BGSF (NYSE:BGSF) said it completed its transition to operating as a standalone property staffing company during the first quarter of fiscal 2026, following the March 31 conclusion of its transition services agreement with INSPYR Solutions.
Co-CEO and CFO Keith Schroeder told investors that the end of the agreement marked “a meaningful inflection point” for the company, allowing management and employees to focus on property staffing and the company’s 2026 growth initiatives
The company previously sold its Professional Division, and Schroeder said BGSF is now operating with a simplified support structure aimed at improving operational discipline, efficiency and accountability. For the first quarter, BGSF reported revenue of $20.9 million from continuing operations, which Schroeder said was flat compared with the prior-year period. He said the result represented a positive change compared with trends over the previous two fiscal years, though management believes severe nationwide weather and widespread power outages in late January and February affected demand during the quarter.
Revenue Flat, Adjusted EBITDA Loss Narrows Gross profit was $7.4 million in the first quarter, compared with $7.6 million in the prior-year period. Gross margin was 35.5%, down from 36.2% a year earlier. Schroeder said the company expects full-year gross margin to trend closer to 36%.