Steven Hennen, who previously led finance and operations at Baker & Taylor LLC and held senior roles at Red Ventures, DyStar and Technimark, has been named Chief Financial Officer of SPAR Group, Inc., effective December 8, 2025. The appointment follows the departure of former CFO Antonio Calisto Pato, who will serve in an advisory capacity through the 2025 reporting period. Hennen’s experience in managing large, complex finance functions and driving M&A activity is expected to strengthen SPAR’s financial platform and support the company’s growth initiatives.
SPAR’s third‑quarter 2025 results fell short of analyst expectations, with revenue of $41.4 million versus the consensus estimate of $45 million, a miss of $3.6 million. Adjusted earnings per share were a loss of $0.10, missing the projected $0.03 per share by $0.13. The shortfall was driven by a 3.7‑percentage‑point decline in gross margin to 18.6% from 22.3% in the same quarter a year earlier, largely due to a higher proportion of lower‑margin retailer remodeling work and modest cost inflation. The company’s operating income was $1.2 million, down from $2.4 million a year ago, reflecting the margin compression and the impact of one‑time restructuring charges.
In addition to the margin squeeze, SPAR incurred approximately $4.0 million in restructuring costs and severance, plus $1.6 million in other one‑time expenses during the quarter. These charges reduced net income and contributed to the adjusted loss. The company’s cash position remained solid, with $8.2 million in cash and cash equivalents and $2.2 million of unused credit facility capacity, giving it a liquidity cushion of $10.4 million as of September 30, 2025.
The CFO change is part of a broader strategic transformation that has seen SPAR exit non‑core international markets—including Australia, China, South Africa, Brazil and National Merchandising Services—to focus on its U.S. and Canada operations. The company is also in the final stages of a $58.0 million cash acquisition by Highwire Capital, which, if completed, would take SPAR private and end its public trading status. These moves are intended to streamline operations, reduce costs, and deploy capital more efficiently in higher‑margin merchandising services.
CEO William Linnane said the company is “building a structurally leaner and more profitable business” and that the new CFO would “enhance our financial platform and steward capital in a disciplined manner that fosters long‑term value creation.” Hennen echoed this sentiment, stating he is “excited to join SPAR at such a pivotal point in its growth journey” and that he looks forward to partnering with the team to drive strategic priorities and improve capital allocation.
Investors reacted to the earnings miss with heightened scrutiny of SPAR’s financial discipline, while the CFO appointment generated elevated interest as a potential catalyst for turnaround. The market’s focus on the earnings miss underscores concerns about margin compression and the company’s ability to generate sustainable profitability, whereas the leadership change signals a commitment to strengthen financial governance and support the company’s strategic shift toward core markets and higher‑margin services.
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