SPAR Group Inc. Reports Q1 2025 Results: Net Revenues at $34M, Net Income Drops to $0.5M with EPS at $0.02

Reuters
Jul 22
<a href="https://laohu8.com/S/SGRP">SPAR Group</a> Inc. Reports Q1 2025 Results: Net Revenues at $34M, Net Income Drops to $0.5M with EPS at $0.02

SPAR Group, Inc., a merchandising, marketing, and distribution services provider, reported financial results for the first quarter of 2025. The company achieved net revenues of $34.0 million, marking a strong start to the year without international joint ventures. The consolidated gross margin improved to 21.4% of sales, up from 19.7% in the same period the previous year. Net income attributable to SPAR Group from continuing operations was $0.5 million, translating to earnings per diluted share of $0.02, compared to $6.6 million, or $0.26 per diluted share, in the prior year quarter. The first quarter results included a $7.2 million non-cash gain on sale and other smaller non-recurring or non-cash items. Adjusted EBITDA was $1.5 million, or 4.4% of sales, compared to $2.5 million, or 5.0% of sales, in the prior quarter. The company's total worldwide liquidity as of March 31, 2025, stood at $23.4 million, with $17.9 million in cash and cash equivalents and $5.5 million of unused availability. The company highlighted its strong performance in the U.S. and Canada, achieving 6% topline growth and the largest pipeline of opportunity in its history, with more than $200 million in future business prospects. Additionally, SPAR Group's merger agreement with Highwire Capital was terminated due to the latter's inability to produce the necessary funds to close the deal. The company remains committed to pursuing the termination fee or seeking greater value for shareholders. CEO Mike Matacunas expressed confidence in the company's future performance and indicated that exciting announcements are expected in the next six months.

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