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Spar Group Q2 rev up 5% YoY to $38.6 mln.
ByAinvest
Thursday, Aug 14, 2025 8:08 am ET1min read
• SPAR Group Q2 revenue $38.6mln, up 5% YoY • US and Canada gross profit $9.1mln, margin 23.5% • US and Canada revenue up 13.5% QoQ • Largest pipeline of opportunity in SPAR history • Strong digital data focus for the company
Title: SPAR Group Reports Strong Second Quarter 2025 ResultsSPAR Group, Inc. (NASDAQ: SGRP) reported robust financial performance for the second quarter of 2025, with revenue and gross profit margins showing significant improvements. The company's President and CEO, Mike Matacunas, highlighted the strong performance of the U.S. and Canadian businesses, which contributed to the overall growth.
The company's net revenues for the second quarter totaled $38.6 million, representing a 13.5% sequential increase from the first quarter. This growth was driven by a 5% year-over-year (YoY) increase in U.S. and Canadian revenues, which rose to $38.6 million. Notably, the U.S. and Canadian gross profit dollars reached $9.1 million, with a margin of 23.5% [1].
The company's gross profit margin improved significantly, reaching 23.5% from the first quarter's 21.4% and the prior year's 20.6%. This improvement was attributed to the exit of joint ventures in Mexico, China, Japan, and India, which allowed the company to focus on its core U.S. and Canadian operations. Matacunas also noted that the company continues to build on the largest pipeline of opportunity in its history, with more than $200 million of future business to win [1].
SPAR Group's digital data focus has also played a crucial role in driving this growth. The company's investment in digital technologies has enabled it to provide more efficient and effective merchandising and marketing services to its clients. This focus has not only improved operational efficiency but also enhanced the company's competitive edge in the market [1].
The company's financial position remains strong, with a total liquidity of $15.1 million at the end of the quarter, including $13.9 million in cash and cash equivalents. Net cash used by operating activities was $11.9 million for the six months ending June 30, 2025, and the company ended the period with net working capital of $15.9 million [1].
Overall, SPAR Group's second quarter results demonstrate a strong commitment to growth and operational efficiency. The company's focus on digital data and its ability to adapt to market changes have positioned it well for future growth opportunities.
References:
[1] https://investors.sparinc.com/news-releases/news-release-details/spar-group-inc-reports-second-quarter-2025-results
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