SPAR Group (SGRP) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 19.0% YoY amid lower remodel activity; operating income was $232k and net income was $50k, versus losses of $5.919m and $8.764m.

• Q3 Adjusted EBITDA rose to $1.387m from $90k; GAAP profitability continued for a second consecutive quarter.

• Cost reductions, restructuring and a shift toward higher-margin merchandising supported profitability; a three-year national-retailer services agreement begins in 2027.

• Strategic priorities include improving profitability, generating consistent cash flow and reducing debt.

Financial highlights

• Q3 revenue was $33.544m, down 19.0% YoY; gross profit was $6.329m, down 17.7%.

• 9M revenue was $100.968m, down 11.5%; operating income was $1.399m versus a $4.169m loss, and net loss narrowed to $94k from $8.303m.

• Q3 SG&A fell 39.0% YoY to $5.6m; 9M SG&A fell 19.2% to $18.6m, reflecting cost reductions and restructuring.

• Gross margin was 18.9% in Q3 versus 18.6%, and 21.3% for 9M versus 21.1%.

• 9M Adjusted EBITDA rose 47.3% to $4.271m from $2.900m.

Outlook and guidance

• FY2026 revenue guidance is $125m–$130m, versus FY2025 revenue of $136m for the U.S. and Canada.

• FY2026 gross margin guidance is 20.0%–22.0%, versus 15.9% in FY2025 for the U.S. and Canada.

• FY2026 SG&A guidance, excluding unusual items, is $23.5m–$25.0m, versus $32.2m in FY2025.

• Available cash sources were assessed as sufficient for working capital and capital spending over the next 12 months, conditional on continued credit-facility access; no assurance was given.