Transitioned to a territory-based operating model in on-demand staffing to increase sales capacity and enable more localized client engagement.
Leveraged a new strategic partnership with a group purchasing organization to unlock approximately $15,000,000 in annualized new business wins.
Capitalized on structural labor shortages in the energy sector, driving 60% revenue growth in that vertical through specialized skilled trades.
Expanded healthcare presence via the HSB acquisition, which has entered three new states since joining the portfolio to capture sustained demand.
Deployed AI-powered tools, including a new bill rate feature, to provide data-driven pricing and improve operational efficiency for clients.
Achieved an 11% reduction in SG&A expenses despite 8% revenue growth, reflecting a commitment to cost discipline and improved operating leverage.
Projected 2026 revenue growth of 3% to 9%, including one percentage point of inorganic contribution from the HSB acquisition.
Anticipates year-over-year margin compression in early 2026 as workers’ compensation reserve adjustments return to a normalized run rate.
Expects incremental margins to exceed the historical 15% to 20% range as industry demand rebounds, supported by a leaner fixed cost base.
Focusing on cash flow generation and operational stability rather than prioritizing further M&A in the immediate term.
Assumes continued momentum in the energy sector, which grew to represent 15% of the total portfolio in 2025.
Recorded an $18,000,000 non-cash impairment charge related to subleasing the Chicago support office to unlock $30,000,000 in cash flow over ten years.
Reported a net loss driven by the impairment charge and a valuation allowance on U.S. deferred tax assets, which management notes has no impact on liquidity.
Transitioned the credit facility to an asset-backed structure to increase borrowing availability and financial flexibility.
Implemented a Board refreshment process, adding two independent directors with deep operational experience to enhance shareholder oversight.
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Management reported that the energy pipeline remains healthy with several multimillion-dollar project wins secured in Q4.
The energy vertical now represents 15% of the total portfolio, up from 10% in the prior year, with renewable projects accounting for about one-third of PeopleReady’s business.
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