Atlantic International Corp. Reports Q1 2025 Financial Results with Increased Revenue but Higher Net Loss

Atlantic International Corp., formerly known as SeqLL Inc., reported its financial results for the first quarter of 2025, revealing a net service revenue of $102.8 million, a 2.2% increase from $100.6 million in the same period last year. The company's gross profit rose to $11.2 million, up 6.9% from $10.5 million, primarily driven by increased revenues from temporary placement services. However, the company also reported a significant net loss of $10.7 million, compared to a loss of $4.9 million in the prior year, reflecting a 74.3% increase in net loss before taxes.

The financial performance was impacted by a substantial rise in selling, general, and administrative expenses, which surged by 87.6% to $19.4 million, largely due to stock-based compensation and higher transaction costs associated with the recent merger. The company’s interest expenses decreased significantly to $1.3 million from $5.0 million, attributed to the deconsolidation of joint and several debt obligations following the merger. The weighted average shares outstanding increased to approximately 54 million, reflecting the impact of the merger and stock issuance.

Strategically, Atlantic International Corp. completed a merger with Lyneer Investments LLC on June 18, 2024, which has since become the company's primary business. This merger was structured as a reverse capitalization, with Lyneer being the accounting acquirer. Following the merger, the company rebranded and relocated its headquarters to Englewood Cliffs, New Jersey. The merger has positioned Atlantic as a significant player in the staffing industry, with over 100 locations across the United States, focusing on various sectors including finance, IT, and light industrial roles.

Operationally, the company reported a decrease in accounts receivable, which contributed to a net cash provided by operating activities of $14.6 million, up from $11.2 million in the previous year. The company’s total current assets decreased to $72.7 million from $88.0 million, while total liabilities also saw a reduction to $120.5 million from $134.8 million. The company’s cash and cash equivalents increased to $1.5 million, indicating improved liquidity.

Looking ahead, Atlantic International Corp. has expressed confidence in its ability to meet its liquidity needs, bolstered by a new asset-based lending facility established on April 29, 2025, which replaced its previous revolving credit facility. The company anticipates that its operational cash flow, combined with this new credit facility, will support its working capital requirements for at least the next year. However, management remains cautious about potential economic challenges that could impact future performance.