BGSF, INC. 10-Q Summary: Quarter Ended June 28, 2026
Business Context and Reporting Period
This is a Quarterly Report on Form 10-Q for BGSF, Inc. for the thirteen and twenty-six week periods ended June 28, 2026. The Company operates primarily in the United States through a single continuing segment: Property Management, which provides office and maintenance field talent to property management companies. The Company previously sold its Professional segment (BGSF Professional) on September 8, 2025; results for this segment prior to the sale are reported as discontinued operations.
Key Financial Metrics
| Metric | 13 Weeks Ended June 28, 2026 | 26 Weeks Ended June 28, 2026 |
|---|---|---|
| Revenues | $22.3 million | $43.2 million |
| Gross Profit | $7.9 million (35.5% margin) | $15.3 million (35.5% margin) |
| Operating Loss | $(1.2) million | $(2.7) million |
| Net Loss (Continuing Ops) | $(0.8) million | $(2.2) million |
| Net Loss (Total) | $(0.8) million | $(1.3) million |
| Cash and Cash Equivalents | $9.7 million | $9.7 million |
| Short-Term Investments | $8.5 million | $8.5 million |
| Total Debt | $0.1 million (Note payable) | $0.1 million |
| Working Capital | $27.3 million | $27.3 million |
Note: The Company reported a net loss of $1.3 million for the 26-week period, compared to a net loss of $4.5 million in the prior year period, largely due to the exclusion of discontinued operations losses in the current period and improved cost management.
Material Changes vs. Prior Period
- Revenue Decline: Revenues decreased 5.1% ($1.2 million) for the quarter and 2.7% ($1.2 million) for the year-to-date compared to the prior year. This was driven by a reduction in billed hours (6.8% for the quarter) due to lower demand from property owners facing cost pressures and increased competition.
- Expense Reduction: Selling, general, and administrative (SG&A) expenses decreased significantly by 29.0% ($3.6 million) for the quarter and 17.8% ($3.8 million) year-to-date. This reflects cost reduction activities, reduced headcount, and lower costs associated with the strategic alternatives review following the sale of the Professional segment.
- Interest Income: Net interest income increased to $0.2 million for the quarter (from an expense of $1.9 million in the prior year) due to income from short-term investments following the sale of BGSF Professional and the payoff of the BMO credit facility.
- Discontinued Operations: The prior year periods included income from the Professional segment, which is no longer part of continuing operations. The current period shows no income from discontinued operations.
Guidance, Outlook, and Risks
Outlook and Liquidity: Management believes that cash on hand ($9.7 million) and short-term investments ($8.5 million), totaling approximately $18.2 million in available liquidity, are sufficient to meet working capital needs for at least the next twelve months. The Company continues to operate under a stock repurchase program with approximately $2.3 million remaining available.
Seasonality: The business is seasonal, with demand typically increasing in the second quarter and peaking in the third quarter due to summer turnover in multifamily units. First-quarter demand can be impacted by adverse weather.
Risks and Contingencies:
- Market Conditions: Continued cost pressures on property owners and increased competition may further impact billed hours and revenue.
- Insurance and Talent: Risks include the availability of workers' compensation insurance at reasonable terms and the availability of qualified field talent.
- Strategic Alternatives: The Company is still evaluating strategic alternatives, which could lead to further restructuring or transactions.
- Legal: No material legal proceedings were reported as of the filing date, though the Company is subject to normal course litigation.
Investor Verification Checklist
- Revenue Drivers: Verify the sustainability of the 6.8% decline in billed hours and whether cost pressures on property owners are easing or worsening.
- Cost Structure: Confirm that SG&A reductions are structural and not one-time, ensuring the lower expense base is sustainable as revenue fluctuates.
- Liquidity Runway: Assess the $18.2 million liquidity position against the burn rate, noting the shift from operating cash outflows to investment purchases in the current period.
- Discontinued Operations: Ensure future comparisons exclude the Professional segment to accurately gauge the performance of the remaining Property Management business.
- Stock Repurchases: Monitor the remaining $2.3 million authorization and the impact of buybacks on share count and earnings per share.