DALLAS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- BGSF, Inc. ( NYSE: BGSF ), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the second fiscal quarter ended June 28, 2026.
Q2 2026 Highlights from Continuing Operations
-
Revenues were $22.3 million for Q2, compared to $23.5 million from prior year quarter, driven by lower billable hours in the current year compared to prior year.
-
Gross profit was $7.9 million for Q2, compared to $8.4 million in prior year quarter, which is in line with revenues.
-
Net loss was $0.8 million, or $0.08 per diluted share for Q2, compared to a net loss of $4.5 million, or $0.41 per diluted share in the prior year quarter. The decrease is primarily driven by a reduction in selling, general, and administrative expenses.
-
Adjusted EBITDA1 loss was $0.3 million (1% of revenues) in Q2, compared to loss of $1.2 million (5% of revenues) in the prior year quarter.
-
Adjusted EPS1 loss was $0.02 for Q2, compared with Adjusted EPS1 loss of $0.10 in the prior year quarter.
SUMMARY OF FINANCIAL RESULTS FROM CONTINUING OPERATIONS
(dollars in thousands, except per share) (unaudited)
For the Thirteen Week Periods Ended
June 28,
2026
June 29,
2025
Revenues
$
22,313
$
23,506
Gross profit
$
7,918
$
8,410
Gross profit percentage
35.5
%
35.8
%
Operating loss
$
(1,190
)
$
(3,976
)
Net loss
$
(834
)
$
(4,489
)
Net loss per diluted share
$
(0.08
)
$
(0.41
)
Non-GAAP Financial Measures:
Adjusted EBITDA1
$
(298
)
$
(1,153
)
Adjusted EBITDA Margin (% of revenue)1
(1)%
(5)%
Adjusted EPS1
$
(0.02
)
$
(0.10
)
1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below.
Co-Chief Executive Officer and Chief Financial Officer, Keith Schroeder, said, "The second quarter of 2026 was our first reporting period following the conclusion of the Transition Services Agreement ("TSA") with INSPYR at the end of March. We took this opportunity to continue to streamline the organization by simplifying our operations in both front office and back office as well as continuing to make organizational realignments as necessary to reduce costs.
"As we head into our seasonally strongest third quarter, we look forward to realizing the benefits of all of these strategic actions, including enhanced revenue, more effective operations and lower overall support costs."
Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, "We continue to enhance and improve our many tools in order to provide superior customer service during this busy third quarter. Our usage of AI tools in screening, onboarding, and matching is continually being expanded, improved, and enhanced.
"Our PropTech services strategy continues to gain momentum and is building a solid sales funnel for the coming year."
Conference Call
BGSF will discuss its second quarter 2026 financial results during a conference call and webcast at 9:00 a.m. ET on August 6, 2026. Interested participants may dial 1-844-481-3017 (Toll Free) or 1-412-317-1882 (International) and ask to be included in the BGSF call. A call replay will be available until August 13, 2026. To access the replay, please dial 1-855-669-9658 (Toll Free), or 1-412-317-0088 (International) and enter access code 2412265. The live webcast and archived replay are accessible from the investor relations section of the Company's website at https://investor.bgsf.com/events-and-presentations/default.aspx
About BGSF
BGSF provides best-in-class property management resources and solutions to growing apartment and luxury communities, as well as commercial properties, and was awarded Supplier Company of the Year by the National Apartment Association in recent years. Through its exclusive and semi-exclusive agreements with some of the largest property management companies in North America, BGSF offers differentiated advantages to clients, including trained talent and unique technological platforms that seek to maximize efficiencies in the growing residential and commercial leased property industries. For more information on the Company and its services, please visit its website at www.bgsf.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding BGSF's expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding the future revenue and the business plans of BGSF's management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "endeavor," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of BGSF considering their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on BGSF as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting BGSF will be those anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the mix of services or solutions utilized by BGSF's client partners and such client partners' needs for these services or solutions, market acceptance of new offerings of services or solutions, the ability of BGSF to expand what it does for existing client partners as well as to add new client partners, whether BGSF will have sufficient capital to operate as anticipated, the impact of the use of AI-powered technologies and the timing of their availability, the impact of our strategic initiatives and cost reductions, the demand for BGSF's services and solutions, economic activity in BGSF's industry and in general, and certain risks, uncertainties, and assumptions described in BGSF's most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. BGSF undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws.
CONTACT:
Steven Hooser or Sandy Martin
Three Part Advisors
ir@BGSF.com
214.872.2710 or 214.616.2207
Source: BGSF, Inc.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
June 28,
2026
December 28,
2025
ASSETS
Current assets
Cash and cash equivalents
$
9,718
$
19,018
Short-term investments
8,509
—
Accounts receivable (net of allowance for credit losses of $1,078 and $1,156, respectively)
11,944
11,898
Escrow receivable
1,450
4,950
Prepaid expenses
1,267
1,126
Other current assets
1,100
1,458
Total current assets
33,988
38,450
Property and equipment, net
259
244
Other assets
Deposits
1,915
1,938
Software as a service, net
2,721
3,002
Deferred income taxes, net
9,807
9,496
Right-of-use asset - operating leases, net
454
630
Intangible assets, net
2,715
3,003
Goodwill
1,074
1,074
Total other assets
18,686
19,143
Total assets
$
52,933
$
57,837
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
258
$
503
Accrued payroll and expenses
4,715
4,441
Transition services payable
1,010
3,064
Income taxes payable
3
76
Note payable
102
449
Severance payable, current portion
288
392
Lease liabilities, current portion
274
409
Total current liabilities
6,650
9,334
Severance payable, less current portion
—
100
Lease liabilities, less current portion
232
298
Total liabilities
6,882
9,732
Commitments and contingencies
Preferred stock, $0.01 par value per share, 500,000 shares authorized, -0- shares issued and outstanding
—
—
Common stock, $0.01 par value per share; 19,500,000 shares authorized 11,262,422 and 11,227,197 shares issued, respectively, and 10,680,174 and 10,872,067 outstanding, respectively
113
112
Additional paid in capital
71,861
71,445
Accumulated deficit
(23,179
)
(21,874
)
Treasury stock of 582,248 and 355,130 shares, respectively
(2,744
)
(1,578
)
Total stockholders' equity
46,051
48,105
Total liabilities and stockholders' equity
$
52,933
$
57,837
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and dividend amounts)
For the Thirteen and Twenty-six Week Periods Ended June 28, 2026 and June 29, 2025
Thirteen Weeks Ended
Twenty-six Weeks Ended
2026
2025
2026
2025
Revenues
$
22,313
$
23,506
$
43,194
$
44,389
Cost of services
14,395
15,096
27,866
28,419
Gross profit
7,918
8,410
15,328
15,970
Selling, general, and administrative expenses
8,928
12,577
17,733
21,580
Gain on contingent consideration
—
(450
)
—
(450
)
Depreciation and amortization
180
259
338
588
Operating loss
(1,190
)
(3,976
)
(2,743
)
(5,748
)
Interest income (expense), net
238
(1,877
)
234
(3,023
)
Loss before income taxes from continuing operations
(952
)
(5,853
)
(2,509
)
(8,771
)
Income tax benefit from continuing operations
118
1,364
286
1,953
Loss from continuing operations
(834
)
(4,489
)
(2,223
)
(6,818
)
Income from discontinued operations:
Income
—
908
—
3,019
Gain on sale
—
—
918
—
Income tax expense
—
(155
)
—
(659
)
Net loss
$
(834
)
$
(3,736
)
$
(1,305
)
$
(4,458
)
Net (loss) income per share - basic and diluted:
Net loss from continuing operations
$
(0.08
)
$
(0.41
)
$
(0.21
)
$
(0.62
)
Net income from discontinued operations:
Income
—
0.08
—
0.27
Gain on sale
—
—
0.09
—
Income tax expense
—
(0.01
)
—
(0.06
)
Net loss per share - basic and diluted
$
(0.08
)
$
(0.34
)
$
(0.12
)
$
(0.41
)
Weighted-average shares outstanding:
Basic and diluted
10,586
11,019
10,614
10,986
PROPERTY MANAGEMENT SEGMENT
(dollars in thousands) (unaudited)
Thirteen Weeks Ended
Twenty-six Weeks Ended
June 28,
2026
June 29,
2025
June 28,
2026
June 29,
2025
Contract field talent
$
21,487
$
23,000
$
41,682
$
43,279
Contingent placements
826
506
1,512
1,110
Revenue
22,313
23,506
43,194
44,389
Compensation and related
14,354
15,058
27,786
28,344
Other
41
38
80
75
Gross profit
7,918
8,410
15,328
15,970
Selling:
Compensation
4,167
4,195
8,600
8,121
Advertising, occupancy, and travel
500
447
935
825
Software, insurance, and professional fees
539
296
951
669
Other
279
1,806
516
2,176
Contributions to overhead
2,433
1,666
4,326
4,179
General and administrative:
Compensation
1,463
2,184
3,033
4,245
Software
633
828
1,211
1,525
Professional fees
486
569
985
1,111
Strategic alternatives review
385
1,613
868
1,634
Other
476
639
634
1,274
Gain on contingent consideration
—
(450
)
—
(450
)
Depreciation and amortization
180
259
338
588
Operating loss
(1,190
)
(3,976
)
(2,743
)
(5,748
)
Interest income (expense), net
238
(1,877
)
234
(3,023
)
Income tax benefit from continuing operations
118
1,364
286
1,953
Loss from continuing operations
$
(834
)
$
(4,489
)
$
(2,223
)
$
(6,818
)
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Twenty-six Week Periods Ended June 28, 2026 and June 29, 2025
2026
2025
Cash flows from operating activities
Net loss
$
(1,305
)
$
(4,458
)
Net income from discontinued operations
(918
)
(2,360
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation
50
58
Amortization
288
530
Software as a service
281
425
Loss on disposal of property and equipment
—
6
Contingent consideration adjustment
—
(450
)
Amortization of debt issuance costs
—
598
Interest expense on note payable
—
93
Provision for credit losses
214
1,656
Share-based compensation
417
305
Deferred income taxes
(311
)
(1,378
)
Other non-cash items
(29
)
—
Net changes in operating assets and liabilities:
Accounts receivable
(259
)
1,851
Escrow receivable
3,500
—
Prepaid expenses
(142
)
(87
)
Other current assets
345
(393
)
Deposits
23
8
Transition services payable
(2,054
)
—
Accounts payable
(245
)
1,288
Accrued payroll and expenses
274
3,263
Accrued interest
—
287
Income taxes receivable
(61
)
(384
)
Severance payable
(205
)
—
Operating leases
(23
)
(33
)
Other long-term liabilities
—
2,137
Net cash (used in) provided by continuing operating activities
(160
)
2,962
Net cash provided by discontinued operating activities
—
253
Net cash (used in) provided by operating activities
(160
)
3,215
Cash flows from investing activities
Proceeds from business sold
918
—
Purchases of short-term investments
(17,377
)
—
Proceeds from sale of short-term investments
8,897
—
Capital expenditures
(65
)
(13
)
Net cash used in continuing investing activities
(7,627
)
(13
)
Net cash used in discontinued investing activities
—
(63
)
Net cash used in investing activities
(7,627
)
(76
)
Cash flows from financing activities
Net borrowings under line of credit
—
1,604
Principal payments on long-term debt
—
(1,913
)
Issuance of ESPP shares
—
134
Note payable paid
(347
)
—
Repurchase of common stock
(1,166
)
—
Payments of debt issuance costs
—
(29
)
Net cash used in financing activities
(1,513
)
(204
)
Net change in cash and cash equivalents
(9,300
)
2,935
Less: net change in cash and cash equivalents, discontinued operations
—
190
Cash and cash equivalents, beginning of period
19,018
32
Cash and cash equivalents, end of period, continuing operations
$
9,718
$
2,777
Supplemental cash flow information:
Cash paid for interest
$
50
$
2,048
Cash paid for state taxes, net of refunds
$
81
$
354
NON-GAAP FINANCIAL MEASURES
The financial results of BGSF, Inc. are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission. To help the readers understand our financial performance, we supplement our GAAP financial results with Adjusted EBITDA and Adjusted EPS.
A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company. Adjusted EBITDA and Adjusted EPS are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, net income per diluted share, operating income, or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities or measures of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS are useful performance measures and are used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone.
We define "Adjusted EBITDA" as earnings before interest (income) expense, income taxes, depreciation and amortization expense, costs associated with the evaluation of potential strategic alternatives ("strategic alternatives review"), software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance.
We define "Adjusted EPS" as diluted earnings per share eliminating interest (income) expense, depreciation, and amortization expense, the strategic alternatives review, software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance, net of the respective income tax effect.
Reconciliation of Net Loss to Adjusted EBITDA
(dollars in thousands)
Thirteen Weeks Ended
Twenty-six Weeks Ended
June 28,
2026
June 29,
2025
June 28,
2026
June 29,
2025
Loss from continuing operations
$
(834
)
$
(4,489
)
$
(2,223
)
$
(6,818
)
Income tax benefit
(118
)
(1,364
)
(286
)
(1,953
)
Interest (income) expense, net
(238
)
1,877
(234
)
3,023
Operating loss
(1,190
)
(3,976
)
(2,743
)
(5,748
)
Depreciation and amortization
180
259
338
588
Gain on contingent consideration
—
(450
)
—
(450
)
Share-based compensation
187
137
417
305
Strategic alternatives review
385
1,613
868
1,634
Software as a service1
140
284
281
425
Aged receivable adjustment
—
980
—
1,070
Adjusted EBITDA from continuing operations
(298
)
(1,153
)
(839
)
(2,176
)
Adjusted EBITDA Margin (% of revenue)
(1)%
(5)%
(2)%
(5)%
Gain on sale
—
—
918
—
Income from discontinued operations
—
753
918
2,360
Adjustments to discontinued operations2
—
1,506
—
3,370
Adjusted EBITDA from discontinued operations
—
2,259
918
5,730
Adjusted EBITDA, net
$
(298
)
$
1,106
$
79
$
3,554
1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses.
2 Adjusted EBITDA from discontinued operations for the thirteen and twenty-six weeks ended June 29, 2025 includes $1.3 million and $2.7 million of depreciation and amortization, respectively, and $0.2 million and $0.7 million of income tax expense, respectively.
Reconciliation of Net Loss EPS to Adjusted EPS
Thirteen Weeks Ended
Twenty-six Weeks Ended
June 28,
2026
June 29,
2025
June 28,
2026
June 29,
2025
Loss from continuing operations per diluted share
$
(0.08
)
$
(0.41
)
$
(0.21
)
$
(0.62
)
Income tax benefit
(0.01
)
(0.12
)
(0.03
)
(0.18
)
Interest (income) expense, net
(0.02
)
0.17
(0.02
)
0.28
Operating loss
(0.11
)
(0.36
)
(0.26
)
(0.52
)
Depreciation and amortization
0.02
0.02
0.03
0.05
Gain on contingent consideration
—
(0.04
)
—
(0.04
)
Share-based compensation
0.02
0.01
0.04
0.03
Strategic alternatives review
0.04
0.15
0.08
0.15
Software as a service1
0.01
0.03
0.03
0.04
Aged receivable adjustment
—
0.09
—
0.10
Adjusted EPS from continuing operations
(0.02
)
(0.10
)
(0.08
)
(0.19
)
Adjusted EPS from discontinued operations
—
0.21
0.09
0.54
Adjusted EPS
$
(0.02
)
$
0.11
$
0.01
$
0.35
1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses.
