DALLAS, Nov. 04, 2026 (GLOBE NEWSWIRE) -- BGSF, Inc. (NYSE: BGSF), a leading provider of workforce solutions for the specialized Property Management industry, today reported financial results for the third fiscal quarter ended September 27, 2026.

Q3 2026 Highlights from Continuing Operations

  • Revenues were $25.1 million for Q3, compared to $26.9 million from prior year quarter, driven by lower billable hours in the current year compared to prior year.
  • Gross profit was $9.1 million for Q3, compared to $9.7 million in prior year quarter, which is in line with revenues.
  • Net income was $0.1 million, or $0.01 per diluted share for Q3, compared to a net loss of $3.1 million, or $0.28 per diluted share in the prior year quarter. The improvement was primarily driven by a reduction in selling, general, and administrative expenses and interest expense.
  • Adjusted EBITDA1 was $0.9 million (3% of revenues) in Q3, compared to adjusted EBITDA of $1.0 million (4% of revenues) in the prior year quarter.
  • Adjusted EPS1 was $0.09 for Q3, compared with Adjusted EPS1 of $0.08 in the prior year quarter.

SUMMARY OF FINANCIAL RESULTS FROM CONTINUING OPERATIONS

(dollars in thousands, except per share) (unaudited)

  For the Thirteen Week Periods Ended
  September 27,
2026		 September 28,
2025
Revenues $25,129  $26,895 
Gross profit $9,083  $9,660 
Gross profit percentage  36.1%  35.9%
Operating income (loss) $206  $(937)
Net income (loss) $94  $(3,078)
Net income (loss) per diluted share $0.01  $(0.28)
Non-GAAP Financial Measures:    
Adjusted EBITDA1 $858  $980 
Adjusted EBITDA Margin (% of revenue)1  3.4%  3.6%
Adjusted EPS1 $0.09  $0.08 

1 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures as defined and reconciled below.

Co-Chief Executive Officer and Chief Financial Officer, Keith Schroeder, said, “While revenue remained pressured by cautious customer spending, our focus on expense management and operational efficiency enabled us to sustain profitability and maintain a strong balance sheet. We believe the cost reduction measures implemented during the year, coupled with ongoing investments in strategic initiatives, provide a balanced approach to managing near-term market challenges while positioning BGSF for long-term value creation.”

Co-Chief Executive Officer and Property Management President, Kelly Brown, commented, “While customer spending remains cautious, we continue to execute on initiatives that strengthen our business, improve productivity, and enhance the experience we deliver to both clients and candidates. We are encouraged by the growth of our PropTech platform and the progress we are making with AI-enabled recruiting and operational enhancements, which we believe position BGSF to emerge stronger as multifamily market conditions continue to stabilize.”

Conference Call

BGSF will discuss its third quarter 2026 financial results during a conference call and webcast at 9:00 a.m. ET on November 5, 2026. Interested participants may dial 1-800-715-9871 (Toll Free) or 1-646-307-1963 (International) and ask to be included in the BGSF call. A call replay will be available until November 12, 2026. To access the replay, please dial 1-855-669-9658 (Toll Free), or 1-412-317-0088 (International) and enter access code 2453258. The live webcast and archived replay are accessible from the investor relations section of the Company’s website at https://investor.bgsf.com/events-and-presentations/default.aspx.

About BGSF

BGSF provides best-in-class property management resources and solutions to growing apartment and luxury communities, as well as commercial properties, and was awarded Supplier Company of the Year by the National Apartment Association in recent years. Through its exclusive and semi-exclusive agreements with some of the largest property management companies in North America, BGSF offers differentiated advantages to clients, including trained talent and unique technological platforms that seek to maximize efficiencies in the growing residential and commercial leased property industries. For more information on the Company and its services, please visit its website at www.bgsf.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Such forward-looking statements include, but are not limited to, statements regarding BGSF’s expectations, hopes, beliefs, intentions, plans, prospects, or strategies regarding the future revenue and the business plans of BGSF’s management team. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “endeavor,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of BGSF considering their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on BGSF as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting BGSF will be those anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the mix of services or solutions utilized by BGSF’s client partners and such client partners’ needs for these services or solutions, market acceptance of new offerings of services or solutions, the ability of BGSF to expand what it does for existing client partners as well as to add new client partners, whether BGSF will have sufficient capital to operate as anticipated, the impact of the use of AI-powered technologies and the timing of their availability, the impact of our strategic initiatives and cost reductions, the demand for BGSF’s services and solutions, economic activity in BGSF’s industry and in general, and certain risks, uncertainties, and assumptions described in BGSF’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. BGSF undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities laws.

CONTACT:
Latoya Johnson
ir@BGSF.com 972.692.2400

Source: BGSF, Inc.

     
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
     
  September 27,
2026		 December 28,
2025
ASSETS    
Current assets    
Cash and cash equivalents $ 9,302   $ 19,018  
Short-term investments   8,622     —  
Accounts receivable (net of allowance for credit losses of $982 and $1,156, respectively)   13,974     11,898  
Escrow receivable   750     4,950  
Prepaid expenses   1,230     1,126  
Other current assets   1,381     1,458  
Total current assets   35,259     38,450  
     
Property and equipment, net   199     244  
     
Other assets    
Deposits   1,918     1,938  
Software as a service, net   2,581     3,002  
Deferred income taxes, net   9,404     9,496  
Right-of-use asset - operating leases, net   575     630  
Intangible assets, net   2,580     3,003  
Goodwill   1,074     1,074  
Total other assets   18,132     19,143  
Total assets $ 53,590   $ 57,837  
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities    
Accounts payable $ 459   $ 503  
Accrued payroll and expenses   5,035     4,441  
Transition services payable  855     3,064  
Income taxes payable   22     76  
Note payable   —     449  
Severance payable, current portion   194     392  
Lease liabilities, current portion   408     409  
Total current liabilities   6,973     9,334  
     
Severance payable, less current portion   —     100  
Lease liabilities, less current portion   213     298  
Total liabilities   7,186     9,732  
     
Commitments and contingencies    
     
Preferred stock, $0.01 par value per share, 500,000 shares authorized, -0- shares issued and outstanding   —     —  
Common stock, $0.01 par value per share; 19,500,000 shares authorized 11,279,222 and 11,227,197 shares issued, respectively, and 10,664,785 and 10,872,067 outstanding, respectively   113     112  
Additional paid in capital   72,039     71,445  
Accumulated deficit   (22,835)   (21,874)
Treasury stock of 614,437 and 355,130 shares, respectively   (2,913)   (1,578)
Total stockholders’ equity   46,404     48,105  
Total liabilities and stockholders’ equity $ 53,590   $ 57,837  
         


UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and dividend amounts)

For the Thirteen and Thirty-nine Week Periods Ended September 27, 2026 and September 28, 2025
     
  Thirteen Weeks Ended Thirty-nine Weeks Ended
   2026   2025   2026   2025 
Revenues $25,129  $26,895  $68,324  $71,284 
Cost of services  16,046   17,235   43,913   45,654 
Gross profit  9,083   9,660   24,411   25,630 
Selling, general, and administrative expenses  8,718   10,223   26,451   31,804 
Gain on contingent consideration  —   (450)  —   (450)
Depreciation and amortization  159   824   497   1,411 
Operating income (loss)  206   (937)  (2,537)  (7,135)
Interest income (expense), net  38   (1,570)  272   (4,595)
Income (loss) before income taxes from continuing operations  244   (2,507)  (2,265)  (11,730)
Income tax (expense) benefit from continuing operations  (150)  (571)  136   1,461 
Income (loss) from continuing operations  94   (3,078)  (2,129)  (10,269)
Income (loss) from discontinued operations:        
Income  —   226   —   3,695 
Gain (loss) on sale  250   (2,892)  1,168   (2,892)
Income tax expense  —   (68)  —   (804)
Net income (loss) $344  $(5,812) $(961) $(10,270)
         
Net income (loss) per share - basic and diluted:        
Net income (loss) from continuing operations $0.01  $(0.28) $(0.20) $(0.93)
Net income (loss) from discontinued operations:        
Income  —   0.02   —   0.34 
Gain (loss) on sale  0.02   (0.26)  0.11   (0.26)
Income tax expense  —   —   —   (0.08)
Net income (loss) per share - basic and diluted $0.03  $(0.52) $(0.09) $(0.93)
         
Weighted-average shares outstanding:        
Basic  10,550   11,079   10,506   11,018 
Diluted  10,565   11,079   10,506   11,018 
         
Cash dividends declared per common share $—  $2.00  $—  $2.00 
                 


PROPERTY MANAGEMENT SEGMENT
(dollars in thousands) (unaudited)
     
  Thirteen Weeks Ended Thirty-nine Weeks Ended
  September 27,
2026		 September 28,
2025		 September 27,
2026		 September 28,
2025
Contract field talent $24,317  $26,341  $65,999  $69,619 
Contingent placements  812   554   2,325   1,665 
Revenue  25,129   26,895   68,324   71,284 
Compensation and related  16,008   17,197   43,796   45,541 
Other  38   38   117   113 
Gross profit  9,083   9,660   24,411   25,630 
Selling:        
Compensation  4,253   4,349   12,853   12,469 
Advertising, occupancy, and travel  470   472   1,406   1,297 
Software, insurance, and professional fees  513   483   1,465   1,152 
Other  206   368   720   2,577 
Contributions to overhead  3,641   3,988   7,967   8,135 
General and administrative:        
Compensation  1,554   2,073   4,588   6,318 
Software  577   750   1,801   2,197 
Professional fees  434   131   1,405   1,334 
Strategic alternatives review/restructuring  175   482   1,043   2,116 
Other  536   1,115   1,170   2,344 
Gain on contingent consideration  —   (450)  —   (450)
Depreciation and amortization  159   824   497   1,411 
Operating income (loss)  206   (937)  (2,537)  (7,135)
Interest income (expense), net  38   (1,570)  272   (4,595)
Income tax (expense) benefit from continuing operations  (150)  (571)  136   1,461 
Income (loss) from continuing operations $94  $(3,078) $(2,129) $(10,269)
                 


UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

For the Thirty-nine Week Periods Ended September 27, 2026 and September 28, 2025
         
   2026   2025 
Cash flows from operating activities    
Net loss $ (961) $ (10,270)
Net income from discontinued operations   (1,168)   (2,891)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation   73     86  
Amortization   424     1,325  
Software as a service   421     950  
Loss on sale of discontinued operations   —     2,892  
Loss on disposal of property and equipment   —     11  
Contingent consideration adjustment   —     (450)
Amortization of debt issuance costs   —     1,022  
Interest expense on note payable   —     235  
Provision for credit losses   334     1,822  
Share-based compensation   595     850  
Deferred income taxes   92     (1,450)
Other non-cash items   (90)   —  
Net changes in operating assets and liabilities:    
Accounts receivable   (2,411)   (2,236)
Escrow receivable   4,200     (4,950)
Prepaid expenses   (105)   302  
Other current assets   346     (516)
Deposits   20     73  
Accounts payable   (44)   1,877  
Accrued payroll and expenses   594     2,642  
Transition services payable   (2,209)   1,474  
Accrued interest   —     (223)
Income taxes receivable (payable)   (322)   323  
Severance payable   (299)   —  
Other current liabilities   —     1,940  
Operating leases   (30)   (15)
Other long-term liabilities   —     3,406  
Net cash used in continuing operating activities   (540)   (1,771)
Net cash provided by discontinued operating activities   —     227  
Net cash used in operating activities   (540)   (1,544)
Cash flows from investing activities    
Proceeds from business sold   1,168     91,528  
Purchases of short-term investments   (20,436)   —  
Proceeds from sale of short-term investments   8,897     —  
Proceeds from redemptions of short-term investments   3,007     —  
Capital expenditures   (28)   (122)
Net cash (used in) provided by continuing investing activities   (7,392)   91,406  
Net cash used in discontinued investing activities   —     (193)
Net cash (used in) provided by investing activities   (7,392)   91,213  


Cash flows from financing activities    
Net payments under line of credit  —   (10,220)
Principal payments on long-term debt  —   (32,725)
Payment of convertible note  —   (4,368)
Issuance of ESPP shares  —   134 
Note payable paid  (449)  (1,289)
Repurchase of common stock  (1,335)  — 
Payments of debt issuance costs  —   (29)
Net cash used in financing activities  (1,784)  (48,497)
Net change in cash and cash equivalents  (9,716)  41,172 
Less: net change in cash and cash equivalents, discontinued operations  —   34 
Cash and cash equivalents, beginning of period  19,018   32 
Cash and cash equivalents, end of period, continuing operations$9,302  $41,170 
Supplemental cash flow information:    
Cash paid for interest $58  $3,398 
Cash paid for state taxes, net of refunds $89  $535 
Non-cash transaction: Dividends declared$—  $22,400 
        

NON-GAAP FINANCIAL MEASURES

The financial results of BGSF, Inc. are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and the rules of the U.S. Securities and Exchange Commission. To help the readers understand our financial performance, we supplement our GAAP financial results with Adjusted EBITDA and Adjusted EPS.

A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company. Adjusted EBITDA and Adjusted EPS are not measurements of financial performance under GAAP and should not be considered as alternatives to net income, net income per diluted share, operating income, or any other performance measure derived in accordance with GAAP, or as alternatives to cash flow from operating activities or measures of our liquidity. We believe that Adjusted EBITDA and Adjusted EPS are useful performance measures and are used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone.

We define “Adjusted EBITDA" as earnings before interest (income) expense, income taxes, depreciation and amortization expense, costs associated with the evaluation of potential strategic alternatives (“strategic alternatives review/restructuring”), software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance.

We define “Adjusted EPS” as diluted earnings per share eliminating interest (income) expense, depreciation, and amortization expense, the strategic alternatives review/restructuring, software as a service costs, and certain non-cash expenses such as share-based compensation expense, as well as certain specific events that management does not consider in assessing our on-going operating performance, net of the respective income tax effect.

 
Reconciliation of Net Income (Loss)
to Adjusted EBITDA
(dollars in thousands)
     
  Thirteen Weeks Ended Thirty-nine Weeks Ended
  September 27,
2026		 September 28,
2025		 September 27,
2026		 September 28,
2025
Income (loss) from continuing operations $94  $(3,078) $(2,129) $(10,269)
Income tax expense (benefit)  150   571   (136)  (1,461)
Interest (income) expense, net  (38)  1,570   (272)  4,595 
Operating income (loss)  206   (937)  (2,537)  (7,135)
Depreciation and amortization  159   824   497   1,411 
Gain on contingent consideration  —   (450)  —   (450)
Share-based compensation  178   545   595   850 
Strategic alternatives review/restructuring  175   482   1,043   2,116 
Software as a service1  140   516   421   950 
Aged receivable adjustment  —   —   —   1,070 
Adjusted EBITDA from continuing operations  858   980   19   (1,188)
Adjusted EBITDA Margin (% of revenue)  3.4%  3.6%  —%  (1.7)%
Income (loss) from discontinued operations  250   (2,734)  1,168   (1)
Adjustments to discontinued operations2  —   1,059   —   4,429 
Adjusted EBITDA from discontinued operations  250   (1,675)  1,168   4,428 
Adjusted EBITDA, net $1,108  $(695) $1,187  $3,240 

1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed in selling, general, and administrative expenses.
2 Adjusted EBITDA from discontinued operations for the thirteen and thirty-nine weeks ended September 28, 2025 includes $0.9 million and $3.6 million of depreciation and amortization, respectively, and $0.1 million and $0.8 million of income tax expense, respectively.

     
Reconciliation of Net Income (Loss) EPS to Adjusted EPS
     
  Thirteen Weeks Ended Thirty-nine Weeks Ended
  September 27,
2026		 September 28,
2025		 September 27,
2026		 September 28,
2025
Income (loss) from continuing operations per diluted share $0.01 $(0.28) $(0.20) $(0.93)
Income tax expense (benefit)  0.01  0.05   (0.01)  (0.13)
Interest (income) expense, net  —  0.14   (0.03)  0.42 
Operating income (loss)  0.02  (0.09)  (0.24)  (0.64)
Depreciation and amortization  0.02  0.07   0.05   0.13 
Gain on contingent consideration  —  (0.04)  —   (0.04)
Share-based compensation  0.02  0.05   0.06   0.08 
Strategic alternatives review/restructuring  0.02  0.04   0.10   0.19 
Software as a service1  0.01  0.05   0.04   0.09 
Aged receivable adjustment  —  —   —   0.10 
Adjusted EPS from continuing operations  0.09  0.08   0.01   (0.09)
Adjusted EPS from discontinued operations  0.02  (0.16)  0.11   0.42 
Adjusted EPS $0.11 $(0.08) $0.12  $0.33 

1 We capitalize direct costs incurred in cloud computing implementation from hosting arrangements, which are reported as a Software as a service and are expensed in selling, general, and administrative expenses.