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Spar Group
(OTC:SGRP)
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Rating:43Neutral
Price Target:
$0.52
▲(37.89% Upside)
Action:Reiterated
Date:07/29/26
The score is primarily held down by weak financial performance (losses, thin equity cushion, and negative free cash flow) and bearish technicals (price below all key moving averages). Earnings-call guidance and margin/strategy progress provide some offset, but valuation is constrained by loss-making results and corporate events include a meaningful negative in the Nasdaq-to-OTCQB transition.
Positive Factors
Shift to higher‑margin recurring merchandising
Management's deliberate pivot from lower-margin remodel/project work to recurring merchandising increases durable gross margin potential and revenue predictability. Recurring service contracts tend to reduce revenue volatility, improve client stickiness and support sustainable margin expansion over multiple quarters.
Negative Factors
Eroded equity and high leverage risk
A near‑zero equity base materially increases insolvency risk and limits financial flexibility. With little cushion to absorb losses, the company faces heightened refinancing and covenant pressure, reducing its ability to invest in growth initiatives or withstand prolonged operating weakness without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Shift to higher‑margin recurring merchandising
Management's deliberate pivot from lower-margin remodel/project work to recurring merchandising increases durable gross margin potential and revenue predictability. Recurring service contracts tend to reduce revenue volatility, improve client stickiness and support sustainable margin expansion over multiple quarters.
Read all positive factors
Spar Group (SGRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.62M
Dividend YieldN/A
Average Volume (3M)42.18K
Price to Earnings (P/E)―
Beta (1Y)0.20
Revenue Growth-18.24%
EPS Growth-169.43%
CountryUS
Employees4,522
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-1.07
Shares Outstanding28,398,560
10 Day Avg. Volume35,550
30 Day Avg. Volume42,177
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)30.04
Price to Sales (P/S)0.14
P/FCF Ratio-0.87
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)0.25
Revenue Forecast (FY)N/A
Spar Group Business Overview & Revenue Model
Company Description
SPAR Group, Inc. operates as a global service provider, specializing in comprehensive brand marketing and retail merchandising solutions. The company's extensive range of offerings supports retailers, manufacturers, and distributors worldwide. Its...
How the Company Makes Money
SPAR Group makes money primarily by providing outsourced retail merchandising and field marketing services to consumer product manufacturers and retailers under service contracts. Revenue is generated when clients pay fees for specific programs an...
Spar Group Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Neutral
The call emphasized a strategic pivot from lower-margin remodel work toward recurring, higher-margin merchandising services and highlighted progress on margin expansion, a return to positive adjusted EBITDA, cost reductions versus 2025 averages, and commercial momentum including a ReposiTrak partnership and pipeline wins. However, the quarter also showed meaningful near-term headwinds: total revenues declined 10.3% year-over-year, GAAP and adjusted net results moved from profit to loss, adjusted EBITDA roughly halved, there was operating cash use of $3.9M, and an outstanding Nasdaq compliance matter introduces near-term regulatory uncertainty. Management reiterated FY26 guidance and signaled confidence in execution, suggesting the quarter represents a transitional inflection toward higher-quality recurring revenue even as short-term financials remain constrained.Positive Updates
Return to Positive Adjusted EBITDA
Consolidated adjusted EBITDA of $0.737M in Q1 FY26, marking a return to positive adjusted EBITDA despite a prior-year $1.5M; signals progress on profitability during the strategic margin-focused pivot.
Negative Updates
Revenue Decline
Net revenues declined 10.3% year-over-year to $30.5M in Q1 FY26, primarily due to an intentional reduction in lower-margin remodel/project work as the company pivots toward recurring merchandising services.
Read all updates
Q1-2026 Updates
Positive
Negative
Return to Positive Adjusted EBITDA
Consolidated adjusted EBITDA of $0.737M in Q1 FY26, marking a return to positive adjusted EBITDA despite a prior-year $1.5M; signals progress on profitability during the strategic margin-focused pivot.
Read all positive updates
Company Guidance
SPAR reiterated FY2026 guidance of $143–$151 million in revenue, gross margins of approximately 20.5%–22.5%, and SG&A (ex‑unusual items) of $25.5–$26.5 million, while targeting roughly 25% gross margins in the next 18–24 months; that outlook is grounded in Q1 results of $30.5 million revenue (‑10.3% YoY), $6.8 million gross profit (22.3% margin), $6.2 million SG&A (normalized SG&A down $1.9M vs 2025 quarterly average), consolidated adjusted EBITDA of $0.737M, GAAP net loss of $0.553M (‑$0.02/sh), adjusted net loss of $0.274M (‑$0.01/sh), $4.3M cash and positive working capital of $18M (excluding the line of credit and current portion of long‑term debt); management expects sequentially stronger quarters ahead (Q2 and Q3 the strongest) as it shifts deliberately toward higher‑margin recurring merchandising services supported by technology partnerships.Spar Group Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
14
Very Negative
| Breakdown | Mar 2026 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 136.10M | 163.63M | 45.92M | 261.27M | 255.72M |
| Gross Profit | 21.69M | 33.60M | 10.20M | 51.01M | 47.52M |
| EBITDA | -16.03M | 2.63M | 3.79M | 8.55M | 7.90M |
| Net Income | -24.63M | -3.15M | 639.00K | -732.00K | -1.78M |
Balance Sheet | |||||
| Total Assets | 44.06M | 56.43M | 90.28M | 94.60M | 89.02M |
| Cash, Cash Equivalents and Short-Term Investments | 3.26M | 18.22M | 4.49M | 9.35M | 13.47M |
| Total Debt | 27.26M | 18.93M | 19.77M | 20.32M | 13.52M |
| Total Liabilities | 43.44M | 32.13M | 50.03M | 56.54M | 51.67M |
| Stockholders Equity | 622.00K | 24.31M | 28.23M | 22.43M | 19.75M |
Cash Flow | |||||
| Free Cash Flow | -21.42M | -1.80M | 5.58M | -6.84M | 907.00K |
| Operating Cash Flow | -18.44M | -665.00K | 6.82M | -5.04M | 2.63M |
| Investing Cash Flow | -1.06M | 9.88M | -2.27M | -1.80M | -1.72M |
| Financing Cash Flow | 4.53M | -1.66M | -3.02M | 3.49M | 1.33M |
Spar Group Risk Analysis
Spar Group disclosed 16 risk factors in its most recent earnings report. Spar Group 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
Spar Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $717.70M | 19.69 | 15.09% | 2.34% | 0.13% | 49.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $425.96M | -23.68 | -3.42% | ― | -3.31% | -73.22% | |
48 Neutral | $79.77M | -2.12 | 9999.00% | ― | 7.23% | 27.75% | |
43 Neutral | $15.62M | -0.27 | -243.26% | ― | -18.24% | -169.43% | |
42 Neutral | $17.71M | -0.14 | -333.08% | ― | -31.38% | -7.02% | |
40 Underperform | $15.76M | -10.30 | -10.56% | ― | 4.92% | -22.39% |
* Industrials Sector Average
SGRP
Spar Group
0.60
-0.50
-45.45%
ACTG
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4.43
1.00
29.15%
CASS
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55.92
17.41
45.19%
TISI
Team
17.40
0.06
0.35%
SST
System1
1.74
-4.26
-71.00%
PMEC
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0.42
-1.06
-71.76%
Spar Group Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Spar Group Announces Transition to OTCQB Venture Market
Negative
Jul 23, 2026
On July 22, 2026, SPAR Group, Inc. announced that its common stock will be delisted from the Nasdaq Stock Market and begin trading on the OTCQB Venture Market at the open on July 23, 2026, retaining the ticker symbol SGRP. The company emphasized t...
Business Operations and StrategyRegulatory Filings and Compliance
SPAR Group Highlights Risks in Forward-Looking Statements Disclosure
Neutral
Jul 6, 2026
SPAR Group, Inc. filed a report under the Securities Exchange Act of 1934 dated July 6, 2026, formally signed by President and CEO William Linnane. The filing emphasizes that the company’s forward-looking statements are inherently uncertain,...
Executive/Board ChangesShareholder Meetings
Spar Group Shareholders Approve Directors and 2026 Compensation Plan
Positive
Jun 16, 2026
Spar Group held its annual meeting of stockholders on June 11, 2026, with 82.69% of eligible shares represented, and shareholders re-elected seven directors, including three Super Independent Directors, to serve until the 2027 meeting in line with...
Business Operations and StrategyPrivate Placements and Financing
Spar Group Issues Equity Under Amended ReposiTrak Agreement
Positive
Jun 3, 2026
On May 29, 2026, SPAR Group, Inc. amended its March 13, 2026 services agreement with ReposiTrak, Inc. to allow ReposiTrak to be paid, at its option, in cash, SPAR common stock, or a combination of both, with any stock component priced on a five-da...
Business Operations and StrategyLegal Proceedings
SPAR Group Reaches Governance Alignment With Founder Brown
Positive
May 5, 2026
On May 1, 2026, SPAR Group entered into a Settlement Agreement and Release with co-founder and former CEO Robert G. Brown and SPAR Business Services, Inc., resolving an arbitration dispute and extending the expiration of Brown’s Change of Co...
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.