Atlantic International Corp Reports $135.5 Million Net Loss for Fiscal Year 2024

Atlantic International Corp, formerly known as SeqLL, Inc., reported a significant net loss of $135.5 million for the fiscal year ending December 31, 2024, a stark increase from a net loss of $15.3 million in the previous year. The company's service revenue rose by 10.3% to $442.6 million, driven primarily by a 10.6% increase in temporary placement services, which generated $438.8 million. However, the company faced challenges in its permanent placement services, which saw a decline of 18.3% to $3.8 million due to reduced demand for permanent positions.

The financial performance reflects substantial changes following the merger with Lyneer Investments LLC, completed on June 18, 2024. This merger was structured as a reverse recapitalization, with Lyneer being treated as the accounting acquirer. The merger resulted in a rebranding of the company and a shift in its operational focus, as Lyneer’s staffing solutions became the primary business. The merger also incurred significant costs, including $43 million in advisory fees, contributing to the overall net loss.

Operationally, Atlantic has expanded its workforce solutions capabilities, with over 100 locations across the United States and approximately 300 internal employees. The company placed around 60,000 engagement professionals in various sectors, including accounting, finance, and healthcare. Despite the increase in service revenue, the company’s gross profit margin decreased from 11.7% in 2023 to 10.7% in 2024, attributed to rising labor costs and a decline in permanent placements. The company also reported a significant increase in selling, general, and administrative expenses, which rose by 40.9% to $64 million, largely due to merger-related costs.

Looking ahead, Atlantic International Corp is actively pursuing an aggressive acquisition strategy to enhance its market presence in high-demand sectors such as medical, legal, and financial services. The company is in discussions with multiple acquisition targets and aims to leverage its operational synergies to improve profitability. However, the company faces challenges related to its significant debt obligations, totaling approximately $104 million, and the need to refinance or restructure these debts. The management has expressed confidence in its ability to secure additional financing and improve its liquidity position, with plans to close a new credit facility by April 2025.