ATLN earnings analysis
What we found in ATLN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Atlantic International Corp (ATLN) reported significant revenue growth in Q1 2026 primarily due to the Circle8 acquisition, with service revenue netting $249.89 million, up 143.1% from $102.81 million in Q1 2025. However, the company continues to face operational challenges with an increase in total operating expenses, resulting in a net loss of $30.69 million and a diluted EPS of -$0.44, compared to a loss of $10.74 million and EPS of -$0.20 in the previous year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surge Driven by Acquisition
- Q1 2026 service revenue of $249.89 million reflects a 143.1% increase from $102.81 million in Q1 2025, largely due to Circle8's contribution.
- Gross Profit Increase
- Gross profit rose to $21.43 million in Q1 2026, a 91.5% increase from $11.19 million a year earlier.
- Cash Position Strengthened
- Cash and cash equivalents increased substantially to $24.10 million in Q1 2026 from $81,134 at the end of 2025.
- Free Cash Flow Positive in Previous Quarter
- Q1 2025 achieved positive free cash flow of $15 million, though Q1 2026 saw cash used in operating activities of $(9.89) million.
- Decreased Margin with Higher Sales
- Gross margin declined to 8.6% in Q1 2026 from 10.9% in Q1 2025, attributed to lower margins in international sales.
- Acquisition Enhancements Noted by Management
- Management expects the Circle8 acquisition to enhance scale, liquidity, and operational efficiencies.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Substantial Net Losses
- Net losses worsened to $30.69 million in Q1 2026, up from $10.74 million in Q1 2025.
- Going Concern Doubts
- Management has expressed substantial doubt about the ability to continue as a going concern due to capital restructuring needs.
- Default on Debt Obligations
- The company's debt facing significant restructuring and potential defaults reported in the last filings raise liquidity concerns.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.44
- Gross margin
- 8.6%
- Segment
- Temporary placement services: $245.57M
- Segment
- Brokerage services: $1.97M
- Segment
- Payrolling services: $0.94M
- Segment
- Permanent placement and other: $1.40M
What they said about what is next.
Management defers specific numeric guidance related to future earnings or revenue to future earnings releases.
The filing reads worse than the one before it.
What came before.
- 10-K · April 15, 2026
- Atlantic (ATLN) is a U.S.-focused staffing business (Lyneer) with scale (2025 service revenue $435.9M) that completed a major Europe-focused acquisition (Circle8) after year-end (Jan 23, 2026). The 2025 results show…
- 10-Q · November 14, 2025
- Atlantic reported Q3 2025 service revenue of $110,127,203, up versus Q3 2024 revenue of $107,803,843. Gross profit was $12,401,976 (≈11.3% of revenue) but the company recorded an operating loss of $(8,717,023) and a net…
- 10-Q · May 14, 2025
- Atlantic reported quarterly revenue of $102,808,807 (vs $100,623,212 a year ago) with gross profit of $11,186,122 (gross margin ~10.9%). Operating loss widened to $(9,449,746) as SG&A rose to $19,399,479 (driven by…
- 10-Q · November 14, 2024
- Atlantic reported three-month service revenue of $107,803,843 (up $10,018,687 or ≈10.2% vs. $97,785,156 a year ago) with gross profit of $11,885,470 (≈11.0% margin). Operating loss widened to $(6,511,654) from…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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