Executive Summary

Q2 FY21 revenue rose 7.1% YoY to $222.1M with gross margin expanding 80 bps to 16.4%; GAAP diluted EPS turned positive at $0.08 and Adjusted EPS was $0.12, aided by disciplined cost control and improved segment mix .
Sequential momentum continued: revenue improved from $211.1M (Q4 FY20) to $218.0M (Q1 FY21) to $222.1M (Q2 FY21); operating swung to $2.7M from $(1.7)M in Q1 FY21 .
North American Staffing led with $184.3M revenue (+6.3% YoY) and operating income of $9.5M; International staffing also improved to $27.9M (+YoY), while MSP was stable at $9.8M .
Management called out “strongest year-over-year revenue growth in a decade” and “first positive GAAP net income in 14 quarters,” citing improved sales/delivery execution and cost discipline—key stock catalysts for sentiment and multiple expansion .

What Went Well and What Went Wrong

What Went Well
- “Strongest year-over-year revenue growth in a decade” with positive GAAP net income for the first time in 14 quarters; Adjusted EBITDA improved $7.4M YoY to $6.0M .
- Gross margin expanded 80 bps YoY to 16.4% on improved margins in North American and International Staffing; SG&A fell $3.2M YoY to $33.0M .
- CEO: “Thanks to the continued execution of our improved sales and delivery model, and our disciplined cost management…” with confidence to “remain on the current growth trajectory for fiscal 2021” .
What Went Wrong
- “Significant weather-related impacts in February” and lingering COVID-19 disruption tempered results despite improvements .
- Corporate and Other remained a drag at $(8.2)M operating loss in Q2 FY21, though slightly better than Q1 FY21’s $(8.8)M .
- Interest expense remained a headwind at $(0.43)M in Q2 FY21, with long-term debt at $59.2M (balance sheet constraint) .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q2 2020	Q4 2020	Q1 2021	Q2 2021
Revenue ($USD Millions)	$207.3	$211.1	$218.0	$222.1
Gross Margin %	15.6% (16.4% less 80 bps)	16.2%	15.0%	16.4%
Operating Income ($M)	$(4.4)	$(11.5)	$(1.7)	$2.7
Diluted EPS ($)	$(0.25)	$(0.58)	$(0.11)	$0.08
Adjusted EBITDA ($M)	$(1.4)	$5.9	$0.9	$6.0

Segment revenue YoY (Q2 FY20 → Q2 FY21)

Segment	Q2 2020 Revenue ($M)	Q2 2021 Revenue ($M)
North American Staffing	$173.4	$184.3
International Staffing	$24.3	$27.9
North American MSP	$9.7	$9.8

Segment operating income (selected periods)

Segment OI ($M)	Q2 2020	Q1 2021	Q2 2021
North American Staffing	$2.6	$6.2	$9.5
International Staffing	$0.2	$0.4	$1.1
North American MSP	$0.5	$0.5	$0.3
Corporate & Other	$(7.6)	$(8.8)	$(8.2)

KPIs and cost lines

KPI / Cost	Q2 2020	Q1 2021	Q2 2021
Work days (count)	65	59	65
SG&A ($M)	$36.2	$33.7	$33.0
Gross Margin ($M)	$32.2	$32.7	$36.5
Interest expense, net ($M)	$(0.62)	$(0.48)	$(0.43)
Cash & Equivalents ($M)	—	$40.1 (end Q1)	$47.2 (end Q2)
Long-term Debt ($M)	—	$59.1 (end Q1)	$59.2 (end Q2)

Notes:

Q2 FY21 Adjusted EPS $0.12; GAAP diluted EPS $0.08 .
Q2 FY21 Adjusted Revenue growth 5.9% YoY on normalized basis (FX/MSP delivery shifts) .

Guidance Changes

Volt did not provide formal quantitative guidance; management reiterated confidence in executing strategic initiatives and maintaining the current growth trajectory for FY21.

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/earnings guidance	FY21	None disclosed	None disclosed; reiterated confidence in trajectory	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q2 FY21 earnings call transcript was available in our document set; themes below reflect published press releases.

Topic	Previous Mentions (Q4 FY20, Q1 FY21)	Current Period (Q2 FY21)	Trend
Sales & delivery execution	“Improved sales strategy and disciplined pricing” with expectation of profitability improvement in 2021 . Q1: sequential and YoY improvement expected for Q2 despite winter storms .	“Continued execution of improved sales and delivery model” driving strongest YoY revenue growth in a decade .	Improving execution momentum
Cost discipline/SG&A	Q4: SG&A reductions via resource optimization; Q1: SG&A down $5.8M YoY .	SG&A down $3.2M YoY; Adjusted EBITDA +$7.4M YoY .	Sustained cost control
Macro: COVID-19/weather	Q4: COVID mix impacts; Q1: winter storms disrupted operations .	COVID challenges persist; “significant weather-related impacts in February” .	Headwinds easing but still present
International (UK/France)	Q4: UK softness . Q1: International adjusted revenue down YoY .	International staffing improved on UK managed service/direct hire and France staffing .	Recovering
MSP & payroll services	Q4: MSP revenue down YoY with COVID workforce adjustments . Q1: MSP up modestly .	MSP stable; demand supported by payroll services .	Stabilizing

Management Commentary

“Thanks to the continued execution of our improved sales and delivery model, and our disciplined cost management, this quarter reflects our strongest year-over-year revenue growth in a decade, and our first positive GAAP net income in 14 quarters.” — Linda Perneau, CEO .
“We remain confident in the continued execution of our strategic initiatives and our ability to remain on the current growth trajectory for fiscal 2021.” — Linda Perneau, CEO .
Prior quarter context: “We are now positioned to achieve even greater success going forward, accelerating our growth and profitability… we expect to report sequential and year-over-year improvement in our operating results for the second quarter.” — Q1 FY21 release .

Q&A Highlights

No Q2 FY21 earnings call transcript was available in our document set; therefore, Q&A themes, guidance clarifications, or tone shifts versus prior quarters could not be assessed from a transcript source. Content above reflects press release disclosures .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY21 EPS and revenue was unavailable for VOLT in our system at the time of analysis; therefore, we cannot quantify beats/misses versus consensus. We defaulted to reported results and non-GAAP reconciliations in the company’s release .
Where estimate comparisons are absent in tables, this reflects the unavailability of S&P Global consensus for this ticker at this time.

Key Takeaways for Investors

Return to profitability: GAAP diluted EPS $0.08 and Adjusted EPS $0.12 on $222.1M revenue; Adjusted EBITDA rose to $6.0M, evidencing improved operating leverage .
Mix and margin quality improved: gross margin to 16.4% (+80 bps YoY) on better staffing margins; SG&A reduced by $3.2M YoY, supporting sustainable margin expansion .
Execution in core segments: North American Staffing operating income rose to $9.5M, with International contributions improving (UK and France) and MSP steady .
Sequential trajectory supports FY21 narrative: revenue and operating results improved across Q4 → Q1 → Q2, aligning with management’s prior outlook for sequential gains despite weather/COVID headwinds .
Balance sheet watch items: interest expense persisted (~$0.43M in Q2) with $59.2M long-term debt; liquidity improved with cash at $47.2M at quarter-end .
Near-term trading implications: positive EPS inflection and decade-best YoY revenue growth can be multiple-supportive; absence of formal guidance and macro sensitivity (labor market, weather/COVID) remain variables .
Medium-term thesis: continued sales/delivery execution and cost discipline, plus International recovery, position Volt to compound margins through FY21 if demand holds; watch MSP/payroll mix and pricing discipline for gross margin durability .

VOLT INFORMATION SCIENCES, INC. (VOLT)·Q2 2021 Earnings Summary