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Spar Group (SGRP) AI Stock Analysis
Spar Group
(Other OTC:SGRP)
The overall score of 50 reflects a neutral stance, balancing weak financials and valuation against recent operational improvements. Financial performance remains poor with declining revenue and negative cash flow, though debt reduction and a return to profitability in Q2 provide some optimism. Technical indicators are mixed, showing short-term strength but overbought conditions. Valuation is unattractive due to lack of earnings. The earnings call highlighted progress on margins and cost control, while corporate events were slightly positive overall.
Spar Group (SGRP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $8.16M
- Dividend Yield
- ―
- Average Volume (3M)
- 59.40K
- Price to Earnings (P/E)
- -0.3
- Beta (1Y)
- 0.98
- Revenue Growth
- -8.81%
- EPS Growth
- -92.12%
- 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...
How the Company Makes Money
SPAR Group makes money primarily by providing outsourced retail merchandising and field marketing services to consumer product manufacturers and retailers under service contracts. Revenue is generated when clients pay fees for specific programs and d...
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
Revenue decline and net losses persist, with negative cash flow. Balance sheet shows some improvement but debt still exceeds equity. Overall financial health remains weak.
Income Statement
15Very NegativeBalance Sheet
25NegativeCash Flow
10Very Negative| Breakdown | TTM | Mar 2026 | Dec 2024 | Mar 2024 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.86M | 136.10M | 163.63M | 45.92M | 261.27M | 255.72M |
| Gross Profit | 20.17M | 21.69M | 33.60M | 10.20M | 51.01M | 47.52M |
| EBITDA | -17.95M | -16.03M | 2.63M | 3.79M | 8.55M | 7.90M |
| Net Income | -25.23M | -24.63M | -3.15M | 639.00K | -732.00K | -1.78M |
Balance Sheet | ||||||
| Total Assets | 52.96M | 44.06M | 56.43M | 90.28M | 94.60M | 89.02M |
| Cash, Cash Equivalents and Short-Term Investments | 2.95M | 3.26M | 18.22M | 4.49M | 9.35M | 13.47M |
| Total Debt | 4.97M | 27.26M | 18.93M | 19.77M | 20.32M | 13.52M |
| Total Liabilities | 49.73M | 43.44M | 32.13M | 50.03M | 56.54M | 51.67M |
| Stockholders Equity | 3.23M | 622.00K | 24.31M | 28.23M | 22.43M | 19.75M |
Cash Flow | ||||||
| Free Cash Flow | -18.30M | -21.42M | -1.80M | 5.58M | -6.84M | 907.00K |
| Operating Cash Flow | -15.24M | -18.44M | -665.00K | 6.82M | -5.04M | 2.63M |
| Investing Cash Flow | -1.14M | -1.06M | 9.88M | -2.27M | -1.80M | -1.72M |
| Financing Cash Flow | 5.42M | 4.53M | -1.66M | -3.02M | 3.49M | 1.33M |
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
1 New RiskSpar Group Peers Comparison
Overall Rating
CASS78Outperform
ACTG68Neutral- SGRP50Neutral
TISI44Neutral
PMEC41Neutral
SST41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CASS | 78Outperform | $675.40M | 17.70 | 15.98% | 2.43% | 2.08% | 24.97% |
| ACTG | 68Neutral | $422.55M | -16.47 | -2.81% | ― | 12.33% | -160.91% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| SGRP | 50Neutral | $19.31M | -0.27 | -492.22% | ― | -8.81% | -92.12% |
| TISI | 44Neutral | $109.68M | -2.54 | -468.47% | ― | 2.62% | 19.50% |
| PMEC | 41Neutral | $12.99M | -5.33 | -17.43% | ― | 4.92% | -22.39% |
| SST | 41Neutral | $17.83M | -0.15 | -1180.76% | ― | -42.93% | -17.25% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SGRP | Spar Group | 0.68 | -0.40 | -37.04% | |
| ACTG | Acacia Research Corp. | 4.33 | 1.07 | 32.82% | |
| CASS | Cass Information | 52.74 | 14.54 | 38.07% | |
| TISI | Team Inc. | 23.93 | 7.66 | 47.08% | |
| SST | System1 Inc. | 1.70 | -4.07 | -70.54% | |
| PMEC | Primech Holdings Ltd. | 0.34 | -1.09 | -76.36% |
Spar Group Corporate Events
Spar Group Board Acts to Strengthen Corporate Governance
NegativeOn August 6, 2026, SPAR Group’s Board of Directors accepted the immediate retirements of directors James R. Brown, Sr. and Panos Lazaretos, pursuant to resignation letters dated January 31, 2025. The Board’s decision followed a review con...
Spar Group Announces Transition to OTCQB Venture Market
NegativeOn July 22, 2026, SPAR Group, Inc. announced that its common stock will be delisted from the Nasdaq Stock Market and begin trading on the OTCQB Venture Market at the open on July 23, 2026, retaining the ticker symbol SGRP. The company emphasized that...
SPAR Group Highlights Risks in Forward-Looking Statements Disclosure
NeutralSPAR Group, Inc. filed a report under the Securities Exchange Act of 1934 dated July 6, 2026, formally signed by President and CEO William Linnane. The filing emphasizes that the company’s forward-looking statements are inherently uncertain, su...
Spar Group Shareholders Approve Directors and 2026 Compensation Plan
PositiveSpar Group held its annual meeting of stockholders on June 11, 2026, with 82.69% of eligible shares represented, and shareholders re-elected seven directors, including three Super Independent Directors, to serve until the 2027 meeting in line with by...
Spar Group Issues Equity Under Amended ReposiTrak Agreement
PositiveOn May 29, 2026, SPAR Group, Inc. amended its March 13, 2026 services agreement with ReposiTrak, Inc. to allow ReposiTrak to be paid, at its option, in cash, SPAR common stock, or a combination of both, with any stock component priced on a five-day v...
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: Aug 17, 2026