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Segment Information and Enterprise Reporting (Tables)

12 Months Ended

May 31, 2025

Segment Reporting [Abstract]

Summary of Operating Results of Segments

The table below represents a reconciliation of the Company’s net income (loss) to Adjusted EBITDA for all periods presented (in thousands):

			For the Years Ended
			May 31, 2025						May 25, 2024						May 27, 2023
Revenue:
On-Demand Talent			$	205,976					$	272,600					$	372,679
Consulting			219,215						227,967						259,946
Europe & Asia Pacific			77,602						84,207						93,166
Outsourced Services			39,618						38,122						38,950
All Other			8,920						9,905						10,902
Total consolidated revenue			$	551,331					$	632,801					$	775,643
Adjusted EBITDA:
On-Demand Talent			$	17,116					$	31,673					$	60,484
Consulting			31,718						38,420						53,477
Europe & Asia Pacific			4,478						5,289						9,913
Outsourced Services			7,581						7,641						7,408
All Other			(1,838)						(675)						1,131
Unallocated items (1)			(35,598)						(30,865)						(32,219)
Adjustments:
Stock-based compensation expense			(6,754)						(5,732)						(9,521)
Amortized ERP system costs (2)			(1,287)						-						-
Technology transformation costs (3)			(5,474)						(6,901)						(6,355)
Acquisition costs (4)			(2,763)						(1,970)						-
Goodwill impairment (5)			(194,409)						-						(2,955)
Gain on sale of assets (6)			3,420						-						-
Restructuring cost (7)			(5,061)						(4,087)						364
Amortization expense			(5,880)						(5,378)						(5,018)
Depreciation expense			(1,868)						(3,050)						(3,539)
Contingent consideration adjustment (8)			-						4,400						-
Interest income, net			544						1,064						(552)
Income (loss) before income tax benefit (expense)			(196,075)						29,829						72,618
Income tax benefit (expense)			4,295						(8,795)						(18,259)
Net income (loss)			$	(191,780)					$	21,034					$	54,359

(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)Amortized ERP system costs represent the amortization of capitalized technology transformation costs related to newly implemented ERP system, which was recorded within selling, general, and administrative expenses on the Consolidated Statement of Operations.

(3)Technology transformation costs represent costs included in net income (loss) related to the Company’s initiative to upgrade its technology platform globally, including a cloud-based ERP 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.

(4)Acquisition costs primarily represent costs included in net income (loss) related to the Company’s business acquisition. These costs include transaction bonuses, cash retention bonus accruals, and fees paid to the Company's broker, legal counsel, and other professional services firms. See Note 3 – Acquisitions and Dispositions for further discussion.

(5)The effect of the goodwill impairment charge recognized during the year ended May 31, 2025 was related to the On-Demand Talent, Consulting, and Europe and Asia Pacific segments and during the year ended May 27, 2023 related to the Sitrick segment.

(6)Gain on sale of assets was related to the Company’s sale of its Irvine office building, which was completed on August 15, 2024.

(7)Restructuring costs for the year ended May 31, 2025 related to the 2025 Restructuring Plan, which were authorized in December 2024 and May 2025. Restructuring costs for the year ended May 25, 2024 related to U.S. Restructuring Plan, which was authorized in October 2023, and was substantially completed during fiscal 2024. The restructuring credits for the year ended May 27, 2023 related to the release of accrued restructuring liabilities upon completion of the global restructuring and business transformation plans from fiscal 2021.

(8)Contingent consideration adjustment related to the remeasurement of contingent liabilities related to the CloudGo acquisition.

Reconciliation of Net Income to Adjusted EBITDA

The tables below disclose the Company’s revenue, gross profit, significant expenses, Adjusted EBITDA, gross margin and Adjusted EBITDA margin by segment (amount in thousands):

						Year Ended May 31, 2025
						On-Demand Talent						Consulting						Europe and Asia Pacific						Outsourced Services						All Other
Revenue						$	205,976					$	219,215					$	77,602					$	39,618					$	8,920
Cost of services						127,195						137,619						50,216						23,646						5,231
Gross Profit						78,781						81,596						27,386						15,972						3,689
Compensation, bonus and commissions (1)						47,048						38,313						16,390						5,977						2,134
Other segment expenses (2)						14,617						11,565						6,518						2,414						3,393
Adjusted EBITDA						$	17,116					$	31,718					$	4,478					$	7,581					$	(1,838)

Gross Margin						38.2		%				37.2		%				35.3		%				40.3		%				41.4		%
Adjusted EBITDA margin (3)						8.3		%				14.5		%				5.8		%				19.1		%				(20.6)		%

						Year Ended May 25, 2024
						On-Demand Talent						Consulting						Europe and Asia Pacific						Outsourced Services						All Other
Revenue						$	272,600					$	227,967					$	84,207					$	38,122					$	9,905
Cost of services						167,796						138,119						53,231						22,239						5,348
Gross Profit						104,804						89,848						30,976						15,883						4,557
Compensation, bonus and commissions (1)						53,910						41,714						17,804						6,472						2,098
Other segment expenses (2)						19,221						9,714						7,883						1,770						3,134
Adjusted EBITDA						$	31,673					$	38,420					$	5,289					$	7,641					$	(675)
Gross Margin						38.4		%				39.4		%				36.8		%				41.7		%				46.0		%
Adjusted EBITDA margin (3)						11.6		%				16.9		%				6.3		%				20.0		%				(6.8)		%

						Year Ended May 27, 2023
						On-Demand Talent						Consulting						Europe and Asia Pacific						Outsourced Services						All Other
Revenue						$	372,679					$	259,946					$	93,166					$	38,950					$	10,902
Cost of services						222,595						152,898						58,624						22,978						5,406
Gross Profit						150,084						107,048						34,542						15,972						5,496
Compensation, bonus and commissions (1)						67,835						45,215						17,640						6,467						2,481
Other segment expenses (2)						21,765						8,356						6,989						2,097						1,884
Adjusted EBITDA						$	60,484					$	53,477					$	9,913					$	7,408					$	1,131
Gross Margin						40.3		%				41.2		%				37.1		%				41.0		%				50.4		%
Adjusted EBITDA margin (3)						16.2		%				20.6		%				10.6		%				19.0		%				10.4		%

(1)The significant expense category and amounts align with the segment-level information that is regularly provided to the CODMs.

(2)Other segment expenses include occupancy expenses, business expenses, marketing expenses, recruiting expenses and other operating expenses.

(3)Segment Adjusted EBITDA Margin is calculated by dividing segment Adjusted EBITDA by segment revenue.

Summary of Revenue and Long-Lived Assets by Geographic Location

The table below represents the Company’s revenue and long-lived assets by geographic location (in thousands):

			Revenue for the Years Ended																		Long-Lived Assets (1) as of
			May 31, 2025						May 25, 2024						May 27 2023						May 31, 2025						May 25, 2024
United States			$	451,228					$	519,869					$	664,515					$	25,297					$	13,343
International			100,103						112,932						111,128						1,677						2,319
Total			$	551,331					$	632,801					$	775,643					$	26,974					$	15,662

(1)Long-lived assets are comprised of property and equipment and ROU assets.

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Tabular disclosure of reconciliation of other items from reportable segments to their consolidated amount. Excludes reconciliation of revenue, profit (loss), and assets.

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Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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