Spar Group (SGRP)
NASDAQ:SGRP
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Spar Group
(NASDAQ:SGRP)
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Rating:47Neutral
Price Target:
$0.66
▼(-25.84% Downside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance (significant losses, very low equity, and negative free cash flow). Offsetting that, technicals are neutral-to-slightly improving and the earnings call contained constructive elements (reiterated guidance, margin focus, cost actions), but valuation is constrained by ongoing losses and no dividend support.
Positive Factors
Margin expansion via shift to recurring merchandising
A deliberate shift from one-off remodels to recurring merchandising improves revenue stickiness and margin mix. Higher gross margins and predictable cadence of store visits support sustainable operating leverage and make margin recovery more durable as the business scales its recurring contracts.
Negative Factors
Severely weakened balance sheet (very low equity)
Very low shareholders' equity and elevated leverage materially reduce the company's financial buffer against shocks. This constrains capital allocation, increases refinancing and covenant risk, and limits the firm's ability to invest in growth or absorb continued transition-related losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion via shift to recurring merchandising
A deliberate shift from one-off remodels to recurring merchandising improves revenue stickiness and margin mix. Higher gross margins and predictable cadence of store visits support sustainable operating leverage and make margin recovery more durable as the business scales its recurring contracts.
Read all positive factors
Spar Group (SGRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.36M
Dividend YieldN/A
Average Volume (3M)42.18K
Price to Earnings (P/E)―
Beta (1Y)-0.11
Revenue Growth-18.24%
EPS Growth-169.43%
CountryUS
Employees1,384
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-1.07
Shares Outstanding25,129,992
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 Cap1.07
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit0.84
Enterprise Value/Ebitda-1.04
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., together with its subsidiaries, provides merchandising and brand marketing services worldwide. The company offers syndicated and dedicated merchandising services at the retail store level for retailers, manufacturers, and distrib...
How the Company Makes Money
SPAR Group makes money by selling outsourced retail execution and merchandising services to clients—primarily consumer packaged goods manufacturers and retailers—who pay the company to improve in-store availability, compliance, and presentation of...
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 Technical Analysis
Negative
0.89
Price Trends
0.66
Positive
0.73
Negative
0.89
Negative
Market Momentum
<0.01
Negative
51.28
Neutral
26.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRP, the sentiment is Negative. The current price of 0.89 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.66, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 26.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRP.
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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $448.17M | -7.37 | -3.42% | ― | -3.31% | -73.22% | |
63 Neutral | $596.84M | 15.95 | 14.44% | 2.98% | -3.39% | 71.37% | |
48 Neutral | $74.15M | -1.60 | -1862.25% | ― | 7.23% | 27.75% | |
47 Neutral | $16.36M | -6.82 | -95.31% | ― | -18.24% | -169.43% | |
46 Neutral | $29.02M | -0.13 | -333.08% | ― | -31.38% | -7.02% | |
46 Neutral | $30.35M | -21.45 | -10.56% | ― | 1.55% | 69.81% |
* Industrials Sector Average
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Spar Group Corporate Events
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...
Delistings and Listing ChangesRegulatory Filings and Compliance
Spar Group Faces Nasdaq Noncompliance and Listing Risk
Negative
Apr 8, 2026
On April 2, 2026, SPAR Group, Inc. disclosed that it received a notification from Nasdaq stating the company no longer meets the Nasdaq Capital Market’s minimum stockholders’ equity requirement of $2.5 million, after reporting equity o...
Business Operations and StrategyPrivate Placements and Financing
Spar Group Secures $4 Million Loan, Issues Shares
Positive
Mar 20, 2026
On March 14, 2026, SPAR Marketing Force, Inc., a unit of SPAR Group, entered into a $4 million senior unsecured loan arrangement with PC Group, Inc., documented by a promissory note effective March 13, 2026. The loan carries an 8% fixed annual int...
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.