.m. Eastern time today. They were 7.59% above their 52-week low.