AI-extracted from the 10-Q filed 2026-08-12 — Q3 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
GEE Group swung to $0.6M profit in Q3 FY2026 vs. $0.4M loss YoY, driven by 16% growth in direct hire placement revenues and cost reductions, despite contract staffing declining 20%.
Biggest Revenue Drivers
Professional contract staffing services$17.0M-20% YoY
Uncertain U.S. labor markets and loss of a major customer ($2.2M revenue in Q3 FY2025) upon its acquisition in October 2025.
Direct hire placement services$3.7M+16% YoY
Cyclical demand-driven growth; company notes encouragement but remains cautiously optimistic.
Biggest Revenue Drivers
Total revenue: $20.8M-15% YoY
Professional contract staffing services$17.0M-20% YoY
Uncertain U.S. labor markets and loss of a major customer ($2.2M revenue in Q3 FY2025) upon its acquisition in October 2025.
Direct hire placement services$3.7M+16% YoY
Cyclical demand-driven growth; company notes encouragement but remains cautiously optimistic.
Largest Expense Items
Cost of contract services$12.5M-21% YoY
Proportional decrease in wages and payroll taxes for contract staffing reflecting lower revenues.
Selling, general and administrative expenses$7.8M-12% YoY
Cost reductions and productivity improvements initiated in late FY2025 offset by lower revenues relative to fixed occupancy and personnel costs.
Margins: Combined gross profit margin improved to 39.9% from 35.4% YoY, primarily due to higher mix of direct hire placement services (100% margin) and modest margin expansion in contract staffing (26.6% vs. 25.6%). Operating margin improved significantly with company returning to profitability despite revenue decline.
Watch Items from the Filing
Contract staffing revenue down 20% YoY; one customer ($2.2M Q3 FY2025 revenue) lost upon acquisition in October 2025, moving services to acquirer affiliate.
Hornet acquisition (January 2025, $1.1M cash paid) now worth zero future contingent payments; minimum average gross profit targets for both years entirely eliminated, raising questions on acquisition synergy realization.
Prior-year period included $22M goodwill impairment charge (March 31, 2025) and full valuation allowance on $12.6M deferred tax assets, masking operational comparison.
Bank facility amended May 2026 extending maturity to May 13, 2027 and imposing new cash maintenance requirements: minimum $12M on deposit with lender, maximum $25M total held, reducing financial flexibility.
U.S. staffing industry expected to grow only 1–2% in 2026 per SIA; company's small/medium-sized enterprise client base disproportionately vulnerable to economic uncertainty and reduced hiring.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About GEE Group Inc. (JOB): stock profile, AI score and financials
GEE Group Inc. (JOB) stock profile, AI quality score, and SEC EDGAR financial data, a Industrials sector company. 13F Pro's AI-powered ranking engine scores JOB at 36.7/100 on a composite quality score built from its SEC filings, placing it at rank #2,256 of 2,925 stocks — the bottom half of the AI-ranked universe. JOB scores in the top quartile across earnings quality (95.1). Areas of concern include revenue growth (5.6) and revenue scale (13.8), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q3 2026), GEE Group Inc. reports quarterly revenue of $20.8M, net income of $566.0K, an operating margin of 1.8%. Top institutional holders of JOB by reported 13-F value include RAFFLES ASSOCIATES, Cable Car Capital, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. JOB trades on the NYSE exchange and files with the SEC under CIK 40570. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate JOB daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for GEE Group Inc. directly from SEC EDGAR.