Atlantic International Corp. Reports Strong Operational Improvements in Second Quarter 2025
Rhea-AI Summary
Atlantic International Corp. (Nasdaq: ATLN) reported its Q2 2025 financial results, showing significant operational improvements. The company narrowed its net loss by 81% to $10.7 million ($0.20 per share) compared to Q2 2024's loss of $54.9 million. Service revenue reached $102.9 million, with permanent placement services growing 17% year-over-year.
Key highlights include gross profit margin improvement to 11.1%, positive operating cash flow of $5.0 million for the six months, and securing a new $70 million asset-based lending facility. The company's permanent placement segment showed strong growth, increasing 16.9% in Q2 and 9.3% for the six-month period, despite economic headwinds.
Positive
- Net loss narrowed significantly by 81% year-over-year to $10.7 million
- Permanent placement services revenue grew 17% year-over-year
- Gross profit margin improved to 11.1%
- Secured new $70 million asset-based lending facility
- Operating cash flow turned positive at $5.0 million from -$4.2 million last year
Negative
- Company still operating at a net loss of $10.7 million
- Service revenue showed minimal growth at $205.7 million vs $205.3 million year-over-year
- Facing economic headwinds affecting business performance
News Market Reaction 16 Alerts
On the day this news was published, ATLN gained 9.12%, reflecting a notable positive market reaction. Argus tracked a peak move of +39.3% during that session. Argus tracked a trough of -5.8% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $27M to the company's valuation, bringing the market cap to $324M at that time. Trading volume was elevated at 2.4x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
ENGLEWOOD CLIFFS, N.J., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Atlantic International Corp. (Nasdaq: ATLN), a leading strategic staffing, outsourced services, and workforce solutions company, today announced financial results for the second quarter ended June 30, 2025, demonstrating significant operational improvements and a strengthened financial position.
Second Quarter 2025 Highlights:
- Net loss narrowed by
81% to$10.7 million (or$0.20 per share), compared to a net loss of$54.9 million (or$1.96 per share) in Q2 2024 - Service revenue was
$102.9 million , with permanent placement services up17% year-over-year. - Gross profit margin improved to
11.1% , reflecting pricing discipline and efficiency. - Operating cash flow was
$5.0 million for the six months, improving from$(4.2) million a year ago. - Enhanced financial flexibility by securing a new
$70 million asset-based lending facility, replacing the prior credit arrangement, supporting growth initiatives, and working capital needs.
Six-Month 2025 Performance:
- Service revenue increased to
$205.7 million from$205.3 million in the prior year period - Gross profit improved
3.0% to$22.6 million , with gross margin expanding to11.0% from10.7% - Net loss per share improved
82% to$(0.40) compared to$(2.23) in the prior year period
"We are pleased to report substantial progress in our operational performance and financial position during the second quarter," said Jeffrey Jagid, Chief Executive Officer of Atlantic International Corp. "Our significant improvement in profitability metrics, combined with positive operating cash flow generation, reflects the strength of our business model and the dedication of our team. While we navigated some economic headwinds in the quarter, we're seeing encouraging momentum heading into the third quarter, with strong demand in both our temporary and permanent placement services, as well as improved operational efficiency across our platform. We expect the second half of the year to show continued improvement as market conditions stabilize and our strategic initiatives gain traction."
The Company's permanent placement and other services segment continued to demonstrate strong growth, increasing
About Atlantic International Corp. Atlantic International Corp., through its subsidiaries, is a national strategic staffing firm servicing commercial, professional, finance, direct placement, and managed service provider verticals. The Company specializes in temporary and temporary-to-permanent labor placement across various industries, primarily placing individuals in accounting and finance, administrative and clerical, information technology, legal, light industrial, and medical roles. Atlantic is also a leading provider of productivity consulting and workforce management solutions, with more than 100 locations throughout the United States.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Important factors that could cause actual results to differ materially include economic conditions, competition, and other factors described in the Company's filings with the Securities and Exchange Commission.
Investor Relations Investors@atlantic-international.com
FAQ
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