SPAR (US:SGRP)2025-11-18 21:06Financial Performance - Net revenues for the third quarter of 2025 were $41.4 million, representing a 28.2% increase compared to the same quarter last year[5] - For the first nine months of 2025, net revenues were $114.1 million, with a 12.6% increase in comparable net revenues for the U.S. and Canada[14] - Net revenues for Q3 2025 were $41,416 million, a 9% increase from $37,788 million in Q3 2024[20] - Gross profit decreased to $7,690 million in Q3 2025 from $8,442 million in Q3 2024, representing a decline of 8.9%[20] - Adjusted EBITDA for the third quarter was $90 thousand, or 0.2% of sales, down from $221 thousand, or 0.6% of sales in the prior year quarter[7] - Adjusted EBITDA for the first nine months was $2.9 million, or 2.5% of sales, compared to $4.3 million, or 3.3% of sales in the prior year[14] - Consolidated Adjusted EBITDA for the nine months ended September 30, 2025, was $2.900 million, down from $4.324 million in the same period of 2024[29] Loss and Expenses - GAAP net loss attributable to SPAR Group, Inc. was ($8.8) million, or ($0.37) per diluted share, compared to a loss of ($0.2) million, or ($0.01) per diluted share in the prior year quarter[7] - Operating loss for Q3 2025 was $(5,919) million compared to a loss of $(1,530) million in Q3 2024[20] - Net loss attributable to SPAR Group, Inc. was $(8,764) million in Q3 2025, compared to a loss of $(182) million in Q3 2024[27] - Basic loss per share from continuing operations was $(0.37) in Q3 2025, down from $(0.01) in Q3 2024[20] - Consolidated net loss from continuing operations for Q3 2025 was $8.764 million, compared to a loss of $270 thousand in Q3 2024[29] - Consolidated EBITDA for Q3 2025 was $(5.515) million, a decline from $(1.076) million in Q3 2024[29] - Restructuring costs and severance for Q3 2025 amounted to $4.018 million, with no costs reported in Q3 2024[29] - Other one-time expenses for Q3 2025 totaled $959 thousand, slightly up from $952 thousand in Q3 2024[29] Cash and Liquidity - Total liquidity at the end of the quarter was $10.4 million, consisting of $8.2 million in cash and cash equivalents and $2.2 million of unused availability[10] - Cash and cash equivalents decreased to $8,206 million at the end of Q3 2025 from $18,221 million at the beginning of the period[24] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(15,962) million, compared to $(730) million for the same period in 2024[24] Costs and Expenses Management - The company incurred approximately $4.0 million in restructuring costs and severance during the third quarter, along with an additional $1.6 million in unusual or one-time costs[5] - The company is targeting SG&A expenses at approximately $6.5 million per quarter or lower, excluding legal and one-time items[4] - Interest expense from continuing operations increased to $663 thousand in Q3 2025 from $582 thousand in Q3 2024[29] - Depreciation and amortization from continuing operations for Q3 2025 was $404 thousand, a decrease from $454 thousand in Q3 2024[29] - Exceptional BOD payments for Q3 2025 were $544 thousand, with no payments reported in Q3 2024[29] Balance Sheet - Total current assets increased to $51,900 million as of September 30, 2025, from $45,996 million at the end of 2024[22] - Total liabilities rose to $45,076 million as of September 30, 2025, compared to $32,125 million at the end of 2024[22] - The company amended and expanded its revolving credit facilities to $36 million, extending until October 2027[7] - Income tax expense from continuing operations for Q3 2025 was $1.719 million, compared to a tax benefit of $(2.314) million in Q3 2024[29]