SPAR Group (NASDAQ:SGRP) Releases Earnings Results, Misses Estimates By $0.41 EPS

SPAR Group (NASDAQ:SGRP) announced its quarterly earnings results on Tuesday. The business services provider reported ($0.39) EPS for the quarter, missing the consensus estimate of $0.02 by ($0.41), FiscalAI reports. SPAR Group had a negative return on equity of 34.89% and a negative net margin of 9.52%.The company had revenue of $22.02 million for the quarter, compared to analyst estimates of $40.00 million. During the same quarter in the prior year, the business earned ($0.24) earnings per share.

Here are the key takeaways from SPAR Group’s conference call:

• SPAR completed divestiture of its international joint ventures and rebuilt its leadership team to become a North America‑centric, people‑powered and tech‑enabled company focused on an outcome‑based, on‑demand merchandising model.
• Fiscal 2025 results showed $136.1M in net revenue (U.S. & Canada +3.3% comparable) but significant margin compression and losses: gross profit of $21.7M (15.9%), operating loss of $16.9M, and net loss of $24.6M ($1.04/sh), with adjusted EBITDA at a negative $8.6M.
• Results were affected by roughly $7M of one‑time SG&A items and $4.8M of restructuring/severance; management expects an annual SG&A run‑rate of about $25.5M–$26.5M, while the balance sheet shows $3.3M cash, positive working capital of $14.7M, and $18.4M net cash used in operating activities for the year.
• Guidance for fiscal 2026 targets revenue of $143M–$151M and improved gross margins of 20.5%–22.5%, driven by a deliberate shift toward higher‑margin merchandising work and expected wallet expansion with existing clients.
• SPAR announced a live strategic partnership with ReposiTrak to combine out‑of‑stock detection and route optimization with SPAR’s on‑demand field teams, creating a closed‑loop model that turns signals into verified in‑store fixes across multiple retail channels.

SPAR Group Stock Performance

Shares of SGRP stock opened at $0.59 on Thursday. The stock’s 50-day moving average is $0.77 and its two-hundred day moving average is $0.89. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.20 and a current ratio of 1.20. SPAR Group has a 1 year low of $0.58 and a 1 year high of $1.41. The firm has a market cap of $14.19 million, a price-to-earnings ratio of -0.58 and a beta of 0.20.

SPAR Group Company Profile

SPAR Group, Inc is a U.S.-based provider of retail merchandising and business services to consumer packaged goods companies. Through its nationwide network of local merchandisers, the company delivers in-store product stocking, planogram compliance, retail audits and promotional installations. SPAR Group’s field teams work directly in grocery, pharmacy, big‐box and convenience channels to ensure optimal product placement and availability at the point of sale.

Beyond traditional merchandising, SPAR Group offers retail data collection and analytics to help clients monitor shelf conditions, pricing accuracy and inventory levels across multiple retail outlets.