Quarterly report [Sections 13 or 15(d)]

Segment Data

v3.26.1
Segment Data
 9 Months Ended
Jun. 30, 2026
Segment Data

17. Segment Data

 

The Company provides the following distinctive services: (a) direct hire placement services and (b) temporary professional staffing services in the fields of information technology, accounting, finance and office, engineering, and medical. These services make up the Company’s Professional Segment. As disclosed in Note 3, the Company’s former Industrial Segment has been designated a discontinued operation and sold and, as such, is excluded from the table below which only reflects continuing operations.

 

Our consolidated results, as well as the results of the Professional Segment are assessed by the Company’s chief operating decision-maker (“CODM”), our CEO, who decides how to allocate resources based on operating needs and results. The CODM uses financial and operating information presented in periodic detailed financial statements and management reports and considers growth trends in revenues, gross profits and gross margins, operating expenses, income (loss) from operations, net income (loss) from operations and related data to compare the segment’s current results with budgeted and prior period results, as well as those of competitors obtained from publicly available information as benchmarks. Additionally, the CODM reviews trends in non-financial information including headcount, numbers of contractors on billing, billable hours, and fee rates and spreads applied in billings to clients. The CODM also reviews certain non-GAAP financial measures of segment performance including earnings before income taxes, depreciations and amortization (“EBITDA”), adjusted EBITDA, which represents EBITDA adjusted for certain non-cash and non-operating and non-recurring expenses, contribution margins, which represent net operating income or loss, excluding corporate expenses, free cash flow and other variants of these non-GAAP measures in order to make informative decisions regarding allocation of resources. This information and underlying analyses provide the CODM with information necessary to make decisions on business and financial strategy and plans, working capital needs and overall capital use. All corporate assets such as cash and other assets are presented together with those of the Professional Segment; these can be found on the unaudited condensed consolidated balance sheets.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

 $ 20,765

 

 

 $ 24,523

 

 

 $ 60,762

 

 

 $ 73,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of contract services

 

 

 12,484

 

 

 

 15,842

 

 

 

 37,661

 

 

 

 48,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expenses

 

 

 5,226

 

 

 

 5,726

 

 

 

 15,099

 

 

 

 16,894

 

Occupancy expenses

 

 

 363

 

 

 

 396

 

 

 

 1,068

 

 

 

 1,284

 

Advertising expenses

 

 

 299

 

 

 

 462

 

 

 

 924

 

 

 

 1,386

 

Other segment expenses (a)

 

 

 558

 

 

 

 810

 

 

 

 1,635

 

 

 

 2,531

 

Corporate expenses allocated

 

 

 999

 

 

 

 963

 

 

 

 2,872

 

 

 

 2,524

 

Depreciation and amortization

 

 

 44

 

 

 

 251

 

 

 

 172

 

 

 

 741

 

Goodwill impairment charges

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 22,000

 

Professional Segment income (loss) from operations

 

 

 792

 

 

 

 73

 

 

 

 1,331

 

 

 

 (22,393 )

Corporate SG&A (b)

 

 

 392

 

 

 

 594

 

 

 

 1,354

 

 

 

 2,076

 

Depreciation and amortization

 

 

 22

 

 

 

 23

 

 

 

 65

 

 

 

 68

 

Income (loss) from operations

 

 $ 378

 

 

 $ (544 )

 

 $ (88 )

 

 $ (24,537 )

  

 

(a)

Other segment expenses mainly consist of consulting expenses, business insurance and licensing fees, applicant tracking systems and other software subscriptions, equipment-related costs, and background checks for candidates placed with clients.

 

 

 

 

(b)

Corporate selling, general, and administrative expenses (“SG&A”) primarily includes certain executive and administrative salaries and related expenses, corporate legal expenses, share-based compensation expenses, consulting expenses, audit fees, corporate rent and facility costs, board related fees, certain advertising and promotional expenses, and acquisition, integration and restructuring expenses.