SPAR Group Q1 Revenue Falls 10% to $30.52M, Reports Negative EPS
SGRP sits 28% above its 52-week low of $0.501.
Summary
SPAR Group reported a 10% year-over-year decline in Q1 revenue to $30.52 million, resulting in a negative adjusted EPS of -$0.02 and a net loss of $553,000. This revenue drop was primarily attributed to lower Remodel activity. Despite the top-line weakness, the company saw an improvement in gross margin to 22.3% from 21.4% as it shifted away from lower-margin work towards higher-margin merchandising services. The company reiterated its 2026 net sales guidance of $143 million to $151 million for the U.S. and Canada, and targets 25% gross margins over the next 18-24 months. This Q1 performance follows a challenging fiscal year 2025, which included a widened net loss and a Nasdaq delisting notice, making current financial results critical for investor sentiment and the company's turnaround efforts. Investors will be watching for continued operational efficiency and the impact of the shift to higher-margin services on future profitability.
At the time of this announcement, SGRP was trading at $0.64 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $15.4M. The 52-week trading range was $0.50 to $1.41. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.