BGSF, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenues were $25.1 million, a decrease from $26.9 million in the prior year quarter, driven by lower billable hours.
• Gross profit was $9.1 million for Q3, down from $9.7 million in the prior year quarter; gross profit percentage increased to 36.1% from 35.9%.
• Net income was $0.1 million ($0.01 per diluted share) for Q3, compared to a net loss of $3.1 million ($0.28 per diluted share) in the prior year quarter.
• Operating income was $0.2 million for Q3, compared to an operating loss of $0.9 million in the prior year quarter.
• Adjusted EBITDA was $0.9 million (3% of revenues) for Q3, down from $1.0 million (4% of revenues) in the prior year quarter.
• Adjusted EPS was $0.09 for Q3, up from $0.08 in the prior year quarter.
• For the thirty-nine weeks ended September 27, 2026, revenues were $68.3 million compared to $71.3 million in the prior year period.
• Net loss for the thirty-nine weeks ended September 27, 2026, was $0.96 million ($0.09 per diluted share), compared to a net loss of $10.3 million ($0.93 per diluted share) in the prior year period.
• Cash and cash equivalents were $9.3 million as of September 27, 2026, down from $19.0 million as of December 28, 2025.
• Total assets were $53.6 million as of September 27, 2026, down from $57.8 million as of December 28, 2025.
• Total liabilities were $7.2 million as of September 27, 2026, down from $9.7 million as of December 28, 2025.
• Net cash used in operating activities was $0.5 million for the thirty-nine weeks ended September 27, 2026, compared to $1.5 million in the prior year period.
• Net cash used in investing activities was $7.4 million for the thirty-nine weeks ended September 27, 2026, compared to net cash provided by investing activities of $91.2 million in the prior year period.
• Net cash used in financing activities was $1.8 million for the thirty-nine weeks ended September 27, 2026, compared to $48.5 million in the prior year period.

Business Segments and Product Lines:

• The Property Management segment generated $25.1 million in revenue for Q3 2026, down from $26.9 million in the prior year quarter.
• Contract field talent revenue was $24.3 million for Q3 2026, compared to $26.3 million in the prior year quarter.
• Contingent placements revenue was $0.8 million for Q3 2026, up from $0.6 million in the prior year quarter.
• The company highlighted growth in its PropTech platform and progress with AI-enabled recruiting and operational enhancements.

Management Commentary and Tone:

• Co-CEO and CFO Keith Schroeder stated that while revenue was pressured by cautious customer spending, a focus on expense management and operational efficiency enabled the company to sustain profitability and maintain a strong balance sheet.
• Co-CEO and Property Management President Kelly Brown noted that customer spending remains cautious but the company is executing on initiatives to strengthen the business, improve productivity, and enhance client and candidate experiences.
• Management expressed encouragement regarding the growth of the PropTech platform and believes these initiatives position BGSF to emerge stronger as multifamily market conditions stabilize.
• Management believes cost reduction measures implemented during the year, coupled with ongoing investments in strategic initiatives, provide a balanced approach to managing near-term market challenges while positioning the company for long-term value creation.

Other Key Points:

• The improvement in net income for Q3 2026 was primarily driven by a reduction in selling, general, and administrative expenses and interest expense.
• The company reported a gain on sale of discontinued operations of $0.25 million for Q3 2026, compared to a loss of $2.9 million in the prior year quarter.
• For the thirty-nine weeks ended September 27, 2026, the company reported a gain on sale of discontinued operations of $1.2 million, compared to a loss of $2.9 million in the prior year period.
• Cash dividends declared per common share were $0 for Q3 2026, compared to $2.00 in the prior year quarter.
• The company repurchased common stock for $1.3 million during the thirty-nine weeks ended September 27, 2026.
• The company paid $0.4 million on a note payable during the thirty-nine weeks ended September 27, 2026.
• The company paid $0.06 million in cash for interest and $0.09 million in cash for state taxes, net of refunds, during the thirty-nine weeks ended September 27, 2026.
• Accounts receivable increased to $14.0 million as of September 27, 2026, from $11.9 million as of December 28, 2025.
• Escrow receivable decreased to $0.8 million as of September 27, 2026, from $5.0 million as of December 28, 2025.
• Short-term investments were $8.6 million as of September 27, 2026, with no short-term investments reported as of December 28, 2025.
• The company purchased $20.4 million in short-term investments and sold/redemption proceeds of $11.9 million in short-term investments during the thirty-nine weeks ended September 27, 2026.
• The company received $1.2 million in proceeds from the sale of a business during the thirty-nine weeks ended September 27, 2026.