Executive Summary

Q4 2024 showed mixed performance: revenue declined 1.1% year over year to $33.6M while adjusted net revenue rose 6.4% to $17.6M; adjusted EBITDA improved to $0.9M and diluted EPS was a loss of $0.20 .
Americas led improvement, with revenue up 18% and adjusted EBITDA turning positive; APAC adjusted net revenue grew despite revenue decline due to mix shift away from lower-margin MSP, while EMEA revenue grew but profitability softened .
Management emphasized investments ($3.4M above maintenance) in sales, marketing, and technology, including launching a Digital Division and appointing a Chief Digital Officer to accelerate efficiency and client experience .
Near-term stock catalysts: conversion of a growing sales pipeline as hiring activity normalizes and attrition rises from unusually low levels, continued share repurchases ($2.5M in 2024; $2.1M remaining), and potential tuck-in M&A with strict valuation and cultural-fit hurdles .

What Went Well and What Went Wrong

What Went Well

Americas delivered strongest regional results: Q4 revenue +18% YoY, adjusted net revenue +5%, with adjusted EBITDA improving to $0.4M from a loss in the prior year .
Adjusted net revenue increased 6.4% YoY and adjusted EBITDA expanded to $0.9M in Q4 2024, versus $0.1M in Q4 2023, indicating improved underlying profitability despite lower top line .
Strategic execution and recognition: “We are proud to have been named on the HRO Today’s Baker’s Dozen List... for the 16th consecutive year... APAC for the 12th... and EMEA for the 8th consecutive year” .

What Went Wrong

APAC revenue fell 10% YoY due to a decline at a large MSP client (lower margin profile), offset by a 6% increase in adjusted net revenue; EMEA profitability deteriorated despite revenue growth .
Company reported a Q4 net loss of $0.6M and diluted EPS of $(0.20), versus net income of $0.7M and $0.23 diluted EPS last year, driven in part by higher tax expense and operating costs .
Full-year 2024 contracted: revenue down 13.2% YoY to $140.1M and adjusted net revenue down 12.6% to $70.2M; adjusted EBITDA fell to $0.9M for the year (from $5.9M in 2023) amid “generally low levels of global hiring activity” .

Financial Results

Consolidated Quarterly Comparison

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$35.712	$36.853	$33.600
Adjusted Net Revenue ($USD Millions)	$17.615	$18.603	$17.604
Adjusted EBITDA ($USD Millions)	$0.745	$0.839	$0.900
Net (Loss) Income ($USD Millions)	$(0.441)	$(0.846)	$(0.585)
Diluted EPS ($USD)	$(0.15)	$(0.28)	$(0.20)
Adjusted Diluted EPS ($USD)	$0.04	$(0.13)	$(0.05)

Note: Q4 segment analysis sums to $0.861M adjusted EBITDA vs headline $0.900M due to rounding/allocations .

Segment Breakdown by Quarter

Region / Metric	Q2 2024	Q3 2024	Q4 2024
Americas Revenue ($M)	$6.972	$7.578	$7.350
Americas Adjusted Net Revenue ($M)	$6.344	$6.634	$6.361
Americas Adjusted EBITDA ($M)	$0.619	$0.631	$0.397
APAC Revenue ($M)	$22.649	$22.560	$19.986
APAC Adjusted Net Revenue ($M)	$7.627	$7.847	$7.396
APAC Adjusted EBITDA ($M)	$0.763	$0.895	$0.924
EMEA Revenue ($M)	$6.091	$6.715	$6.264
EMEA Adjusted Net Revenue ($M)	$3.644	$4.122	$3.847
EMEA Adjusted EBITDA ($M)	$0.273	$0.177	$0.188

KPIs and Balance Sheet Highlights

KPI	Q2 2024	Q3 2024	Q4 2024
Day Sales Outstanding (days)	—	56 (reference point)	51
Cash & Restricted Cash ($M)	$15.3	$16.5	$17.7
Cash Flow from Operations ($M)	$(4.3) (Q2)	$1.3 (Q3)	$2.0 (Q4)
Working Capital ex-cash ($M)	—	—	$11.9
RPO New Business (Adjusted Net Revenue basis) ($M)	—	—	$62.9 ($7.3 new logos; $55.6 renewals)
Services Split (Q4)	—	—	Revenue: Contracting 50% / RPO 50%; Adjusted Net Revenue: Contracting 6% / RPO 94%

Guidance Changes

Hudson Global did not provide explicit numerical guidance ranges for revenue, margins, OpEx, tax rate, or segment-level guidance in Q4 materials; management focused on pipeline, investments, and operational restructuring .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 forward	N/A	N/A	No formal guidance provided
Margins (Adj. EBITDA %)	FY/Q1 forward	N/A	Long-term RPO target = 20% (strategic goal, not quarter guidance)	Target reiterated
Tax rate	FY/Q1 forward	N/A	N/A	No formal guidance provided
Share Repurchases	CY 2025	Soft goal	Soft goal to buy back significant stock subject to conditions/NOL limits	Maintained

Earnings Call Themes & Trends

Topic	Q-2 (Q2 2024)	Q-1 (Q3 2024)	Current (Q4 2024)	Trend
AI/Digital and Technology Initiatives	Acquisitions (Executive Solutions; Striver) and internal enhancements to support growth	Strategic hires, reputation strengthened; continued global best-in-class service	Launch of Digital Division; hiring of Chief Digital Officer; focus on automating tasks and improving candidate/manager experience	Intensifying digital focus and productization
Macro, Hiring Activity, Tariffs	Market-driven slowdown across clients	Continued slowdown; mitigation steps underway	Momentum pockets with lingering hesitation/uncertainty; analyst asked about tariffs/macro; management sees better outlook vs early 2024	Gradual improvement from trough, still cautious
Regional Trends	Americas: revenue -19% YoY; APAC: revenue -19%; EMEA: revenue -24%	Americas: revenue +6% YoY; APAC: revenue -15%; EMEA: revenue +7%	Americas: strongest improvement; APAC revenue -10% YoY but adjusted net revenue +6%; EMEA revenue +7% YoY but lower profitability	Americas leading; APAC mix improving; EMEA mixed
Sales Cycle & Pipeline	Not discussed explicitly	Not discussed explicitly	Enterprise RPO sales cycle typically 14–16 months; 2024 saw “hurry up and wait”; pipeline growing in 2025	Longer cycles; pipeline building
M&A Strategy	Acquired Striver (UAE)	No specific deals announced	Always looking; strict valuation/cultural fit; nothing imminent/transformative	Opportunistic, disciplined
Share Repurchases & NOL	Program authorized Aug-2023; repurchased $1.5M in Q2	YTD repurchases $2.5M; NOL $302M (as of 12/31/23)	2024 repurchases $2.5M; $2.1M remaining; NOL $240M (as of 12/31/24)	Ongoing buybacks; NOL decreased

Management Commentary

“Our fourth quarter financial results reflect modest improvement over the prior year quarter, with the Americas region delivering the strongest results… we invested approximately $3.4 million in sales, marketing, and technology above maintenance levels to enhance future growth.” — Jeff Eberwein, CEO .
“We recently launched our digital division and hired Stephanie Edwards as Chief Digital Officer to revolutionize our digital capabilities… deliver innovative, efficient, cost-effective, and high-quality talent solutions.” — Jake Zabkowicz, Global CEO .
“Q4 2024 revenue for our Asia Pacific business decreased 10%, while adjusted net revenue increased 6%… attributable to a decline at a large MSP client, where adjusted net revenue margins are significantly lower than those of our RPO accounts.” — Matt Diamond, CFO .
“We improved our internal operations and… made growth investments as well as realized cost savings across our entire organization. These should improve our top and bottom line results in the coming quarters.” — Jeff Eberwein .
“Sales cycle… for an enterprise RPO client… 14–16 months… pipeline is continuing to grow… still some uncertainty on future volume.” — Jake Zabkowicz .

Q&A Highlights

Demand environment and macro: management sees positive pockets and momentum exiting Q4, but lingering uncertainty delays hiring decisions; outlook better than early 2024 .
Investment priorities and CapEx: emphasis on organic growth via digital solutions enhancing candidate/hiring manager experience; automation to improve efficiency; continued build-out of sales/go-to-market talent .
M&A pipeline: disciplined approach; valuation and cultural fit are critical; nothing imminent or transformative currently .
Sales cycles: enterprise RPO cycles remain 14–16 months; 2024 saw “hurry up and wait” with smaller-than-expected volumes at signature; pipeline building in 2025 .
Attrition normalization: pendulum shifting back toward normal after very low attrition in 2023–2024; rising attrition would lift hiring volumes and benefit the business .
Share repurchases: soft goal tied to NOL constraints (10% threshold); prefer negotiated blocks due to liquidity; toolkit includes tenders and open market as needed .

Estimates Context

Wall Street consensus estimates via S&P Global for HSON were unavailable at the time of analysis; therefore, an estimates comparison (revenue/EPS/EBITDA vs consensus) cannot be provided from S&P Global data. We will update when available.
Given the mix shift (APAC MSP decline; RPO resilience) and tax/other items, any future consensus adjustments may factor improved adjusted net revenue and profitability trajectory as macro hiring normalizes .

Key Takeaways for Investors

Americas strength and APAC mix shift are improving adjusted net revenue and profitability even with lower revenue; continued execution could support margin recovery into 2025 .
Digital Division launch and $3.4M incremental investment in sales/marketing/tech position HSON to automate workflows and enhance client experience—potentially accelerating wins and expansions as sales cycles complete .
Enterprise RPO sales cycles (14–16 months) imply gradual conversion of a growing pipeline; watch for deal announcements and volume ramps as attrition normalizes .
EMEA is growing top line but profitability compressed; rebalancing costs and improving account mix are levers to restore EMEA margins .
Liquidity is solid ($17.7M cash including restricted) with positive Q4 operating cash flow ($2.0M); share repurchases ($2.5M in 2024; $2.1M remaining authorization) offer capital return while M&A remains opportunistic .
NOL stockholder rights (4.99% cap) persist; NOL decreased to $240M, still a valuable asset that supports tax efficiency and capital strategy .
Near-term trading setup: monitor hiring/attrition trends, pipeline conversions, regional mix (Americas and RPO share), and cadence of negotiated block buybacks as potential catalysts .

Hudson Global, Inc. (HSON)·Q4 2024 Earnings Summary