SPAR Group Q1 revenue falls on lower Remodel activity

Spar

12/05/2026 13:13

Overview

US merchandising services firm's Q1 revenue fell 10% yr/yr due to lower Remodel activity

Gross margin improved to 22.3% from 21.4% as business shifted to higher-margin merchandising

Adjusted EPS turned negative as company transitioned away from lower-margin work

Outlook

SPAR Group reiterates 2026 net sales guidance of $143 mln to $151 mln for U.S. and Canada

Company sees 2026 gross margins of 20.5% to 22.5% for U.S. and Canada

SPAR targets 25% gross margins over next 18-24 months

Result Drivers

SERVICE MIX SHIFT - Gross margin improved as company reduced lower-margin Remodel activity and grew higher-margin merchandising revenue

COST CONTROL - SG&A expenses declined on a normalized run-rate basis as part of ongoing efficiency efforts

CASH FLOW IMPACT - Operating cash flow was affected by higher accounts receivable from merchandising growth

Company press release: ID:nGNX9Q9XHt

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$30.52 mln
Q1 EPS
-$0.02
Q1 Net Income
-$553,000
Q1 Gross Profit
$6.81 mln
Q1 Operating Income
-$42,000
Q1 Pretax Profit
-$525,000


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)