BGSF(US:BGSF)2025-11-07 13:33Financial Performance - Revenues for Q3 2025 were $26.9 million, a 14.4% increase from $23.5 million in Q2 2025, driven by increased billed hours from seasonal demand[6] - Gross profit for Q3 2025 was $9.7 million, up from $8.4 million in Q2 2025, primarily due to higher sales[6] - Net loss for Q3 2025 was $3.1 million, or $0.28 per diluted share, compared to a net loss of $4.9 million, or $0.44 per diluted share in Q2 2025[6] - Adjusted EBITDA for Q3 2025 was $980,000, representing 3.6% of revenues, compared to a loss of $1.1 million, or (4.9%) of revenues in Q2 2025[6] - Revenues for the thirteen weeks ended September 28, 2025, were $26,895,000, a decrease of 10.0% compared to $29,824,000 for the same period in 2024[15] - Gross profit for the thirty-nine weeks ended September 28, 2025, was $25,630,000, down 13.5% from $29,635,000 in 2024[15] - Net loss from continuing operations for the thirteen weeks ended September 28, 2025, was $3,078,000, compared to a loss of $1,812,000 in 2024, representing a 70% increase in losses[15] - Operating loss for the thirty-nine weeks ended September 28, 2025, was $7,135,000, significantly higher than the $3,737,000 loss in 2024[15] - Adjusted EPS from continuing operations was $0.08 for the thirteen weeks ended September 28, 2025, compared to $0.01 for the same period in 2024[28] - The operating loss for the thirteen weeks ended September 28, 2025, was $937 million, slightly improved from a loss of $1,003 million in the same period of 2024[26] Cash Flow and Assets - Cash flows from operating activities resulted in a net cash used of $1,544,000 for the thirty-nine weeks ended September 28, 2025[18] - Total current assets as of September 28, 2025, were $63.99 million, an increase from $45.35 million as of December 29, 2024[14] - Total assets as of September 28, 2025, were $41,881,000, down from $50,241,000 in 2024[17] - The company reported a net cash provided by investing activities of $91,213,000 for the thirty-nine weeks ended September 28, 2025[19] Liabilities and Expenses - Total liabilities as of September 28, 2025, were $32.89 million, down from $67.84 million as of December 29, 2024[14] - Interest expense for the thirty-nine weeks ended September 28, 2025, was $4,595,000, compared to $3,518,000 in 2024, indicating a 30.6% increase[15] - Interest expense, net, increased to $1,570 million for the thirteen weeks ended September 28, 2025, from $1,222 million in the same period of 2024[26] - Share-based compensation expenses were $545 million for the thirteen weeks ended September 28, 2025, compared to $286 million in the same period of 2024[26] Dividends and Stock Repurchase - A special dividend of $2 per share was paid on September 30, 2025, following the sale of BGSF's Professional division[7] - The company declared cash dividends of $2.00 per common share for the thirty-nine weeks ended September 28, 2025[15] - The Board approved a stock repurchase program allowing for the repurchase of up to $5 million of common stock[2] Future Outlook and Investments - The company is investing in AI-powered sales and recruiting technologies, expected to enhance efficiency in the upcoming quarters[7] - BGSF anticipates revenue growth in 2026 compared to 2025, supported by the execution of strategic initiatives[7] Tax and Contingent Considerations - The company reported an income tax benefit of $571 million for the thirteen weeks ended September 28, 2025, compared to an expense of $(413) million in the same period of 2024[26] - The company incurred a gain on contingent consideration of $450 million for the thirty-nine weeks ended September 28, 2025[26]