BGSF (BGSF) Q1 2026 earnings summary

Executive summary

• Completed sale of Professional segment in September 2025, with results now reflected as discontinued operations.

• Property Management segment remains the sole continuing operation, providing workforce solutions in 44 states and D.C.

• Revenue for Q1 2026 was $20.9 million, flat compared to Q1 2025, with gross profit at $7.4 million, slightly down from $7.6 million year-over-year.

• Net loss improved to $1.4 million ($0.13 per diluted share) from $2.3 million ($0.21 per diluted share) in Q1 2025.

• Completion of the Transition Services Agreement with INSPYR marks the company’s transition to stand-alone operations.

Financial highlights

• Gross margin declined to 35% from 36% year-over-year.

• Operating loss improved to $1.6 million from $1.8 million year-over-year.

• Adjusted EBITDA loss narrowed to $0.5 million (3% of revenue) from $1.0 million (5% of revenue) in the prior year quarter.

• Adjusted EPS loss was $0.06, improved from a $0.09 loss in Q1 2025.

• Cash and cash equivalents at quarter-end were $13.9 million, down from $19.0 million at the previous year-end.

Outlook and guidance

• Full-year 2026 revenue is expected to grow in the low- to mid-single-digit range compared to 2025.

• Management expects sufficient liquidity and capital resources to meet operating requirements and expansion plans for at least the next twelve months.

• Management remains focused on disciplined capital management and cost control to drive progress toward profitability.

• Additional growth opportunities may be pursued, potentially requiring new debt or equity financing.