BGSF, Inc. Q3 2026 Earnings Recap

BGSF shares fell 12.0% after earnings, as revenue declined 6.6% and management said cautious customer spending—particularly on temporary staffing—had driven demand below expectations. Cost reductions and a slightly higher gross margin offered some support, but adjusted EBITDA was lower year over year.

Key Takeaways

• Q3 revenue was $25.1 million, down 6.6% from a year earlier, primarily due to lower build hours amid reduced customer demand and increased competition in select markets.
• Gross profit was $9.1 million versus $9.7 million a year ago; gross margin edged up to 36.1% from 35.9%. Management expects full-year gross margin to remain around 36%.
• Adjusted EBITDA was $858,000, compared with approximately $1 million in the prior-year quarter. GAAP continuing-operations earnings were $0.01 per diluted share, versus a $0.28 loss a year earlier.
• SG&A fell 14.7% to $8.7 million. Organizational changes are expected to reduce annual costs by approximately $1.6 million, with most benefits in Q4 fiscal 2026 and the full effect in Q1 fiscal 2027.
• PropTech revenue grew as client adoption and engagements expanded, but the business remains a small contributor; management expects it to represent approximately 1%–2% of revenue in 2027.