Q2 2026 SPAR Group Inc Earnings Call Transcript
Key Points
- Returned to profitability in Q2 2026, the first time since Q1 2025.
- Adjusted EBITDA grew over 60% year-over-year, reaching $2.1 million.
- Gross margins remained strong at 22.8%, within the upper end of guidance.
- Core U.S. merchandising and Canada operations both reported sales growth.
- SG&A costs reduced significantly to $6.8 million from $7.9 million year-over-year, with a path to $20 million annual run rate.
- Net revenues declined 4.5% year-over-year to $36.9 million due to lower remodel business volume.
- Full-year 2026 revenue guidance was revised downward to $130-$138 million from $136 million in 2025.
- Net cash used in operating activities was $8.7 million in the quarter due to working capital timing.
- The company was delisted from Nasdaq and now trades on OTCQB, which may reduce visibility and liquidity.
- Ongoing legal matters with Robert Brown remain unresolved, though deemed immaterial.
Good day, and welcome to the SPAR Group second quarter 2026 financial results conference call.
(Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Phillip Kupper from Three Part Advisors Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you joining us for SPAR Group Inc.'s conference call to review second quarter 2026 results. Joining me on the call today are SPAR's Chief Executive Officer, William Linnane, and the company's Chief Financial Officer, Steven Hennen. This call is also being webcast and can be accessed through the audio link on the Events and Presentation page of the investor relations section at investors.sparinc.com. The information recorded on this call speaks only as of today, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.
I would also like to remind you that the statements made on today's
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