The Q1 miss and negative operating cash flow (-$3.9M) raise near-term risk, but the reiterated guidance and margin improvement story could support the stock if the company executes. Watch for progress on recurring merchandising revenue and debt levels ahead of Q2 results.
Price Chart
Executive Summary
SPAR Group reported Q1 2026 revenue of $30.5M, down 10.3% YoY, and swung to a GAAP net loss of ($0.02) per share from a profit of $0.02 a year ago, as a strategic shift away from lower-margin remodeling weighed on top line. Adjusted EBITDA fell to $737k from $1.5M, but gross margin improved 90 bps to 22.3%, and management reiterated full-year 2026 guidance for net sales of $143M-$151M and gross margins of 20.5%-22.5%.
Key Financial Metrics
Key Facts
- Q1 2026 net revenues $30.5M, down 10.3% YoY ($34.0M)
- GAAP net loss $(0.02) per diluted share vs income $0.02 in Q1 2025
- Gross margin expanded to 22.3% from 21.4% YoY
- Adjusted EBITDA $737k vs $1.5M YoY
- Reiterated FY2026 guidance: net sales $143M-$151M, gross margins 20.5%-22.5%, SG&A $25.5-$26.5M
- Settlement with co-founder Robert G. Brown; restructuring costs $245k in Q1
Financial Impact
Revenue declined $3.5M YoY; net income swung from +$462k to -$553k; guidance implies 5-11% revenue growth for full year 2026
Risk Factors
- Continued revenue decline if remodeling business shrinks faster than merchandising grows
- High leverage: $22.9M drawn on line of credit vs $4.3M cash
- Operating cash flow negative due to working capital buildup
- Low market cap ($16M) amplifies volatility on any earnings surprise
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3292747 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | SC 13G | $0.2875 $0.2875 | · 0.00% | ▲ +1.18% | $0.6600 (+129.57%) |
Oct 7, 2026 19d ago | SC 13D/A | $0.2875 $0.2875 | · 0.00% | ▲ +0.42% | $0.6600 (+129.57%) |
Aug 13, 2026 10w ago | 8-K | $0.2875 $0.2875 | · 0.00% | ▼ −0.20% | $0.6600 (−129.57%) |
Aug 13, 2026 10w ago | Press Release | $0.2875 $0.2875 | · 0.00% | ▲ +0.20% | $0.6600 (+129.57%) |
Jul 23, 2026 13w ago | 3 | $0.3900 $0.3800 | ▼ −2.56% | ▼ −2.67% | $0.6600 (+69.23%) |
Jul 22, 2026 13w ago | Press Release | $0.3900 $0.3800 | ▲ +2.56% | ▲ +2.67% | $0.6600 (−69.23%) |
Jun 3, 2026 20w ago | 8-K | $0.7400 $0.7400 | · 0.00% | ▼ −2.60% | $0.6600 (+10.81%) |
May 12, 2026 23w ago | 8-K | $0.6800 $0.6700 | ▼ −1.47% | ▼ −2.05% | $0.6600 (−2.94%) |
May 12, 2026 23w ago | Press Release | $0.6800 $0.6700 | ▼ −1.47% | ▼ −2.05% | $0.6600 (−2.94%) |
Apr 13, 2026 28w ago | 8-K | $0.5900 $0.6000 | ▼ −1.69% | ▼ −0.92% | $0.6600 (−11.86%) |
US Market Status
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