SPAR Group returns to profitability in Q2 2026

SPAR Group (NASDAQ: SGRP ) released second-quarter financial results and hosted an earnings call on Thursday.

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For comprehensive financial data and transcripts, visit Access the full call at Summary SPAR Group Inc. returned to profitability in Q2 2026 for the first time since Q1 2025, with a 60% year-on-year growth in adjusted EBITDA and maintained gross margins above 22%.

Net revenues for the quarter totaled $36.9 million, down 4.5% year-over-year, due to lower volumes in the remodel business.

However, the shift towards higher-margin merchandising services improved profitability.

The company revised its full-year 2026 outlook to emphasize merchandising growth, expecting net revenues between $130 million and $138 million, and gross margins of 21.5% to 23.5%.

Operational initiatives are showing results, with stable gross margins and SG&A expenses trending toward $20 million annually, indicating a focus on becoming a leaner, more efficient organization.

The company has begun trading on the OTCQB after a Nasdaq delisting, but maintains strategic focus on operational improvements and transparency.

Strategic partnerships, notably with ReposiTrak, are enhancing SPAR Group's technology platform and differentiating its market position.

Full Transcript OPERATOR Good day and welcome to the SPAR Group Second Quarter 2026 Financial Results conference call.

All participants will be in listen-only mode.

Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation there will be an opportunity to ask questions.

To ask a question, you may press star then one on your telephone keypad.

To withdraw your question, please press star then two.

Please note this event is being recorded.

I would now like to turn the conference over to Philip Cooper from Three Part Advisors.

Please go ahead.

Philip Cooper, Three Part Advisors Thank you, operator, and good morning, everyone.

We appreciate you joining us for SPAR Group Inc.'s conference call to review second quarter 2026 results.

Joining me on the call today are SPAR's Chief Executive Officer, William Linnane, and the Company's Chief Financial Officer, Steve Hennen.

This call is also being webcast and can be accessed through the audio link on the Events and Presentations page of the Investor Relations section at investors.sparinc.com.

The information recorded on this call speaks only as of today, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.

I would also like to remind you that the statements made on today's discussion that are not historical facts, including statements, expectations, future events or future financial performance, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements, by their nature, are uncertain and outside of the Company's control.

Actual results may differ materially from those expressed or implied.

Please refer to today's earnings press release for our disclosures on forward-looking statements.

These factors and other risks and uncertainties are described in detail in the Company's filings with the Securities and Exchange Commission.

Management may also refer to non-GAAP financial measures, and reconciliations to the nearest GAAP measures can be found at the end of our earnings release.

SPAR Group assumes no obligation to publicly update or revise any forward-looking statements.

Finally, the earnings press release we issued earlier today is posted on the Investor Relations section of our website at sparinc.com.

A copy of the release was also included in an 8-K submitted to the SEC.

Now I'd like to turn the call over to the Company's CEO, William Linnane.

William Linnane, CEO Thank you, Philip, and good morning.

Thank you for your interest in SPAR Group and for joining us today.