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what it is
SPAR sends workers into stores to set displays, reset shelves, launch products, and keep inventory moving.
how it gets paid
Last year Spar made $164M in revenue.
why growth slowed
Revenue fell 16.9% last year. Revenue exploded 175% vs. prior year, but the company still lost money.
what just happened
The quarter was a weird mix of $114M in revenue and a -$0.35 EPS loss.
At a glance
C balance sheet — red flag territory — real financial stress
25/100 earnings predictability — expect surprises
16.5% return on capital — nothing to write home about
-$0.13 fy2024 eps est
$197M fy2024 rev est
xvary composite: 25/100 — weak
What they do
SPAR sends workers into stores to set displays, reset shelves, launch products, and keep inventory moving.
SPAR wins when big retailers need thousands of store tasks done across the U.S. and Canada without building that workforce themselves. It has 3,425 employees and multilingual reporting tech, which means your client gets real-time store checks instead of waiting for a regional manager to guess. That scale matters when a product launch has to show up in hundreds of stores at once.
How they make money
$164M
annual revenue · revenue declined -16.9% last year
total revenue
$164M
16.9%
The products that matter
in-store display and shelf work
Merchandising Services
$164M reported segment revenue base
this is the core labor business behind the reported $116M U.S. & Canada line and $48M international line. if store activity slows or customers push on price, this model feels it quickly.
core revenue
store resets and project work
Project & Resets
18.6% gross margin in Q3 2025
management said a heavier project mix pushed Q3 2025 gross margin down to 18.6% from 22.3%. more work did not mean better economics. that is the catch.
margin pressure
the thing actually setting the stock price
Pending Highwire deal
$2.45 cash consideration
this is not a business line, but it is the market's main reference point. when a $2.45 cash offer trades against a $0.80 stock, you are looking at closing risk, not investor enthusiasm.
event-driven
Key numbers
0.6%
operating margin
Operating margin → profit left after running the business → so what: SPAR keeps 60 cents on every $100 of sales before interest and taxes. That is razor-thin.
$164M
annual revenue
Revenue → total sales → so what: this is a real operating business, but SEC filings show sales fell 16.9% vs. prior year, which makes a thin-margin model even more fragile.
16.5%
return on capital
Return on capital → profit generated from money put into the business → so what: the projects can be decent businesses when they work, even though reported earnings are unstable.
$2M
long-term debt
Long-term debt → money owed beyond one year → so what: debt is only 8% of capital, so the balance sheet is not strangling the company. Execution is.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $2M (8% of capital)
C — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for SGRP right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The quarter was a weird mix of $114M in revenue and a -$0.35 EPS loss.
Revenue exploded 175% vs. prior year, but the company still lost money. Gross margin was 21.1%, which tells you volume alone did not fix the model.
$114M
revenue
-$0.35
eps
21.1%
gross margin
the number that mattered
Revenue rose 175% vs. prior year, yet EPS stayed negative at -$0.35. Sales growth without profit is just more work.
source: company earnings report, 2026
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What could go wrong
SGRP is one of those stocks where the market already did the quiet part loud: a $2.45 cash deal trading against a $0.80 stock means you are being paid to absorb closing risk, operating risk, and credibility risk at the same time.
high
deal break risk
The pending cash offer is $2.45 per share, but the stock sits at $0.80. That spread tells you the market still sees meaningful closing risk.
If the deal fails, the takeover floor disappears and you are left valuing the standalone business on its own weak economics.
high
persistent operating losses
A -12.0% operating margin means the company is not close to self-funding strength. The problem is not financing first. It is that the core business still burns value while it works.
Even without heavy debt, continued losses can grind down equity value quarter by quarter.
med
weak pricing power
Both reported geographies fell 17%, and Q3 2025 gross margin dropped to 18.6% from 22.3% from a year ago. That is what commoditized service work looks like when customers control the conversation.
Lower-quality revenue can keep showing up without translating into better earnings.
med
messy disclosure and governance drag
The segment math does not cleanly reconcile to total revenue, and the company already carries a $250k legal settlement in 2024 plus public governance disputes in 2025.
When the facts arrive with extra noise, investors apply a discount. In an $18M microcap, that discount gets large fast.
The deal price is $2.45, the stock is $0.80, and the standalone business is running at a -12.0% operating margin. That is a wide spread sitting on weak fundamentals, not a hidden quality story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
deal risk
final merger clearance
The stock only makes sense relative to the $2.45 cash offer if the remaining approvals arrive and the closing actually happens.
calendar
next earnings report
Estimated for may 19, 2026. If the deal is still pending, you want to know whether gross margin keeps slipping after the 18.6% Q3 print.
metric
gross margin recovery
Gross margin fell from 22.3% to 18.6%. That gap is the cleanest signal for whether the operating business is stabilizing or still sliding.
trend
whether weakness stays broad
U.S. & Canada and international both fell 17%. If one side rebounds and the other does not, the story changes. Right now, weakness looks broad.
Analyst rankings
earnings predictability
25 / 100
in human-speak, the numbers do not arrive in a stable enough pattern to trust a smooth forecast.
source: institutional data
Institutional activity
institutional ownership data for SGRP is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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