10-Q · May 12, 2026
SPAR Group, Inc. reported Q1 2026 net revenues of $30.5 million, reflecting a 10.3% decrease year-over-year, and a net loss of $0.39 per share, missing analyst expectations. While gross margins improved slightly to…
Earnings analysis · 10-Q
SGRP earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
SPAR Group produced a materially better second quarter, with $409,000 of net income, $0.02 diluted EPS, $1.209 million of operating income and $2.139 million of adjusted EBITDA. However, revenue fell 4.5% year over year…
Read full summary
SPAR Group produced a materially better second quarter, with $409,000 of net income, $0.02 diluted EPS, $1.209 million of operating income and $2.139 million of adjusted EBITDA. However, revenue fell 4.5% year over year because of lower U.S. remodel volume, gross margin contracted 70 basis points to 22.8%, and first-half operating cash flow remained negative $8.7 million. Canada’s 29.4% revenue growth and SG&A savings were constructive, but liquidity reliance, covenant exposure, material control weaknesses and newly disclosed shareholder litigation support a neutral outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
What stood out
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Revenue Declined on Lower Remodel Volume
Second-quarter revenue was $36.906 million, down $1.723 million, or 4.5%, from $38.629 million in the prior-year quarter. Management attributed the decline primarily to lower remodel-business volume.
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Operating Profitability Improved
Gross margin was 22.8% versus 23.5% a year earlier, a 70-basis-point decline. Operating income increased 69.1% to $1.209 million from $0.715 million, lifting operating margin to approximately 3.3% from 1.9%.
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Quarter Returned to Profitability
Net income was $409,000 compared with a $1,000 net loss in the prior-year quarter, and diluted EPS was $0.02. Adjusted EBITDA increased to $2.139 million from $1.313 million.
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Canada Growth Partly Offset U.S. Decline
Canada revenue grew $1.0 million, or 29.4%, to $4.4 million, driven by merchandising services. This partly offset the $2.7 million, or 7.7%, decline in U.S. revenue to $32.5 million.
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Cost Savings Supported Margins
SG&A declined 14.7% to $6.767 million from $7.934 million, with SG&A as a percentage of revenue improving to 18.3% from 20.5%. Management attributed the reduction to implemented cost-savings measures.
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Operating Cash Burn Improved
Six-month operating cash flow remained negative at $8.7 million, although this improved from $11.9 million of cash used in the prior-year period. Investing cash use was approximately $1.0 million, while financing provided approximately $9.4 million.
What to watch
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Continued Operating Cash Burn
Operating cash flow was negative $8.7 million for the first six months, while investing activities used approximately $1.0 million. The company also received $3.0 million under an unsecured promissory note, indicating reliance on financing to support liquidity.
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Liquidity and Covenant Exposure
Management says liquidity is expected to be sufficient over the next 12 months, but warns that delayed collection from major clients, a significant reduction in client business or an economic downturn could materially affect cash resources and the ability to fund operations. The company is subject to financial covenants under various credit facilities.
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New Shareholder Litigation
A new shareholder derivative action was filed on June 5, 2026, amended on July 24, 2026, and followed by an arbitration action on July 30, 2026. The company states it cannot estimate any reasonably possible loss and warns of substantial costs, management distraction and potential adverse effects on its business and financial condition.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that cash availability should be manageable and sufficient to support working capital and capital expenditure requirements over the next 12 months, subject to customer collections, business volume and economic conditions.
Earlier filings 4
10-K · March 31, 2026
SPAR Group positions itself as a North America–focused merchandising and brand marketing services provider with a three‑part strategy to grow the core business, introduce/acquire new services, and invest in technology…
10-Q · August 14, 2025
SPAR Group reported Q2 (three months ended June 30, 2025) net revenues of $38,629,000, down $4.8M (-11.0%) versus Q2 2024 but up roughly $4.6M (+13.5%) versus Q1 2025. Gross margin expanded to 23.5% and the company…
10-Q · May 15, 2024
SPAR Group reported quarterly revenues of $68,693 (in thousands) for the three months ended March 31, 2024, up $4,313 from $64,380 in the year‑ago quarter, and reported diluted EPS of $0.28 versus $0.04 a year earlier.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.