Jacksonville, FL, December 18, 2025
GEE Group Inc., a staffing services provider in Jacksonville, recently reported a net loss of $34.7 million for the fiscal year, marking a decline from the prior year. The decrease in revenues was driven by a $22 million goodwill impairment charge and a general downturn in the staffing market. Despite challenges, the company is implementing cost-cutting measures and innovative strategies involving AI technology to improve operations and enhance future growth.
GEE Group Inc. Reports Significant Losses in Fiscal Year 2025
Local Staffing Solutions Company Faces Challenges Amid Economic Headwinds
Jacksonville, FL – GEE Group Inc., a professional staffing services provider headquartered in Jacksonville, recently reported a troubling fiscal year ending September 30, 2025. The company faced a net loss of $34.7 million, equating to $0.32 per diluted share, representing a substantial decline from the previous year’s loss of $22.7 million or $0.21 per diluted share. This downturn was primarily driven by a $22 million non-cash goodwill impairment charge.
As the company navigates through a challenging business landscape, the fiscal year saw a 10% decrease in consolidated revenues to $96.5 million, down from $107.3 million in fiscal 2024. The fourth quarter reported a more severe 17% drop in revenues totaling $23.5 million compared to $28.3 million during the same period last year. Despite the falling revenues, GEE Group saw a modest improvement in gross margins, rising to 34.6% due to an increase in direct hire placement revenues with a higher gross margin.
Cost-Cutting Measures Implemented
In response to declining revenues, GEE Group effectively reduced its selling, general, and administrative expenses (SG&A) by 11%, bringing total SG&A down to $35.6 million from $40.1 million the previous year. Furthermore, the fourth quarter witnessed a 13% decrease in SG&A expenses, which amounted to $8.9 million compared to $10.2 million in the corresponding quarter of 2024.
Continued Loss but Signs of Improvement
Despite the overall losses, GEE Group reported a loss from continuing operations of $613 thousand, or $0.01 per diluted share, in the fourth quarter. This was an improvement from the $2.1 million loss, or $0.02 per diluted share, experienced in the same quarter of the prior year, indicating some signs of operational resilience.
Challenges and Strategic Innovations
The company faces ongoing challenges in the staffing market, including macroeconomic factors such as inflation and high interest rates. The advent of artificial intelligence is also impacting hiring practices. To address these challenges, GEE Group has begun implementing AI tools aimed at improving recruiting and sales efficiency while simultaneously focusing on lowering recurring expenses to adapt to the uncertain economic conditions.
As of the end of its fiscal year on September 30, 2025, GEE Group reported holding a cash balance of $21.4 million, with no long-term debt, which reflects a strong liquidity position that could be crucial for future strategic initiatives.
Management’s Vision for the Future
Derek E. Dewan, Chairman and Chief Executive Officer, offered insights into the company’s path forward amidst a challenging labor market. He highlighted plans to target new revenue-generating opportunities through the aggressive implementation of AI tools. Additionally, the company aims to streamline operations and offer enhanced services to their clients to increase efficiency and profitability.
The management envisions a gradual improvement in demand for their human resources solutions and direct hire placements, projecting a potential stabilization in job orders as businesses initiate new projects again.
Conclusion: Local Business Resilience
Despite GEE Group’s recent financial struggles, their ongoing adaptations and innovations highlight the resilience present in Jacksonville’s business community. Local entrepreneurs face headwinds but continue to find new paths to growth and adaptation. GEE Group’s initiatives to streamline operations and incorporate cutting-edge technology show how local companies can respond to challenges head-on. As Jacksonville continues to evolve, supporting local businesses and encouraging innovative solutions will be vital for economic growth.
FAQs
What was GEE Group Inc.’s net loss for fiscal year 2025?
GEE Group Inc. reported a net loss of $34.7 million, or $0.32 per diluted share, for the fiscal year ended September 30, 2025.
How did GEE Group’s revenues change in fiscal year 2025?
Consolidated revenues for fiscal year 2025 decreased by 10% to $96.5 million, down from $107.3 million in fiscal 2024.
What measures has GEE Group taken to reduce expenses?
Selling, general, and administrative expenses (SG&A) were reduced by 11% for the fiscal year, totaling $35.6 million, down from $40.1 million in fiscal 2024.
What is GEE Group’s cash position as of September 30, 2025?
As of September 30, 2025, GEE Group held a cash balance of $21.4 million with no long-term debt, indicating a strong liquidity position.
| Feature | Detail |
|---|---|
| Net Loss (FY 2025) | $34.7 million, or $0.32 per diluted share |
| Revenue Decrease | Revenues decreased by 10% to $96.5 million |
| SG&A Expense Reduction | Reduced by 11% to $35.6 million |
| Cash Position | $21.4 million with no long-term debt |
| Future Strategies | Implementation of AI tools, focus on efficiency, exploring new revenue opportunities |
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