BGSF

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Co-Chief Executive Officer and President - Kelly Brown Co-Chief Executive Officer and Chief Financial Officer - Keith Schroeder Operator: Good day, and welcome to the BGSF, Inc. Second Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Sandy Martin of Three Part Advisors. Please go ahead. Sandra Martin: Good morning. Thank you for joining us today for the company's second quarter 2026 conference call to discuss our results. On the call with me are Kelly Brown, Co-CEO and President; and Keith Schroeder, Co-CEO and CFO. After our prepared remarks, there will be a Q&A 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 investors.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. Management's 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. Reconciliations 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: Thank you, Sandy, and thank you all for joining us today in our call. The second quarter of 2026 represented our first reporting period as a stand-alone company following the conclusion of the TSA with INSPYR at the end of March. We use this transition as an opportunity to further streamline our front and back-office operations, realign our organization as needed and establish a cost structure better aligned with our stand-alone property staffing business. During the second quarter, we incurred $385,000 in nonrecurring strategic restructuring costs, which were included in our quarterly results. We also completed our initiative to simplify our support structure during the quarter, strengthening our focus on operational discipline, efficiency and accountability. At the same time, we are executing initiatives designed to accelerate revenue growth and expand our long-term opportunities. We continue to assess our general and administrative cost structure and identify opportunities to enhance operational efficiency. We continue to estimate ongoing G&A expenses of approximately $12 million, including approximately $2 million in public company costs. We will continue to identify and action cost reduction efforts in our administrative costs beyond those already identified. Building on recommendations from an external organizational and incentive compensation study, we began implementing targeted actions late in the first quarter and completed those actions during the second quarter. As a result, the full benefit of these initiatives will be reflected starting in our third quarter results. With that, I'll turn the call over to Kelly to walk through the strategic initiatives currently underway. Kelly Brown: Thank you, Keith, and good morning, everyone. Although we have seen optimism around rent growth and reduced concessions in pockets of the country, higher interest rates and elevated operating costs continue to pressure property owners' cash flow. As a result, many customers remain focused on cost control and reduced discretionary spending on temporary staffing. This cautious spending environment has led to lower-than-expected demand for BGSF workforce solutions, resulting in revenue being below expectations. Keith will discuss these market conditions and their financial impact in greater detail later in the call. Operationally, we continued to make meaningful progress across several key performance initiatives during the quarter. Our focus on optimizing fill rates is producing encouraging results, supported by enhanced recruiting processes, expedited candidate matching and greater efficiency across our delivery teams. We also continue to strengthen our onboarding process, reducing friction for both clients and candidates while accelerating the time from offer acceptance to successful placement. These improvements are helping us deliver better overall experience and drive stronger workforce outcomes. In addition, we remain focused on expanding our PropTech offering. After a successful 6-month ramp-up of the program over the first half of the year, we expect this business to successfully build its revenue stream and contribute approximately 1% to 2% of revenue in 2027. While still in the early stages of development, we are encouraged by client interest and ongoing execution efforts, and we believe PropTech represents an attractive long-term growth opportunity that complements our broader workforce solutions platform. We executed very successful engagements at both the National Apartment Association and BOMA International Conferences during the quarter. These events provided valuable opportunities to strengthen customer relationships, engage with prospective clients and expand our sales pipeline. We are optimistic about the quality of the leads generated and believe these efforts position us well to support revenue growth in the second half of the year. We are also excited to announce that Tara Gerberich, VP of our Strategic Account program, one of our own, was awarded the National Supplier of the Year at the National Apartment Association's Excellence Awards. This is the highest individual recognition that is awarded to a supplier by NAA on an annual basis, and we are proud and excited for Tara's well-earned recognition at this conference. Now I will turn the call back to Keith to cover our second quarter financial results. Keith Schroeder: Thank you, Kelly. As a reminder, our comments today refer to continuing operations unless otherwise noted. Our second quarter revenue was $22.3 million, 5.1% down from the prior year, primarily due to lower billed hours driven by reduced customer demand as property owners and property management companies continue to manage cost pressures as well as increased competition in select markets. Market conditions remained challenging during the quarter as higher interest rates, elevated operating expenses and continued pressure on property level cash flows contributed to cautious spending decisions across our customer base. While demand was soft during the quarter, recent staffing industry analyst commentary and brand stats results point to improving conditions across the staffing industry, which may support a gradual recovery over the remainder of the year. Gross profit for the second quarter was $7.9 million, slightly down from the $8.4 million achieved in the prior year period. Our gross margin was 35.5%, slightly lower than prior year's 35.8% we believe our gross margin for the year will remain in the 36% range. SG&A expenses were $8.9 million for the quarter compared to $12.6 million a year ago, a 29% reduction. This quarter included $385,000 of strategic review costs compared to $1.6 million in the prior year period. Adjusted EBITDA for the second quarter was a loss of $298,000, an improvement compared to the $1.2 million loss in the prior year period. As our revenue strengthened during the seasonally stronger Q3 time period, the additional gross profit will positively affect our EBITDA, along with the previously discussed cost reduction actions we implemented during the quarter. On a GAAP basis, for Q2, we reported net loss from continuing operations of $0.08 per diluted share compared to a net loss of $0.41 per diluted share in the prior year. Adjusted EPS loss was a loss of $0.02 per share from both continuing operations and on a consolidated basis. We exited the quarter maintaining a strong cash and cash equivalents position of $18.2 million, which includes short-term investments. Our cash flow from operations was slightly negative $160,000, driven by working capital requirements, including a seasonal revenue uplift of $1.4 million. We also repurchased 56,256 shares of common stock at an average price of $5.20 per share, which totaled approximately $293,000 for the quarter. As of June 28, 2026, we have approximately $2.3 million available for repurchases. We expect full year 2026 revenue to remain relatively consistent with 2025 levels. As Kelly outlined, we continue to execute against our strategic priorities, including driving operational excellence through recruiting and onboarding enhancements, expanding our PropTech offerings, strengthening customer relationship and sales pipeline development through industry engagement and reinforcing our leadership position within property management. Kelly and I want to thank our employees for their dedication and resilience during this time. We look forward to updating investors on our progress each quarter. Please reach out after this call if you'd like to schedule a meeting. With that, we would now like to open the call for questions. Operator? Operator: [Operator Instructions] Your first question today will come from Bill Dezellem of Tieton Capital. William Dezellem: Let's start, if we could, please, with the strategies that you have to shorten the time line for placement of staff members. Would you walk through the initiatives that you have executed on? How strongly your customers are responding to that? And then what incremental initiatives you may still have ahead? Kelly Brown: Sure. Bill, good to hear from you. A couple of things. First, in the second quarter, we were really focused on, I believe, as we previously commented on the upcoming initiative involving using the data that we have related to the candidate profile and using our technology to be able to quickly match that to the jobs that we have available. So the development around that continued in Q2 and that we'll really start seeing more of the benefit of that going into the third quarter. The second quarter initiative that we really focused on is around our hiring volume. I believe we previously mentioned how leveraging AI and really reaching more candidates in the marketplace. And so in the second quarter, we were able to successfully ramp up the volume of hiring that we were able to execute, which clearly benefits the customers, more candidates available for the placements that they list with us. So hiring was the main initiative through Q2. And then going into Q3, we're looking at, again, leveraging technology in a couple of different ways to match those skill profiles of the candidates more quickly to the profile of the jobs that our customers are listing with us. William Dezellem: And how much -- how large of an impact do you anticipate that to have in the second half? I don't have a feeling on how meaningful that will be to your customers. Kelly Brown: Yes. So the way that we plan to measure that is to look at our fulfillment rates on our placements. So we can measure for every, for example, 100 placement requests that come in, how many of those get filled in what amount of time. So the goal in Q3 is to be able to improve that fulfillment rate by 1 to 2 percentage points to start to ramp that up. So we'll measure that throughout Q3. I hate to put specific tie specific revenue numbers to that now for the third quarter, but the goal and how we measure that is going to be in the percentage of that fill rate that we achieve within that first day of the placement being listed with us. William Dezellem: That's really helpful. And then in the past, you have talked about using AI to interview candidates for positions. Is that ongoing? And are you finding any pushback to humans talking to nonhumans in an interview process? Kelly Brown: That's a great question, Bill. I can take that one as well. About half of our candidates are engaging with our AI interviewer, and that's a good kind of benchmark that we've set is to say, hey, if half of the candidates will talk with the AI agent, we have the other half prepared to engage with obviously our human recruiters. We've actually -- with the seasonality of our business, we added to our human recruiter workforce over the higher volume months so that those that show signs that they don't want to engage with the AI recruiter can quickly get routed to a human that we cannot lose, we still capture those candidates that don't care to engage. But so far, our data shows it's been about half and half, those that want to engage versus those that show signs that, hey, this isn't what I prefer, can I get to a human? William Dezellem: And then with that split, have you found that placement rates are any different between the 2? Kelly Brown: We have not found that placement rates are different between the 2. Now I will say that when candidates engage with the AI recruiter, that does expedite their onboarding process. They can more quickly possibly get to onboarding because it's automated and AI hiring agents can work 24/7 versus our human folks. We like to give a bit of a break after their workday. So we do see that whenever they're engaging with the AI agent that can get them a little bit more quickly to onboarding. However, the volume of candidates that get put to a placement, we haven't necessarily seen a big difference because keep in mind, we do still have our human recruiters that are kind of that end decision maker, so to speak, right? So the AI doesn't make decisions on who we hire and who we don't. That is absolutely still where our sort of human in the loop component comes into play. William Dezellem: Great. And then the final question for now is the PropTech initiative. Would you please discuss in more detail your -- kind of what you are seeing there in terms of, I guess, market size would be what we'd be interested in. Kelly Brown: I think we're still learning what the true market size is going to be for us. And I say that because the first 6 months of launching that business was spent just doing a lot of listening to our customers to see. PropTech can be a widely used phrase that can mean a lot of different things. There's a lot of different ways that technology is leveraged clearly in the property management space. So the first 6 months has been a lot of business development and a lot of listening to what area of PropTech seems to be the biggest pain point for our customers that our contractors can assist with. So in the early few months, definitely promising. A very strong pipeline has been built by that team. So now they're really just focused on, okay, we know in that business, it's not as fast paced of a close like staffing. Staffing moves very quickly whenever they need a person, it's a very quick, let's get the placement to the site. PropTech is a longer runway. You have the different phases of scoping out the project going through and finalizing what those terms are going to look like. So now we're going through that cycle of, hey, let's get more of our contractors dispatch than we already have to start engaging in some of those projects. So I think as we continue to learn what the scope that we're hearing from our customers is, we'll be able to more clearly identify, hey, what is the real potential here. I think we'll be able to give a little bit more detail and guidance on that over the next couple of quarters as we really fine-tune hey, based on this feedback, what direction do we see this business really staying more narrowly focused on. William Dezellem: That is really helpful. And actually, I do have one additional question. Circling back to the staffing side, have you seen signs with rents improving and fewer incentives for move-ins? Essentially a healthier industry that your candidate -- not your candidate list, but your prospective customer list is growing and that there are more firms that maybe aren't quite ready to engage in hiring, but that are interested in conversations, essentially your prospect pipeline growing is really the way to ask that. Kelly Brown: Sure. The great thing is, Bill, certainly, the usage of staffing is still there. Our communities out there still need people. What we're really working with our customer partners on is, hey, let's figure out how we can best have those needs fit into the limited budget that you have. So year-over-year, we're seeing the sheer volume of requests actually up whenever you compare year-over-year. However, how many hours of work that translates to is what we're really having to work very carefully on with our customers because of that limited budget piece that we mentioned earlier in the call. So short answer to your question, we've already seen just the sheer volume of requests improving year-over-year. However, where we're having to really work is, okay, how many hours of work can that translate to? And that might be something that we need to see improve as we continue on in the industry seeing those glimpses of optimism with the rent improvement and with pockets where we're seeing concessions go down, et cetera, et cetera, and that will loosen up some of those operating dollars that the communities can put towards services such as ours. William Dezellem: Kelly, does that imply that there is a backlog of work that is that is taking -- that is building up. And maybe this is my ignorance to not understanding the business well. But if there's an air conditioner that's out, that needs to be replaced right now if it's summer. We understand that. But is there -- are there other activities that your candidates work on that can be deferred. And therefore, this idea that the volume of request is up indicates that there is a backlog of deferred work? Kelly Brown: I'm hesitant to believe that there is a large backlog of work, Bill, because feedback from customers also indicate that, hey, let's be very careful in how we can leverage the team members that we have if they can maybe take a team member that would have typically worked at one community and have them work at maybe 2 or 3 others that are within a reasonable proximity. So as they sort of float that staff around their portfolio, that's a strategy that's been used to try to, again, be mindful of the dollars that are going out for help that we may fill in with. So I think, frankly, our operators are making it work. They're making it happen maybe with more limited resources. So could there be maybe a small backlog of work out there? Possibly, but I don't want to necessarily assume that because I really think our operators are just doing what they can to -- with the resources they have, keep up as much as possible. Operator: And the next question today will come from Michael Taglich of Aegis Capital. Michael Taglich: Quick question. You broke out strategic alternatives review. Could you give me a little more detail on that spend? Keith Schroeder: Yes. That was restructuring costs, Mike, because there's things like when we finished the TSA in March, we had several people. And so those costs fell into Q2. There's some consulting type costs that were part of the studies that we had done early part of the year. There was a final bill came through there. So those were the types of costs that came through in the quarter. Michael Taglich: Okay. And from a -- from a go-forward standpoint, do you have any thoughts about how that spend is going to work? So that's all restructuring costs basically? Keith Schroeder: Yes. Yes, it is. So going forward, that cost would be very small. Michael Taglich: Okay. All right. And the -- does management discuss at all any additional opportunities to bring more of the gross margin down to the bottom line from a cost reduction standpoint? Keith Schroeder: Yes, that is something I think I mentioned in my remarks, we are always looking at ways to bring down costs, whether it be people-wise, whether it be software-wise, both in G&A and in selling. So yes, while we made a lot of steps so far in the last, call it, 6 to 9 months, we are constantly looking at ways to bring those costs down, and we act on them all the time. Operator: At this time, we will conclude our question-and-answer session. I'd like to turn the conference back over to Kelly Brown for closing remarks. Kelly Brown: Thank you for your time today. We appreciate your interest in BGSF and look forward to providing an update on our third quarter in a few months. Have a great day. Keith Schroeder: Thank you all. Operator: The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines. Before you buy stock in Bgsf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bgsf wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. 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BGSF (BGSF) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $22.3 million, down 5.1% year-over-year due to lower billed hours from reduced customer demand. Gross Profit: $7.9 million, slightly down from $8.4 million in the prior year period. Gross Margin: 35.5%, slightly lower than the prior year's 35.8%; company expects full-year gross margin to remain in the 36% range. SG&A Expenses: $8.9 million, a 29% reduction from $12.6 million a year ago, including $385,000 in strategic review costs. Adjusted EBITDA: Loss of $298,000, an improvement from the $1.2 million loss in the prior year period. Net Loss (GAAP): $0.08 per diluted share from continuing operations, compared to a net loss of $0.41 per diluted share in the prior year. Adjusted EPS: Loss of $0.02 per share from both continuing operations and on a consolidated basis. Cash and Cash Equivalents: $18.2 million, including short-term investments. Cash Flow from Operations: Slightly negative at $160,000, driven by working capital requirements. Share Repurchases: Repurchased 56,256 shares at an average price of $5.20 per share, totaling approximately $293,000 for the quarter. G&A Expenses: Ongoing G&A estimated at approximately $12 million, including approximately $2 million in public company costs. Strategic Restructuring Costs: Incurred $385,000 in nonrecurring strategic restructuring costs during the quarter. Warning! GuruFocus has detected 2 Warning Signs with BGSF. Is BGSF fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BGSF Inc (NYSE:BGSF) significantly reduced SG&A expenses by 29% year-over-year, reflecting successful cost structure realignment. The company completed its organizational restructuring, with the full benefits of cost reduction initiatives expected to be reflected starting in Q3 2026. BGSF Inc (NYSE:BGSF) is making progress on operational efficiency, with enhanced recruiting processes and AI-driven candidate matching improving fill rates. The PropTech offering is gaining traction, with a strong pipeline built and expectations to contribute 1% to 2% of revenue in 2027. BGSF Inc (NYSE:BGSF) maintains a strong cash position of $18.2 million and continues to return value to shareholders through share repurchases. BGSF Inc (NYSE:BGSF) experienced a 5.1% decline in revenue year-over-year due to reduced customer demand and cautious spending on temporary staffing. Market conditions remain challenging, with higher interest rates and elevated operating costs pressuring property owners' cash flow. The company reported an adjusted EBITDA loss of $298,000 for the quarter, though an improvement from the prior year. Gross margin slightly decreased to 35.5% from 35.8% in the prior year period, reflecting competitive pressures. BGSF Inc (NYSE:BGSF) incurred $385,000 in nonrecurring strategic restructuring costs during the quarter, impacting profitability. Q: What strategies is BGSF implementing to shorten the timeline for placing staff members, and how are customers responding?A: Kelly Brown, Interim Co-CEO and President of Property Management, explained that in Q2, the company focused on leveraging data and technology to quickly match candidate profiles to available jobs, and ramped up hiring volume using AI to reach more candidates. The goal for Q3 is to improve fulfillment rates by 1 to 2 percentage points, measured by the percentage of placements filled within the first day of listing. Q: Is BGSF still using AI to interview candidates, and is there any pushback from candidates interacting with non-human interviewers?A: Kelly Brown noted that about half of candidates engage with the AI interviewer, while the other half prefer human recruiters. BGSF has added human recruiters during high-volume months to capture candidates who prefer human interaction. Placement rates are similar between the two groups, but AI expedites the onboarding process since it can work 24/7. Q: Can you provide more detail on the PropTech initiative and its potential market size?A: Kelly Brown stated that the first six months were spent listening to customers to identify the biggest pain points in property technology. The team has built a strong pipeline, but PropTech deals have a longer sales cycle compared to staffing. BGSF expects to provide more detailed guidance on the business's direction and potential over the next couple of quarters as it fine-tunes its focus. Q: Have you seen signs of a healthier industry with improving rents and fewer concessions, leading to a growing prospect pipeline?A: Kelly Brown confirmed that the sheer volume of placement requests is up year-over-year. However, customers are managing limited budgets by floating staff across multiple communities, which reduces the number of hours translated from those requests. The company is working with customers to fit their needs into constrained budgets, and expects improvements as rent growth and reduced concessions loosen operating dollars. Q: Does the increase in request volume imply a backlog of deferred work that could drive future demand?A: Kelly Brown expressed hesitation about assuming a large backlog, noting that customers are leveraging existing team members across multiple communities to manage costs. While a small backlog may exist, operators are making do with limited resources, so BGSF is not counting on a significant surge from deferred work. Q: Can you provide more detail on the $385,000 in strategic restructuring costs incurred in Q2?A: Keith Schroeder, CFO, explained that these costs were related to the conclusion of the TSA with INSPYR in March, including severance for several employees and final consulting bills from studies conducted earlier in the year. Going forward, these costs are expected to be very small. Q: Are there additional opportunities to bring more gross margin down to the bottom line through cost reductions?A: Keith Schroeder confirmed that the company is constantly looking for ways to reduce costs, both in G&A and selling expenses, whether through people or software. While significant steps have been taken over the past six to nine months, BGSF continues to identify and act on cost reduction opportunities. Q: What were the key financial results for Q2 2026, and what is the outlook for the full year?A: Keith Schroeder reported Q2 revenue of $22.3 million, down 5.1% year-over-year, with gross margin at 35.5%. Adjusted EBITDA was a loss of $298,000, an improvement from the $1.2 million loss in the prior year. The company expects full-year 2026 revenue to remain relatively consistent with 2025 levels, with gross margin in the 36% range. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in BGSF, Inc.? Here are five stocks we like better. Q2 revenue fell 5.1% to $22.3 million as property clients limited discretionary temporary-staffing spending, but cost reductions helped narrow the adjusted EBITDA loss to $298,000 from $1.2 million a year earlier. BGSF said demand remains cautious, with customers requesting more staffing but limiting hours because of budget constraints. Management expects full-year revenue to remain roughly in line with 2025, while industry conditions may gradually improve during the rest of 2026. The company is pursuing operational improvements through AI-assisted recruiting, faster candidate matching and cost restructuring; it also expects its early-stage PropTech business to contribute roughly 1%–2% of revenue in 2027. BGSF (NYSE:BGSF) reported second-quarter 2026 revenue of $22.3 million, down 5.1% from the prior-year period, as property owners and management companies continued to limit discretionary spending on temporary staffing amid higher interest rates, elevated operating costs and pressure on property-level cash flow. The quarter marked the company’s first reporting period as a standalone business following the conclusion of its transition services agreement with INSPYR at the end of March. Co-CEO and CFO Keith Schroeder said BGSF used the transition to streamline front- and back-office functions, realign its organization and establish a cost structure better suited to its property staffing business. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Second-quarter gross profit was $7.9 million, compared with $8.4 million a year earlier. Gross margin was 35.5%, versus 35.8% in the prior-year quarter. Schroeder said the company expects gross margin for the full year to remain in the 36% range. Selling, general and administrative expenses declined 29% year over year to $8.9 million from $12.6 million. The current quarter included $385,000 in non-recurring strategic restructuring costs, compared with $1.6 million in strategic review costs in the prior-year period. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Adjusted EBITDA was a loss of $298,000, improving from a loss of $1.2 million a year earlier. On a GAAP basis, BGSF reported a loss from continuing operations of $0.08 per diluted share, compared with a loss of $0.41 per diluted share in the prior-year quarter. Adjusted EPS was a loss of $0.02 per share from continuing operations and on a consolidated basis. Schroeder said restructuring costs included expenses tied to completing the transition services agreement, including severance costs and consulting costs related to organizational studies completed earlier in the year. He said such costs should be “very small” going forward. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company ended the quarter with $18.2 million in cash, cash equivalents and short-term investments. Operating cash flow was negative $160,000, which Schroeder attributed to working-capital requirements, including a $1.4 million seasonal revenue uplift. BGSF also repurchased 56,256 common shares at an average price of $5.20 per share, totaling about $293,000. As of June 28, approximately $2.3 million remained available under its repurchase authorization. Co-CEO and President Kelly Brown said some markets have shown optimism around rent growth and reduced concessions, but customer spending remained constrained during the quarter. Lower-than-expected demand for workforce solutions resulted from clients’ focus on cost controls and reduced discretionary temporary-staffing expenditures, she said. Schroeder said lower billed hours and increased competition in select markets also affected revenue. Still, he cited recent staffing-industry commentary and results from Randstad as indications that industry conditions may be improving and could support a gradual recovery through the remainder of 2026. During the question-and-answer session, Brown said the volume of staffing requests has increased year over year, although customers are managing the number of hours those requests translate into because of limited budgets. Property operators are also using existing employees across multiple nearby communities where possible, she said. Brown said she was hesitant to characterize the environment as producing a large backlog of deferred work, noting that property operators are working to maintain operations with the resources available. BGSF is seeking to improve fill rates through recruiting-process enhancements, quicker candidate matching and more efficient delivery operations. Brown said the company is using its candidate data and technology to match worker skill profiles with open jobs more quickly. For the third quarter, BGSF plans to measure progress through its fulfillment rate, including the percentage of placement requests filled during the first day after a request is received. Brown said the company’s initial goal is to improve its fulfillment rate by one to two percentage points during the quarter. The company also expanded candidate hiring volume during the second quarter using artificial intelligence and broader candidate outreach. About half of candidates engage with BGSF’s AI interviewer, while the other half are routed to human recruiters when they prefer not to use the automated process, Brown said. The company has not seen a meaningful difference in placement rates between the two groups, though candidates who use the AI interviewer can move through onboarding more quickly. BGSF is also building its PropTech offering, which Brown described as an early-stage opportunity. Following a six-month ramp-up during the first half of the year, the company expects the business to contribute approximately 1% to 2% of revenue in 2027. Brown said the company has built a strong pipeline but is still determining the areas of property technology where customer demand and contractor capabilities are best aligned. The company also participated in the National Apartment Association and BOMA International conferences during the quarter, which management said strengthened customer relationships and generated sales leads. Brown said BGSF expects those efforts to support revenue growth in the second half. For the full year, BGSF expects revenue to remain relatively consistent with 2025 levels. Schroeder said the company continues to assess administrative, software, selling and personnel costs for further efficiency opportunities, while the full benefit of recently completed organizational and incentive-compensation actions is expected to be reflected beginning in third-quarter results. BGSF, Inc (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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BGSF Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

DALLAS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- BGSF, Inc. (NYSE: BGSF), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the second fiscal quarter ended June 28, 2026. Q2 2026 Highlights from Continuing Operations Revenues were $22.3 million for Q2, compared to $23.5 million from prior year quarter, driven by lower billable hours in the current year compared to prior year. Gross profit was $7.9 million for Q2, compared to $8.4 million in prior year quarter, which is in line with revenues. Net loss was $0.8 million, or $0.08 per diluted share for Q2, compared to a net loss of $4.5 million, or $0.41 per diluted share in the prior year quarter. The decrease is primarily driven by a reduction in selling, general, and administrative expenses. Adjusted EBITDA1 loss was $0.3 million (1% of revenues) in Q2, compared to loss of $1.2 million (5% of revenues) in the prior year quarter. Adjusted EPS1 loss was $0.02 for Q2, compared with Adjusted EPS1 loss of $0.10 in the prior year quarter. 1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below. Co-Chief Executive Officer and Chief Financial Officer, Keith Schroeder, said, “The second quarter of 2026 was our first reporting period following the conclusion of the Transition Services Agreement (“TSA”) with INSPYR at the end of March. We took this opportunity to continue to streamline the organization by simplifying our operations in both front office and back office as well as continuing to make organizational realignments as necessary to reduce costs. “As we head into our seasonally strongest third quarter, we look forward to realizing the benefits of all of these strategic actions, including enhanced revenue, more effective operations and lower overall support costs.” Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, “We continue to enhance and improve our many tools in order to provide superior customer service during this busy third quarter. Our usage of AI tools in screening, onboarding, and matching is continually being expanded, improved, and enhanced. “Our PropTech services strategy continues to gain momentum and is building a solid sales funnel for the coming year.” Conference Call BGSF will discuss its second quarter 2026 financial results during a conference call and webcast at 9:00 a.m. ET on August 6, 2026. Interested participants may dial 1-844-481-3017 (Toll Free) or 1-412-317-1882 (International) and ask to be included in the BGSF call. A call replay will be available until August 13, 2026. To access the replay, please dial 1-855-669-9658 (Toll Free), or 1-412-317-0088 (International) and enter access code 2412265. The live webcast and archived replay are accessible from the investor relations section of the Company’s website at https://investor.bgsf.com/events-and-presentations/default.aspx About BGSF BGSF provides best-in-class property management resources and solutions to growing apartment and luxury communities, as well as commercial properties, and was awarded Supplier Company of the Year by the National Apartment Association in recent years. Through its exclusive and semi-exclusive agreements with some of the largest property management companies in North America, BGSF offers differentiated advantages to clients, including trained talent and unique technological platforms that seek to maximize efficiencies in the growing residential and commercial leased property industries. For more information on the Company and its services, please visit its website at www.bgsf.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding BGSF’s expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding the future revenue and the business plans of BGSF’s management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “endeavor,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of BGSF considering their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on BGSF as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting BGSF will be those anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the mix of services or solutions utilized by BGSF’s client partners and such client partners’ needs for these services or solutions, market acceptance of new offerings of services or solutions, the ability of BGSF to expand what it does for existing client partners as well as to add new client partners, whether BGSF will have sufficient capital to operate as anticipated, the impact of the use of AI-powered technologies and the timing of their availability, the impact of our strategic initiatives and cost reductions, the demand for BGSF’s services and solutions, economic activity in BGSF’s industry and in general, and certain risks, uncertainties, and assumptions described in BGSF’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. BGSF undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws. CONTACT:Steven Hooser or Sandy MartinThree Part [email protected] 214.872.2710 or 214.616.2207 Source: BGSF, Inc. NON-GAAP FINANCIAL MEASURES The financial results of BGSF, Inc. are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the U.S. Securities and Exchange Commission. To help the readers understand our financial performance, we supplement our GAAP financial results with Adjusted EBITDA and Adjusted EPS. A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company. Adjusted EBITDA and Adjusted EPS are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, net income per diluted share, operating income, or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities or measures of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS are useful performance measures and are used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone. We define “Adjusted EBITDA" as earnings before interest (income) expense, income taxes, depreciation and amortization expense, costs associated with the evaluation of potential strategic alternatives (“strategic alternatives review”), software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance. We define “Adjusted EPS” as diluted earnings per share eliminating interest (income) expense, depreciation, and amortization expense, the strategic alternatives review, software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance, net of the respective income tax effect. 1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses. 2 Adjusted EBITDA from discontinued operations for the thirteen and twenty-six weeks ended June 29, 2025 includes $1.3 million and $2.7 million of depreciation and amortization, respectively, and $0.2 million and $0.7 million of income tax expense, respectively. 1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses.

Interested in BGSF, Inc.? Here are five stocks we like better. BGSF completed its transition to a standalone property staffing company after the March 31 end of its agreement with INSPYR Solutions, which management said creates a simpler structure focused on efficiency, accountability and growth. First-quarter results were mixed: revenue was flat at $20.9 million, but adjusted EBITDA loss narrowed to $541,000 from $1 million a year earlier, helped by cost control and a debt-free balance sheet. The company is leaning on cost cuts, AI tools, rebranding and new PropTech consulting services to drive growth, while still expecting full-year 2026 revenue to rise in the low- to mid-single-digit range. BGSF (NYSE:BGSF) said it completed its transition to operating as a standalone property staffing company during the first quarter of fiscal 2026, following the March 31 conclusion of its transition services agreement with INSPYR Solutions. Co-CEO and CFO Keith Schroeder told investors that the end of the agreement marked “a meaningful inflection point” for the company, allowing management and employees to focus on property staffing and the company’s 2026 growth initiatives. The company previously sold its Professional Division, and Schroeder said BGSF is now operating with a simplified support structure aimed at improving operational discipline, efficiency and accountability. → Light Speed Returns: Corning Cashes In on NVIDIA Growth For the first quarter, BGSF reported revenue of $20.9 million from continuing operations, which Schroeder said was flat compared with the prior-year period. He said the result represented a positive change compared with trends over the previous two fiscal years, though management believes severe nationwide weather and widespread power outages in late January and February affected demand during the quarter. Gross profit was $7.4 million in the first quarter, compared with $7.6 million in the prior-year period. Gross margin was 35.5%, down from 36.2% a year earlier. Schroeder said the company expects full-year gross margin to trend closer to 36%. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking SG&A expenses were $8.8 million, compared with $9 million a year ago. The latest quarter included $483,000 of strategic review costs, up from $21,000 in the prior-year period. BGSF also recorded a $918,000 gain in income from discontinued operations related to the final settlement of net working capital from the sale of the Professional Division, which Schroeder said was a cash inflow. Adjusted EBITDA from continuing operations was a loss of $541,000, an improvement from a $1 million loss in the prior-year period. On a GAAP basis, the company reported a net loss from continuing operations of $0.13 per diluted share, while adjusted EPS from continuing operations was a loss of $0.07 per share. Consolidated adjusted EPS was a positive $0.01 per share. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Schroeder said BGSF exited the quarter with a “strong debt-free balance sheet” and remained focused on disciplined capital management and cost control. Cash flow from operations was essentially flat in what management described as a seasonally low revenue quarter. BGSF said it has resized its general and administrative cost structure to better align with its standalone property staffing business. Schroeder said the company continues to estimate ongoing G&A costs at about $12 million annually, including roughly $2 million in public company costs. The company also took targeted actions late in the first quarter to reduce selling costs, based on an external organizational and incentive compensation study. Schroeder said the timing limits the near-term impact, but BGSF expects the full benefit to begin in the third quarter. On an annualized basis, the initiatives are expected to generate about $1 million in cash cost savings. “These actions reinforce our focus on execution, margin improvement, and progress towards sustained profitability,” Schroeder said. President and Co-CEO Kelly Brown said BGSF completed the BG Staffing rebrand in the first quarter, describing it as a step toward sharpening market positioning and building a more scalable, technology-enabled digital lead generation platform. Brown said the company is seeing improved SEO performance, a larger and more efficient funnel and deeper client engagement. She also said BGSF is using AI capabilities in both recruiting and sales, combining technology with human expertise. According to Brown, AI-enabled recruiting tools have streamlined interviews for more than 7,500 candidates, while supporting compliance, security and identity verification. She said the tools are helping the company improve time to fill and candidate quality. On the sales side, Brown said an AI sales assistant platform has converted inquiries into new clients, with relationship teams then handling scheduling and delivery. BGSF also launched PropTech consulting services through a strategic partnership with Yardi. Brown said the offering is still early but that the company has begun building a consulting pipeline, secured initial engagements and expanded its Yardi consultant network. Brown said demand is being driven by increasing complexity in implementation and integrations, interest in evaluating and simplifying existing technology stacks, and consolidation of management portfolios within the property management industry. If execution continues as planned, she said PropTech could represent approximately 1% to 2% of total revenue this year. BGSF reiterated its expectation for full-year 2026 revenue to grow in the low- to mid-single-digit range compared with 2025. Schroeder said revenue should strengthen during the seasonally stronger second and third quarters, with incremental gross profit expected to benefit EBITDA alongside cost reductions already implemented. During the question-and-answer session, analyst George Melis of MKH Management asked about market conditions. Brown said clients have been managing through higher insurance costs and stubborn interest rates, pressures that continue to influence their operations. “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,” Brown said. She added that many customers have adjusted their operational strategies, which could support their ongoing ability to use staffing services. Asked about BGSF’s technology investments, Brown said the company is comfortable with its recruiting technology and its ability to use AI to improve candidate response times. However, she said BGSF is reviewing every piece of technology now that it is operating independently, including whether each tool remains appropriate for the standalone business and whether cost optimization opportunities exist. The company repurchased 170,862 shares during the quarter at an average price of $5.11 per share, totaling about $873,000. In response to a question from Michael Taglich of Taglich Brothers about whether BGSF had been able to buy blocks of stock, Schroeder said the company is in a 10b5-1 plan and that the broker is in charge of purchases. Brown also noted that BGSF was recognized by Staffing Industry Analysts as one of the 2026 Best Places for Working Parents and as one of the top 100 largest staffing firms in the U.S. The company said it plans to participate in industry events hosted by the National Apartment Association and BOMA International in June, as well as present at the East Coast IDEAS Conference on June 11. BGSF, Inc (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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BGSF Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Successfully concluded the transition services agreement (TSA) with Inspire on March 31, marking the company's official shift to a standalone property staffing business. Management attributes the flat year-over-year revenue performance to severe nationwide weather and power outages in early 2024, though notes this stability is an improvement over the prior two fiscal years. The organization has been resized to a $12 million annual G&A cost structure to align with the simplified standalone support requirements and drive better accountability. Strategic rebranding was completed to sharpen market positioning and support a new technology-enabled digital lead generation platform. AI capabilities have been integrated into both recruiting and sales, resulting in streamlined interviews for over 7,500 candidates and faster client conversion times. The company launched PropTech consulting services through a Yardi partnership to address increasing complexity in property management tech stacks and industry consolidation. Full-year 2026 revenue is projected to grow in the low- to mid-single-digit range compared to 2025, supported by seasonal strength in the second and third quarters. Management expects full-year gross margin to trend toward 36% as operational discipline and cost-reduction actions take effect. Targeted actions to reduce selling costs are expected to yield approximately $1 million in annualized cash cost savings, with full benefits realized starting in the third quarter. PropTech consulting is anticipated to contribute approximately 1% to 2% of total revenue within the current fiscal year. The company plans to continue evaluating its technology stack as a standalone entity to identify further opportunities for cost optimization and efficiency gains. Incurred $483,000 in strategic review costs during the first quarter, a significant increase from $21,000 in the prior-year period. Recorded a $918,000 gain from the final net working capital settlement related to the sale of the Professional Division, classified under discontinued operations. Maintains a debt-free balance sheet following the divestiture of legacy divisions. Repurchased 170,862 shares of common stock during the quarter at an average price of $5.11 per share. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management clarified that share repurchases are currently managed through a 10b5-1 plan. The company does not believe any large blocks of stock have been purchased recently as the broker maintains control over the execution. Management noted that while high insurance costs and interest rates continue to pressure clients, there is an increasing adjustment to these macro factors. Market conditions are expected to remain relatively static in the near term, but operational shifts by customers are creating ongoing demand for staffing services. The company expressed high confidence in its current AI-driven recruiting tools, which improve response times and candidate verification. Following the exit from the TSA, management is actively reviewing all technology assets to ensure they are optimized for a standalone business model. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

DALLAS, TX / ACCESS Newswire / May 6, 2026 / BGSF, Inc. (NYSE:BGSF), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the first fiscal quarter ended March 29, 2026. Q1 2026 Highlights from Continuing Operations Revenues were $20.9 million for Q1 current and prior year quarter. Gross profit was $7.4 million for Q1, compared to $7.6 million in prior year quarter, primarily driven by a lower gross margin percentage. Net loss was $1.4 million, or $0.13 per diluted share for Q1, compared to a net loss of $2.3 million, or $0.21 per diluted share in the prior year quarter. Adjusted EBITDA1 loss was $0.5 million (3% of revenues) in Q1, compared to loss of $1.0 million (5% of revenues) in the prior year quarter. Adjusted EPS1 loss was $0.06 for Q1, compared with Adjusted EPS1 loss of $0.09 in the prior year quarter. SUMMARY OF FINANCIAL RESULTS FROM CONTINUING OPERATIONS (dollars in thousands, except per share) (unaudited) 1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below. Co-Chief Executive Officer and Chief Financial Officer, Keith Schroeder, said, "We successfully completed the Transition Services Agreement ("TSA") with INSPYR at the end of the quarter and are now operating as a stand-alone company. This inflection point simplifies the organization and enables greater operational discipline. While first-quarter revenue was flat year-over-year, severe nationwide weather in late January and February likely affected demand compared to the prior year. "With the TSA concluded, our teams are concentrated on property management staffing and the execution of our strategic initiatives. We continue to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025. We exited the quarter with a strong, debt-free balance sheet, and we remain committed to disciplined capital management and cost control. General and Administrative expenses were reduced to our targeted $3.0 million run-rate level in the first quarter, supporting continued operational improvement and progress toward profitability." Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, "The completion of the BG Staffing rebrand in the first quarter reflects an important step in strengthening our market positioning and building a more scalable digital lead-generation platform. We also expanded our strategic presence with two additional partnership agreements, reinforcing our role as a trusted staffing partner to leading property management companies. "In parallel, we continued to develop our PropTech services strategy by expanding our consulting pipeline and scaling our Yardi consultant network. We are encouraged by PropTech's growth potential, driven by market expansion in implementation and integration projects, increased demand for portfolio-level data and analytics, and ongoing consolidation in the property management industry. While still early, we view this as a meaningful long-term growth opportunity for the Company." Conference Call BGSF will discuss its first quarter 2026 financial results during a conference call and webcast at 9:00 a.m. ET on May 7, 2026. Interested participants may dial 1-844-481-3017 (Toll Free) or 1-412-317-1882 (International) and ask to be included in the BGSF call. A replay of the call will be available until May 14, 2026. To access the replay, please dial 1-855-669-9658 (Toll Free), or 1-412-317-0088 (International) and enter access code 6626979. The live webcast and archived replay are accessible from the investor relations section of the Company's website at https://investor.bgsf.com/events-and-presentations/default.aspx About BGSF BGSF provides best-in-class property management resources and solutions to growing apartment and luxury communities, as well as commercial properties, and was awarded Supplier Company of the Year by the National Apartment Association in recent years. Through its exclusive and semi-exclusive agreements with some of the largest property management companies in North America, BGSF offers differentiated advantages to clients, including trained talent and unique technological platforms that seek to maximize efficiencies in the growing residential and commercial leased property industries. For more information on the Company and its services, please visit its website at www.bgsf.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding BGSF's expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding the future revenue and the business plans of BGSF's management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "endeavor," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of BGSF considering their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on BGSF as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting BGSF will be those anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the mix of services or solutions utilized by BGSF's client partners and such client partners' needs for these services or solutions, market acceptance of new offerings of services or solutions, the ability of BGSF to expand what it does for existing client partners as well as to add new client partners, whether BGSF will have sufficient capital to operate as anticipated, the impact of the use of AI-powered sales and recruiting technologies and the timing of their availability, the impact of our strategic initiatives and cost reductions, the demand for BGSF's services and solutions, economic activity in BGSF's industry and in general, and certain risks, uncertainties, and assumptions described in BGSF's most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. BGSF undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws. CONTACT: Steven Hooser or Sandy Martin Three Part Advisors [email protected] 214.872.2710 or 214.616.2207 UNAUDITED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share and dividend amounts) For the Thirteen Week Periods Ended March 29, 2026 and March 30, 2025 PROPERTY MANAGEMENT SEGMENT (dollars in thousands) (unaudited) UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Thirteen Week Periods Ended March 29, 2026 and March 30, 2025 NON-GAAP FINANCIAL MEASURES The financial results of BGSF, Inc. are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission. To help the readers understand our financial performance, we supplements our GAAP financial results with Adjusted EBITDA and Adjusted EPS. A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company. Adjusted EBITDA and Adjusted EPS are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, net income per diluted share, operating income, or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities or measures of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS are useful performance measures and are used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone. We define "Adjusted EBITDA" as earnings before interest expense, income taxes, depreciation and amortization expense, costs associated with the evaluation of potential strategic alternatives ("strategic alternatives review"), software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance. We define "Adjusted EPS" as diluted earnings per share eliminating interest expense, depreciation, and amortization expense, the strategic alternatives review, software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance, net of the respective income tax effect. Reconciliation of Net Loss to Adjusted EBITDA (dollars in thousands) 1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses. 2 Adjusted EBITDA from discontinued operations includes $1.4 million of depreciation and amortization and $0.5 million of income tax expense. Reconciliation of Net Loss EPS to Adjusted EPS 1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed as incurred in selling, general, and administrative expenses. SOURCE: BGSF, Inc. View the original press release on ACCESS Newswire

Image source: The Motley Fool. May 7, 2026, 9 a.m. ET Chief Executive Officer — Keith R. Schroeder President — Kelly Brown Need a quote from a Motley Fool analyst? Email [email protected] Keith R. Schroeder: Thank you, Sandy, and thank you all for joining us on today's call. As expected, BGSF, Inc.'s transition services agreement with Inspire successfully concluded on March 31, thus beginning in the 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 three key directives that remain central to our strategy. First, we are 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. Second, we have resized our general and administrative cost structure to align with our standalone property staffing business and we will 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. Third, 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 limited 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. With that, I will turn it over to Kelly to walk through the strategic initiatives currently underway. Kelly Brown: Thank you, Keith, and good morning, everyone. We are proud to share that BGSF, Inc. was recognized as one of the 2026 Best Places for Working Parents 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 BGSF, Inc. 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. Today, we are operating both recruiting and sales AI capabilities, and we believe we have 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 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, and our relationship teams then step in to arrange and schedule delivery. Taken together, these initiatives reinforce our focus on delivering better outcomes for clients and candidates. We believe this continued focus on the end user will continue to position BGSF, Inc. 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 have 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. If execution continues as planned, we believe PropTech could represent approximately 1% to 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 across 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 R. Schroeder: Thank you, Kelly. As a reminder, our comments today refer to continuing operations unless otherwise noted. 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 results 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 $9.0 million a year ago. 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. Adjusted EBITDA for the first quarter was a loss of $541,000, an improvement compared to the $1.0 million loss in the prior-year period. As our revenue strengthens during seasonally stronger Q2 and Q3 time periods, the additional gross profit will positively affect our EBITDA, as will the previously discussed cost-reduction actions we implemented during the quarter. 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 $0.70 per share. Consolidated adjusted EPS for the quarter was a positive $0.10 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 totaled approximately $873,000 for the quarter. We continue to expect full-year 2026 revenue to grow in the low- to mid-single-digit range compared to 2025. 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 required a significant effort across the organization, and 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 11, 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. We will now open the call for questions. Operator: Thank you. We will now begin the question and answer session. If you are using a speakerphone, please pick up your handset before pressing the keys. At this time, we will pause momentarily to assemble the roster. The first question will come from Michael Taglich with Taglich Brothers. Please go ahead. Michael Taglich: Hi, guys. Thanks for taking the call. Just a quick question on stock buyback. Have you been able to buy any blocks of stock, especially recently, or no? Keith R. Schroeder: We are in a 10b5-1 plan, so we really do not know that. The broker is in charge of that, but I do not think so. Michael Taglich: Okay. All right. Thank you. Keith R. Schroeder: Thank you, Mike. Operator: Please standby as we poll for questions. The next question will come from George Melas-Kyriazi with MK Edge Management. Please go ahead. George Melas-Kyriazi: Thank you. Thanks for taking my question. Could you give us a sense of how you see the market? It seems like the market was a bit tight and in a downturn for a couple of years. How do you see that evolving? What did you see so far in 2026, and what are your expectations for the rest of the year from a market perspective? And as a second question, from a tech perspective, the company has invested quite a bit in tech in the last three to five years. It is an evolving, never-ending process, but how comfortable are you right now with your current tech, in particular to recruit your staff and meet the needs of your customers? Kelly Brown: Certainly. Good morning. It has been an interesting couple of years. We have had to really work with our clients as they navigated heightened insurance costs and stubborn interest rates. That does impact how they operate for various reasons, and I think some of that pressure continues. However, we have also seen a lot of adjustment to knowing what these costs are and the impact they can have. While we have seen some loosening in certain pockets, we expect conditions to remain relatively static for a little bit longer. That said, there has been significant adjustment in operational strategies and where staffing fits into that, which positively affects our customers' ability to leverage services such as ours on an ongoing basis. On your technology question, we are very comfortable with the technology we have for recruiting. We are able to leverage AI in various ways to improve response times to our candidates. Now that we are past the TSA, we continue to review every piece of technology we use: is it the right technology for our business as a standalone company, and where can we optimize costs? We are comfortable with our recruiting technology today, and we will continue to evaluate as we operate as a standalone company. Absolutely. Thank you, George. 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: Thank you for your time today. We appreciate your interest in BGSF, Inc. 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. Before you buy stock in Bgsf, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bgsf wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!* Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BGSF (BGSF) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool