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1. Company Snapshot

1.a. Company Description

GEE 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.

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1.b. Last Insights on JOB

GEE Group's recent performance was driven by a strong fiscal 2025 second quarter, with consolidated revenue increasing 12.6% year-over-year to $63.4 million. The company's Professional Staffing Services operating division reported a 14.4% revenue growth, driven by robust demand for its IT, engineering, finance, and healthcare staffing services. Additionally, the sale of its Triad Light Industrial Division to Armada Staffing Group on June 2, 2025, marks a strategic shift towards focusing on high-growth professional staffing and human resources solutions.

1.c. Company Highlights

2. GEE Group's Q3 FY2025 Earnings: Navigating a Challenging Landscape

GEE Group reported consolidated revenues of $24.5 million for Q3 FY2025, with a gross profit of $8.7 million and a gross margin of 35.4%. The company's year-to-date revenues stood at $73 million, with a gross profit of $25 million and a gross margin of 34.2%. The loss from continuing operations was $400,000, or $0.01 per share, compared to a loss of $18.1 million or $0.17 per diluted share in the prior year quarter. The actual EPS came out at -$0.00387, missing estimates of $0.03. Consolidated non-GAAP adjusted EBITDA was negative $25,000 for the quarter and negative $918,000 year-to-date.

Publication Date: Aug -25

📋 Highlights
  • Revenue Decline:: Q3 revenue was $24.5M, down from prior year, with year-to-date revenue at $73M.
  • EBITDA Loss:: Non-GAAP adjusted EBITDA was -$25K for Q3 and -$918K year-to-date, reflecting operational challenges.
  • Gross Margin Stability:: Q3 gross margin held at 35.4% despite macroeconomic pressures, slightly below the 34.2% year-to-date.
  • Cost Reduction:: SG&A expenses dropped 8% (Q3) and 9% (year-to-date), decreasing to $9M and $26.7M respectively.
  • Net Loss Expansion:: Q3 net loss was -$400K ($0.01/share) vs. -$18.1M ($0.17/share) in prior year, with year-to-date loss at -$34M ($0.31/share).

Operational Challenges and Strategic Adjustments

The company is adapting to the challenging hiring environment, macroeconomic uncertainty, and cooling effect on U.S. employment by streamlining its core operations, improving productivity, and refining its strategic focus and growth plans. As the CEO noted, the company is focused on developing high-demand skill sets, particularly in IT, and is seeing growth in areas like accounting, with CFOs, controllers, and tax personnel in high demand.

Valuation and Growth Prospects

With a P/S Ratio of 0.21 and an EV/EBITDA of -2.28, the market appears to be pricing in a challenging near-term outlook for the company. However, analysts estimate revenue growth of 18.6% next year, suggesting a potential turnaround. The company's cash position has been relatively stable, and it is not burning through cash. GEE Group is targeting consultancy-type businesses that are complementary to staffing for potential acquisitions and is considering reinstating stock buybacks once it becomes cash flow positive again.

Embracing AI and Future Plans

The company is embracing AI and using it to streamline its business, including implementing AI-powered recruiting tools and applicant tracking systems. The CEO emphasized that AI is here to stay, and the company needs to be reactive to it. The company's focus on increasing its market share and being nimble and quick in providing the best resources to customers is expected to drive growth in the long term.

3. NewsRoom

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GEE Group Inc. (JOB) 2025 Annual Meeting Of Shareholders Call (Transcript)

Sep -04

Source: seekingalpha.com

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GEE Group Inc. (JOB) Q3 2025 Earnings Call Transcript

Aug -19

Source: seekingalpha.com

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GEE Group Announces Results for the Fiscal 2025 Third Quarter and YTD

Aug -13

Source: accessnewswire.com

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GEE Group to Hold Investor Conference Call to Discuss 2025 Fiscal Third Quarter and YTD Results

Aug -11

Source: accessnewswire.com

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GEE Group Announces Sale of Its Triad Light Industrial Division

Jun -06

Source: accessnewswire.com

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GEE Group Inc. (JOB) Q2 2025 Earnings Call Transcript

May -15

Source: seekingalpha.com

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GEE Group Announces Results for the Fiscal 2025 Second Quarter and YTD

May -14

Source: accessnewswire.com

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GEE Group to Hold Investor Conference Call to Discuss 2025 Fiscal Second Quarter Results

May -09

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Professional Staffing Services

Expected Growth: 2.0%

GEE Group's Professional Staffing Services growth is driven by increasing demand for skilled labor, particularly in IT, healthcare, and finance. The rise of the gig economy and remote work also fuels growth. Additionally, the company's strategic expansion into new markets, investments in digital platforms, and strong client relationships contribute to its 2.0% growth.

Industrial Staffing Services

Expected Growth: 2.0%

GEE Group's Industrial Staffing Services segment growth is driven by increasing demand for skilled labor in manufacturing and logistics, coupled with a tight labor market. Additionally, the company's strategic expansion into new markets and investments in digital recruitment platforms have enhanced its ability to attract and place candidates, contributing to the 2.0% growth rate.

7. Detailed Products

Contract Staffing

GEE Group provides temporary staffing solutions to clients across various industries, offering skilled professionals on a project-by-project basis.

Direct Hire

GEE Group offers direct hire services, providing clients with permanent employees who can fill critical positions within their organizations.

Executive Search

GEE Group's executive search services focus on identifying and recruiting top-level talent for senior-level positions.

Temporary-to-Direct

GEE Group's temporary-to-direct services allow clients to evaluate temporary employees before converting them to permanent staff.

Vendor Management System (VMS)

GEE Group's VMS provides clients with a centralized platform to manage their contingent workforce, including temporary staff, contractors, and freelancers.

Recruitment Process Outsourcing (RPO)

GEE Group's RPO services provide clients with a comprehensive recruitment solution, managing the entire hiring process from job posting to onboarding.

8. GEE Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for GEE Group, Inc. is moderate due to the presence of alternative staffing services and the ease of switching costs.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of clients in the industry and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the lack of differentiation in their products.

Threat Of New Entrants

The threat of new entrants is moderate due to the moderate barriers to entry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition in the industry and the presence of multiple players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.48%
Debt Cost 3.95%
Equity Weight 96.52%
Equity Cost 6.67%
WACC 6.58%
Leverage 3.61%

11. Quality Control: GEE Group, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.6

Quality: 8.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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GEE Group

A-Score: 3.5/10

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Growth: 2.7

Quality: 3.0

Yield: 0.0

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Growth: 2.9

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.19$

Current Price

0.19$

Potential

-0.00%

Expected Cash-Flows