Staffing 360 Solutions, Inc. reported a decline in revenue and profitability for the three and nine months ended September 28, 2024, compared to the same periods in the previous fiscal year. For the third quarter of 2024, total revenue was $46.1 million, down 6.9% from $49.5 million in Q3 2023. For the nine-month period, revenue decreased by 9.6% to $131.7 million from $145.8 million. The decline was attributed to a 17.1% drop in Commercial Staffing revenue, while Professional Staffing revenue saw a smaller decrease of 2.6%.

Gross profit for Q3 2024 was $6.2 million, representing a gross margin of 13.4%, down from $7.7 million (15.5% margin) in Q3 2023. For the nine months, gross profit fell to $17.3 million (13.1% margin) from $22.2 million (15.2% margin). The company noted that lower-margin Employer of Record (EOR) services contributed to the reduced gross profit margins.

Operating expenses decreased significantly, with Q3 2024 expenses at $7.5 million, down 18.4% from $9.2 million in Q3 2023. For the nine-month period, operating expenses were $21.5 million, a decrease of 15.9% from $25.5 million. This reduction was primarily due to workforce reductions implemented by the company.

Net loss for Q3 2024 was $2.8 million, an improvement of 33.2% from a loss of $4.3 million in Q3 2023. For the nine months, the net loss was $7.4 million, down from $10.0 million in the prior year. The company also reported a loss from operations of $1.3 million for Q3 2024, compared to a loss of $1.5 million in Q3 2023.

As of September 28, 2024, total current assets were $22.8 million, down from $28.7 million at the end of December 2023. Total liabilities decreased to $76.9 million from $78.5 million, while total stockholders’ deficit increased to $(14.6 million) from $(7.8 million). The company reported a working capital deficiency of $48.8 million and an accumulated deficit of $134.4 million.

Strategically, Staffing 360 Solutions disposed of its UK operations in February 2024 to mitigate losses, recognizing a gain of $901,000 in the current reporting period. The company has also been actively managing its debt obligations, including amendments to its credit agreements and ongoing negotiations with lenders to address compliance issues. A reverse stock split was executed on June 25, 2024, to enhance its stock price and comply with Nasdaq listing requirements.