BGSF, Inc. reported its second fiscal quarter 2025 financial results, with revenues from continuing operations, primarily its Property Management segment, totaling $23.51 million. This represents an 8.6% decrease year-over-year, driven by a 9.7% reduction in billed hours.
The company's gross profit for the period was $8.41 million, resulting in a 35.8% margin, down from 37.3% in the prior year. BGSF recorded a GAAP net loss of $4.9 million, more than doubling from $2.1 million in Q2 2024, and its operating loss also more than doubled to $4.4 million.
Selling, general, and administrative (SG&A) expenses increased to $12.6 million, which included $1.6 million in strategic alternatives review costs. Despite these challenges, Adjusted EBITDA from continuing operations improved to $1.1 million, or 4.9% of revenue, compared to $0.3 million, or 1.0%, in Q2 2024.
For the first half of 2025, Property Management revenues were $44.39 million, an 11.7% decrease year-over-year. The company also recorded a $980,000 additional reserve against Property Management accounts receivable, reflecting a proactive approach to managing credit risk.
Management did not provide quantitative financial guidance for the remainder of fiscal 2025, cautioning that subsequent quarters would be 'noisy' due to costs related to the closing of its divestiture. No dividend was declared for the quarter, following a $0.15 per share dividend in Q1 2024.
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