SPAR Group (SGRP) Q2 2026 earnings summary

Executive summary

• Returned to profitability in Q2 2026, first time since Q1 2025, with net income of $409K after several loss-making quarters, driven by business simplification and focus on profitable growth.

• Achieved over 60% year-over-year growth in adjusted EBITDA, reaching $2.1M, and maintained gross margins above 22%.

• Shifted revenue mix to higher-margin, recurring merchandising services, improving earnings quality and cash generation.

• Progress made on technology re-platforming and scan-based trading initiatives to drive future growth.

• Transitioned to OTCQB market after Nasdaq delisting, with no change to strategic direction.

Financial highlights

• Q2 2026 net revenues were $36.9M, down 4.5% year-over-year due to lower remodel business volume; U.S. revenues fell 7.8% while Canada grew 30.5%.

• Gross profit was $8.4M (22.8% margin), compared to $9.1M (23.5%) in prior year.

• Operating income rose to $1.2M from $715,000 year-over-year.

• GAAP net income was $409K ($0.02 per diluted share); adjusted net income was $838K ($0.04 per diluted share), up from $151K ($0.01) last year.

• Adjusted EBITDA reached $2.1M, up 63% from $1.3M year-over-year.

Outlook and guidance

• Full-year 2026 net revenues expected between $130M and $138M, reflecting lower remodel activity but growth in merchandising.

• Gross margin guidance of 21.5%-23.5%, up from 15.9% in 2025.

• SG&A costs (excluding unusual items) projected at $21M-$24M, down from $32.2M in 2025, trending toward $20M annually.

• Management expects sufficient liquidity for the next 12 months, supported by extended credit facilities and projected operations.