| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 20.88 | 67.0% |
| Total Income | 20.88 | 67.0% |
| Expenditure | 22.43 | 64.3% |
| PBT | -1.56 | 92.6% |
| Net Profit | -0.47 | 34.7% |
| OPM | -7.44% | 7.97pp |
| NPM | -2.26% | 1.11pp |
| EPS | -0.04 |
BGSF Reports Q1 2026 Financial Results, Net Loss Narrows to $1.4 Million
07 May 2026 · 7 May, 1:51 am
Summary
BGSF, Inc. reported first quarter 2026 financial results, with revenues holding steady at $20.9 million year-over-year. Despite flat revenue, the company demonstrated significant improvements in profitability metrics, reducing its net loss to $1.4 million and its Adjusted EBITDA loss to $0.5 million. Gross profit percentage slightly decreased to 35% from 36% in the prior year. Management expressed optimism, noting the successful completion of the Transition Services Agreement and the BG Staffing rebrand, and anticipates low- to mid-single-digit revenue growth for the full year 2026, supported by a strong, debt-free balance sheet and strategic initiatives in PropTech services.
Key Highlights
- 1
BGSF, Inc. reported first quarter 2026 revenues of $20.9 million, which remained flat compared to the prior year quarter.
- 2
The company significantly reduced its net loss for Q1 2026 to $1.4 million, or $0.13 per diluted share, an improvement from a net loss of $2.3 million, or $0.21 per diluted share, in the prior year quarter.
- 3
Adjusted EBITDA loss improved to $0.5 million (3% of revenues) in Q1 2026, compared to a loss of $1.0 million (5% of revenues) in the prior year quarter.
- 4
Adjusted EPS loss also saw an improvement, narrowing to $0.06 for Q1 2026 from $0.09 in the prior year quarter.
- 5
The company successfully completed the Transition Services Agreement with INSPYR and the BG Staffing rebrand, simplifying its organization and strengthening market positioning.
- 6
Management expects full-year 2026 revenue to grow in the low- to mid-single-digit range and highlighted a strong, debt-free balance sheet.
- 7
BGSF expanded its strategic presence with two new partnership agreements and is developing its PropTech services strategy, which is viewed as a meaningful long-term growth opportunity.
Management Comments
Keith Schroeder
We successfully completed the Transition Services Agreement (“TSA”) with INSPYR at the end of the quarter and are now operating as a stand-alone company. This inflection point simplifies the organization and enables greater operational discipline. While first-quarter revenue was flat year-over-year, severe nationwide weather in late January and February likely affected demand compared to the prior year. With the TSA concluded, our teams are concentrated on property management staffing and the execution of our strategic initiatives. We continue to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025. We exited the quarter with a strong, debt-free balance sheet, and we remain committed to disciplined capital management and cost control. General and Administrative expenses were reduced to our targeted $3.0 million run-rate level in the first quarter, supporting continued operational improvement and progress toward profitability.
Kelly Brown
The completion of the BG Staffing rebrand in the first quarter reflects an important step in strengthening our market positioning and building a more scalable digital lead-generation platform. We also expanded our strategic presence with two additional partnership agreements, reinforcing our role as a trusted staffing partner to leading property management companies. In parallel, we continued to develop our PropTech services strategy by expanding our consulting pipeline and scaling our Yardi consultant network. We are encouraged by PropTech's growth potential, driven by market expansion in implementation and integration projects, increased demand for portfolio-level data and analytics, and ongoing consolidation in the property management industry. While still early, we view this as a meaningful long-term growth opportunity for the Company.
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