Here are 1-3 brief analogies for SPAR (SGRP):

• SPAR is like ADP for retail merchandising.
• SPAR is like Instacart for in-store product management.
• SPAR is like Sodexo for retail operational services.

Major Products and Services of SPAR Group, Inc. (SGRP)

• Retail Merchandising & Marketing Services: This encompasses in-store product placement, planogram execution, display setup, inventory management, product demonstrations, and brand ambassador programs to enhance product visibility and sales.
• Retail Audit & Data Collection Services: This involves collecting and analyzing critical data on product availability, pricing, promotions, and competitive activities within retail environments for actionable insights.
• Assembly & Installation Services: This provides skilled personnel for in-store or in-home assembly and installation of various products for retailers, manufacturers, and consumers.

SPAR Group, Inc. (SGRP) primarily sells its services to other companies (B2B) rather than directly to individuals.

The company provides merchandising, marketing, and in-store assembly services to a diverse client base. Its major customers fall into the following categories:

• Consumer Product Companies (Manufacturers): These are companies that produce goods (e.g., food, beverages, electronics, health & beauty products) and utilize SPAR Group's services to ensure their products are effectively displayed, stocked, and promoted in retail environments.
• Retailers: These include various types of stores (e.g., grocery stores, big-box retailers, department stores) that employ SPAR Group for services like merchandising, resets, store audits, and assembly of products directly within their stores.
• Wholesalers: Companies involved in the distribution of goods often leverage SPAR Group's services to manage their product flow and presentation before products reach the final retail shelves.

SPAR Group, Inc. does not publicly disclose the names of specific major customer companies, nor does it typically report that any single customer accounts for a significant enough portion of its revenue (e.g., 10% or more) to warrant individual disclosure in its financial filings. Therefore, specific customer company names and their public symbols cannot be provided.

William Linnane, President and interim Chief Executive Officer

William Linnane was appointed President and interim Chief Executive Officer of SPAR Group in October 2025. He joined SPAR in 2021 as a member of the Executive Leadership Team, serving as Global Chief Strategy and Growth Officer since October 2022. Prior to joining SPAR, Mr. Linnane held senior executive roles at Sears, Eason Retail, and Tesco. He has been recognized for his role in strengthening SPAR Group's market position, including exiting international joint ventures, expanding U.S. and Canadian businesses, increasing profitability, and accelerating digital innovation.

Antonio Calisto Pato, Chief Financial Officer, Treasurer & Secretary

Antonio Calisto Pato was appointed Chief Financial Officer of SPAR Group, Inc. effective February 27, 2023. He brings extensive business, finance, and international leadership expertise to the role. Most recently, Mr. Calisto Pato held CFO roles at Earth Shoes and served as interim CFO for StreetTrend. Earlier in his career, he held increasing leadership positions at Chiquita Brands International from 2011 to 2021, and financial and business leadership roles at Cemex in Switzerland and PWC in Luxembourg.

James Gillis, Executive Chairman

James Gillis serves as the Executive Chairman of the SPAR Group Board of Directors.

Josh Jewett, Chief Technology Officer

Josh Jewett was named SPAR's Chief Technology Officer in October 2025. He is responsible for leading the company's vision for digital transformation and innovation. Mr. Jewett previously served as a Fortune 500 CIO and has spent five years working with innovative, early-stage software companies.

Lisa Cona, Senior Vice President of People & Talent

Lisa Cona serves as the Senior Vice President of People & Talent at SPAR Group.

The key risks to SPAR Group's (SGRP) business are primarily centered around its precarious financial health, significant operational dependencies, and ongoing governance and financial reporting challenges.

1. Financial Health and Profitability: SPAR Group is facing substantial financial difficulties, characterized by persistent revenue declines and alarmingly low or negative profit margins. The company experienced a GAAP Net Loss of ($8.3) million on net revenues of $114.1 million for the first nine months of 2025, resulting in a negative margin of -7.27%. This follows a consistent decline in revenue over the past five years, with a reported total revenue growth rate of -32.3% over this period. The operating margin has also been declining, indicating inefficiencies in cost management. Furthermore, SPAR Group's Altman Z-Score of -0.05 places it in a "distress zone," suggesting a potential risk of bankruptcy within two years. This is compounded by a high debt-to-equity ratio of 1.1, indicating a significant reliance on debt financing. Persistent wage inflation is also squeezing already thin gross margins in its low-margin, people-centric business.
2. Operational Dependence and Client Concentration: The company's core service model relies heavily on a large, low-wage, and high-turnover field workforce, which can lead to lower consistency and training depth. The cost of revenues, including in-store labor, field management wages, and travel, represents the largest expense line, making the business highly vulnerable to labor cost fluctuations. Additionally, the ongoing consolidation among major retail clients poses a significant threat, as the loss of a single contract could have catastrophic financial implications for the company.
3. Governance and Financial Reporting Challenges: SPAR Group has faced issues with timely financial reporting, including delays in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. These delays were attributed to the finalization of consolidated financial statements, an ongoing merger, and a transition to a new Enterprise Resource Planning (ERP) system, raising concerns about the company's financial management and compliance with SEC regulations. While the company eventually filed its 2024 10-K, it subsequently received a Nasdaq deficiency notice for failing to timely file its Quarterly Report on Form 10-Q for the first quarter of 2025. The company has also experienced internal disruptions, including a former board member making false claims and past resignations of independent directors due to concerns over board independence and interference with operations. These issues contribute to uncertainty and can impact investor confidence.

The increasing adoption of robotics and artificial intelligence (AI) powered computer vision systems by retailers for in-store operations. These technologies, such as autonomous shelf-scanning robots and AI camera systems, are being developed and deployed to automate tasks like inventory monitoring, out-of-stock detection, planogram compliance checks, and pricing audits. This directly threatens SPAR's core services, which rely on human merchandisers and auditors to perform these very functions within physical retail environments, potentially leading to a significant reduction in demand for manual in-store service providers.

The addressable markets for SPAR Group (SGRP)'s main products and services, primarily merchandising and marketing services, are substantial across various regions.

Global Market Sizes:

• Merchandising Market: The global merchandising market was valued at approximately USD 99.4 billion in 2024 and is projected to grow to USD 193.2 billion by 2035, exhibiting a Compound Annual Growth Rate (CAGR) of 6.23% from 2025 to 2035.
• Retail Merchandising Market: This global market is estimated at USD 27.3 billion in 2024 and is expected to reach USD 54.7 billion by 2033, with a CAGR of 9.30% between 2024 and 2033.
• Retail Visual Merchandising Service Market: Globally, this market was estimated to be worth US$ 847 million in 2024 and is forecast to reach US$ 1087 million by 2031, growing at a CAGR of 4.1% during the forecast period of 2025-2031.
• Marketing Agencies Market: The global marketing agencies market is estimated at USD 452.96 billion in 2025 and is expected to reach USD 571.53 billion by 2030, with a CAGR of 4.76%. Another estimate places the global marketing agencies market at USD 284.4 billion in 2024, with projections suggesting a rise to USD 500 billion by 2035, at a CAGR of 5.26% from 2025 to 2035.
• Digital Marketing Market: The global digital marketing market size was valued at USD 410.7 billion in 2024 and is expected to reach USD 1,189.5 billion by 2033, demonstrating a CAGR of 11.22% from 2025 to 2033.
• Direct Marketing Market: This global market was valued at USD 212.94 billion in 2024 and is expected to reach USD 349.79 billion by 2032, growing at a CAGR of 6.4% during the forecast period.

Regional Market Sizes:

• North America Marketing Agencies Market: North America holds a significant share, accounting for over 40% of the global marketing strategy agency services market. The marketing agencies market in North America was valued at USD 100.0 billion in 2024 and is expected to double by 2035. Additionally, North America dominated the direct marketing market with a revenue share of 23.8% in 2024.
• Europe Marketing Agencies Market: The marketing agencies market in Europe was valued at USD 75.0 billion in 2024 and is projected to reach USD 150.0 billion by 2035.
• Asia-Pacific Merchandising Units Market: This region dominated the global Merchandise Unit market in 2023 with a market share of 41.3%.
• Asia-Pacific Marketing Agencies Market: The marketing agencies market in Asia-Pacific is projected to accelerate at a 14.87% CAGR during 2025-2030.

Here are 3-5 expected drivers of future revenue growth for SPAR Group, Inc. (SGRP) over the next 2-3 years:

1. Concentrated Growth in North American Operations (U.S. & Canada): SPAR Group has strategically focused its efforts on its core markets in the United States and Canada, which are identified as having significant growth potential. The company has reported strong revenue performance in these regions, with U.S. revenues increasing by 37% and Canadian business seeing a 14% increase in Q2 2024. Furthermore, SPAR Group has highlighted a substantial opportunity pipeline in the U.S. and Canada markets, with over $200 million in potential new business. This geographic concentration and focus on established, high-potential markets are expected to drive future revenue.
2. Expansion and Recovery of Remodel and Transformation Services: The company's remodel and transformation services have shown a significant recovery and strong growth. In Q2 2024, the remodel business grew by 88% over the prior year, recovering faster than anticipated. This segment is expected to continue contributing to revenue growth as clients invest in store upgrades and changes.
3. Broadened Merchandising and Distribution Service Offerings: SPAR Group continues to expand its merchandising and distribution services. The company has re-signed a $5 million annual agreement with a long-tenured client and expanded its work with another small box discount retailer that has over 10,000 stores. Additionally, a new four-year, $25 million-plus agreement was negotiated with a leading brand, expanding business in both the United States and Canada. Growth in assembly and distribution services, including new work in bike assembly for a large retailer, also contributed to a 17.5% increase in this business in Q2 2024.
4. Strategic Business Simplification and Focus: SPAR Group has been actively simplifying its business by exiting less profitable international joint ventures in regions such as South Africa, China, Australia, Brazil, and Japan. This strategic streamlining allows the company to concentrate resources and management attention on its core, higher-growth operations in the U.S., Canada, Mexico, and India, which is anticipated to enhance overall profitability and growth in the remaining segments.
5. Leveraging Technology for Retail Innovation: The appointment of a Chief Technology Officer (CTO) in October 2025 signifies SPAR Group's intent to drive retail innovation. This focus on technology is expected to lead to the development of new services or the enhancement of existing offerings, improving efficiency and value for clients, and thereby contributing to future revenue growth.

Share Repurchases

• On March 28, 2024, SPAR Group's Board of Directors authorized a stock repurchase program allowing for the buyback of up to 2,500,000 shares of common stock over a one-year period.
• These repurchases can occur in the open market or through privately-negotiated transactions.
• The company intends to use the repurchased shares for stock-based benefits, acquisitions, and other corporate purposes.

Share Issuance

• On August 26, 2025, an investor group acquired 220,000 shares of SPAR Group's common stock from treasury in a private transaction, for a total of $440,000 (at $2.00 per share).
• On October 3, 2025, William Linnane, President of SPAR Group, acquired 173,000 shares of the company's common stock for $176,460 (at $1.02 per share) as part of an employment agreement, utilizing after-tax proceeds from a cash award to purchase shares from treasury.

Inbound Investments

• An investor group invested $440,000 in cash to acquire 220,000 shares of SPAR Group common stock on August 26, 2025. This private transaction was conducted at a 76% premium to the closing price on August 25, 2025.

Outbound Investments

• SPAR Group divested its stake in its Australian joint venture, effective December 31, 2023.

Capital Expenditures

• The NM Credit Facility, which SPAR Group is subject to, contains covenants that limit certain capital expenditures made by the NM Loan Parties, including SPAR Group.