Hudson Global’s Earnings Call: Optimism Amid Challenges

Hudson Global ((STRR)) has held its Q3 earnings call. Read on for the main highlights of the call.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. Hudson Global’s recent earnings call presented a generally optimistic outlook, despite some challenges. The company reported significant revenue growth and positive developments in segments like Business Services and Building Solutions. However, issues such as increased net loss and European market challenges were also highlighted. Overall, the sentiment was positive, with strategic initiatives and share repurchase programs underscoring confidence in future growth. Significant Revenue Growth The third quarter of 2025 saw Hudson Global’s revenue reach $48 million, marking a substantial 30% increase from the same quarter in 2024. This impressive growth underscores the company’s strong market position and effective business strategies. Positive Adjusted Earnings Per Share Hudson Global reported a positive adjusted earnings per share of $0.19 on a pro forma basis, a significant improvement from the negative $0.54 recorded in the third quarter of the previous year. This turnaround highlights the company’s successful cost management and operational efficiency. Business Services Segment Recognition The Business Services segment received notable recognition, with HTS being named to the Bakers Dozen for the 17th consecutive year. It achieved its highest-ever overall ranking and was recognized as the #1 provider in the Asia Pacific region, reflecting its strong performance and industry leadership. Building Solutions Segment Strong Performance The Building Solutions segment reported revenue of $21.4 million, up from $13.7 million in the third quarter of 2024. Pro forma gross profit also rose to $5.3 million from $2.8 million in the prior-year quarter, demonstrating robust growth and profitability in this segment. Energy Services Segment Growth The Energy Services segment experienced growth, with revenue increasing to $3.7 million on a pro forma basis. Gross profit reached $1.5 million, and pro forma adjusted EBITDA rose to $1 million, indicating strong performance in this area despite broader sector challenges. New $3 Million Share Repurchase Program Hudson Global’s Board of Directors authorized a new $3 million share repurchase program, signaling confidence in the company’s long-term growth prospects and commitment to enhancing shareholder value. Increased Net Loss The company reported a net loss of $1.8 million or $0.54 per share, compared to a net loss of $800,000 or $0.28 per diluted share in the third quarter of last year. This increase in net loss highlights ongoing financial challenges that the company is working to address. Challenges in Business Services Europe The European market faced a downturn, with some clients taking business in-house, impacting revenue. This challenge underscores the need for strategic adjustments to maintain growth in this region. Residential Market Softness Despite growth in commercial construction demand, the Building Solutions segment managed through softness in residential markets, indicating resilience and adaptability in varying market conditions. Energy Sector Slowdown The broader energy sector was impacted by lower drilling rig counts in oil-producing basins. However, this was offset by growth in natural gas and geothermal drilling activity, showcasing the segment’s ability to navigate sector-specific slowdowns. Forward-Looking Guidance Hudson Global’s management provided detailed guidance, highlighting a 30% revenue increase to $48 million in the third quarter. Despite a net loss of $1.8 million, there was a positive turnaround in non-GAAP terms with an adjusted net income per share of $0.02. Adjusted EBITDA increased to $1.3 million, with a pro forma adjusted EBITDA of $3.1 million. The company completed an 8% share repurchase, reflecting confidence in its intrinsic value. Looking ahead, Hudson Global aims to drive shareholder value through organic growth, disciplined capital allocation, and potential accretive acquisitions. In summary, Hudson Global’s earnings call conveyed a positive sentiment, highlighting significant revenue growth and strategic initiatives. Despite challenges such as increased net loss and European market issues, the company remains optimistic about future growth prospects, supported by strong performance in key segments and a new share repurchase program.