Spar Group (SGRP)
NASDAQ:SGRP
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Spar Group
(NASDAQ:SGRP)
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Rating:44Neutral
Price Target:
$0.61
▼(-31.91% Downside)
Action:ReiteratedDate:04/01/26
The score is held down primarily by severely weakened financial performance (losses, significant cash burn, and an eroded equity base versus debt). Technicals also remain bearish with the stock below key moving averages, while valuation metrics are not meaningful due to negative earnings. Partially offsetting these are management’s FY2026 margin and revenue improvement targets, though near-term liquidity and execution risks remain high, alongside delisting-related uncertainty.
Positive Factors
Strategic North America focus
Concentrating the business on U.S. and Canadian markets and simplifying the organization is a durable structural move. It reduces geographic complexity, focuses sales and operational resources where SPAR has scale and client relationships, and should improve execution, margins and resource allocation over multiple quarters if management sustains the program.
Negative Factors
Eroded equity and high leverage
A severely diminished equity base versus sizable debt materially weakens financial flexibility and increases insolvency risk. With limited cushion, the company has less ability to absorb shocks, pursue opportunities, or refinance on favorable terms, raising the probability of dilution or constrained investment over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic North America focus
Concentrating the business on U.S. and Canadian markets and simplifying the organization is a durable structural move. It reduces geographic complexity, focuses sales and operational resources where SPAR has scale and client relationships, and should improve execution, margins and resource allocation over multiple quarters if management sustains the program.
Read all positive factors
Spar Group (SGRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.88M
Dividend YieldN/A
Average Volume (3M)42.18K
Price to Earnings (P/E)―
Beta (1Y)-0.51
Revenue Growth-35.72%
EPS Growth-277.39%
CountryUS
Employees1,384
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.68
Shares Outstanding24,129,992
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 Cap2.86
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda-2.23
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:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management articulated a clear and credible strategic transformation (North America focus, leadership rebuild, technology investments, ReposiTrak partnership, and FY2026 revenue and margin guidance) that underpin a constructive growth story. However, 2025 financials showed meaningful near-term pain — sharp gross margin compression, substantial operating and net losses, negative adjusted EBITDA, significant one-time and restructuring charges, and cash burn with limited year-end liquidity. The outlook is constructive if execution on margin improvement, client wins and cost run-rate reductions materialize, but near-term financial challenges are significant.Positive Updates
Revenue Growth in North America
Fiscal 2025 net revenues for the U.S. and Canada totaled $136.1 million, a comparable increase of 3.3% versus 2024. U.S. net revenues grew 3.9% to $122.1 million while Canadian sales were essentially flat at $14.1 million.
Negative Updates
Gross Profit and Margin Compression
Fiscal 2025 gross profit was $21.7 million (15.9% of revenue) versus $33.6 million (20.5%) in 2024 — a gross profit decline of ~35% and a margin compression of 4.6 percentage points, primarily driven by a shift toward higher-cost remodel work, labor/wage pressure and increased travel costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth in North America
Fiscal 2025 net revenues for the U.S. and Canada totaled $136.1 million, a comparable increase of 3.3% versus 2024. U.S. net revenues grew 3.9% to $122.1 million while Canadian sales were essentially flat at $14.1 million.
Read all positive updates
Company Guidance
SPAR guided fiscal 2026 revenue of $143 million to $151 million with gross margins of 20.5% to 22.5% (up from fiscal 2025 revenue of $136.1M and a 15.9% gross margin), saying the improvement will be driven by a higher mix of merchandising versus remodel work plus wallet expansion and partner‑led technology; management also disclosed FY2025 SG&A of $32.2M (23.7% of revenue) that included ~$7M of one‑time costs and expects an annual run‑rate SG&A of $25.5M–$26.5M (ex‑nonrecurring items), FY2025 operating loss of $16.9M, net loss of $24.6M (‑$1.04 per diluted share) with adjusted net loss of $10.7M (‑$0.45 per diluted share), consolidated EBITDA of ‑$16.5M (adjusted EBITDA ‑$8.6M), positive working capital of $14.7M (ex‑line of credit/current portion of long‑term debt), $3.3M cash, and $18.4M net cash used in operations for the year, while noting guidance is annual (Q4 is typically the weakest quarter) and Q1 results will be provided in the coming weeks.Spar Group Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
12
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 136.10M | 43.40M | 45.92M | 261.27M | 255.72M |
| Gross Profit | 21.69M | 8.96M | 10.20M | 51.01M | 47.52M |
| EBITDA | -16.50M | 1.43M | 3.79M | 8.55M | 7.90M |
| Net Income | -24.63M | -3.89M | 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
0.76
Negative
0.82
Negative
0.96
Negative
Market Momentum
-0.05
Positive
15.14
Positive
1.39
Positive
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 0.72, above the 50-day MA of 0.76, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 15.14 is Positive, neither overbought nor oversold. The STOCH value of 1.39 is Positive, 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 17 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $573.26M | 15.59 | 14.61% | 2.98% | -4.96% | 39.42% | |
71 Outperform | $482.38M | 16.61 | 4.02% | ― | 71.28% | -89.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $74.08M | -1.29 | -1862.25% | ― | 3.73% | 3.56% | |
47 Neutral | $35.33M | -0.59 | -131.65% | ― | -20.49% | 25.95% | |
46 Neutral | $26.93M | -17.27 | -12.54% | ― | 2.52% | 45.76% | |
44 Neutral | $12.88M | -0.76 | -95.31% | ― | -35.72% | -277.39% |
* Industrials Sector Average
SGRP
Spar Group
0.53
-0.62
-53.65%
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Spar Group Corporate Events
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...
Business Operations and StrategyRegulatory Filings and Compliance
Spar Group Streamlines Corporate Governance with Bylaw Amendments
Neutral
Jan 28, 2026
On January 22, 2026, Spar Group’s board adopted a series of amendments to its amended and restated by-laws, revising director election standards, board size parameters, notice periods and various governance procedures. Directors will now be ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Spar Group Faces Nasdaq Noncompliance, Granted Grace Period
Negative
Jan 15, 2026
On January 12, 2026, SPAR Group (SGRP) received a notice from Nasdaq that its common stock had failed to maintain the required minimum bid price of $1.00 for 30 consecutive business days, placing the company out of compliance with Nasdaq’s l...
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.