BGSF, Inc. reported fiscal 2025 third‑quarter revenue of $26.9 million, a 14.4% increase from the $23.5 million earned in Q2 2025. The rise was driven by seasonal demand in the property‑management segment, which generated $26.9 million in revenue—down 9.8% year‑over‑year as competition and cost pressures weigh on clients.
Gross profit for the quarter reached $9.7 million, giving a margin of 35.9%, unchanged from the prior year. The steady margin reflects disciplined cost management amid a mix shift toward higher‑margin services.
Net loss narrowed to $3.1 million, or $0.28 per diluted share, compared with a $4.9 million loss ($0.44 per share) in Q2 2025. The improvement stems from reduced operating expenses and the elimination of a $2.9 million loss on the sale of the Professional division, which closed at $96.5 million plus $2.5 million in working capital.
Adjusted EBITDA turned positive at $1.0 million, a 3.6% margin, reversing the $1.1 million loss recorded in Q2 2025. The turnaround is largely attributable to higher operating leverage and the removal of one‑time transaction costs.
Adjusted earnings per share rose to $0.08, beating the consensus estimate of –$0.29 by $0.37 and surpassing the prior‑quarter adjusted loss of –$0.10. The beat reflects tighter cost control and a more favorable revenue mix.
Management highlighted the completion of the Professional division sale and the launch of a $5 million stock‑buyback program. Interim CEO and CFO Keith Schroeder said the buyback “reflects confidence in BGSF’s long‑term strategy and the current market price.” He also noted that a $2.00 per‑share special dividend was paid on September 30, 2025.
Looking ahead, BGSF expects revenue growth in 2026, citing stronger execution of its strategic initiatives and investment in AI‑driven engagement tools. The company’s guidance signals optimism about the property‑management market, despite the year‑over‑year revenue decline.
Analysts had projected Q3 2025 revenue of $25.5 million and an EPS of –$0.29. The company’s results exceeded both metrics, providing a positive surprise that underscores the effectiveness of its cost‑control measures and the resilience of its core services.
Investors reacted cautiously, noting the year‑over‑year revenue decline and the transitional nature of the post‑sale period. The company’s focus on the property‑management segment and its commitment to returning capital through dividends and buybacks are viewed as positive long‑term signals.
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