Spar Group AI Stock Analysis
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Spar Group (SGRP) AI Stock Analysis
Spar Group
(Other OTC:SGRP)
SGRP scores low primarily because of severe financial strain: contracting revenue, compressed gross margins, a $16.4 million TTM net loss and negative $12.3 million of free cash flow, all set against a shareholders' equity base of just $3.3 million that leaves minimal cushion against further losses. Technicals reinforce the caution, with the stock trading below every major moving average and a negative MACD. Valuation offers no anchor given negative earnings and no dividend. The offsetting positives are real but unproven: debt has been cut from $27.3 million to $4.7 million, and the latest earnings call showed a return to quarterly profitability, 63% adjusted EBITDA growth, sharply lower SG&A and FY2026 guidance implying a large gross-margin improvement. Until revenue stabilizes and cash burn reverses against a $2.9 million cash balance, the risk profile remains elevated.
Spar Group (SGRP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $8.16M
- Dividend Yield
- ―
- Average Volume (3M)
- 63.52K
- Price to Earnings (P/E)
- -0.4
- Beta (1Y)
- 0.92
- Revenue Growth
- -16.41%
- EPS Growth
- 24.91%
- Country
- US
- Employees
- 4,522
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
Spar Group Business Overview & Revenue Model
Company Description
SPAR Group, Inc. operates as a global service provider, specializing in comprehensive brand marketing and retail merchandising solutions. The company's extensive range of offerings supports retailers, manufacturers, and distributors worldwide. Its co...
Spar Group Earnings Call Summary
The call communicated clear progress on SPAR's multi-quarter transformation: return to profitability, strong adjusted EBITDA and adjusted net income growth, improving gross margin guidance, and meaningful SG&A reductions. These operational improvements and strategic technology initiatives are balanced against modest revenue decline driven by deliberate exits from low-margin remodel work, near-term operating cash usage ($8.7M in Q2) and a low cash balance ($2.9M), plus the reputational and market-access impact of NASDAQ delisting to the OTCQB and an unresolved legal matter. Overall, the positives in profitability, margin improvement, and cost reduction materially outweigh the short-term liquidity and revenue mix challenges.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
SPAR revised its FY2026 guidance to net revenues of $130–$138 million (vs $136M in 2025), gross margins of 21.5%–23.5% (vs 15.9% in 2025), and SG&A excluding unusual items of $21–$24 million (vs $32.2M in 2025), while noting an underlying SG&A run‑rate trending toward approximately $20 million annually and a longer‑term gross‑margin goal of ~25%; this follows Q2 results of $36.9M revenue (down 4.5% y/y), $8.4M gross profit (22.8%), $6.8M SG&A (including $543k one‑time), $2.1M adjusted EBITDA (up 63% y/y), GAAP net income $409k ($0.02/diluted) and adjusted net income $838k ($0.04/diluted), plus positive working capital of $25.8M (ex‑debt), $2.9M cash and $8.7M net cash used in operations, as the company shifts mix toward higher‑margin recurring merchandising, invests in ReposiTrak (~$151.5k/month IT fee) and transitions to the OTCQB ticker SGRP.
Spar Group Financial Statement Overview
Summary
Financials are the weakest part of the story. TTM revenue of $123.0 million is down roughly 6% year over year, gross margin has compressed from about 22% in 2023 to roughly 15% on a TTM basis, and the company has posted a $16.4 million net loss with an operating margin near -11%. Cash generation is the most pressing concern: operations consumed $9.7 million and free cash flow was negative $12.3 million on a TTM basis, roughly $34 million of cash burn across two periods. The balance sheet is fragile, with shareholders' equity of just $3.3 million funding a $56.0 million asset base. The genuine positives — debt slashed from $27.3 million to $4.7 million, leverage down to about 1.4x equity, and a narrowing loss with a moderating burn rate — keep the score above the floor, but the overall profile carries elevated financial risk.
Income Statement
14Very NegativeBalance Sheet
23NegativeCash Flow
11Very Negative| Breakdown | TTM | Mar 2026 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 122.98M | 136.10M | 163.63M | 45.92M | 261.27M | 255.72M |
| Gross Profit | 18.80M | 21.69M | 33.60M | 10.20M | 51.01M | 47.52M |
| EBITDA | -11.17M | -16.03M | 2.63M | 3.79M | 8.55M | 7.90M |
| Net Income | -16.42M | -24.63M | -3.15M | 639.00K | -732.00K | -1.78M |
Balance Sheet | ||||||
| Total Assets | 55.98M | 44.06M | 56.43M | 90.28M | 94.60M | 89.02M |
| Cash, Cash Equivalents and Short-Term Investments | 4.70M | 3.26M | 18.22M | 4.49M | 9.35M | 13.47M |
| Total Debt | 4.66M | 27.26M | 18.93M | 19.77M | 20.32M | 13.52M |
| Total Liabilities | 52.72M | 43.44M | 32.13M | 50.03M | 56.54M | 51.67M |
| Stockholders Equity | 3.26M | 622.00K | 24.31M | 28.23M | 22.43M | 19.75M |
Cash Flow | ||||||
| Free Cash Flow | -12.34M | -21.42M | -1.80M | 5.58M | -6.84M | 907.00K |
| Operating Cash Flow | -9.70M | -18.44M | -665.00K | 6.82M | -5.04M | 2.63M |
| Investing Cash Flow | -716.00K | -1.06M | 9.88M | -2.27M | -1.80M | -1.72M |
| Financing Cash Flow | 6.93M | 4.53M | -1.66M | -3.02M | 3.49M | 1.33M |
Spar Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRP, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.66, and below the 200-day MA of 0.69, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 26.58 is Positive, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRP.
Spar Group Risk Analysis
Spar Group disclosed 16 risk factors in its most recent earnings report. Spar Group reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksSpar Group Peers Comparison
Overall Rating
CASS70Outperform
ACTG53Neutral- SGRP44Neutral
TISI43Neutral
PMEC38Underperform
SST38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CASS | 70Outperform | $712.84M | 18.69 | 15.98% | 2.30% | 3.91% | 24.97% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ACTG | 53Neutral | $405.99M | -14.12 | -3.36% | ― | -3.72% | -452.20% |
| SGRP | 44Neutral | $12.50M | -0.42 | -914.98% | ― | -16.41% | 24.91% |
| TISI | 43Neutral | $105.57M | -2.33 | 222.01% | ― | 0.45% | 17.05% |
| PMEC | 38Underperform | $10.86M | -4.43 | -17.43% | ― | 4.92% | -22.39% |
| SST | 38Underperform | $10.28M | -0.06 | 244.76% | ― | -49.85% | -75.78% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SGRP | Spar Group | 0.44 | -0.55 | -55.51% | |
| ACTG | Acacia Research Corp. | 4.16 | 0.66 | 18.86% | |
| CASS | Cass Information | 55.71 | 15.91 | 39.96% | |
| TISI | Team Inc. | 22.90 | 7.63 | 49.97% | |
| SST | System1 Inc. | 0.98 | -2.58 | -72.47% | |
| PMEC | Primech Holdings Ltd. | 0.28 | -0.61 | -68.54% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 14, 2026