BGSF · BGSF, Inc.

BGSF reported its first quarterly results as a fully independent company following the conclusion of the Transition Services Agreement (TSA) with INSPYR at quarter-end — a pivotal inflection point management emphasized as enabling greater operational discipline and strategic focus. Revenue held flat year-over-year at $20.9 million, with Co-CEO Keith Schroeder attributing muted growth to severe nationwide weather in late January and February that likely suppressed demand relative to the prior year. Gross profit declined slightly to $7.4 million (35% margin) from $7.6 million (36% margin), driven by a lower gross margin percentage — consistent with commentary on mix and cost dynamics. Operating loss improved to $1.6 million from $1.8 million, aided by reduced General and Administrative expenses hitting the targeted $3.0 million run-rate level. Net loss narrowed meaningfully to $1.4 million ($0.13 diluted EPS), and Adjusted EBITDA improved to a $0.5 million loss (3% of revenue), reflecting tighter cost control and the removal of TSA-related overhead. Management explicitly guided to low- to mid-single-digit full-year 2026 revenue growth versus 2025 — the first forward outlook since independence — while highlighting continued investment in PropTech services, expanded partnership agreements, and execution of the rebranded BG Staffing strategy. The balance sheet remains strong: debt-free, with $13.9 million in cash and $47.0 million in stockholders’ equity as of March 29, 2026. Though still unprofitable on a GAAP basis, the trajectory across key non-GAAP metrics and the clarity of post-TSA strategy signal meaningful operational stabilization and renewed growth focus.