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BGSF
(NYSE:BGSF)
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Rating:51Neutral
Price Target:
$5.50
▼(-0.18% Downside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by weak financial performance (sharp TTM revenue contraction, deep losses, and negative TTM cash flow), partially offset by a low-leverage balance sheet and a cautiously constructive earnings outlook focused on cost reductions and operational streamlining. Technical signals are broadly neutral, and valuation remains challenged due to negative earnings (negative P/E).
Positive Factors
De-risked balance sheet (low leverage)
BGSF's minimal leverage and debt-free position are durable strengths: they preserve financial flexibility to absorb staffing demand volatility, fund technology investments or M&A, sustain operations during soft cycles, and execute buybacks without adding refinancing risk.
Negative Factors
Steep multi-period revenue decline
A persistent, large revenue contraction materially reduces scale benefits for a staffing business: lower billable hours and fewer placements compress gross profit dollars, weaken client coverage, and limit the company's ability to leverage fixed selling and back-office costs over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet (low leverage)
BGSF's minimal leverage and debt-free position are durable strengths: they preserve financial flexibility to absorb staffing demand volatility, fund technology investments or M&A, sustain operations during soft cycles, and execute buybacks without adding refinancing risk.
Read all positive factors
BGSF (BGSF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.48M
Dividend YieldN/A
Average Volume (3M)60.72K
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-65.05%
EPS Growth-154.86%
CountryUS
Employees189
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-1.03
Shares Outstanding10,717,975
10 Day Avg. Volume62,226
30 Day Avg. Volume60,718
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.09
Price to Sales (P/S)0.56
P/FCF Ratio-2.09K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.16
Revenue Forecast (FY)$95.75M
BGSF Business Overview & Revenue Model
Company Description
BGSF, Inc., headquartered in Plano, Texas, since its incorporation in 2007, offers extensive workforce solutions and talent acquisition services across the United States. The company's operations are divided into two main divisions: Real Estate an...
How the Company Makes Money
BGSF makes money primarily by providing staffing services and charging clients for labor and recruiting outcomes. The company’s core revenue stream is temporary/contract staffing, where BGSF bills client companies an hourly (or periodic) rate for ...
BGSF Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: the company completed its transition to a standalone entity, is implementing cost discipline (G&A resizing, targeted selling-cost reductions) and seeing tangible benefits from technology investments (AI recruiting/sales, rebrand, early PropTech traction). Financial performance showed stability with Q1 revenue of $20.9 million (flat YoY), a narrower adjusted EBITDA loss (improved by ~$459k), and a debt-free balance sheet with share repurchases. However, challenges remain — revenue growth is muted, gross margin compressed slightly, adjusted EBITDA remains negative, and some one-time/strategic costs and seasonality limited near-term cash flow. Given the number and materiality of the operational and strategic positives relative to the outstanding issues, the overall tone is constructive with cautious optimism about mid-year improvements.Positive Updates
Standalone Transition Completed
Transition services agreement with Inspire concluded on March 31, 2026, making BGSF a standalone company — simplifies support structure and enables dedicated focus on property staffing and 2026 strategic initiatives.
Negative Updates
Flat Revenue in Q1
Revenue was flat year-over-year at $20.9 million (0% growth), indicating limited near-term top-line momentum; management cited severe nationwide weather and power outages in late January and February as negative contributors to quarter results.
Read all updates
Q1-2026 Updates
Positive
Negative
Standalone Transition Completed
Transition services agreement with Inspire concluded on March 31, 2026, making BGSF a standalone company — simplifies support structure and enables dedicated focus on property staffing and 2026 strategic initiatives.
Read all positive updates
Company Guidance
Management guided to full-year 2026 revenue growth in the low- to mid-single-digit range versus 2025, with gross margin expected to trend closer to ~36% and ongoing G&A run-rate of approximately $12.0 million annually (including roughly $2.0 million of public company costs); they expect targeted cost actions taken in Q1 to generate about $1.0 million of annualized cash savings (with selling-cost benefits realized beginning in Q3), and noted PropTech could represent roughly 1–2% of total revenue this year. For context, Q1 results included revenue of $20.9 million, gross profit of $7.4 million (35.5% margin), SG&A of $8.8 million (including $483k of strategic review costs), an adjusted EBITDA loss of $541k (improved from a $1.0M loss a year ago), consolidated adjusted EPS of $0.10, an adjusted EPS loss from continuing operations of $0.70, a GAAP loss from continuing operations of $0.13 per diluted share, a $918k gain from discontinued operations, repurchases of 170,862 shares for ~$873k at an average $5.11 per share, essentially flat operating cash flows in a seasonally low quarter, and a debt-free balance sheet.BGSF Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 93.31M | 93.31M | 272.50M | 313.17M | 298.42M | 239.03M |
| Gross Profit | 32.77M | 31.78M | 92.86M | 111.78M | 103.55M | 80.94M |
| EBITDA | -7.31M | -7.35M | 8.98M | 589.00K | 20.34M | 18.23M |
| Net Income | -12.10M | -7.71M | -3.34M | -10.22M | 25.36M | 14.11M |
Balance Sheet | ||||||
| Total Assets | 53.38M | 57.84M | 150.11M | 178.52M | 194.67M | 148.29M |
| Cash, Cash Equivalents and Short-Term Investments | 18.89M | 19.02M | 353.00K | 0.00 | 0.00 | 112.10K |
| Total Debt | 858.00K | 1.65M | 51.66M | 68.94M | 71.56M | 44.03M |
| Total Liabilities | 6.38M | 9.73M | 67.84M | 92.98M | 93.94M | 71.70M |
| Stockholders Equity | 46.99M | 48.10M | 82.27M | 85.54M | 100.74M | 76.59M |
Cash Flow | ||||||
| Free Cash Flow | -983.00K | -25.00K | 22.74M | 17.79M | -12.80M | 3.46M |
| Operating Cash Flow | -868.00K | 113.00K | 24.38M | 20.39M | -7.12M | 6.66M |
| Investing Cash Flow | 86.98M | 91.20M | -1.64M | -9.51M | -8.92M | -7.02M |
| Financing Cash Flow | -74.30M | -72.49M | -22.39M | -10.87M | 15.93M | 473.00K |
BGSF Technical Analysis
Positive
5.51
Price Trends
5.45
Positive
5.67
Negative
5.26
Positive
Market Momentum
-0.01
Positive
51.67
Neutral
79.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGSF, the sentiment is Positive. The current price of 5.51 is below the 20-day moving average (MA) of 5.56, above the 50-day MA of 5.45, and above the 200-day MA of 5.26, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BGSF.
BGSF Risk Analysis
BGSF disclosed 33 risk factors in its most recent earnings report. BGSF reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BGSF Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $179.59M | 27.72 | 9.69% | 1.86% | -11.77% | 90.48% | |
65 Neutral | $181.87M | -92.32 | -2.30% | ― | -9.39% | 72.47% | |
65 Neutral | $93.11M | 39.28 | 2.60% | ― | -8.13% | 7.78% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $59.48M | -5.39 | -21.60% | ― | -65.05% | -154.86% | |
48 Neutral | $23.06M | -21.20 | -2.14% | ― | -18.78% | 98.07% | |
41 Neutral | $4.26M | -0.18 | -77.60% | ― | 1.26% | -4.09% |
* Industrials Sector Average
BGSF
BGSF
5.64
0.76
15.64%
DHX
DHI Group
4.18
1.47
54.24%
JOB
GEE Group
0.21
<0.01
0.96%
MHH
Mastech Holdings
7.87
0.59
8.05%
IPDN
Professional Diversity
0.43
-1.83
-81.19%
HQI
HireQuest
12.81
3.26
34.16%
BGSF Corporate Events
Business Operations and StrategyFinancial Disclosures
BGSF Reports Q2 2026 Results, Improves Profitability
Positive
Aug 5, 2026
BGSF reported second-quarter 2026 results on August 5, 2026, showing a modest decline in revenue from continuing operations to $22.3 million from $23.5 million a year earlier, with gross profit slipping to $7.9 million and margins essentially flat...
Business Operations and StrategyFinancial Disclosures
BGSF Reports Flat Q1 Revenue Amid Stand-Alone Transition
Neutral
May 6, 2026
For the first fiscal quarter ended March 29, 2026, BGSF, Inc. reported essentially flat revenue year over year at $20.9 million, with gross profit slipping to $7.4 million and gross margin narrowing to 35%. The company reduced its net loss to $1.4...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.