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0001210708falsetrue00012107082025-03-142025-03-140001210708exch:XNASus-gaap:CommonStockMember2025-03-142025-03-140001210708exch:XNAShson:PreferredSharePurchaseRightsMember2025-03-142025-03-14


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 14, 2025
 

HUDSON GLOBAL, INC.
(Exact name of registrant as specified in charter)
 

Delaware 001-38704 59-3547281
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)

53 Forest Avenue, Suite 102
Old Greenwich, CT 06870
(Address of Principal Executive Offices)
 
Registrant's telephone number, including area code (475) 988-2068
N/A
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.001 par value HSON The NASDAQ Stock Market LLC
Preferred Share Purchase Rights The NASDAQ Stock Market LLC
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐





Item 2.02. Results of Operations and Financial Condition.

On March 14, 2025, Hudson Global, Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 2024. A copy of such press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. In addition, on March 14, 2025, the Company issued a presentation supplementary to its press release, which presentation is furnished herewith as Exhibit 99.2.

The information in this Current Report on Form 8-K furnished pursuant to Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibit is included with this Current Report on Form 8-K:

EXHIBIT INDEX

99.1    Press Release of Hudson Global, Inc. issued on March 14, 2025.

99.2    Earnings Presentation issued on March 14, 2025

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

1



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
HUDSON GLOBAL, INC.
 (Registrant)
   
By: /s/ JEFFREY E. EBERWEIN
  Jeffrey E. Eberwein
  Chief Executive Officer
   
  Dated: March 14, 2025

2
EX-99.1 2 hson20241231-exhibit991.htm EX-99.1 Document


                         Exhibit 99.1hsonreda.jpg
For Immediate Release
Hudson Global Reports 2024 Fourth Quarter and Full-Year Results
OLD GREENWICH, CT - March 14, 2025 - Hudson Global, Inc. (Nasdaq: HSON), a leading global talent solutions company, announced today financial results for the fourth quarter and full year ended December 31, 2024.
2024 Fourth Quarter Summary

•Revenue of $33.6 million decreased 1.1% from the fourth quarter of 2023, or 2.0% in constant currency.

•Adjusted net revenue of $17.6 million increased 6.4% from the fourth quarter of 2023, or 5.7% in constant currency.

•Net loss of $0.6 million, or $0.20 loss per diluted share, versus net income of $0.7 million, or $0.23 income per diluted share, in the fourth quarter of 2023. Adjusted net loss per diluted share (Non-GAAP measure)* decreased to $0.05 from adjusted net income per diluted share of $0.04 in the fourth quarter of 2023.

•Adjusted EBITDA (Non-GAAP measure)* increased to $0.9 million, versus adjusted EBITDA of $0.1 million in the fourth quarter of 2023.

2024 Full-Year Summary

•Revenue of $140.1 million decreased 13.2% from 2023, or 13.2% in constant currency.

•Adjusted net revenue of $70.2 million decreased 12.6% from 2023, or 12.8% in constant currency.

•Net loss of $4.8 million, or $1.59 loss per diluted share, compared to net income of $2.2 million, or $0.70 income per diluted share, in 2023. Adjusted net loss per diluted share (Non-GAAP measure)* of $0.86 decreased from adjusted net income per diluted share of $0.86 in the prior year.

•Adjusted EBITDA (Non-GAAP measure)* was $0.9 million, versus adjusted EBITDA of $5.9 million in 2023.

Jeff Eberwein, Chief Executive Officer at Hudson Global, said, "Our fourth quarter financial results reflect modest improvement over the prior year quarter, with the Americas region delivering the strongest results. Throughout 2024, we contended with a general low level of global hiring activity as well as unusually low attrition at many legacy clients. Although these challenges are largely out of our control, we are well positioned to take advantage of future growth in the market. During the year, we invested in new technologies to best support our clients' recruitment needs and streamline operations, including sourcing, screening, and onboarding procedures. Altogether in 2024, we invested approximately $3.4 million in sales, marketing, and technology above maintenance levels to enhance future growth."

Jake Zabkowicz, Hudson RPO's Global CEO, noted, "Despite the challenging global talent environment, we continued to consistently deliver best-in-class service to a growing number of clients on a global scale. To that end, we are proud to have been named on the HRO Today's Baker's Dozen List for the 16th consecutive year in the list of top enterprise RPO providers, for the 12th consecutive year as a top RPO provider in APAC and for the 8th consecutive year as a top RPO provider in EMEA."
1



Mr. Zabkowicz continued, "We have been investing significantly to fuel future growth, and have enhanced our go-to-market strategy by expanding our service offering to existing and prospective clients alike. With the recent launch of our Digital Division, and the hiring of Stephanie Edwards as Chief Digital Officer, we are revolutionizing our digital capabilities and enterprise strategies to deliver innovative, efficient, cost-effective, and high-quality talent solutions to our clients worldwide." In the fourth quarter of 2024, Americas revenue of $7.3 million increased 18% and adjusted net revenue of $6.4 million increased 5% compared to the fourth quarter of 2023.

* The Company provides Non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Constant currency, adjusted EBITDA, EBITDA, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such Non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.
2


Regional Highlights

All growth rate comparisons are in constant currency.

Americas

EBITDA was $0.5 million in the fourth quarter of 2024 compared to EBITDA of $0.2 million in same period last year. Adjusted EBITDA was $0.4 million for the fourth quarter of 2024 compared to adjusted EBITDA loss of $0.7 million a year ago.

For full year 2024, Americas revenue of $27.9 million decreased 11% and adjusted net revenue of $25.1 million decreased 17% from 2023. EBITDA was $0.3 million for full year 2024 compared to EBITDA loss of $0.7 million in 2023. Adjusted EBITDA was $0.9 million for full year 2024 compared to adjusted EBITDA loss of $0.4 million in 2023.

Asia Pacific

Asia Pacific revenue of $20.0 million decreased 10% and adjusted net revenue of $7.4 million increased 6% in the fourth quarter of 2024 compared to the same period in 2023. EBITDA was $0.5 million in the fourth quarter of 2024 compared to EBITDA of $0.4 million a year ago. Asia Pacific adjusted EBITDA of $0.9 million in the fourth quarter of 2024 was flat versus adjusted EBITDA of $0.9 million in the fourth quarter of 2023.

For full year 2024, Asia Pacific revenue of $86.7 million decreased 16% and adjusted net revenue of $29.4 million decreased 12% compared to 2023. EBITDA for full year 2024 was $0.5 million, compared to EBITDA of $5.9 million in 2023. Adjusted EBITDA for full year 2024 was $2.4 million versus $7.6 million in 2023.

Europe, Middle East, and Africa ("EMEA")

EMEA revenue of $6.3 million increased 7% and adjusted net revenue of $3.8 million increased 5% in the fourth quarter of 2024 compared to the fourth quarter of 2023. EBITDA loss was $0.2 million in the fourth quarter of 2024, compared to EBITDA of $0.6 million in the same period one year ago. Adjusted EBITDA was $0.2 million in the fourth quarter of 2024 compared to $0.6 million a year ago.

For full year 2024, EMEA revenue of $25.5 million decreased 5% and adjusted net revenue of $15.6 million decreased 8% compared to 2023. EBITDA was $0.3 million for full year 2024 compared to $1.6 million in 2023. Adjusted EBITDA was $1.0 million for full year 2024 compared to adjusted EBITDA of $2.4 million in 2023.
3


Corporate Costs

The Company's corporate costs of $0.6 million for the fourth quarter of 2024 excluded $0.0 million of non-recurring expenses. This compares to corporate costs of $0.7 million in the fourth quarter of 2023, which excluded $0.2 million of non-recurring expenses.

The Company's corporate costs of $3.4 million for the year ended 2024 excluded $0.9 million of non-recurring expenses. This compares to corporate costs of $3.7 million for the year ended 2023, which excluded $0.7 million of non-recurring expenses.

Liquidity and Capital Resources

The Company ended the fourth quarter of 2024 with $17.7 million in cash, including $0.7 million in restricted cash. The Company generated $2.0 million in cash flow from operations in the fourth quarter of 2024 compared to $3.3 million in the fourth quarter of 2023. For the full year, the company used $2.8 million in cash flow from operations compared to generating $0.3 million in cash flow from operations in 2023.

Share Repurchase Program

As a reminder, the Company approved a $5 million common stock share repurchase program, effective August 8, 2023. In 2024, the Company purchased 154,084 shares for $2.5 million under this program and has $2.1 million remaining. The Company continues to view share repurchases as an attractive use of capital.

NOL Carryforward

As of December 31, 2024, Hudson Global had $240 million of usable net operating losses (“NOL”) in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a rights agreement and charter amendment in place that limit beneficial ownership of Hudson Global common stock to 4.99%. Stockholders who wish to own more than 4.99% of Hudson Global common stock, or who already own more than 4.99% of Hudson Global common stock and wish to buy more, may only acquire additional shares with the Board’s prior written approval.

Conference Call/Webcast

The Company will conduct a conference call today, March 14, 2025, at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at hudsonrpo.com.

If you wish to join the conference call, please use the dial-in information below:
•Toll-Free Dial-In Number: (833) 816-1383
•International Dial-In Number: (412) 317-0476

The archived call will be available on the investor information section of the Company's web site at hudsonrpo.com.
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About Hudson Global

Hudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients’ strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.

For more information, please visit us at hudsonrpo.com or contact us at ir@hudsonrpo.com.

Investor Relations:
The Equity Group
Lena Cati
212 836-9611 / lcati@equityny.com

Forward-Looking Statements

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the Company’s ability to successfully achieve its strategic initiatives ; risks related to potential acquisitions or dispositions of businesses by the Company; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company’s operating results from quarter to quarter due to various factors such as rising inflationary pressures and interest rates; the loss of or material reduction in our business with any of the Company’s largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company’s markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company’s investment strategy; risks related to international operations, including foreign currency fluctuations, political events, trade wars, natural disasters or health crises, including the Russia-Ukraine war, and potential conflict in the Middle East; the Company’s dependence on key management personnel; the Company’s ability to attract and retain highly skilled professionals, management, and advisors; the Company’s ability to collect accounts receivable; the Company’s ability to maintain costs at an acceptable level; the Company’s heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company’s exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Company’s business reorganization initiatives, and limits on related insurance coverage; the Company’s ability to utilize net operating loss carryforwards; volatility of the Company’s stock price; the impact of government regulations and deregulation efforts; restrictions imposed by blocking arrangements; risks related to the use of new and evolving technologies; and the adverse impacts of cybersecurity threats and attacks. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial Tables Follow
5


HUDSON GLOBAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
  December 31, December 31,
  2024 2023 2024 2023
Revenue $ 33,600  $ 33,971  $ 140,056  $ 161,338 
Operating expenses:    
Direct contracting costs and reimbursed expenses 15,996  17,421  69,904  81,071 
Salaries and related 13,910  13,653  58,309  62,859 
Office and general 2,539  2,924  10,703  10,915 
Marketing and promotion 961  849  3,588  3,643 
Depreciation and amortization 319  391  1,361  1,467 
Total operating expenses 33,725  35,238  143,865  159,955 
Operating (loss) income (125) (1,267) (3,809) 1,383 
Non-operating income (expense):    
Interest income, net 80  88  360  372 
Other income (expense), net 297  1,134  (21) 813 
Income (loss) before income taxes 252  (45) (3,470) 2,568 
Provision for (benefit from) income taxes 837  (778) 1,300  370 
Net (loss) income $ (585) $ 733  $ (4,770) $ 2,198 
(Loss) earnings per share:    
Basic $ (0.20) $ 0.24  $ (1.59) $ 0.72 
Diluted $ (0.20) $ 0.23  $ (1.59) $ 0.70 
Weighted-average shares outstanding:    
Basic 2,974  3,072  3,000  3,064 
Diluted 2,974  3,158  3,000  3,140 


6


HUDSON GLOBAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
December 31,
2024
December 31,
2023
ASSETS    
Current assets:    
Cash and cash equivalents $ 17,011  $ 22,611 
Accounts receivable, less allowance for expected credit losses of $391 and $378, respectively 20,093  19,710 
Restricted cash, current 476  354 
Prepaid and other 2,560  3,172 
Total current assets 40,140  45,847 
Property and equipment, net of accumulated depreciation of $1,668 and $1,564, respectively 242  421 
Operating lease right-of-use assets 1,024  1,431 
Goodwill 5,703  5,749 
Intangible assets, net of accumulated amortization of $3,897 and $2,771, respectively
2,491  3,628 
Deferred tax assets 2,648  3,360 
Restricted cash 180  205 
Other assets 155  317 
Total assets $ 52,583  $ 60,958 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $ 1,789  $ 868 
Accrued salaries, commissions, and benefits 4,306  4,939 
Accrued expenses and other current liabilities 4,504  4,635 
Operating lease obligations, current 623  768 
Total current liabilities 11,222  11,210 
Income tax payable 93  87 
Operating lease obligations 441  664 
Other liabilities 399  443 
Total liabilities 12,155  12,404 
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding —  — 
Common stock, $0.001 par value, 20,000 shares authorized; 4,033 and 3,896 shares issued; 2,750 and 2,807 shares outstanding, respectively
Additional paid-in capital 494,209  493,036 
Accumulated deficit (430,017) (425,247)
Accumulated other comprehensive loss, net of applicable tax (2,717) (1,290)
Treasury stock, 1,283 and 1,089 shares, respectively, at cost (21,051) (17,949)
Total stockholders’ equity 40,428  48,554 
Total liabilities and stockholders' equity $ 52,583  $ 60,958 


7


HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
For The Three Months Ended December 31, 2024 Americas Asia Pacific EMEA Corporate Total
Revenue, from external customers $ 7,350  $ 19,986  $ 6,264  $ —  $ 33,600 
Adjusted net revenue, from external customers (1)
$ 6,361  $ 7,396  $ 3,847  $ —  $ 17,604 
Net loss $ (585)
Provision for income taxes 837 
Interest income, net (80)
Depreciation and amortization 319 
EBITDA (loss) (2)
$ 450  $ 547  $ (161) $ (345) 491 
Non-operating expense (income),
including corporate administration charges
(100) 131  82  (410) (297)
Stock-based compensation expense 66  63  39  66  234 
Non-recurring severance and professional fees (19) 183  228  41  433 
Adjusted EBITDA (loss) (2)
$ 397  $ 924  $ 188  $ (648) $ 861 
For The Three Months Ended December 31, 2023 Americas Asia Pacific EMEA Corporate Total
Revenue, from external customers $ 6,246  $ 22,073  $ 5,652  $ —  $ 33,971 
Adjusted net revenue, from external customers (1)
$ 6,044  $ 6,941  $ 3,565  $ —  $ 16,550 
Net income $ 733 
Benefit from income taxes
(778)
Interest income, net (88)
Depreciation and amortization 391 
EBITDA (loss) (2)
$ 172  $ 404  $ 587  $ (905) 258 
Non-operating expense (income),
including corporate administration charges
(963) 187  (87) (271) (1,134)
Stock-based compensation expense 66  85  50  281  482 
Non-recurring severance and professional fees —  264  32  165  461 
Adjusted EBITDA (loss) (2)
$ (725) $ 940  $ 582  $ (730) $ 67 

1.Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations.
2.Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income (expense), stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.


8


HUDSON GLOBAL, INC.
SEGMENT ANALYSIS - YEAR TO DATE
(in thousands)
(unaudited)
For The Year Ended December 31, 2024 Americas Asia Pacific EMEA Corporate Total
Revenue, from external customers $ 27,894  $ 86,704  $ 25,458  $ —  $ 140,056 
Adjusted net revenue, from external customers (1)
$ 25,144  $ 29,416  $ 15,592  $ —  $ 70,152 
Net loss $ (4,770)
Provision for income taxes 1,300 
Interest income, net (360)
Depreciation and amortization 1,361 
EBITDA (loss) (2)
$ 339  $ 482  $ 298  $ (3,588) (2,469)
Non-operating expense (income),
including corporate administration charges
225  733  250  (1,187) 21 
Stock-based compensation expense 232  400  183  465  1,280 
Non-recurring severance and professional fees 143  797  250  881  2,071 
Adjusted EBITDA (loss) (2)
$ 939  $ 2,412  $ 981  $ (3,429) $ 903 
For The Year Ended December 31, 2023 Americas Asia Pacific EMEA Corporate Total
Revenue, from external customers $ 31,254  $ 103,857  $ 26,227  $ —  $ 161,338 
Adjusted net revenue, from external customers (1)
$ 30,141  $ 33,675  $ 16,451  $ —  $ 80,267 
Net income $ 2,198 
Provision for income taxes 370 
Interest income, net (372)
Depreciation and amortization 1,467 
EBITDA (loss) (2)
$ (704) $ 5,859  $ 1,582  $ (3,074) 3,663 
Non-operating expense (income),
including corporate administration charges
(528) 1,181  436  (1,902) (813)
Stock-based compensation expense 407  232  216  614  1,469 
Non-recurring severance and professional fees 105  292  156  658  1,211 
Compensation expense related to acquisitions (3)
338  —  —  —  338 
Adjusted EBITDA (loss) (2)
$ (382) $ 7,564  $ 2,390  $ (3,704) $ 5,868 

1.Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations.
2.Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
3.Represents compensation expense payable per the terms of acquisition agreements.
9


HUDSON GLOBAL, INC.
RECONCILIATION FOR CONSTANT CURRENCY
(in thousands)
(unaudited)

The Company operates on a global basis, with the majority of its revenue generated outside of the United States. Accordingly, fluctuations in foreign currency exchange rates can affect its results of operations. Constant currency information compares financial results between periods as if exchange rates had remained constant period-over-period. The company currently defines the term “constant currency” to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. Changes in revenue, adjusted net revenue, selling, general and administrative expenses ("SG&A"), and other non-operating income (expense), operating income (loss) and EBITDA (loss) include the effect of changes in foreign currency exchange rates. Variance analysis usually describes period-to-period variances that are calculated using constant currency as a percentage. The company’s management reviews and analyzes business results in constant currency and believes these results better represent the company’s underlying business trends. The company believes that these calculations are a useful measure, indicating the actual change in operations. There are no significant gains or losses on foreign currency transactions between subsidiaries. Therefore, changes in foreign currency exchange rates generally impact only reported earnings.
For The Three Months Ended December 31,
  2024 2023
As As Currency Constant
reported reported translation currency
Revenue:        
Americas $ 7,350  $ 6,246  $ (9) $ 6,237 
Asia Pacific 19,986  22,073  147  22,220 
EMEA 6,264  5,652  179  5,831 
Total $ 33,600  $ 33,971  $ 317  $ 34,288 
Adjusted net revenue (1):
       
Americas $ 6,361  $ 6,044  $ (9) $ 6,035 
Asia Pacific 7,396  6,941  10  6,951 
EMEA 3,847  3,565  109  3,674 
Total $ 17,604  $ 16,550  $ 110  $ 16,660 
SG&A (2):
     
Americas $ 6,075  $ 6,929  $ (23) $ 6,906 
Asia Pacific 6,655  6,290  14  6,304 
EMEA 3,922  3,050  102  3,152 
Corporate 758  1,157  1,158 
Total $ 17,410  $ 17,426  $ 94  $ 17,520 
Operating (loss) income:
     
Americas $ 78  $ (1,137) $ (1) $ (1,138)
Asia Pacific 644  556  (3) 553 
EMEA (86) 492  497 
Corporate (761) (1,178) —  (1,178)
Total $ (125) $ (1,267) $ $ (1,266)
EBITDA (loss):        
Americas $ 450  $ 172  $ (2) $ 170 
Asia Pacific 547  404  (14) 390 
EMEA (161) 587  593 
Corporate (345) (905) —  (905)
Total $ 491  $ 258  $ (10) $ 248 

1.Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations.
2.SG&A is a measure that management uses to evaluate the segments’ expenses and includes salaries and related costs, office and general costs, and marketing and promotion costs.
10


HUDSON GLOBAL, INC.
RECONCILIATION FOR CONSTANT CURRENCY (continued)
(in thousands)
(unaudited)

For The Year Ended December 31,
  2024 2023
As As Currency Constant
reported reported translation currency
Revenue:        
Americas $ 27,894  $ 31,254  $ (26) $ 31,228 
Asia Pacific 86,704  103,857  (608) 103,249 
EMEA 25,458  26,227  659  26,886 
Total $ 140,056  $ 161,338  $ 25  $ 161,363 
Adjusted net revenue (1):
       
Americas $ 25,144  $ 30,141  $ (21) $ 30,120 
Asia Pacific 29,416  33,675  (226) 33,449 
EMEA 15,592  16,451  415  16,866 
Total $ 70,152  $ 80,267  $ 168  $ 80,435 
SG&A (2):
     
Americas $ 24,786  $ 31,699  $ (79) $ 31,620 
Asia Pacific 27,974  26,427  (205) 26,222 
EMEA 15,063  14,350  372  14,722 
Corporate 4,777  4,941  —  4,941 
Total $ 72,600  $ 77,417  $ 88  $ 77,505 
Operating (loss) income:
     
Americas $ (598) $ (2,514) $ (4) $ (2,518)
Asia Pacific 1,055  6,894  (18) 6,876 
EMEA 521  1,988  41  2,029 
Corporate (4,787) (4,985) —  (4,985)
Total $ (3,809) $ 1,383  $ 19  $ 1,402 
EBITDA (loss):        
Americas $ 339  $ (704) $ (7) $ (711)
Asia Pacific 482  5,859  (43) 5,816 
EMEA 298  1,582  30  1,612 
Corporate (3,588) (3,074) —  (3,074)
Total $ (2,469) $ 3,663  $ (20) $ 3,643 


1.Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations.
2.SG&A is a measure that management uses to evaluate the segments’ expenses and includes salaries and related costs, office and general costs, and marketing and promotion costs.




11


HUDSON GLOBAL, INC.
RECONCILIATION OF ADJUSTED NET INCOME PER DILUTED SHARE
(in thousands, except per share amounts)
(unaudited)
Adjusted Diluted Shares Per Diluted
For The Three Months Ended December 31, 2024 Net Loss Outstanding
Share (1)
Net loss $ (585) 2,974  $ (0.20)
Non-recurring severance, professional fees, and other (after tax) 438  2,974  0.15 
Compensation expense related to acquisitions (after tax) (2)
—  2,974  — 
Adjusted net loss (3)
$ (147) 2,974  $ (0.05)

Adjusted Diluted Shares Per Diluted
For The Three Months Ended December 31, 2023 Net Income Outstanding Share
Net income $ 733  3,158  $ 0.23 
Non-recurring severance and professional fees (after tax) (617) 3,158  (0.19)
Compensation expense related to acquisitions (after tax) (2)
—  3,158  — 
Adjusted net income (3)
$ 116  3,158  $ 0.04 

Adjusted Diluted Shares Per Diluted
For The Year Ended December 31, 2024 Net Loss Outstanding Share
Net loss $ (4,770) 3,000  $ (1.59)
Non-recurring severance, professional fees, and other (after tax) 2,178  3,000  0.73 
Compensation expense related to acquisitions (after tax) (2)
—  3,000  — 
Adjusted net loss (3)
$ (2,592) 3,000  $ (0.86)

Adjusted Diluted Shares Per Diluted
For The Year Ended December 31, 2023 Net Income Outstanding Share
Net income $ 2,198  3,140  $ 0.70 
Non-recurring severance and professional fees (after tax) 133  3,140  0.04 
Compensation expense related to acquisitions (after tax) (2)
$ 356  3,140  0.11 
Adjusted net income (3)
$ 2,687  3,140  $ 0.86 

1.    Amounts may not sum due to rounding.

2.    Represents compensation expense payable per the terms of the Coit acquisition, including a promissory note for $1.35 million payable over three years, and $500k of the Company's common stock vesting over 30 months.

3.    Adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.
12
EX-99.2 3 earningspresentation-mar.htm EX-99.2 earningspresentation-mar
Q4 2024 Earnings Call M a r c h 1 4 , 2 0 2 5 Exhibit 99.2 © 2024 Hudson RPO. All rights reserved. 2 This presentation contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the Company’s ability to successfully achieve its strategic initiatives ; risks related to potential acquisitions or dispositions of businesses by the Company; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company’s operating results from quarter to quarter due to various factors such as rising inflationary pressures and interest rates; the loss of or material reduction in our business with any of the Company’s largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company’s markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company’s investment strategy; risks related to international operations, including foreign currency fluctuations, political events, trade wars, natural disasters or health crises, including the Russia-Ukraine war, and potential conflict in the Middle East; the Company’s dependence on key management personnel; the Company’s ability to attract and retain highly skilled professionals, management, and advisors; the Company’s ability to maintain costs at an acceptable level; the Company’s heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company’s exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Company’s business reorganization initiatives, and limits on related insurance coverage; the Company’s ability to utilize net operating loss carryforwards; volatility of the Company’s stock price; the impact of government regulations and deregulation efforts; restrictions imposed by blocking arrangements; risks related to the use of new and evolving technologies; and the adverse impacts of cybersecurity threats and attacks. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-Looking Statements © 2024 Hudson RPO. All rights reserved. 3 US$ in Millions, except EPS Q4 2024: Consolidated Financial Results '+ / - (1) CC (2) Q4 2024 Q4 2023 Revenue - 1.1% $33.6 $34.0 - 2.0% CC Adjusted net revenue + 6.4% $17.6 $16.5 + 5.7% CC SG&A(3)(4) + 1.6% $16.7 $16.5 + 1.0% CC Adjusted EBITDA(5) + N/M(6) $0.9 $0.1 + N/M(6) CC Net Income (Loss) - 179.9% $(0.6) $0.7 Basic EPS $(0.20) $0.24 Diluted EPS $(0.20) $0.23 Adjusted Diluted EPS (5) $(0.05) $0.04 (1) + / - indicates whether the caption was higher (+) or lower (-) than the comparison period. (2) CC represents constant currency. (3) Excludes stock-based compensation expense of $0.2 million and $0.5 million for the three months ended December 31, 2024 and 2023, respectively. (4) SG&A excludes non-recurring expenses of $0.4 million and $0.5 million for the three months ended December 31, 2024, and 2023, respectively. (5) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Please reference the slides in the Appendix of this presentation for a reconciliation of these non-GAAP measures. (6) N/M = Not Meaningful. © 2024 Hudson RPO. All rights reserved. 4 US$ in Millions, except EPS Q4 2024 YTD: Consolidated Financial Results '+ / - (1) CC (2) Q4 2024 YTD Q4 2023 YTD Revenue - 13.2% $140.1 $161.3 - 13.2% CC Adjusted net revenue - 12.6% $70.2 $80.3 - 12.8% CC SG&A(3)(4) - 6.9% $69.2 $74.4 - 7.0% CC Adjusted EBITDA(5) - 84.6% $0.9 $5.9 - 84.7% CC Net Income (Loss) - 317.1% $(4.8) $2.2 Basic EPS $(1.59) $0.72 Diluted EPS $(1.59) $0.70 Adjusted Diluted EPS (5) $(0.86) $0.86 (1) + / - indicates whether the caption was higher (+) or lower (-) than the comparison period. (2) CC represents constant currency. (3) Excludes stock-based compensation expense of $1.3 million and $1.5 million for the twelve months ended December 31, 2024 and 2023, respectively. (4) For the twelve months ended December 31, 2024, SG&A excludes non-recurring expenses of $2.1 million. For the twelve months ended December 31, 2023 SG&A excludes non-recurring expenses of $1.2 million, and $0.3 million of compensation expense related to acquisitions. (5) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Please reference the slides in the Appendix of this presentation for a reconciliation of these non-GAAP measures.


 
© 2024 Hudson RPO. All rights reserved. 5 US$ in Millions Q4 2024 : Americas '+ / - (1) CC (2) Q4 2024 Q4 2023 Revenue + 17.7% $7.3 $6.2 + 17.8% CC Adjusted net revenue + 5.3% $6.4 $6.0 + 5.4% CC SG&A(3) - 12.2% $6.0 $6.9 - 11.9% CC Adjusted EBITDA(4)(5) + 154.9% $0.4 $(0.7) + 154.8% CC Adjusted EBITDA, as a % of Adjusted net revenue 6.3% (12.0)% (1) + / - indicates whether the caption was higher (+) or lower (-) than the comparison period. (2) CC represents constant currency. (3) Excludes stock-based compensation expense and compensation expense related to acquisitions. (4) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Please reference the slides in the Appendix of this presentation for a reconciliation of these non-GAAP measures. (5) N/M = Not Meaningful. © 2024 Hudson RPO. All rights reserved. 6 US$ in Millions Q4 2024 : Asia Pacific '+ / - (1) CC (2) Q4 2024 Q4 2023 Revenue - 9.5% $20.0 $22.1 - 10.1% CC Adjusted net revenue + 6.6% $7.4 $6.9 + 6.4% CC SG&A(3) + 8.0% $6.4 $5.9 + 7.7% CC Adjusted EBITDA(4) - 1.7% $0.9 $0.9 - 1.1% CC Adjusted EBITDA, as a % of Adjusted net revenue 12.5% 13.5% (1) + / - indicates whether the caption was higher (+) or lower (-) than the comparison period. (2) CC represents constant currency. (3) Excludes stock-based compensation expense and compensation expense related to acquisitions. (4) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Please reference the slides in the Appendix of this presentation for a reconciliation of these non-GAAP measures. © 2024 Hudson RPO. All rights reserved. 7 US$ in Millions Q4 2024 : Europe, Middle East, and Africa ("EMEA") '+ / - (1) CC (2) Q4 2024 Q4 2023 Revenue + 10.8% $6.3 $5.7 + 7.4% CC Adjusted net revenue + 7.9% $3.8 $3.6 + 4.7% CC SG&A(3) + 23.1% $3.7 $3.0 + 19.1% CC Adjusted EBITDA(4) - 67.8% $0.2 $0.6 - 68.2% CC Adjusted EBITDA, as a % of Adjusted net revenue 4.9% 16.3% (1) + / - indicates whether the caption was higher (+) or lower (-) than the comparison period. (2) CC represents constant currency. (3) Excludes stock-based compensation expense and compensation expense related to acquisitions. (4) Adjusted EBITDA and Adjusted Diluted EPS are non-GAAP financial measures. Please reference the slides in the Appendix of this presentation for a reconciliation of these non-GAAP measures. © 2024 Hudson RPO. All rights reserved. 8 Q4 2024 Regional Split Revenue Adjusted Net Revenue Americas 22% Asia Pacific 59% EMEA 19% Americas 36% Asia Pacific 42% EMEA 22%


 
© 2024 Hudson RPO. All rights reserved. 9 Q4 2024 Services Split Revenue Adjusted Net Revenue Contracting 50% RPO 50% Contracting 6% RPO 94% © 2024 Hudson RPO. All rights reserved. 10 Hudson RPO: Operating Dashboard RPO New Business = $62.9M $7.3M in New Logo and $55.6M in renewals and expansions from our legacy clients Adjusted Net Revenue = $70.2M Relatively stable over the past four quarters RPO Adjusted EBITDA & Margin Seeing three consecutive quarters of high single-digit margins Long-term goal = 20% Rolling 4 Quarters $45.8 (2) $10.4 $3.2 $3.5 (1) New business represents estimated Adjusted net revenue based on total contract value. (2) In Q1 of 2024, an unusually large number of long-term contracts with legacy clients were renewed, extended, and/or expanded. (3) Adjusted EBITDA is a non-GAAP financial measure. Please reference the slides in the Appendix of this presentation for a reconciliation of this non-GAAP measure. (4) Expressed as a percentage of Adjusted net revenue. © 2024 Hudson RPO. All rights reserved. 11 US$ in Millions Balance Sheet: Selected Items Q4 2024 Q4 2023 Selected Assets Cash $17.0 $22.6 Restricted Cash $0.7 $0.6 Accounts Receivable $20.1 $19.7 Shareholders’ Equity Stockholders' Equity $40.4 $48.6 Working Capital Current Assets $40.1 $45.8 Current Assets ex-cash $23.1 $23.2 Current Liabilities $11.2 $11.2 Working Capital $28.9 $34.6 Working Capital ex-cash $11.9 $12.0 © 2024 Hudson RPO. All rights reserved. 12 US$ in Millions 2024: Cash Flow Summary QTD December 31, 2024 YTD December 31, 2024 QTD December 31, 2023 YTD December 31, 2023 Net income (loss) $(0.6) $(4.8) $0.7 $2.2 Depreciation and amortization 0.3 1.4 0.4 1.5 Provision for expected credit losses — — 0.4 0.5 Provision for (benefit from) deferred income taxes 0.7 0.5 (1.1) (1.1) Stock-based compensation 0.2 1.3 0.5 1.5 Change in accounts receivable 2.9 (1.3) 6.0 6.9 Change in prepaid and other assets (0.4) (0.5) (0.7) (1.1) Change in accounts payable and other liabilities (1.2) 0.6 (3.0) (10.0) Cash flow from operations 2.0 (2.8) 3.3 0.3 Capital expenditures — — — (0.1) Free cash flow 2.0 (2.8) 3.3 0.2 Cash paid for acquisitions, net of cash acquired — — (2.1) (2.1) Proceeds from corporate benefit policy — 1.1 — — Payments for business acquisition liabilities — — — (1.3) Purchase of treasury stock (including payment of tax withholdings) — (2.8) (0.2) (1.0) Cash paid for net settlement of employee restricted stock units (0.1) (0.3) — (0.2) Effect of exchange rates (0.7) (0.7) 0.2 — Change in cash, cash equivalents, and restricted cash $1.2 $(5.5) $1.2 $(4.3)


 
Appendix © 2024 Hudson RPO. All rights reserved. 14 Reconciliation of Non-GAAP Financial Measures Q1 2024 QTD Americas Asia Pacific EMEA RPO Business Corporate Total Net loss $ (2.9) Provision for income taxes (0.1) Interest income, net (0.1) Depreciation and amortization 0.4 EBITDA (loss) (1) $ (0.9) $ (0.6) $ 0.3 $ (1.2) $ (1.5) $ (2.7) Non-operating expense (income), including corporate administration charges 0.1 0.1 — 0.2 (0.2) — Stock-based compensation expense 0.1 0.1 0.1 0.3 0.1 0.4 Non-recurring items — 0.2 — 0.2 0.5 0.7 Adjusted EBITDA (loss) (1) $ (0.7) $ (0.2) $ 0.3 $ (0.5) $ (1.0) $ (1.5) Q2 2024 QTD Americas Asia Pacific EMEA RPO Business Corporate Total Net loss $ (0.4) Provision for income taxes 0.3 Interest income, net (0.1) Depreciation and amortization 0.3 EBITDA (loss) (1) $ 0.4 $ 0.2 $ 0.1 $ 0.8 $ (0.8) $ — Non-operating expense (income), including corporate administration charges 0.1 0.3 0.1 0.4 (0.4) 0.1 Stock-based compensation expense — 0.1 — 0.2 — 0.2 Non-recurring items 0.1 0.2 — 0.3 0.2 0.5 Adjusted EBITDA (loss) (1) $ 0.6 $ 0.8 $ 0.3 $ 1.7 $ (0.9) $ 0.7 (1) EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization, non-operating income, stock-based compensation expense, and other items such as non-recurring severance and professional fees. © 2024 Hudson RPO. All rights reserved. 15 Reconciliation of Non-GAAP Financial Measures Q3 2024 QTD Americas Asia Pacific EMEA RPO Business Corporate Total Net loss $ (0.8) Provision for income taxes 0.3 Interest income, net (0.1) Depreciation and amortization 0.4 EBITDA (loss) (1) $ 0.4 $ 0.3 $ — $ 0.7 $ (1.0) $ (0.3) Non-operating expense (income), including corporate administration charges 0.2 0.2 0.1 0.5 (0.3) 0.2 Stock-based compensation expense 0.1 0.1 — 0.2 0.3 0.5 Non-recurring items — 0.3 — 0.3 0.1 0.5 Adjusted EBITDA (loss) (1) $ 0.6 $ 0.9 $ 0.2 $ 1.7 $ (0.9) $ 0.8 (1) EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization, non-operating income, stock-based compensation expense, and other items such as non-recurring severance and professional fees. © 2024 Hudson RPO. All rights reserved. 16 Reconciliation of Non-GAAP Financial Measures Q4 2024 QTD Americas Asia Pacific EMEA RPO Business Corporate Total Revenue $ 7.3 $ 20.0 $ 6.3 $ 33.6 $ — $ 33.6 Adjusted net revenue (1) $ 6.4 $ 7.4 $ 3.8 $ 17.6 $ — $ 17.6 Net loss $ (0.6) Provision for income taxes 0.8 Interest income, net (0.1) Depreciation and amortization 0.3 EBITDA (loss) (2) $ 0.5 $ 0.5 $ (0.2) $ 0.8 $ (0.3) $ 0.5 Non-operating expense (income), including corporate administration charges (0.1) 0.1 0.1 0.1 (0.4) (0.3) Stock-based compensation expense 0.1 0.1 — 0.2 0.1 0.2 Non-recurring items — 0.2 0.2 0.4 — 0.4 Adjusted EBITDA (loss) (2) $ 0.4 $ 0.9 $ 0.2 $ 1.5 $ (0.6) $ 0.9 Q4 2023 QTD Americas Asia Pacific EMEA RPO Business Corporate Total Revenue $ 6.2 $ 22.1 $ 5.7 $ 34.0 $ — $ 34.0 Adjusted net revenue (1) $ 6.0 $ 6.9 $ 3.6 $ 16.5 $ — $ 16.5 Net income $ 0.7 Benefit from income taxes (0.8) Interest income, net (0.1) Depreciation and amortization 0.4 EBITDA (loss) (2) $ 0.2 $ 0.4 $ 0.6 $ 1.2 $ (0.9) $ 0.3 Non-operating expense (income), including corporate administration charges (1.0) 0.2 (0.1) (0.8) (0.3) (1.1) Stock-based compensation expense 0.1 0.1 0.1 0.2 0.3 0.5 Non-recurring items — 0.3 — 0.3 0.2 0.5 Adjusted EBITDA (loss) (2) $ (0.7) $ 0.9 $ 0.6 $ 0.8 $ (0.7) $ 0.1 (1) Represents Revenue less direct contracting costs and reimbursed expenses. (2) EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization, non- operating income, stock-based compensation expense, and other items such as non-recurring severance and professional fees. Per Diluted Share Three Months Ended December 31, 2024 December 31, 2023 Net (loss) income $ (0.20) $ 0.23 Non-recurring items (after tax) $ 0.15 $ (0.19) Adjusted net (loss) income (3) $ (0.05) $ 0.04 (3) Adjusted net income or loss per diluted share is a Non-GAAP measure defined as reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that is presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as a substitute for net income or loss per diluted share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Further, Adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.


 
© 2024 Hudson RPO. All rights reserved. 17 Reconciliation of Non-GAAP Financial Measures (3) Represents compensation expense payable per the terms of the Coit acquisition, including a promissory note for $1.35 million payable over three years, and $500k of the Company's common stock vesting over 30 months. (4) Adjusted net income or loss per diluted share is a Non-GAAP measure defined as reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that is presented to provide additional information about the company's operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as a substitute for net income or loss per diluted share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company's profitability or liquidity. Further, Adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies. Q4 2024 FY Americas Asia Pacific EMEA Corporate Total Revenue $ 27.9 $ 86.7 $ 25.5 $ — $ 140.1 Adjusted net revenue (1) $ 25.1 $ 29.4 $ 15.6 $ — $ 70.2 Net loss $ (4.8) Provision for income taxes 1.3 Interest income, net (0.4) Depreciation and amortization 1.4 EBITDA (loss) (2) $ 0.3 $ 0.5 $ 0.3 $ (3.6) $ (2.5) Non-operating expense (income), including corporate administration charges 0.2 0.7 0.2 (1.2) — Stock-based compensation expense 0.2 0.4 0.2 0.5 1.3 Non-recurring items 0.1 0.8 0.2 0.9 2.1 Compensation expense related to acquisitions (3) — — — — — Adjusted EBITDA (loss) (2) $ 0.9 $ 2.4 $ 1.0 $ (3.4) $ 0.9 Q4 2023 FY Americas Asia Pacific EMEA Corporate Total Revenue $ 31.3 $ 103.9 $ 26.2 $ — $ 161.3 Adjusted net revenue (1) $ 30.1 $ 33.7 $ 16.5 $ — $ 80.3 Net income $ 2.2 Provision for income taxes 0.4 Interest income, net (0.4) Depreciation and amortization 1.5 EBITDA (loss) (2) $ (0.7) $ 5.9 $ 1.6 $ (3.1) $ 3.7 Non-operating expense (income), including corporate administration charges (0.5) 1.2 0.4 (1.9) (0.8) Stock-based compensation expense 0.4 0.2 0.2 0.6 1.5 Non-recurring items 0.1 0.3 0.2 0.7 1.2 Compensation expense related to acquisitions (3) 0.3 — — — 0.3 Adjusted EBITDA (loss) (2) $ (0.4) $ 7.6 $ 2.4 $ (3.7) $ 5.9 (1) Represents Revenue less direct contracting costs and reimbursed expenses. (2) EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization, non- operating income, stock-based compensation expense, and other items such as non-recurring severance and professional fees. Per Diluted Share Twelve Months Ended December 31, 2024 December 31, 2023 Net (loss) income $ (1.59) $ 0.70 Non-recurring items (after tax) $ 0.73 $ 0.04 Compensation expense related to acquisitions (after tax)(3) $ — $ 0.11 Adjusted net (loss) income (4) $ (0.86) $ 0.86 Thank you © 2024 Hudson RPO. All rights reserved.