BGSF (NYSE: BGSF) posts flat Q1 2026 revenue but improves net loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
BGSF, Inc. reported first quarter 2026 results with revenue from continuing operations of $20,881 thousand, essentially flat with the prior year. Gross profit was $7,410 thousand versus $7,560 thousand, reflecting a modestly lower gross margin.
Loss from continuing operations improved to $1,389 thousand, or $0.13 per diluted share, compared with $2,329 thousand, or $0.21 per diluted share, a year earlier. Adjusted EBITDA loss narrowed to $541 thousand, or 3% of revenues, from $1,023 thousand, or 5% of revenues, and Adjusted EPS loss improved to $0.06 from $0.09.
Management highlighted completion of the Transition Services Agreement with INSPYR, operation as a stand‑alone, debt‑free company, and achievement of a $3.0 million general and administrative run‑rate in the quarter. They reiterated expectations for full‑year 2026 revenue to grow in the low‑ to mid‑single‑digit range compared to 2025 and emphasized progress in property management staffing, BG Staffing rebranding, and development of PropTech consulting services.
Positive
- None.
Negative
- None.
Insights
BGSF posts flat revenue but narrower losses and cleaner balance sheet.
BGSF generated Q1 2026 revenue of $20,881 thousand, essentially unchanged year over year, while gross profit slipped slightly to $7,410 thousand with a 35% gross margin versus 36% a year earlier. Operating loss from continuing operations improved to $1,553 thousand.
Net loss from continuing operations was $1,389 thousand, meaningfully better than $2,329 thousand in Q1 2025, and Adjusted EBITDA loss improved to $541 thousand, or 3% of revenue. The company reports a debt‑free balance sheet with total liabilities of $6,385 thousand and stockholders’ equity of $46,991 thousand as of March 29, 2026.
Management completed the Transition Services Agreement with INSPYR and reached a targeted $3,000 thousand general and administrative expense run‑rate in the quarter. They continue to expect full‑year 2026 revenue growth in the low‑ to mid‑single‑digit range versus 2025, while investing in rebranding, digital lead generation, and PropTech consulting initiatives.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue from continuing operations: $20,881 thousand
Gross profit: $7,410 thousand
Net loss from continuing operations: $1,389 thousand
+5 more
8 metrics
Revenue from continuing operations
$20,881 thousand
Thirteen weeks ended March 29, 2026
Gross profit
$7,410 thousand
Thirteen weeks ended March 29, 2026
Net loss from continuing operations
$1,389 thousand
Thirteen weeks ended March 29, 2026
Adjusted EBITDA from continuing operations
$541 thousand loss
Q1 2026, margin (3% of revenues)
Adjusted EPS from continuing operations
$0.06 loss
Thirteen weeks ended March 29, 2026
Cash and cash equivalents
$13,898 thousand
Balance sheet as of March 29, 2026
Total liabilities
$6,385 thousand
Balance sheet as of March 29, 2026
Total stockholders’ equity
$46,991 thousand
Balance sheet as of March 29, 2026
Key Terms
Adjusted EBITDA, Adjusted EPS, Transition Services Agreement, PropTech, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA1 loss was $0.5 million (3% of revenues) in Q1"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EPS financial
"Adjusted EPS1 loss was $0.06 for Q1, compared with Adjusted EPS1 loss"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
Transition Services Agreement financial
"We successfully completed the Transition Services Agreement (“TSA”) with INSPYR"
A transition services agreement is a formal arrangement where one company continues to provide essential services—such as IT, human resources, or accounting—to another company after a business deal or change in ownership. It acts like a temporary bridge, ensuring smooth operations during a transition period. For investors, it provides clarity on how long support will last and helps assess potential costs and stability during the change.
PropTech financial
"We continued to develop our PropTech services strategy by expanding our consulting pipeline"
Property technology, or proptech, is the use of software, sensors, data and online platforms to buy, sell, manage and use real estate more efficiently. Think of it as bringing the conveniences of apps and automation to buildings and property markets — from digital listings and smart locks to automated maintenance and data-driven pricing. Investors care because proptech can lower costs, increase occupancy or rents, improve asset value and create new revenue streams or risks in real estate portfolios.
strategic alternatives review financial
"Strategic alternatives review expense of 483 in Q1 2026"
A strategic alternatives review is a process where a company examines different options for its future direction, such as selling parts of the business, merging with another company, or restructuring itself. This review helps management determine the best way to maximize value for shareholders. For investors, it signals that the company is exploring ways to improve its performance or unlock hidden worth, which can influence its stock price and strategic decisions.
Software as a service technical
"We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service"
Software as a service (often called SaaS) is software delivered over the internet on a subscription basis, like renting a streaming service instead of buying a DVD. For investors it matters because this model usually creates predictable, recurring revenue, easier scaling to more customers, and clear metrics (subscription growth and churn) that signal business health and future cash flow.
Earnings Snapshot
Revenue from continuing operations: $20,881 thousand · Guidance included
Q1 2026
Revenue from continuing operations
$20,881 thousand
Gross profit
$7,410 thousand
Net loss from continuing operations
$1,389 thousand
Adjusted EBITDA from continuing operations
$541 thousand loss
Adjusted EPS from continuing operations
$0.06 loss
Guidance
Management continues to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices, including zip code)
(972 ) 692-2400
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On May 6, 2026, BGSF, Inc. (the "Company") issued a press release regarding its financial results for the first fiscal quarter ended March 29, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The Company is making reference to non-GAAP financial information in the press release and the related conference call, and a reconciliation of GAAP to non-GAAP results is provided in the press release.
| Item 7.01 | Regulation FD Disclosure. | ||||
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d)Exhibits
| Exhibit No. | Description | ||||||||||
| 99.1 | Earnings release dated | May 6, 2026 | |||||||||
| 104.0 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BGSF, INC. | |||||||||||
| Date: | /s/ Keith Schroeder | ||||||||||
| Name: | Keith Schroeder | ||||||||||
| Title: | Co-Chief Executive Officer, Chief Financial Officer and Secretary | ||||||||||
| (Co-Principal Executive Officer and Principal Financial Officer) | |||||||||||
BGSF, Inc. Reports First Quarter 2026 Financial Results
DALLAS, Texas – (May 6, 2026) – BGSF, Inc. (NYSE: BGSF), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the first fiscal quarter ended March 29, 2026.
Q1 2026 Highlights from Continuing Operations
•Revenues were $20.9 million for Q1 current and prior year quarter.
•Gross profit was $7.4 million for Q1, compared to $7.6 million in prior year quarter, primarily driven by a lower gross margin percentage.
•Net loss was $1.4 million, or $0.13 per diluted share for Q1, compared to a net loss of $2.3 million, or $0.21 per diluted share in the prior year quarter.
•Adjusted EBITDA1 loss was $0.5 million (3% of revenues) in Q1, compared to loss of $1.0 million (5% of revenues) in the prior year quarter.
•Adjusted EPS1 loss was $0.06 for Q1, compared with Adjusted EPS1 loss of $0.09 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 | |||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||
| Revenues | $ | 20,881 | $ | 20,883 | |||||||||||||
| Gross profit | $ | 7,410 | $ | 7,560 | |||||||||||||
| Gross profit percentage | 35 | % | 36 | % | |||||||||||||
| Operating loss | $ | (1,553) | $ | (1,772) | |||||||||||||
| Net loss | $ | (1,389) | $ | (2,329) | |||||||||||||
| Net loss per diluted share | $ | (0.13) | $ | (0.21) | |||||||||||||
| Non-GAAP Financial Measures: | |||||||||||||||||
Adjusted EBITDA1 | $ | (541) | $ | (1,023) | |||||||||||||
Adjusted EBITDA Margin (% of revenue)1 | (3) | % | (5) | % | |||||||||||||
Adjusted EPS1 | $ | (0.06) | $ | (0.09) | |||||||||||||
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, “We successfully completed the Transition Services Agreement (“TSA”) with INSPYR at the end of the quarter and are now operating as a stand-alone company. This inflection point simplifies the organization and enables greater operational discipline. While first-quarter revenue was flat year-over-year, severe nationwide weather in late January and February likely affected demand compared to the prior year.
“With the TSA concluded, our teams are concentrated on property management staffing and the execution of our strategic initiatives. We continue to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025. We exited the quarter with a strong, debt-free balance sheet, and we remain committed to disciplined capital management and cost control. General and Administrative expenses were reduced to our targeted $3.0 million run-rate level in the first quarter, supporting continued operational improvement and progress toward profitability.”
Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, “The completion of the BG Staffing rebrand in the first quarter reflects an important step in strengthening our market positioning and building a more scalable digital lead-generation platform. We also expanded our strategic presence with two additional partnership agreements, reinforcing our role as a trusted staffing partner to leading property management companies.
“In parallel, we continued to develop our PropTech services strategy by expanding our consulting pipeline and scaling our Yardi consultant network. We are encouraged by PropTech's growth potential, driven by market expansion in implementation and integration projects, increased demand for portfolio-level data and analytics, and ongoing consolidation in the property management industry. While still early, we view this as a meaningful long-term growth opportunity for the Company.”
Conference Call
BGSF will discuss its first quarter 2026 financial results during a conference call and webcast at 9:00 a.m. ET on May 7, 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 replay of the call will be available until May 14, 2026. To access the replay, please dial 1-855-669-9658 (Toll Free), or 1-412-317-0088 (International) and enter access code 6626979. 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 sales and recruiting 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)
| March 29, 2026 | December 28, 2025 | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 13,898 | $ | 19,018 | ||||||||||||||||
| Short-term investments | 4,997 | — | ||||||||||||||||||
Accounts receivable (net of allowance for credit losses of $1,156, respectively) | 11,637 | 11,898 | ||||||||||||||||||
| Escrow receivable | 1,450 | 4,950 | ||||||||||||||||||
| Prepaid expenses | 1,002 | 1,126 | ||||||||||||||||||
| Other current assets | 1,313 | 1,458 | ||||||||||||||||||
| Total current assets | 34,297 | 38,450 | ||||||||||||||||||
| Property and equipment, net | 218 | 244 | ||||||||||||||||||
| Other assets | ||||||||||||||||||||
| Deposits | 1,920 | 1,938 | ||||||||||||||||||
| Software as a service, net | 2,862 | 3,002 | ||||||||||||||||||
| Deferred income taxes, net | 9,591 | 9,496 | ||||||||||||||||||
| Right-of-use asset - operating leases, net | 543 | 630 | ||||||||||||||||||
| Intangible assets, net | 2,871 | 3,003 | ||||||||||||||||||
| Goodwill | 1,074 | 1,074 | ||||||||||||||||||
| Total other assets | 18,861 | 19,143 | ||||||||||||||||||
| Total assets | $ | 53,376 | $ | 57,837 | ||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||
| Accounts payable | 511 | 503 | ||||||||||||||||||
| Accrued payroll and expenses | 4,620 | 4,441 | ||||||||||||||||||
| Transition services payable | — | 3,064 | ||||||||||||||||||
| Income taxes payable | 5 | 76 | ||||||||||||||||||
| Note payable | 251 | 449 | ||||||||||||||||||
| Severance payable, current portion | 391 | 392 | ||||||||||||||||||
| Lease liabilities, current portion | 358 | 409 | ||||||||||||||||||
| Total current liabilities | 6,136 | 9,334 | ||||||||||||||||||
| Severance payable, less current portion | — | 100 | ||||||||||||||||||
| Lease liabilities, less current portion | 249 | 298 | ||||||||||||||||||
| Total liabilities | 6,385 | 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 11,243,967 and 11,227,197 shares issued, respectively and 10,717,975 and 10,872,067 outstanding, respectively | 112 | 112 | ||||||||||||||||||
| Additional paid in capital | 71,675 | 71,445 | ||||||||||||||||||
| Accumulated deficit | (22,345) | (21,874) | ||||||||||||||||||
Treasury stock of 525,992 and 355,150 shares, respectively | (2,451) | (1,578) | ||||||||||||||||||
| Total stockholders’ equity | 46,991 | 48,105 | ||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 53,376 | $ | 57,837 | ||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and dividend amounts)
For the Thirteen Week Periods Ended March 29, 2026 and March 30, 2025
| Thirteen Weeks Ended | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Revenues | $ | 20,881 | $ | 20,883 | |||||||||||||
| Cost of services | 13,471 | 13,323 | |||||||||||||||
| Gross profit | 7,410 | 7,560 | |||||||||||||||
| Selling, general, and administrative expenses | 8,805 | 9,003 | |||||||||||||||
| Depreciation and amortization | 158 | 329 | |||||||||||||||
| Operating loss | (1,553) | (1,772) | |||||||||||||||
| Interest expense, net | (4) | (1,146) | |||||||||||||||
| Loss before income taxes from continuing operations | (1,557) | (2,918) | |||||||||||||||
| Income tax benefit from continuing operations | 168 | 589 | |||||||||||||||
| Loss from continuing operations | (1,389) | (2,329) | |||||||||||||||
| Income from discontinued operations: | |||||||||||||||||
| Income | — | 2,111 | |||||||||||||||
| Gain on sale | 918 | — | |||||||||||||||
| Income tax expense | — | (504) | |||||||||||||||
| Net loss | $ | (471) | $ | (722) | |||||||||||||
| Net (loss) income per share - basic and diluted: | |||||||||||||||||
| Net loss from continuing operations | $ | (0.13) | $ | (0.21) | |||||||||||||
| Net income from discontinued operations: | |||||||||||||||||
| Income | — | 0.19 | |||||||||||||||
| Gain on sale | 0.09 | — | |||||||||||||||
| Income tax expense | — | (0.05) | |||||||||||||||
| Net loss per share - basic and diluted | $ | (0.04) | $ | (0.07) | |||||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||
| Basic and diluted | 10,684 | 10,954 | |||||||||||||||
PROPERTY MANAGEMENT SEGMENT
(dollars in thousands) (unaudited)
| Thirteen Weeks Ended | |||||||||||||||||
| March 29, 2026 | March 30, 2025 | ||||||||||||||||
| Contract field talent | $ | 20,195 | $ | 20,279 | |||||||||||||
| Contingent placements | 686 | 604 | |||||||||||||||
| Revenue | 20,881 | 20,883 | |||||||||||||||
| Compensation and related | 13,433 | 13,286 | |||||||||||||||
| Other | 38 | 37 | |||||||||||||||
| Gross profit | 7,410 | 7,560 | |||||||||||||||
| Selling: | |||||||||||||||||
| Compensation | 4,432 | 3,925 | |||||||||||||||
| Advertising, occupancy, and travel | 436 | 378 | |||||||||||||||
| Software, insurance, and professional fees | 412 | 373 | |||||||||||||||
| Other | 237 | 370 | |||||||||||||||
| Contributions to overhead | 1,893 | 2,514 | |||||||||||||||
| General and administrative: | |||||||||||||||||
| Compensation | 1,570 | 2,061 | |||||||||||||||
| Software | 578 | 697 | |||||||||||||||
| Professional fees | 498 | 542 | |||||||||||||||
| Strategic alternatives review | 483 | 21 | |||||||||||||||
| Other | 159 | 636 | |||||||||||||||
| Depreciation and amortization | 158 | 329 | |||||||||||||||
| Operating loss | (1,553) | (1,772) | |||||||||||||||
| Interest expense, net | (4) | (1,146) | |||||||||||||||
| Income tax benefit from continuing operations | 168 | 589 | |||||||||||||||
| Loss from continuing operations | $ | (1,389) | $ | (2,329) | |||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Thirteen Week Periods Ended March 29, 2026 and March 30, 2025
| 2026 | 2025 | ||||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Net loss | $ | (471) | $ | (722) | |||||||||||||||||||
| Net income from discontinued operations | (918) | (1,607) | |||||||||||||||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation | 25 | 30 | |||||||||||||||||||||
| Amortization | 133 | 299 | |||||||||||||||||||||
| Software as a service | 141 | 141 | |||||||||||||||||||||
| Loss on disposal of property and equipment | — | 6 | |||||||||||||||||||||
| Amortization of debt issuance costs | — | 124 | |||||||||||||||||||||
| Provision for credit losses | 96 | 198 | |||||||||||||||||||||
| Share-based compensation | 230 | 168 | |||||||||||||||||||||
| Deferred income taxes | (95) | (1,437) | |||||||||||||||||||||
| Other non-cash items | (25) | — | |||||||||||||||||||||
| Net changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | 163 | 2,686 | |||||||||||||||||||||
| Escrow receivable | 3,500 | — | |||||||||||||||||||||
| Prepaid expenses | 123 | 200 | |||||||||||||||||||||
| Other current assets | 334 | (189) | |||||||||||||||||||||
| Deposits | 18 | 6 | |||||||||||||||||||||
| Transition services payable | (3,262) | — | |||||||||||||||||||||
| Accounts payable | 8 | 1,525 | |||||||||||||||||||||
| Accrued payroll and expenses | 179 | 97 | |||||||||||||||||||||
| Accrued interest | — | 63 | |||||||||||||||||||||
| Income taxes payable | (62) | 54 | |||||||||||||||||||||
| Severance payable | (101) | — | |||||||||||||||||||||
| Operating leases | (12) | (5) | |||||||||||||||||||||
| Other long-term liabilities | — | (614) | |||||||||||||||||||||
| Net cash provided by continuing operating activities | 4 | 1,023 | |||||||||||||||||||||
| Net cash provided by discontinued operating activities | — | 41 | |||||||||||||||||||||
| Net cash provided by operating activities | 4 | 1,064 | |||||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Proceeds from business sold | 918 | — | |||||||||||||||||||||
| Purchases of short-term investments | (4,972) | — | |||||||||||||||||||||
| Net cash used in continuing investing activities | (4,054) | — | |||||||||||||||||||||
| Net cash used in discontinued investing activities | — | (23) | |||||||||||||||||||||
| Net cash used in investing activities | (4,054) | (23) | |||||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Net payments under line of credit | — | 1,604 | |||||||||||||||||||||
| Principal payments on long-term debt | — | (956) | |||||||||||||||||||||
| Issuance of ESPP shares | — | 87 | |||||||||||||||||||||
| Note payable paid | (197) | — | |||||||||||||||||||||
| Repurchase of common stock | (873) | — | |||||||||||||||||||||
| Payments of debt issuance costs | — | (79) | |||||||||||||||||||||
| Net cash (used in) provided by financing activities | (1,070) | 656 | |||||||||||||||||||||
| Net change in cash and cash equivalents | (5,120) | 1,697 | |||||||||||||||||||||
| Less: net change in cash and cash equivalents, discontinued operations | — | 18 | |||||||||||||||||||||
| Cash and cash equivalents, beginning of period | 19,018 | 32 | |||||||||||||||||||||
| Cash and cash equivalents, end of period, continuing operations | $ | 13,898 | $ | 1,711 | |||||||||||||||||||
| Supplemental cash flow information: | |||||||||||||||||||||||
| Cash paid for interest | $ | 43 | $ | 912 | |||||||||||||||||||
| Cash paid for state taxes, net of refunds | $ | 13 | $ | 6 | |||||||||||||||||||
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 supplements 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 than 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 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 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 | ||||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| Loss from continuing operations | $ | (1,389) | $ | (2,329) | ||||||||||
| Income tax benefit | (168) | (589) | ||||||||||||
| Interest expense (income), net | 4 | 1,146 | ||||||||||||
| Operating loss | (1,553) | (1,772) | ||||||||||||
| Depreciation and amortization | 158 | 329 | ||||||||||||
| Share-based compensation | 230 | 168 | ||||||||||||
| Strategic alternatives review | 483 | 21 | ||||||||||||
Software as a service1 | 141 | 141 | ||||||||||||
| Aged receivable adjustment | — | 90 | ||||||||||||
| Adjusted EBITDA from continuing operations | (541) | (1,023) | ||||||||||||
| Adjusted EBITDA Margin (% of revenue) | (3) | % | (5) | % | ||||||||||
| Gain (loss) on sale | 918 | — | ||||||||||||
| Income from discontinued operations | — | 1,607 | ||||||||||||
Adjustments to discontinued operations2 | — | 1,864 | ||||||||||||
| Adjusted EBITDA from discontinued operations | — | 3,471 | ||||||||||||
| Adjusted EBITDA, net | $ | 377 | $ | 2,448 | ||||||||||
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 includes $1.4 million of depreciation and amortization and $0.5 million of income tax expense.
Reconciliation of Net Loss EPS to Adjusted EPS
| Thirteen Weeks Ended | ||||||||||||||
| March 29, 2026 | March 30, 2025 | |||||||||||||
| Loss from continuing operations per diluted share | $ | (0.13) | $ | (0.21) | ||||||||||
| Income tax benefit | (0.02) | (0.05) | ||||||||||||
| Interest expense (income), net | — | 0.10 | ||||||||||||
| Operating loss | (0.15) | (0.16) | ||||||||||||
| Depreciation and amortization | 0.01 | 0.03 | ||||||||||||
| Share-based compensation | 0.02 | 0.02 | ||||||||||||
| Strategic alternatives review | 0.05 | — | ||||||||||||
Software as a service1 | 0.01 | 0.01 | ||||||||||||
| Aged receivable adjustment | — | 0.01 | ||||||||||||
| Adjusted EPS from continuing operations | (0.06) | (0.09) | ||||||||||||
| Gain (loss) on sale | 0.09 | — | ||||||||||||
| Adjusted EPS from discontinued operations | — | 0.32 | ||||||||||||
| Adjusted EPS | $ | 0.03 | $ | 0.23 | ||||||||||
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.
FAQ
How did BGSF (BGSF) perform financially in Q1 2026?
BGSF reported Q1 2026 revenue from continuing operations of $20,881 thousand, essentially flat year over year. Net loss from continuing operations improved to $1,389 thousand, or $0.13 per diluted share, compared with a $2,329 thousand loss, or $0.21 per share, in Q1 2025.
What were BGSF (BGSF) Q1 2026 non-GAAP results such as Adjusted EBITDA and Adjusted EPS?
In Q1 2026, BGSF’s Adjusted EBITDA loss from continuing operations was $541 thousand, or 3% of revenues, versus a $1,023 thousand loss, or 5% of revenues, a year earlier. Adjusted EPS loss improved to $0.06, compared with an Adjusted EPS loss of $0.09 in Q1 2025.
What guidance did BGSF (BGSF) provide for full-year 2026 revenue?
Management stated they continue to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025. This reflects their outlook for property management staffing demand and the impact of ongoing strategic initiatives across staffing and PropTech-related services.
What balance sheet position did BGSF (BGSF) report at March 29, 2026?
As of March 29, 2026, BGSF reported total assets of $53,376 thousand and total liabilities of $6,385 thousand. Cash and cash equivalents were $13,898 thousand, and total stockholders’ equity was $46,991 thousand, with management describing the company as operating with a debt-free balance sheet.
How did discontinued operations affect BGSF (BGSF) Q1 2026 results and cash flow?
Q1 2026 included a $918 thousand gain on sale in discontinued operations, contributing to a consolidated net loss of $471 thousand. In the cash flow statement, net cash provided by operating activities was $4 thousand, with $918 thousand of proceeds from a business sold recorded under investing activities.
What strategic initiatives did BGSF (BGSF) highlight in its Q1 2026 update?
BGSF highlighted completion of its Transition Services Agreement with INSPYR, operating as a stand-alone company, and achieving a $3.0 million G&A run-rate. The company also emphasized BG Staffing rebranding, digital lead-generation efforts, additional partnership agreements, and expansion of its PropTech consulting and Yardi consultant network.