SPAR Group, Inc. Reports First Quarter 2025 Results

Core Viewpoint - SPAR Group, Inc. reported a strong first quarter of 2025, achieving 6% topline growth in the U.S. and Canada, despite the absence of international joint ventures, and has a significant pipeline of future business opportunities valued at over $200 million [2][3][10]. Financial Performance - Net revenues for the first quarter of 2025 were $34.0 million, a decrease from $49.4 million in the same period of 2024 [10][18]. - The consolidated gross margin improved to 21.4% of sales, compared to 19.7% in the prior year [10]. - Net income from continuing operations was $0.5 million, or $0.02 per diluted share, down from $6.6 million, or $0.26 per diluted share in the prior year [10][18]. - Adjusted EBITDA attributable to SPAR Group was $1.5 million, or 4.4% of sales, compared to $2.5 million, or 5.0% of sales in the previous quarter [10][28]. Operational Highlights - The company ended the quarter with total worldwide liquidity of $23.4 million, including $17.9 million in cash and cash equivalents [7]. - The company has the largest pipeline of opportunities in its history, with more than $200 million in potential future business [2]. Corporate Developments - The merger agreement with Highwire Capital was terminated due to their inability to secure funding, and the company is pursuing a termination fee or greater value for shareholders [3]. - The company experienced delays in filing its 10-K and 10-Q reports but expects to be current with all filings soon [4]. Balance Sheet Position - As of March 31, 2025, total assets were $70.2 million, up from $56.4 million at the end of 2024 [20]. - Total liabilities increased to $45.5 million from $32.1 million at the end of the previous year [20].