BGSF Reports 8% Revenue Decline and Consistent Net Loss in Latest Financial Period

BGSF, Inc. reported a decline in financial performance for the thirteen-week period ending March 30, 2025, with revenues totaling $63.2 million, down from $68.8 million in the same period last year, representing a decrease of approximately 8%. The company's net loss remained consistent at $0.07 per share, unchanged from the previous year. The decrease in revenue was primarily attributed to reduced demand in the Property Management segment, which saw a 14.9% drop in revenues due to lower billed hours and increased competition. The Professional segment also experienced a decline, with revenues decreasing by 4.2%, largely due to delays in client projects.

In terms of operational efficiency, BGSF managed to reduce its selling, general, and administrative expenses by 10% to $18.9 million, down from $21 million in the prior year. This reduction was part of a broader cost control strategy initiated in December 2024. The company's gross profit also fell to $20.9 million, a decrease of 10.7% compared to the previous year, with the gross profit margin declining from 34.1% to 33.1%. The decrease in gross profit was attributed to lower customer demand across both segments.

BGSF continues to navigate a challenging market environment, with strategic initiatives underway to enhance its operational framework. The company is actively engaged in a strategic alternatives review process aimed at maximizing shareholder value, which includes evaluating potential mergers and acquisitions. Additionally, BGSF has implemented a cost restructuring plan to address the financial pressures stemming from reduced demand and competition. The company operates primarily in the United States, with its Property Management segment providing services in 38 states and the District of Columbia.

As of March 30, 2025, BGSF's total assets stood at $152.3 million, with current liabilities increasing to $28.1 million from $25.9 million in the previous quarter. The company reported a working capital of $21.4 million, up from $19.4 million at the end of December 2024. BGSF's management has indicated that they are actively exploring options for equity and debt financing to support ongoing operations and potential growth opportunities. However, they also noted the risk of not being in compliance with certain financial covenants in the upcoming quarters, which could impact their operational flexibility.

Looking ahead, BGSF anticipates continued challenges in the market, particularly in the Property Management segment, where demand typically peaks in the summer months. The company is focused on leveraging its recent acquisitions and enhancing its service offerings to improve market share and operational performance. BGSF's management remains cautious but optimistic about the potential for recovery as they adapt to changing market conditions and client needs.