BGSF Reports 9.4% Q4 Revenue Drop, Retires All Debt and Returns $1.5M
BGSF reported Q4 revenue of $22 million, down 9.4% year-over-year with gross profit of $7.7 million and adjusted EBITDA loss narrowed to $947,000. The company retired all debt, returned $1.5 million via buybacks plus $2 per share special dividend and projects mid-single-digit 2026 sales growth.
1. Q4 Financial Results
BGSF reported Q4 revenue of $22 million, down 9.4% year-over-year, with gross profit of $7.7 million and gross margin at 35% (adjusted to 35.6%). SG&A expenses fell to $9.3 million, and adjusted EBITDA loss narrowed to $947,000 compared to a $1.6 million loss a year earlier, resulting in a GAAP net loss of $0.11 per share and an adjusted EPS loss of $0.09.
2. Balance Sheet and Capital Returns
During 2025, the company retired all outstanding debt, ending the year debt-free with net cash provided by operating activities of $117,000 and capital expenditures of $138,000. BGSF returned $1.5 million to shareholders through the repurchase of 351,200 shares and distributed a special $2 per share dividend.
3. Strategic Partnerships and Outlook
BGSF is expanding into the prop-tech support market via a partnership with Yardi, leveraging its independent consultant network to secure new clients. The company is optimizing AI investments to improve operational efficiency and client experiences, and projects mid-single-digit sales growth for 2026 compared to 2025.