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Segment Information and Enterprise Reporting
 3 Months Ended
Aug. 24, 2024
Segment Reporting [Abstract]  
Segment Information and Enterprise Reporting Segment Information and Enterprise Reporting
The tables below reflect the operating results of the Company’s segments consistent with the management and performance measurement system utilized by the Company. During the first quarter of fiscal 2025, the Company reorganized its business segments to better align with changes in its internal operating model and financial reporting, which is used for performance assessment and resource allocation by the CODMs. All prior year periods presented were recast to reflect the impact of the preceding segment changes. See Note 2 – Summary of Significant Accounting Policies for further discussion about the Company’s operating and reportable segments.
Performance measurement is based on segment Adjusted EBITDA. Adjusted EBITDA is defined as net income before amortization expense, depreciation expense, interest and income taxes plus or minus stock-based compensation expense, technology transformation costs, acquisition costs, gain on sale of assets, and restructuring costs. Adjusted EBITDA at the segment level excludes certain shared corporate administrative costs that are not practical to allocate. The Company’s CODMs do not evaluate segments using asset information.
The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands):
Three Months Ended
August 24,
2024		August 26,
2023
Revenue:
On-Demand Talent$52,473 $77,974 
Consulting55,025 56,845 
Europe & Asia Pacific
17,983 23,267 
Outsourced Services9,491 9,418 
All Other
1,963 2,665 
Total consolidated revenue$136,935 $170,169 
Adjusted EBITDA:
On-Demand Talent$2,559 $8,557 
Consulting7,753 8,529 
Europe & Asia Pacific227 1,704 
Outsourced Services1,394 1,548 
All Other(467)71 
Unallocated items (1)
(9,146)(8,863)
Consolidated Adjusted EBITDA (2)
$2,320 $11,546 
(1)Unallocated items are generally comprised of unallocated corporate administrative costs, including management and board compensation, corporate support function costs and other general corporate costs that are not allocated to segments.
(2)A reconciliation of the Company’s net income to Adjusted EBITDA on a consolidated basis is presented below.
The table below represents a reconciliation of the Company’s net (loss) income to Adjusted EBITDA for both periods presented (in thousands):
Three Months Ended
August 24,
2024		August 26,
2023
Net (loss) income
$(5,707)$3,117 
Adjustments:
Amortization expense1,485 1,314 
Depreciation expense540 877 
Interest income, net
(148)(312)
Income tax expense1,054 2,075 
EBITDA(2,776)7,071 
Stock-based compensation expense1,561 2,552 
Technology transformation costs (1)
1,858 1,923 
Acquisition costs (2)
1,289 —
Goodwill impairment (3)
3,855 —
Gain on sale of assets (4)
(3,420)—
Restructuring adjustments
(47)—
Adjusted EBITDA$2,320 $11,546 
(1)Technology transformation costs represent costs included in net income related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based enterprise resource planning system and talent acquisition and management systems. Such costs primarily include hosting and certain other software licensing costs, third-party consulting fees and costs associated with dedicated internal resources that are not capitalized.
(2)Acquisition costs primarily represent one-time costs included in net income related to the Company’s business acquisition, which include fees paid to the Company’s broker and other professional services firms. See Note 4 – Acquisition in the Notes to Consolidated Financial Statements for further discussion.
(3)Goodwill impairment charge recognized during the three months ended August 24, 2024 was related to the Europe Asia Pacific segment.

(4) The Company completed the sale of its Irvine office building on August 15, 2024.