SPAR Group (NASDAQ:SGRP) Releases Earnings Results, Misses Estimates By $0.70 EPS

SPAR Group (NASDAQ:SGRP) released its earnings results on Tuesday. The business services provider reported ($0.68) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.70), RTT News reports. The firm had revenue of $22.02 million during the quarter, compared to the consensus estimate of $40.00 million. SPAR Group had a negative return on equity of 34.89% and a negative net margin of 9.52%.During the same quarter in the previous year, the firm earned ($0.24) EPS.

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 Price Performance

Shares of SGRP stock traded down $0.00 during trading hours on Wednesday, hitting $0.62. 10,904 shares of the company’s stock were exchanged, compared to its average volume of 33,269. The company has a market capitalization of $14.91 million, a PE ratio of -8.89 and a beta of 0.07. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 0.07. SPAR Group has a 12-month low of $0.62 and a 12-month high of $1.41. The business’s 50 day simple moving average is $0.77 and its 200-day simple moving average is $0.89.

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.