Summary by Moomoo AI
Staffing 360 Solutions reported Q2 2024 revenue of $44.2 million, down 9.1% from $48.6 million in Q2 2023, with gross profit declining 17.2% to $5.8 million. The Commercial Staffing segment saw a 16.5% revenue decline while Professional Staffing decreased by 1.7%. Gross margin contracted to 13.2% from 14.5% due to a higher proportion of lower-margin Employer of Record services.Operating expenses decreased 20.5% to $6.4 million following workforce reductions implemented in May 2023 and February 2024. The company recorded a net loss of $2.0 million compared to a $2.9 million loss in Q2 2023. The improvement was primarily driven by lower operating costs and the absence of discontinued operations losses.The company faces ongoing financial challenges with a working capital deficit of $47.9 million and an accumulated deficit of $131.6 million as of June 29, 2024. Management is actively pursuing strategic options including potential sale of the company, while working with lenders to address covenant compliance issues and debt obligations coming due in October 2024.
