SPAR Group, Inc. reported a net revenue of $41.4 million for the third quarter of 2025, marking a 9.5% increase from $37.8 million in the same period of 2024. This growth occurred despite the company's strategic exit from several international markets, including Mexico, Japan, and India. However, for the nine months ending September 30, 2025, total revenues decreased by 12.6% to $114.1 million compared to $130.6 million in the prior year, primarily due to the aforementioned exits. The company's gross profit for the quarter was $7.7 million, down from $8.4 million a year earlier, reflecting a gross margin of 18.6%.
The cost of revenue increased significantly, rising to $33.7 million in Q3 2025 from $29.3 million in Q3 2024, which represents a 15% increase. This rise in costs was attributed to higher in-store labor and field management expenses, which accounted for 81.4% of net revenue in the latest quarter, compared to 77.7% in the previous year. Selling, general, and administrative expenses also saw an increase, totaling $9.2 million, largely due to one-time costs associated with the relocation of the company's headquarters to Charlotte, NC, and other legal expenses.
SPAR Group's operational challenges were further highlighted by a restructuring cost of $4.0 million in Q3 2025, reflecting payments made to executives as part of their departure agreements. The company reported an operating loss of $5.9 million for the quarter, compared to a loss of $1.5 million in the same quarter of 2024. The net loss attributable to SPAR Group, Inc. was $8.8 million, or $(0.37) per share, compared to a loss of $0.27 million, or $(0.01) per share, in the prior year.
In terms of operational metrics, SPAR Group's total assets increased to $61.7 million as of September 30, 2025, up from $56.4 million at the end of 2024. The company reported a significant increase in accounts receivable, which rose to $41.3 million from $24.8 million, indicating a growing customer base and sales activity. However, cash and cash equivalents decreased to $8.2 million from $18.2 million, reflecting the company's cash flow challenges.
Looking ahead, SPAR Group has extended its credit facility through October 2027, which is expected to provide necessary liquidity to support ongoing operations. The company is focused on improving its internal controls and financial reporting processes, particularly following the identification of material weaknesses in its financial close process. Management is optimistic about future performance, emphasizing a commitment to enhancing operational efficiency and profitability as it navigates the evolving retail landscape.
About SPAR Group, Inc.
SPAR Group, Inc. is a global leader in retail merchandising and brand marketing services, providing solutions to enhance product presentation, store transformations, assembly, and distribution. Serving retailers and manufacturers across various sectors in the U.S. and Canada, it leverages advanced technology and a flexible workforce to drive sales, margins, and operational efficiency through outsourced services focused on the "last two feet" of retail.
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