BGSF (BGSF) investor relations material

Executive summary

• Announced and entered agreement to sell the Professional segment for $99M, with a shareholder vote set for September 4, and results now reflected as discontinued operations.

• Property Management is now the sole operating segment, with Q2 2025 revenue of $23.5M, down 8.6% year-over-year but up 12.6% sequentially due to seasonal demand.

• Strategic investments in AI-powered sales and recruiting platforms are underway, with go-live planned by mid-Q4 to drive efficiency and incremental revenue.

• Cost restructuring and head office G&A reductions target $10M annually post-transaction, including $1.5M in public company costs.

• Company expects to be debt-free post-sale, with approximately $45M cash on hand and a new, unused revolving credit line.

Financial highlights

• Q2 2025 property management revenue: $23.5M, down 8.6% year-over-year; gross profit: $8.4M (35.8% margin), down from $9.6M (37.3%) last year.

• Net loss from continuing operations: $4.9M ($0.44 per diluted share) in Q2 2025, compared to $2.1M loss in Q2 2024.

• Adjusted EBITDA for Q2 2025: $(1.1)M (4.9% margin), down from $(0.3)M in Q2 2024.

• Cash and cash equivalents at quarter end: $2.8M; $3M cash generated from operating activities in H1 2025.

• Discontinued operations (Professional segment) contributed $1.1M net income and $40.3M revenue in Q2 2025.

Outlook and guidance

• Post-sale, Property Management will be the sole segment, with G&A targeted at $10M annually and contribution to overhead expected at $11M–$12M in 2025.

• Management anticipates a steady climb in adjusted EBITDA margin toward 8–10% as top-line recovers, but expects volatility for several quarters post-sale.

• Seasonal Q3 revenue lift of ~9% over Q2 expected, but year-over-year decline likely to persist absent significant share gains.

• Proceeds from the Professional segment sale will be used to reduce debt and invest in Property Management.