BGSF 2025 Q3 Earnings Widened Losses Amid Strategic Restructuring

BGSF reported Q3 2025 results that missed expectations, with a net loss of $5.81 million (-$0.52 per share), far worse than the -$0.07 per share loss in the prior-year quarter. The company provided no specific 2025 guidance but expressed optimism for 2026 growth through cost cuts and AI tools.

Revenue

BGSF’s total revenue fell 9.8% year-over-year to $26.89 million in Q3 2025. The decline reflects the sale of its Professional division in September 2025, though sequential revenue from continuing operations (Property Management) rose 14.4% to $26.9 million, driven by seasonal demand and cost alignment.

Earnings/Net Income

The company’s losses expanded sharply, with net income turning to a $5.81 million deficit (-$0.52 per share), a 622.9% increase in losses compared to $804,000 (-$0.07 per share) in Q3 2024. The deterioration reflects transition costs from the division sale and ongoing overhead reduction efforts. This represents a significant negative performance for shareholders.

Price Action

BGSF’s stock price edged down 0.28% on the latest trading day, rebounded 5.67% for the week, but declined 7.33% month-to-date. Post-earnings volatility remains elevated due to the Transition Service Agreement (TSA) and uncertainty around near-term profitability.

Post-earnings price action has been mixed, with the stock down 7.33% month-to-date despite sequential revenue growth and a $5 million buyback plan.

CEO Commentary

Interim Co-CEOs Keith Schroeder and Kelly Brown emphasized progress post-division sale, citing $26.9 million in Q3 revenue (up 14.4% sequentially) and $1.0 million Adjusted EBITDA. Schroeder highlighted the $5 million buyback and $2/share special dividend, while Brown outlined AI-driven efficiency gains and cost discipline, expressing cautious optimism for 2026 growth.

Guidance

BGSF expects 2026 revenue growth supported by AI tools, cost reductions, and strategic initiatives, though Q4/Q1 2026 results may remain volatile due to TSA-related expenses. No specific financial targets were provided, with management focusing on long-term market positioning.

Additional News

BGSF completed the $99 million sale of its Professional division to INSPYR on September 4, 2025, followed by a $2/share special dividend. The board also authorized a $5 million stock buyback program, signaling confidence in capital allocation. These moves reflect a strategic pivot to focus on its core Property Management business.