Second quarter revenue was $516 million, an increase of 44% compared to the second quarter of the prior year.
We delivered net income of $16 million in the second quarter versus a loss of $8 million in the second quarter of the prior year, and adjusted EBITDA was up $30 million year-over-year with the related margin up 640 basis points.
At PeopleManagement revenue is down just 1% versus Q2 2019 supported by a doubling of new client wins through June versus this time last year.
Revenue for PeopleScout was down only 2% versus Q2 2019 as the travel and leisure segment rebounded strongly growing over 200% during the quarter.
Revenue for PeopleReady was down 19% versus Q2 2019.
We are seeing both dynamics in certain industries, such as commercial construction, which is 12% of our mix and has only recovered 60% of Q2 2019 revenue.
To reengage, we launched a campaign in states eliminating the federal unemployment programs targeting those who have not worked over the last 18 months.
PeopleReady is our largest segment representing 58% of trailing 12 month revenue and 64% of segment profit.
PeopleReady revenue was up 43% during the quarter versus down 13% in Q1.
PeopleManagement is our second largest segment representing 32% of trailing 12 month revenue and 16% of segment profit.
PeopleManagement revenue is reaching pre-pandemic levels with year-over-year growth of 28% in the second quarter versus growth of 7% in Q1.
Turning to our third segment, PeopleScout represents 10% of trailing 12-month revenue and 20% of segment profit.
PeopleScout revenue is also nearing pre-pandemic levels with year-over-year growth of 106% in the second quarter versus a decline of 13% in Q1.
Since rolling out JobStack to our associates in 2017 and our clients in 2018, digital fill rates have increased 3 times to nearly 60% with 788,000 shifts filled via the app during the quarter.
Our JobStack client user count ended the quarter at 27,100, up 12% versus Q2 2020.
A heavy client user has 50 or more touches on JobStack per month, whether it's entering an order, rating a worker or approving time.
JobStack heavy client users continue to post better year-over-year revenue growth rates compared to the rest of the customer base, with the Q2 2021 growth differential exceeding 40 percentage points on a same customer basis.
Heavy client users are becoming more material in our overall results as they now account for 46% of PeopleReady US on-demand revenue compared to 30% in Q2 2020.
The service centers increase our accessibility as they operate 85 hours per week versus 60 hours for a typical branch.
We are seeing strong results as PeopleManagement secured $63 million of annualized new business wins so far this year compared to $32 million this time last year.
These efforts are already delivering results as shown by the $33 million of annualized new wins secured by PeopleScout so far this year versus $9 million this time last year.
Total revenue for Q2 2021 was $516 million, representing growth of 44%, driven by new business wins and higher existing client volumes.
We posted net income of $16 million, or $0.45 per share, an increase of $24 million compared to a net loss of $8 million in the prior year.
Adjusted net income was $16 million, or an increase of $21 million, which is less than the increase in GAAP net income, primarily due to $11 million of workforce reduction charges in Q2 2020 that are excluded from adjusted net income.
We delivered adjusted EBITDA of $25 million, an increase of $30 million, and adjusted EBITDA margin was up 640 basis points driven by the same items previously mentioned for net income.
Gross margin of 26.4% was up 320 basis points.
Our staffing segments contributed 70 basis points of margin expansion aided by lower workers' compensation costs due to favorable development of prior year reserves.
PeopleScout contributed 250 basis points of expansion with 170 basis points associated with operating leverage from higher volumes.
The remaining 80 basis points was due to non-repeating workforce reduction costs incurred in Q2 2020, which are excluded from our adjusted net income and adjusted EBITDA calculations.
SG&A was up 14% but as a percentage of revenue was down 570 basis points.
Excluding the workforce reduction charge in Q2 last year, SG&A was up 24%, which was roughly half the rate of revenue growth, and was down 340 basis points as a percentage of revenue.
Our effective income tax rate was 19% in Q2.
Turning to our segments, PeopleReady revenue increased 43% with segment profit margin up 590 basis points.
Year-over-year revenue in our three largest verticals, construction, transportation and manufacturing, improved by over 30 percentage points versus Q1 results.
California, our hardest hit geography and largest market was up 66% versus a decline of 18% in Q1, and hospitality, our hardest hit vertical doubled in Q2 versus a decline of 34% in Q1.
PeopleManagement revenue increased 28%, while segment profit increased 79% with 60 basis points of margin improvement driven by operating leverage.
PeopleManagement had $63 million of annualized new business wins through June, primarily in the retail and transportation industries, with $7 million of new business revenue recorded this quarter and $26 million expected over the remainder of the year.
PeopleScout revenue increased 106% after being down 13% in Q1, with segment profit of $11 million yielding a 16.9% margin versus a loss of $3 million in Q2 last year.
Revenue benefited from strong recovery in our hardest-hit industries, including travel and leisure, which grew 200%.
New business wins also contributed to revenue growth as PeopleScout delivered $33 million of annualized new wins through June this year versus $9 million in the comparable prior year period.
New wins generated $4 million of revenue in Q2 with $20 million expected over the remainder of the year, coming from a variety of industries, including retail, healthcare and transportation.
We finished the quarter with $105 million in cash, no outstanding debt, and an unused credit facility.
Our cash balance will drop in Q3 due to a repayment of $60 million in government payroll taxes that the government allowed businesses to defer last year and about $35 million of additional working capital from sequential revenue growth associated with the seasonal nature of our business and year-over-year revenue growth.

Summary:
Second quarter revenue was $516 million, an increase of 44% compared to the second quarter of the prior year.
We posted net income of $16 million, or $0.45 per share, an increase of $24 million compared to a net loss of $8 million in the prior year.