Segment Information and Enterprise Reporting (Tables)

9 Months Ended

Feb. 22, 2025

Summary of Operating Results of Segments

The following table discloses the Company’s revenue and Adjusted EBITDA by segment for both periods presented (in thousands):


	Three Months Ended				Nine Months Ended
	February 22, 2025		February 24, 2024			February 22, 2025		February 24, 2024
Revenue:
On-Demand Talent	$	47,089	$	64,162		$	153,014	$	213,085
Consulting	52,597		55,828			168,265		171,731
Europe & Asia Pacific	18,576		19,631			56,260		64,700
Outsourced Services	9,367		9,375			28,284		27,859
All Other	1,809		2,311			6,168		7,228
Total consolidated revenue	$	129,438	$	151,307		$	411,991	$	484,603

Adjusted EBITDA:
On-Demand Talent	$	2,567	$	7,341		$	10,731	$	24,560
Consulting	5,914		8,769			23,390		28,226
Europe & Asia Pacific	841		1,342			2,549		4,747
Outsourced Services	1,493		1,577			4,434		4,903
All Other	(727)		(244)			(1,720)		(707)
Unallocated items (1)	(8,437)		(7,999)			(25,757)		(23,336)

Adjustments:
Stock-based compensation expense	(1,908)		(1,181)			(5,417)		(4,249)
Amortized ERP system costs (2)	(609)		—			(609)		—
Technology transformation costs (3)	(1,574)		(1,386)			(5,475)		(4,987)
Acquisition costs (4)	(492)		(156)			(2,296)		(1,282)
Goodwill impairment (5)	(42,039)		—			(125,376)		—
Gain on sale of assets (6)	—		—			3,420		—
Restructuring cost (7)	(2,905)		(1,643)			(3,157)		(3,898)
Amortization expense	(1,407)		(1,413)			(4,461)		(4,048)
Depreciation expense	(464)		(745)			(1,466)		(2,432)
Interest income, net	106		225			469		830
(Loss) income before income tax benefit (expense)	(49,641)		4,487			(130,741)		18,327
Income tax benefit (expense)	5,589		(1,937)			12,267		(7,765)
Net (loss) income	$	(44,052)	$	2,550		$	(118,474)	$	10,562

(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 Enterprise Resource Planning (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 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.

(4) Acquisition costs primarily represent costs included in net income related to the Company’s business acquisitions. 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 4 – Acquisitions in the Notes to Consolidated Financial Statements for further discussion.

(5) Goodwill impairment charges recognized during the three and nine months ended February 22, 2025 were related to the On-Demand Talent, Consulting and Europe Asia Pacific segments. See Note 6 – Goodwill and Intangible Assets in the Notes to Consolidated Financial Statements for further discussion.

(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) The Company authorized the 2025 Restructuring Plan in December 2024. The 2023 U.S. restructuring plan was substantially completed during fiscal 2024.