---
title: "SPAR Group reports Q1 2026: Revenues $30.5M, gross margin 22.3%, positive EBITDA"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286099079.md"
description: "SPAR Group reported Q1 2026 results with revenues of $30.5 million and a gross margin of 22.3%. The company achieved positive Adjusted EBITDA of $0.7 million despite a GAAP net loss of $0.553 million. Management maintained full-year guidance for net sales between $143–$151 million and aims for 25% gross margins in 18–24 months. U.S. merchandising revenue rose 5%, while Canada revenue increased by 3%. Working capital was positive at $18 million, with cash and equivalents of $4.3 million as of March 31, 2026."
datetime: "2026-05-12T12:23:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286099079.md)
  - [en](https://longbridge.com/en/news/286099079.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286099079.md)
---

# SPAR Group reports Q1 2026: Revenues $30.5M, gross margin 22.3%, positive EBITDA

SPAR Group reported first-quarter fiscal 2026 results with net revenues of $30.5 million and a consolidated gross margin of 22.3%. The company returned to positive EBITDA (Adjusted EBITDA $0.7 million) while recording a GAAP net loss of $0.553 million for the quarter. Management reiterated full-year guidance for net sales of $143–$151 million, gross margins of 20.5%–22.5%, and SG&A (ex-unusual items) of $25.5–$26.5 million.

**Financial Highlights**

-   Net revenues: $30.5 million for the three months ended March 31, 2026 (down 10.3% year-over-year).
-   Gross profit: $6.812 million; Consolidated gross margin: 22.3% of sales.
-   Operating (loss) income: $(0.042) million (operating loss of $42 thousand).
-   GAAP Net (loss) attributable to SPAR Group: $(0.553) million; diluted loss per share: $(0.02).
-   Adjusted EBITDA: $0.737 million for the quarter; Adjusted diluted loss per share: $(0.01).

**Business Highlights**

-   Shifted strategic focus toward recurring, higher-margin U.S. merchandising services and away from lower-margin Remodel activity, resulting in a deliberate reduction in Remodel revenue.
-   U.S. merchandising revenue increased 5% while Canada revenue grew 3% year-over-year; total U.S. revenue was $27.262 million and Canada revenue was $3.256 million for the quarter.
-   Management reported expanded durable, high-retention customer relationships and a partnership with ReposiTrak to enhance inventory accuracy and on-shelf sales through proprietary technology plus the workforce platform.
-   Company set a target to achieve 25% gross margins over the next 18–24 months and reiterated a full-year strategy to drive margin expansion, reduce SG&A, and grow recurring revenue streams.
-   Working capital remained positive at $18.0 million (excluding line of credit balance and current portion of long-term debt); cash and cash equivalents totaled $4.3 million as of March 31, 2026.

Original SEC Filing: SPAR Group, Inc. \[ SGRP \] - 8-K - May. 12, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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