Company: ATLN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001605888-25-000031
Chunk: 83

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 following:

 Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Temporary placement services$102,033,461 $103,897,666 $203,859,800 $203,570,568 Permanent placement and other services863,532 738,607 1,846,000 1,688,917 Total service revenues, net$102,896,993 $104,636,273 $205,705,800 $205,259,485 

Service revenue, net was $102,896,993 and $104,636,273 for the three months ended June 30, 2025 and 2024, respectively, a decrease of $1,739,280, or 1.7%. This decrease was predominately due to lower revenues from the Company’s temporary placement services business, which decreased $1,864,205 or 1.8% in the three months ended June 30, 2025 as compared to the same period in 2024 due primarily to customers were slower based on economic conditions. Permanent placement and other services increased $124,925 or 16.9% due to strong demand from our current clients.

Service revenue, net was $205,705,800 and $205,259,485 for the six months ended June 30, 2025 and 2024, respectively, an increase of $446,315, or 0.2%. The Company’s temporary placement services business, slightly increased $289,232 or 0.1% in the six months ended June 30, 2025 as compared to the same period in 2024. Permanent placement and other services increased $157,083 or 9.3% due to strong demand from our current clients.

Cost of Revenue and Gross Profit

Gross profit reflects the difference between realized service revenue, net and cost of revenues for providing temporary and permanent placement solutions. Cost of revenue consists primarily of fixed and variable directs costs, including payroll, payroll taxes and employee benefit costs. Cost of revenue and gross profit for the three and six months ended June 30, 2025 and 2024 consisted of the following:

Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Service revenue, net$102,896,993 $104,636,273 $205,705,800 $205,259,485 Cost of