Quarterly ResultMay 12, 2026, 08:17 AM
SPAR Group Q1 Net Loss $0.55M; Gross Margin 22.3%; Reaffirms FY26 Guidance
AI Summary
SPAR Group reported a net loss of ($553) thousand, or ($0.02) per diluted share, for Q1 2026, with net revenues declining 10.3% to $30.5 million. Despite the revenue decline and lower Adjusted EBITDA, the company achieved higher gross margins of 22.3% due to a strategic shift towards higher-margin recurring merchandising revenue, which saw growth in both US and Canada segments. SPAR Group reiterated its full-year 2026 financial guidance, including net sales of $143 million to $151 million and gross margins of 20.5% to 22.5%, and announced a settlement agreement with a co-founder.
Key Highlights
- Q1 2026 Net revenues declined 10.3% year-over-year to $30.5 million.
- Consolidated Gross Margin improved to 22.3% from 21.4% in Q1 2025.
- GAAP Net loss attributable to SPAR Group was ($553) thousand, or ($0.02) per diluted share.
- Adjusted EBITDA decreased to $737 thousand from $1.5 million in Q1 2025.
- US Merchandising revenue grew 5% and Canada revenue increased 3%.
- Company reiterated full-year 2026 net sales guidance of $143 million to $151 million.
- Full-year 2026 gross margin guidance is 20.5% to 22.5%.
- Reached a settlement agreement with a co-founder and former CEO.
Price Impact
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