Toronto-based talent acquisition firm Caldwell Partners International (TSX: CWL, OTCQX: CWLPF) reported a mixed financial performance for its second fiscal quarter ending February 28, 2025, marked by significant revenue growth but ongoing operational losses. The company’s strategic investments in partnership development and client services drove progress, while shifting market dynamics prompted cautious optimism.
Caldwell’s professional fees surged 30% year-over-year to $16.8 million (C$22.9 million), driven by a 35% jump in its core Caldwell segment to $14.7 million (C$20.1 million). The IQTalent division held steady at $2 million (C$2.8 million). Total revenue reached $16.9 million (C$23.16 million) for the quarter, up from $13.1 million (C$17.87 million) in Q2 2024.
Despite the top-line growth, the company posted a net loss of $154,000 (C$211,000), or $0.005 per share (C$0.007), compared to a larger loss of $632,000 (C$865,000) a year earlier. Gross profit improved to $3.5 million (C$4.8 million), while operating losses narrowed by 44% to $475,000 (C$649,000). For the six-month period, revenue climbed to $32.6 million (C$44.52 million), but net income fell sharply to $186,000 (C$254,000) from $2.1 million (C$2.91 million) in the prior year.
The quarter saw Caldwell strengthen its leadership team with three new partner additions and host its first firm-wide partner meeting in two years. “This strategic investment aligns with our commitment to collaboration and client service,” said CEO Chris Beck, noting improved operational efficiency across most business lines.
However, Beck acknowledged emerging headwinds: “We’re seeing increased caution among clients in Canada and select U.S. sectors, particularly around hiring decisions.” This sentiment shift comes amid broader market uncertainties, though demand remains stable in other regions.
Caldwell maintained its shareholder dividend at $0.0018 per share (C$0.0025), payable June 17 to investors of record April 22. The company emphasized disciplined cost management while continuing to recruit talent and invest in AI-driven recruitment tools through its Caldwell and IQTalent brands.
Key financial comparisons (USD/CAD):
| Metric | Q2 2025 | Q2 2024 |
| Professional Fees | $16.8M (C$22.9M) | $12.9M (C$17.7M) |
| Gross Profit | $3.5M (C$4.8M) | $2.6M (C$3.6M) |
| SG&A Expenses | $4M (C$5.45M) | $3.5M (C$4.78M) |
| Operating Loss | $475K (C$649K) | $846K (C$1.16M) |
The six-month results revealed a stark contrast in restructuring impacts. While FY2025 saw no restructuring activity, the prior year included a $5.8 million (C$7.98 million) net gain from lease terminations that significantly boosted 2024’s profitability.
Caldwell remains focused on leveraging its dual-brand strategy, combining high-touch executive search with scalable talent solutions. The firm’s technology investments aim to enhance client agility, though near-term performance may fluctuate with market conditions. As Beck concluded: “Our priority is delivering insight-driven support to help clients navigate this evolving landscape while maintaining financial discipline.”
