BGSF Q1 2026 Earnings Report

BGSF EPS Results

• Actual EPS: N/A
• Consensus EPS: -$0.12
• Beat/Miss: N/A
• One Year Ago EPS: N/A

BGSF Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $21.00 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

BGSF Announcement Details

• Quarter: Q1 2026
• Date: 5/6/2026
• Time: After Market Closes
• Conference Call Date: Thursday, May 7, 2026
• Conference Call Time: 9:00AM ET

BGSF (NYSE:BGSF) (NYSE:BGSF) is a provider of comprehensive workforce management and professional staffing services. The company specializes in designing and administering programs that help organizations optimize their contingent labor, direct hire recruiting and managed service solutions. Through an integrated approach, BGSF delivers end-to-end support that encompasses the planning, deployment and oversight of talent across multiple business functions.

BGSF’s service offerings include strategic workforce planning, vendor management, compliance and risk management, onboarding, timekeeping and payroll administration. The company leverages proprietary technology platforms and process-driven methodologies to monitor worker performance, ensure regulatory compliance and manage overall program costs. BGSF’s flexible delivery model supports on-site program management, remote service delivery and hybrid arrangements tailored to client requirements.

Founded in 1992 and headquartered in Sioux Falls, South Dakota, BGSF serves a broad range of industries, including energy, healthcare, financial services, manufacturing and technology. The company works with mid-market and enterprise clients across North America, helping them streamline their contingent labor programs and direct hire processes. As a publicly traded entity on the New York Stock Exchange, BGSF maintains a focus on operational excellence and scalable solutions that address evolving workforce challenges.

BGSF Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: BGSF completed its transition services agreement on March 31 and is now operating as a standalone company, which management says simplifies the support structure and allows focused execution of its property-staffing strategy.
• Positive Sentiment: Management resized G&A to align with the standalone business, targeting about $12 million annually (including roughly $2M of public-company costs), and implemented selling-cost reductions expected to generate ~$1 million of annual cash savings beginning in Q3.
• Positive Sentiment: The company is advancing AI-enabled recruiting and sales tools (streamlining interviews for >7,500 candidates) and launched a PropTech consulting partnership with Yardi, which management believes could contribute roughly 1%–2% of revenue if the ramp continues.
• Positive Sentiment: Q1 revenue was $20.9M (flat YoY) with adjusted EBITDA loss narrowing to $0.54M and consolidated adjusted EPS of $0.01; BGSF exited the quarter with a debt-free balance sheet and repurchased ~$873K of stock.
• Neutral Sentiment: Management expects full-year 2026 revenue growth in the low- to mid-single-digit range and gross margin to trend closer to ~36%, while noting Q1 demand was disrupted by severe winter weather and ongoing market pressures.

Presentation

[Operator]

Good morning, everyone. Welcome to BGSF, Inc. first quarter fiscal 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, please press star and then 1 on a touch-tone phone. To withdraw your question, please press star and then 2. As a reminder, this conference call is being recorded. Now I will turn the call over to Sandy Martin, Three Part Advisors. Please go ahead, ma'am.

[Sandy Martin, Managing Director at Three Part Advisors]

Good morning. Thank you for joining us today for the company's first quarter 2026 conference call to discuss our results. On the call with me are Kelly Brown, President and Co-CEO, and Keith Schroeder, Co-CEO and CFO. After our prepared remarks, there will be a question-and-answer session. As noted, today's call is being webcast live. A replay will be available later today and archived on the company's investor relations page at investor.bgsf.com. Today's discussion will include forward-looking statements, which are based on certain assumptions made by the company under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by the forward-looking statements because of various risks and uncertainties, including those listed in the company's filings with the Securities and Exchange Commission.

[Sandy Martin, Managing Director at Three Part Advisors]

Management statements are made as of today, and the company assumes no obligation to update these statements publicly, even if new information becomes available in the future. Management will refer to non-GAAP measures, including adjusted EPS and adjusted EBITDA. Reconciliation to the nearest GAAP measures are available at the end of our earnings release. I'll now turn the call over to Keith Schroeder.

[Keith Schroeder, Co-CEO and CFO at BGSF]

Thank you, Sandy, and thank you all for joining us in today's call. As expected, BGSF's transition services agreement with INSPYR Solutions successfully concluded on March 31st. Thus, beginning in the second quarter, we are now operating as a standalone company. This represents a meaningful inflection point for the business, enabling our leadership team and employees to dedicate their full attention to managing a best-in-class property staffing company and executing our 2026 strategic growth initiatives. Operating independently simplifies the organization's support structure and strengthens our ability to drive operational discipline, efficiency, and accountability. During the quarter, we made solid progress through 3 key directives that remain central to our strategy. First, we'll be leveraging insights from an independent consulting firm to support incremental top-line revenue. Kelly will provide an update on several encouraging developments following my remarks.

[Keith Schroeder, Co-CEO and CFO at BGSF]

We have resized our general and administrative cost structure to align with our standalone property staffing business, and we'll continue to look for opportunities to optimize our cost structure. We continue to estimate ongoing G&A costs at approximately $12 million annually, including roughly $2 million in public company costs, reflecting a more appropriate and sustainable cost base. Informed by an external organizational and incentive compensation study, we took targeted actions late in the first quarter to reduce selling costs. While the timing limits is the near term impact, we expect the full benefit of these actions to be realized beginning in the third quarter of this year. On an annualized basis, these initiatives are anticipated to generate approximately $1 million in cash cost savings. These actions reinforce our focus on execution, margin improvement, and progress towards sustained profitability.

[Keith Schroeder, Co-CEO and CFO at BGSF]

With that, I'll turn it over to Kelly to walk through the strategic initiatives currently underway.

[Kelly Brown, President and Co-CEO at BGSF]

Thank you, Keith. Good morning, everyone. To start, we're proud to share that BGSF was recognized as one of the 2026 best places for working parents, awarded by the Staffing Industry Analysts organization, or SIA. This recognition reflects our ongoing commitment to supporting working families through flexible people-first policies that strengthen engagement and retention across the communities that we serve. We were also recognized by SIA as one of the top 100 largest staffing firms in the U.S. Operationally, we completed the BG Staffing rebrand in the first quarter, a pivotal step in sharpening our market positioning and building a more scalable technology-enabled digital lead generation platform. By clarifying our brand positioning and strengthening our digital marketing foundation, we are seeing improved SEO performance, a larger and more efficient funnel, and deeper client engagement. We are also encouraged by the early results of our technology investments.

[Kelly Brown, President and Co-CEO at BGSF]

Today, we are operating in both recruiting and sales AI capabilities. We believe we've established a balanced model that combines advanced technology with human expertise as the market continues to evolve. These capabilities are improving efficiency and accelerating speed to fill for our clients while enhancing the candidate's experience as well. Our AI-enabled recruiting tools have already streamlined interviews for more than 7,500 candidates, strengthening compliance and security while expediting critical steps such as identity verification. The result is a materially faster time to fill with higher qualified candidates. On the sales side, our AI sales assistant platform has successfully converted inquiries into new clients. Our relationship teams then step in to arrange and schedule delivery.

[Kelly Brown, President and Co-CEO at BGSF]

Taken together, these initiatives reinforce our focus on delivering better outcomes for clients and candidates. We believe this continued focus on the end user experience will continue to position BG Staffing as a differentiated workforce solutions partner. As a part of our organic growth strategy, we launched our PropTech consulting services through our strategic partnership with Yardi. While still early, the ramp has been encouraging. We've begun building a consulting pipeline for PropTech services, secured initial engagements, and expanded our Yardi consultant network. This opportunity is being driven by increasing complexity in implementation and integrations, the demand for our expertise in evaluation and simplification of existing tech stacks, and continued consolidation of management portfolios within the property management industry. PropTech presents a complementary adjacent market to our core staffing business and further strengthens our differentiated position across multifamily and commercial property management.

[Kelly Brown, President and Co-CEO at BGSF]

If execution continues as planned, we believe PropTech could represent approximately 1%-2% of our total revenue this year. Overall, we are making steady progress advancing our operating model and strengthening our competitive differentiation. As our AI capabilities continue to evolve, we expect further efficiency gains through recruiting, sales, and service delivery. Our initiatives are beginning to gain momentum, positioning the business for top line growth and improved financial performance, which Keith will discuss shortly. As previously mentioned last quarter, we also look forward to participating in the two leading rental, housing, and commercial real estate industry events in June, hosted by the National Apartment Association as well as BOMA International, which will be valuable platforms for in-person customer engagement and lead generation. With that, I will turn the call back to Keith to cover our first quarter financial results.

[Keith Schroeder, Co-CEO and CFO at BGSF]

Thank you, Kelly. As a reminder, our comments today refer to continuing operations unless otherwise noted. Excuse me. First quarter revenue was $20.9 million. While revenue was flat year-over-year, this was a positive change compared to the prior two fiscal years. Further, we believe severe nationwide weather and widespread power outages in late January and February affected demand during the quarter. Our gross profit for the first quarter was $7.4 million, slightly down from the $7.6 million achieved in the prior year period. Our gross margin was 35.5%, down from 36.2% last year. We believe our gross margin for the full year will trend closer to 36%. SG&A expenses were $8.8 million for the quarter compared to $9 million a year ago.

[Keith Schroeder, Co-CEO and CFO at BGSF]

This quarter includes $483,000 of strategic review costs, compared to $21,000 in the prior year period. In addition, income from discontinued operations included a $918,000 gain from the final settlement of net working capital from the sale of the Professional Division, which is a cash inflow to our financial results. Our adjusted EBITDA for the first quarter was a loss of $541,000, an improvement compared to the $1 million loss in the prior year period. As our revenue strengthened during seasonally stronger Q2 and Q3 time periods, the additional gross profit will positively affect our EBITDA, as well as the previously discussed cost reduction actions we have implemented during the quarter.

[Keith Schroeder, Co-CEO and CFO at BGSF]

On a GAAP basis, we reported a net loss from continuing operations of $0.13 per diluted share compared to an adjusted EPS loss from continuing operations of $0.07 per share. Consolidated adjusted EPS for the quarter was a positive $0.01 per share. We exited the quarter with a strong debt-free balance sheet and remain committed to disciplined capital management and cost control. Our cash flows from operations in the first quarter were essentially flat in a seasonally low revenue quarter. We also repurchased 170,862 shares of common stock at an average price of $5.11 per share, which total approximately $873,000 for the quarter. We do continue to expect full year 2026 revenue to grow in the low to mid-single-digit range compared to 2025.

[Keith Schroeder, Co-CEO and CFO at BGSF]

As Kelly outlined, our teams are focused on executing our property management staffing strategy, advancing our growth initiatives, and building momentum across the business. Completing the divestiture of Professional required a significant effort across the organization, Kelly and I want to thank our employees for their commitment and perseverance throughout the process. From an investor engagement perspective, we will present at the East Coast IDEAS Conference on June 11th, participating in a live presentation and one-on-one meetings. We look forward to updating investors on our progress each quarter. Please reach out after this call if you would like to schedule a follow-up meeting. With that, we would now like to open the call for questions. Operator?

[Operator]

Thank you. We will now begin the question and answer session. The first question will come from Michael Taglich with Taglich Brothers. Please go ahead.

[Michael Taglich, Analyst at Taglich Brothers]

Hi, guys. Thanks for taking the call. Just quick question on the stock buyback. Have you been able to buy any blocks of stock, especially recently or no?

[Keith Schroeder, Co-CEO and CFO at BGSF]

We are in a 10b5-1 plan, we really don't know that. It's the broker that is in charge of that. I don't think so.

[Michael Taglich, Analyst at Taglich Brothers]

Okay. All right. Thank you. We'll follow offline.

[Keith Schroeder, Co-CEO and CFO at BGSF]

Thank you, Mike.

[Operator]

Again, if you have a question, please press star and then one. The next question will come from George Melis with MKH Management. Please go ahead.

[George Melis, Analyst at MKH Management]

Thank you. Thanks for taking my question. Could you guys give us a little bit of sense of how you see the market? It seems like the market was a bit tight and in a downturn for a couple years. How do you see that evolving or what do you see in so far in 2026? What are your expectations for the rest of the year from a market perspective?

[Kelly Brown, President and Co-CEO at BGSF]

Certainly. Good morning.

[George Melis, Analyst at MKH Management]

Good morning.

[Kelly Brown, President and Co-CEO at BGSF]

It's been certainly an interesting couple of years. We've had to really work with our client partners as they've navigated a couple different things, heightened insurance costs, kind of stubborn interest rates. That does impact how they operate for various reasons. And I think some of that pressure does continue. However, I also think that we've seen a lot of adjustment to just knowing you know, what these costs are and the impact they can have. While we've seen some loosening in certain pockets, I just think we need to expect it to kind of stay static for a little bit longer, frankly. I also think that there's been a lot of adjusting to what impact does that have on their operational strategy and where does staffing fit into that.

[Kelly Brown, President and Co-CEO at BGSF]

While I certainly don't think that it's loosened up significantly, I do think a lot of adjusting has happened, that does have a positive impact on our customers' ability to leverage services such as ours ongoing.

[George Melis, Analyst at MKH Management]

Okay, great. Thanks for that. Then maybe just a second question. From a tech perspective, the company has invested quite a bit of tech, in tech in the last, let's say, three, four, five years. Of course, it's an evolving process. It's a never-ending process. How comfortable are you right now with your current tech in particular to recruit your staff and to meet the needs of your customers?

[Kelly Brown, President and Co-CEO at BGSF]

Great question. You know, we're really comfortable with the technology that we have with regards to our ability to recruit. We are able to leverage AI in various ways to get our candidates, you know, the response time to our candidates much, much quicker. That said, now that we are past the TSA, we continue to go through a review of every piece of technology that we are using. Is it the right technology for our business as a standalone business? Where are there any sort of cost optimization efforts that we can make? I would say that we're comfortable right now with the technology that we have with regards specifically to recruiting, but know that we will continue to evaluate now that we do operate as a standalone company.

[George Melis, Analyst at MKH Management]

Great. Thank you very much.

[Kelly Brown, President and Co-CEO at BGSF]

Absolutely.

[Operator]

This concludes our question and answer session. I would like to turn the conference back over to Kelly Brown for any closing remarks.

[Kelly Brown, President and Co-CEO at BGSF]

Thank you for your time today. We appreciate your interest in BGSF and look forward to providing an update on our second quarter in a few months. Have a great day.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Keith Schroeder, Co-CEO and CFO
• Kelly Brown, President and Co-CEO

Analysts

• George Melis, Analyst at MKH Management
• Michael Taglich, Analyst at Taglich Brothers
• Sandy Martin, Managing Director at Three Part Advisors