SPAR Group, Inc. (SGRP) announced financial results for the third quarter ended September 30, 2026, reporting a second consecutive quarter of profitability. Net revenues for the quarter were $33.5 million, a decrease of 19.0% compared to the prior year. Despite the revenue decline, the company reported a net income of $50,000, or $0.00 per diluted share, compared to a net loss of ($8.8) million, or ($0.37) per diluted share, in the third quarter of fiscal 2025.
Gross margin expanded to 18.9% of sales, up from 18.6% in the prior year. Selling, general, and administrative (SG&A) expenses declined 39.0% year-over-year to $5.6 million, attributed to cost reduction initiatives and organizational restructuring. Adjusted EBITDA for the quarter was $1.4 million, compared to $90,000 in the prior year.
For the nine months ended September 30, 2026, net revenues totaled $101 million, down 11.5% from the prior year. The company reported a net loss of ($94) thousand, or ($0.00) per diluted share, compared to a loss of ($8.3) million in the prior year. Adjusted EBITDA for the nine-month period was $4.3 million, an increase of 47.3% year-over-year.
As of September 30, 2026, the company held $4.7 million in cash and cash equivalents. Net cash used by operating activities for the nine months was $7.2 million, driven by working capital intensity from growth initiatives.
SPAR Group has adjusted its full-year 2026 financial outlook. The company now expects net revenues between $125 million and $130 million, gross margins of 20.0% to 22.0%, and SG&A costs of $23.5 million to $25.0 million.
