ENGLEWOOD CLIFFS, N.J., Aug. 20, 2026 (GLOBE NEWSWIRE) -- Circle8 Group Inc. (Nasdaq: CIRC) ("Circle8" or the "Company"), a global provider of technology talent, consulting enablement and workforce solutions, today announced financial results for the three and six months ended June 30, 2026.

Circle8 generated record service revenue of $569.7 million for the first six months of 2026, an increase of 176.9% from $205.7 million in the prior-year period, while gross profit doubled to $45.2 million from $22.6 million. First-half revenue surpassed the Company's previous record full-year revenue of approximately $442 million, reflecting the significant increase in scale of Circle8's expanded global platform.

For the second quarter, Circle8 delivered record service revenue of $319.8 million, an increase of 210.8% from $102.9 million in the prior-year period, while gross profit increased 108.5% to $23.8 million from $11.4 million. Selling, general and administrative expense declined to 11.75% of revenue from 18.3% in the prior-year period, reflecting increased scale across the combined platform.

Second Quarter and First-Half Highlights

• Record First-Half Revenue. Service revenue of $569.7 million for the six months ended June 30, 2026 increased 176.9% from $205.7 million in the prior-year period and surpassed the Company's previous record full-year revenue of approximately $442 million.
• Record Second Quarter Revenue. Service revenue of $319.8 million increased 210.8% from $102.9 million in the prior-year period.
• Annualized Revenue Scale. Second-quarter revenue represents an annualized revenue level exceeding $1.2 billion, demonstrating the scale of Circle8's expanded global platform.
• Gross Profit Growth. First-half gross profit doubled to $45.2 million from $22.6 million, while second-quarter gross profit increased 108.5% to $23.8 million from $11.4 million.
• Increased Operating Scale. Selling, general and administrative expense declined to 11.75% of revenue from 18.3% in the prior-year period.
• International Scale. International operations contributed $206.0 million of revenue and $13.8 million of gross profit during the second quarter.
• Domestic Growth. Domestic revenue increased $10.9 million year over year in the [second quarter], driven primarily by new customers resulting from the Company's sales initiatives.
• Increased Cash Balance. Cash and cash equivalents increased to $19.3 million at June 30, 2026, compared with $0.1 million at December 31, 2025.

"The first half of 2026 represents a significant milestone for Circle8 and demonstrates the scale and strategic potential of our expanded global platform," said Guus Franke, Chief Executive Officer and Executive Chairman of Circle8 Group. "In just six months, we generated nearly $570 million of revenue. Second-quarter revenue increased 177% from the prior-year period, while gross profit more than doubled. The addition of our European technology talent platform has meaningfully diversified our business, expanded our customer base and established Circle8 as a company operating at an annualized revenue level exceeding $1.2 billion."

"This increased scale is reflected in SG&A declining to 11.75% of revenue from 18.3% in the prior-year period," Mr. Franke continued. "Our focus now is translating this significantly larger revenue and gross profit base into improved profitability, stronger cash flow and greater operating efficiency. We believe the substantial improvement in SG&A as a percentage of revenue demonstrates the operating leverage available across the platform as we continue integrating and optimizing the business. Following the quarter, we also took a significant step toward simplifying Circle8's capital structure through our settlement with SPP Credit Advisors LLC, which resolves longstanding litigation and eliminates the $35 million Lyneer merger note and its related conversion rights. With a broad international footprint, deep public- and private-sector customer relationships and more than 8,300 technology professionals under management, we believe Circle8 is well positioned to execute on its next phase of operational improvement and disciplined growth."

Financial Results

Service revenue for the second quarter of 2026 was $319.8 million, compared with $102.9 million for the second quarter of 2025. The increase primarily reflected the January 2026 acquisition of Circle8 Group B.V., which contributed $206.0 million of second-quarter revenue, together with organic growth in the Company's domestic operations.

Gross profit was $23.8 million, compared with $11.4 million in the prior-year period. The change in gross margin percentage reflects the addition of the Company's international operations, including European jurisdictions with structurally lower gross margins than the domestic business.

The Company reported a net loss of $86.7 million for the second quarter of 2026. Under U.S. GAAP, the Company is required to recognize in the second quarter the $60.4 million one-time loss associated with the SPP litigation settlement. The benefit from the release, cancellation and discharge of the $35 million merger note is not reflected in the June 30, 2026 balance sheet or second-quarter results because the settlement occurred subsequent to quarter end; the Company expects the note reduction to be reflected in its financial statements for the third quarter of 2026, subject to final accounting treatment. The reported result also included interest expense, depreciation and amortization, and other expenses, gains and losses. Loss from operations was $12.5 million, compared with $8.7 million in the prior-year period.

Six-Month Results

For the six months ended June 30, 2026, Circle8 generated record service revenue of $569.7 million, an increase of 176.9% from $205.7 million in the prior-year period. Gross profit doubled to $45.2 million from $22.6 million. First-half revenue exceeded the Company's previous record full-year revenue of approximately $436 million by approximately $133 million, or 28%.

Net loss for the six-month period was $117.1 million, including the $60.4 million one-time settlement charge associated with the SPP litigation settlement, which the Company is required to recognize in the period under U.S. GAAP. The release, cancellation and discharge of the $35 million Lyneer merger note occurred subsequent to June 30, 2026 and therefore is not reflected in the first-half results; the Company expects the note reduction to be reflected in its third-quarter 2026 financial statements, subject to final accounting treatment.

Subsequent Strategic Developments

Following the quarter, Circle8 took a significant step toward simplifying its capital structure and addressing legacy financing matters. On August 7, 2026, the Company entered into a settlement agreement with SPP Credit Advisors, LLC that resolves all outstanding litigation between the parties.

Among other provisions, the settlement releases, cancels and discharges the Company's $35 million merger note due March 2027, eliminates related future payment and conversion rights, cures existing defaults under the Company's obligations to SPP, eliminates default interest and restores the remaining indebtedness to its contractual non-default interest rate. The settlement also establishes an orderly framework for the disposition of shares over an approximately 18-month period. Because the settlement was entered into after June 30, 2026, the $35 million note reduction is not reflected in the second-quarter financial statements and is expected to be reflected in the third quarter of 2026, subject to final accounting treatment.

The Company believes resolving these legacy financing matters materially reduces uncertainty surrounding its capital structure and allows management to remain focused on improving operating performance, expanding margins, strengthening cash flow and executing Circle8's long-term strategic growth strategy.

About Circle8 Group Inc.

Circle8 Group Inc. (Nasdaq: CIRC) is a global provider of technology talent, consulting enablement and workforce solutions operating across the United States and Europe. Through its portfolio of specialized brands, Circle8 connects enterprises, technology companies, financial institutions and public-sector organizations with skilled professionals across software development, data analytics, cybersecurity, project management and emerging technologies.

Circle8 Group B.V. manages more than 8,300 technology professionals, while the Company's U.S. operations provide industrial, professional and workforce management solutions through a nationwide network. Circle8 is headquartered in Englewood Cliffs, New Jersey, and its European operations are headquartered in Amsterdam, the Netherlands.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements regarding the Company's strategy, operating improvement, profitability, liquidity, capital structure, growth opportunities and future performance. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. Factors that may affect actual results include those described in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The Company undertakes no obligation to update forward-looking statements except as required by law.

Investor Contact

Kevin Murphy
Chief Financial Officer
kmurphy@atlantic-international.com
(770) 861-0213

Source: Circle8 Group Inc.