Earnings release
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NYSE : BGSF BGSF , Inc. Reports Second Quarter 2026 Financial Results DALLAS , Texas – ( August 5 , 2026 ) - 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 Gross profit Gross profit percentage Operating loss Net loss Net loss per diluted share Non - GAAP Financial Measures : Adjusted EBITDA¹ Adjusted EBITDA Margin ( % of revenue ) ¹ $ 22,313 $ 23,506 $ 7,918 $ 8,410 35.5 % 35.8 % ( 1,190 ) $ ( 3,976 ) $ ( 834 ) $ ( 4,489 ) $ ( 0.08 ) $ ( 0.41 ) $ ( 298 ) $ ( 1,153 ) ( 1 ) % ( 5 ) % Adjusted EPS¹ $ ( 0.02 ) $ ( 0.10 ) 1 Adjusted EBITDA and Adjusted EPS are non - GAAP financial measures as defined and reconciled below .
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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
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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.
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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 andoutstanding — — Common stock, $0.01 par value per share; 19,500,000 shares authorized 11,262,422 and11,227,197 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
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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
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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)
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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)
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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
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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 service 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 operations — 1,506 — 3,370 Adjusted EBITDA from discontinued operations — 2,259 918 5,730 Adjusted EBITDA, net $ (298) $ 1,106 $ 79 $ 3,554 1 2 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.
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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 service 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 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, andadministrative expenses.