BGSF (BGSF) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $22.3 million, down 5.1% year-over-year, primarily due to lower billed hours, reduced customer demand, and increased competition in the property management sector.

• Gross profit was $7.9 million, with gross margin stable at 35.5%; operating loss improved to $1.2 million from $4.0 million in the prior year.

• Net loss from continuing operations improved to $0.8 million ($0.08 per diluted share) from $4.5 million ($0.41 per share) last year; adjusted EPS loss was $0.02.

• Adjusted EBITDA loss narrowed to $298,000 (1% of revenues) from $1.2 million (5% of revenues) year-over-year.

• The company completed the sale of its Professional segment in September 2025, with results now reflected as discontinued operations.

Financial highlights

• Revenues for the first half of 2026 were $43.2 million, down 2.7% year-over-year.

• SG&A expenses dropped to $8.9 million in Q2 and $17.7 million for the first half, reflecting significant cost reductions.

• Cash and equivalents stood at $18.2 million at quarter-end; working capital was $27.3 million.

• 56,256 shares repurchased at an average price of $5.20, totaling $293,000; $2.3 million remains available for repurchases.

• Net cash used in operating activities was $0.2 million for the first half of 2026.

Outlook and guidance

• Full year 2026 revenue expected to remain consistent with 2025 levels, with gross margin anticipated around 36%.

• Management expects benefits from cost reduction and operational initiatives to be reflected starting in Q3.

• Sufficient liquidity and capital resources are expected for at least the next twelve months.

• PropTech services strategy is gaining momentum, expected to contribute 1%-2% of revenue in 2027.