SGRP posts $24.6M loss as margin compresses 610bp; remediated material weaknesses

Filed March 31, 2026 · Period ending December 31, 2025 · Compared to 10-K May 16, 2025 · ~2 min read

Key Changes

• high

  Two clients now represent 27.6% of revenue ($37.5M combined), up from zero clients above 10% in prior disclosure. Top client alone accounts for 16.8% ($22.8M).

  Business: Major client concentration verify on EDGAR →
• high

  U.S. cost of revenue jumped to 85.6% from 79.5% (610bp margin compression) as remodel business grew. Operating loss widened to $24.6M from $1.8M despite 3.9% U.S. revenue growth.

  MD&A: U.S. cost of revenue margin compression verify on EDGAR →
• high

  Operating cash flow deteriorated to $18.4M outflow from $0.7M, driven by lower operating income and unfavorable working capital timing. Cash balance fell $15.0M despite $4.5M in line-of-credit borrowings.

  MD&A: Operating cash flow verify on EDGAR →