What is the market's earnings forecast for BGSF next quarter?

What is BGSF's gross profit margin?

Did BGSF beat or miss consensus estimates last quarter?

What were the key takeaways from BGSF’s earnings call?

What factors drove the changes in BGSF's revenue and profit?

What does BGSF do and what are its main business segments?

What guidance did BGSF's management provide for the next earnings period?

What is the revenue and EPS growth rate for BGSF year over year?

- **Revenue Volatility**: Q3 Property Management revenue down 9.8% YoY but +14.4% sequentially due to seasonal turnover.
- **Strategic Moves**: $5 million stock buyback and $11 million G&A cost reduction plan signal financial discipline.
- **AI Growth Driver**: Investing in AI tools to accelerate sales, hiring, and client engagement, targeting $1 billion+ addressable market.
- **Profit Margins**: Gross margin improved 100bps sequentially to 35.9%, with adjusted EBITDA turning positive at $0.98 million.
- **Market Insights**: Clients increasingly prioritize tech-enabled talent acquisition and operational alignment.

**【Management Opening Remarks】**
- **Professional Division Divestiture**: Sold to INSPYR Solutions for $96.5 million, with $22.4 million returned to shareholders via special dividend. Remaining cash balance post-dividend: $20 million.
- **Stock Buyback Plan**: Announced $5 million repurchase program, reflecting confidence in long-term strategy.
- **Strategic Directives**: 
  - Conducted independent consulting review of Property Management business.
  - Targeting $11 million annual G&A cost reduction (including $1.5 million in public company costs).
  - Engaged compensation consulting to align organizational structure with goals.

**【CEO (Kelly Brown) Summary Section】**
- **Revenue Performance**: Q3 Property Management revenue $26.9 million (-9.8% YoY, +14.4% sequential) due to seasonal turnover demand.
- **Market Study Insights**: Identified $1 billion+ addressable market, with opportunities to differentiate through AI-driven talent acquisition and operational efficiency.
- **AI Investment**: Implementing tools to accelerate sales, hiring, and client engagement, with incremental revenue potential.
- **Cost Management**: Evaluating cost structure alignment with projected 2026 revenue growth.

**【CFO (Keith Schroeder) Financial Commentary】**
- **Financial Results**: 
  - Gross profit $9.7 million (35.9% of sales), up 100bps sequentially.
  - SG&A expenses $10.2 million (down 10% YoY, including $482k restructuring costs).
  - Adjusted EBITDA $0.98 million (3.6% of revenue vs. 0.3% YoY).
  - GAAP net loss $0.28 per share, vs. $0.08 non-GAAP EPS.
- **Liquidity**: Net cash used in operations $1.8 million YTD, with $122k capex.

**【Q&A Key Highlights】**
- **Consultant Process**: Surveyed clients, competitors, and market; validated addressable market size and growth levers.
- **Strategic Learnings**: Clients increasingly value technology-enabled talent acquisition and operational alignment with property management needs.
- **Future Focus**: Leveraging AI tools to enhance client engagement and talent delivery efficiency.

BGSF, Inc. (BGSF) Q3 2025 Earnings Call Transcript

- **Professional Group sale nearing completion**: Shareholders to vote September 4; post-close G&A reduced to $10M/year. 
- **AI investments driving efficiency**: Sales and recruiting platforms launching Q4 to accelerate client response times. 
- **Revenue trends mixed**: Q2 down 8.6% YoY but +12.6% sequential; Q3 expects ~9% sequential lift vs. Q2. 
- **Cash position strengthened**: $45M post-sale (including debt payoff), with Board evaluating shareholder returns. 
- **EBITDA margin target 10%**: Achievable when revenue aligns with $10M G&A structure. 


**【Management Opening Remarks】**
- Proposed sale of Professional Group to INSPYR Solutions, with shareholder vote scheduled for September 4. 
- Post-closing, head office G&A expense target reduced to $10M annually (including $1.5M public company costs). 
- Property Management contribution to overhead estimated at $11-12M for 2025, down from $20M+ in 2022-2023. 
- Transition Services Agreement (TSA) will extend certain expenses, but payments from INSPYR will offset G&A costs.

**【CEO (Kelly Brown) - Property Management Performance】**
- Q2 revenue: $23.5M (-8.6% YoY, +12.6% sequential). Sequential growth driven by seasonal apartment turnover. 
- Gross profit margin: 35.8% (down 40bps YoY). 
- Strategic initiatives: 
  - AI-powered sales and recruiting platforms launching mid-Q4. 
  - Exclusive/semi-exclusive service agreements now 11-15% of revenue. 
  - Cost realignment: reduced direct/indirect costs to align with revenue. 
- Industry challenges: higher interest rates, insurance premiums, and cautious client spending. 

**【CFO (Keith Schroeder) - Financial Results】**
- Q2 GAAP loss from continuing ops: $0.44/diluted share. Adjusted EPS: -$0.18 (loss from continuing ops), +$0.03 overall. 
- Adjusted EBITDA: $1.1M (4.9% of revenue) vs. $0.3M (1% of revenue) YoY. 
- SG&A expenses: $12.6M (includes $0.98M additional AR reserve). 
- Operating cash flow: $3M for first half of 2025. 
- Post-transaction cash position: ~$45M (after paying off debt). 

**【Q&A Highlights】**
- **Revenue growth path**: Sequential Q2-Q3 lift of ~9% expected, but YoY growth requires share gains. 
- **AI investment impact**: Sales tools to accelerate response times; recruiting tools to reduce hiring bottlenecks. 
- **G&A reduction**: $10M annual target post-TSA, with software cost optimization underway. 
- **Cash utilization**: Board evaluating options for $45M post-sale cash (potential dividend, buyback, or reinvestment). 
- **EBITDA margin target**: 10% when revenue aligns with $10M G&A structure. 
- **Client behavior**: Operators prioritizing internal workforce utilization over external hiring, limiting near-term demand. 


BGSF, Inc. (BGSF) Q2 2025 Earnings Call Transcript

- **Revenue mixed but improving**: Professional segment up 5.6% sequentially, Property Management down 14.1% but showing signs of stabilization.
- **New client momentum**: 23 new logos (+60% YoY), Workday partnership expansion, and 7% growth in exclusive service agreements.
- **Cost control success**: 10% YoY decline in SG&A, EBITDA margin up 120 basis points sequentially to 3.8%.
- **Tariff uncertainty**: Clients cautious, but April revenue growth signals potential post-tariff recovery.
- **Key risks**: Property Management macroeconomic headwinds, covenant compliance challenges, and slow industry normalization.

**【CEO Summary Section】**
- Total Q1 2025 revenue: $63.2 million (-8% YoY), driven by Professional (-4.2%) and Property Management (-14.9%) segments. Sequentially, Professional revenue increased 5.6%, while Property Management declined 14.1%.
- Key highlights: 23 new logos (60% YoY growth), Workday partnership expansion, and 7% improvement in Property Management service agreements.
- Challenges: Tariff-related uncertainty impacting client spending, though April revenue showed improvement.
- Strategic initiatives: Restructuring costs, sales force realignment, and technology-driven efficiency gains (e.g., web push for applicant portals).

**【CFO Financial Commentary】**
- Q1 GAAP loss: $0.07 per share; adjusted EPS: $0.05.
- Gross profit: $20.9 million (33.1% margin), down 100 basis points YoY.
- SG&A expenses: $18.9 million (-10% YoY), reflecting cost-cutting efforts.
- EBITDA: $2.4 million (3.8% margin), up 120 basis points sequentially.
- Cash flow: $1.1 million from operations, with minimal capex ($23,000).
- Covenant updates: Waivers and amendments to manage capital structure amid non-compliance.

**【Q&A Key Takeaways】**
1. **New Logos & Deal Size**: 23 new logos (60% YoY), with contracts signed in March. Average deal size and project timelines to be disclosed later.
2. **Tariff Impact & Pent-Up Demand**: Clients in wait-and-see mode, but active conversations suggest post-tariff recovery potential.
3. **Expense Reductions**: 65-70% of cost cuts realized in Q1, full impact in Q2. Ongoing efficiency initiatives (e.g., IT automation) to drive further savings.
4. **Property Management Recovery**: Sequential revenue improvement in Q1, with Q2 as key test of restructuring efforts. Rental rate growth and exclusive service agreements support optimism.
5. **Technology Platform**: Fully rolled out with 2-week sprint enhancements, capturing $M in efficiency gains (e.g., applicant portal push notifications).

BGSF (BGSF)-8 May 25-2025 Q1 Earnings call transcript

- **CFO Transition & Restructuring**: $7-9M annual savings from 2025; IT cost reduction via nearshore team. 
- **Revenue Trends**: Professional segment stabilizing post-June 2024; Property Management expects mid-2025 recovery. 
- **Financial Performance**: Q4 revenue $64.4M (down 12.5% YoY); adjusted EBITDA $1.4M. 
- **Cost Efficiency**: SG&A reduced 5% YoY; full cost savings visible by Q2 2025. 
- **AI Growth Driver**: Early success in client AI projects; Arroyo integration driving new opportunities.

**【CEO Opening Remarks】**
- **CFO Transition**: Appointed Keith Schroeder as CFO, replacing John Barnett, who contributed during a transformative period. 
- **Strategic Restructuring**: Announced $7-9M annual cash savings from 2025 through headcount reductions and cost streamlining. 
- **Operational Efficiency**: Shifted IT middleware to nearshore Arroyo team, saving $800K annually. 
- **Segment Performance**: 
  - **Professional Services**: Q4 revenue down 3% YoY but stabilized post-June 2024; added 50 new logos and 30% increase in MSAs. 
  - **Property Management**: Faced sector challenges but optimistic for mid-2025 recovery; territory mapping drove 23% revenue growth in key markets. 
- **Strategic Alternatives**: Ongoing 12-18 month process amid cautious market environment. 

**【CFO Financial Highlights】**
- **Q4 2024 Results**: 
  - Revenue: $64.4M (down 12.5% YoY); Professional segment down 8.7% YoY, Property Management impacted by restructuring. 
  - Gross Profit: $21.5M (33.3% margin vs. 34.6% YoY). 
  - Adjusted EBITDA: $1.4M (2.2% of revenue vs. $3.4M/Q3). 
  - Net Loss: $0.10 per share (GAAP), $0.06 per share (adjusted). 
- **Cost Management**: SG&A reduced to $20.8M (down 5% YoY). 

**【Q&A Key Takeaways】**
- **Cost Savings Timeline**: Full $7-9M run rate visible by Q2 2025; majority of headcount cuts implemented in Q1. 
- **Property Management Recovery**: Expecting mid-2025 rebound; territory mapping expansion to Dallas and other markets. 
- **AI & Arroyo Integration**: Early success in client engagements; leveraging Arroyo's AI capabilities to solve client problems. 
- **Market Sentiment**: Cautious optimism in professional services; election-related optimism tempered by tariff concerns.

BGSF

BGSF fundamentals

Earnings Call

You can ask Aime