BGSF, Inc. Reports Revenue Decline and Strategic Sale of Professional Segment

BGSF, Inc. reported a decline in financial performance for the thirteen weeks ended September 28, 2025, with revenues of $26.9 million, down 9.8% from $29.8 million in the same period last year. The company's gross profit also decreased by 9.7% to $9.7 million, reflecting a reduction in billed hours driven by lower demand and increased competition in the property management sector. The operating loss for the quarter was $937,000, compared to a loss of $1 million in the prior year. For the thirty-nine weeks ended September 28, 2025, total revenues were $71.3 million, down 11% from $80.1 million in the previous year, with a corresponding gross profit decline of 13.5%.

The company has undergone significant changes, including the sale of its Professional segment to INSPYR Solutions Intermediate, LLC, which was finalized on September 8, 2025, for cash proceeds of approximately $91.5 million. This strategic move is part of a broader effort to maximize shareholder value, initiated in May 2024. The Professional segment's financial results have been classified as discontinued operations in the latest filings. Following the sale, BGSF's focus will remain on its Property Management segment, which provides workforce solutions across 44 states and the District of Columbia.

Operationally, BGSF's workforce solutions segment has experienced fluctuations in demand, particularly during the summer months when property management activities peak. The company reported a decrease in customer engagement, with a 12% reduction in billed hours attributed to cost pressures faced by property owners and management companies. The company’s employee headcount has also been adjusted, contributing to a 10% reduction in selling, general, and administrative expenses, which totaled $10.2 million for the quarter.

Looking ahead, BGSF's management has expressed cautious optimism regarding future performance, emphasizing the need to navigate competitive pressures and economic conditions. The company has declared a special cash dividend of $2.00 per share, payable on September 30, 2025, reflecting its commitment to returning value to shareholders. However, the ongoing strategic alternatives review and the impact of the Professional segment's sale on the remaining business operations will be critical factors influencing BGSF's financial outlook. The company holds approximately $20 million in cash reserves, which it plans to utilize for operational needs and potential growth opportunities in the coming year.