SPAR Group, Inc. Issues Fiscal Year 2026 Financial Guidance; Signals Strategy Shift and Margin Expansion Efforts

CHARLOTTE, NC, March 31, 2026 – SPAR Group, Inc. (NASDAQ: SGRP) (“SGRP”, together with its subsidiaries, “SPAR”, “SPAR Group” or the “Company”) today released its financial guidance for fiscal year 2026, providing key performance expectations and outlining strategic initiatives that may have a significant impact on future share value.

Key Highlights of the Report

• Net Sales Growth: SPAR Group expects 2026 net sales to grow between 5% and 11% compared to fiscal year 2025. This growth range implies net sales will increase from \$136.1 million in FY25 to an expected range around \$143 million in FY26.
• Margin Expansion: The Company signaled a strong focus on gross margin expansion and expects continued favorable shifts in its service mix away from remodeling and towards higher-margin merchandising services.
• SG&A Improvements: Selling, General & Administrative (SG&A) expenses, excluding unusual items, are forecasted to decline meaningfully from \$32.2 million in FY25 to \$26.5 million in FY26, reflecting disciplined cost management and expected automation-driven efficiencies.
• Strategic Partnerships & Automation: The Company plans to announce further technology partnerships and margin-accretive opportunities throughout 2026, aiming to achieve industry-leading EBITDA margins in the medium term while maintaining a capital light investment approach.

Detailed Financial Guidance Table

Important Shareholder Information and Potential Price Sensitivities

• Revenue and Margin Growth: Guidance for top-line growth in a challenging market, alongside margin improvement and cost reduction, signals management’s confidence in transformation efforts. If achieved, these targets could positively impact earnings and shareholder value.
• Shift in Service Mix: The Company’s strategic move away from lower-margin remodeling services towards more profitable merchandising services is a notable shift that could enhance profitability and cash flows.
• Cost Control and Efficiency: A roughly \$5.7 million reduction in SG&A expenditures, if realized, will directly support improved operating margins and bottom-line performance.
• Technology and Automation: Announced intentions to accelerate technology partnerships and automation may position SPAR Group as a more scalable, efficient, and competitive player in the business services sector, potentially attracting investor interest.
• Corporate Developments and Risks: Shareholders should note references to executive departures in 2025, ongoing Nasdaq compliance risks, and the impact of potential subsidiary sales. These factors could introduce volatility or uncertainty regarding future operations and governance.
• Forward-Looking Statement Risks: Management cautioned that forward-looking statements are inherently subject to risks and uncertainties, including the ability to achieve guidance, changing industry dynamics, client relationships, regulatory compliance, and other unforeseen events.

Strategic Outlook

Management emphasized that the Company will remain capital light and disciplined with cash and working capital management. The expectation is to drive margin accretion and industry-leading EBITDA performance through ongoing operational transformation and strategic investments in technology partnerships and automation.

The Company also referenced the possibility of selling certain subsidiaries and highlighted the critical importance of ongoing compliance with Nasdaq listing rules, including minimum bid price, financial reporting, director independence, and the timely holding of annual meetings.

What Investors Should Watch

• Progress towards FY26 sales and SG&A targets.
• Announcements related to new technology partnerships and automation initiatives.
• Any updates regarding compliance with Nasdaq listing standards or changes in executive leadership.
• Potential impacts from the sale of subsidiaries or other strategic transactions.
• Future disclosures or deviations from guidance in upcoming quarterly reports.

About SPAR Group, Inc.

SPAR Group is an innovative services company offering comprehensive merchandising, marketing, and distribution solutions to retailers and brands across the United States and Canada. The Company prides itself on its analytics, flexibility, and commitment to client results. For more information, visit http://www.sparinc.com.

Cautionary Statement Regarding Forward-Looking Information

This article includes forward-looking statements based on management’s current expectations, estimates, and projections. These statements are subject to risks and uncertainties, including, but not limited to: the ability to achieve projected net sales and cost reductions, changes in the competitive landscape, macroeconomic factors, regulatory developments, execution of strategic initiatives, and risks described in SPAR Group’s filings with the SEC. Actual results may differ materially. Investors are advised not to place undue reliance on forward-looking statements and to review the Company’s most recent filings with the SEC for further details.

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