12. Segment Information

 

The Company has two reportable segments: (i) U.S. and (ii) Canada. These operating segments, which also form the Company's reportable segments, are identified in accordance with the changes in the CODM internal review of financial results and the CODM uses this information to evaluate the Company's performance and allocate resources.

 

The CODM assesses performance of the segments based on gross margin. The CODM uses gross margin to develop the annual operating plan and regular forecasting process. Additionally, the CODM considers budget-to-actual variances for this measure on a quarterly basis as well as segment-specific forecasting when making decisions about the allocation of operating and capital resources to each segment.

             
  

Year Ended December 31, 2025

 

(in thousands)

 

U.S.

  

Canada

  

Total

 
             

Net revenues

 $122,053  $14,051  $136,104 

Cost of revenue

  104,482   9,929   114,411 

Segment gross profit

  17,571   4,122   21,693 
             

Reconciling items (income) expense:

            

Selling, general, and administrative expense

         $32,197 

Restructuring costs and severance

          4,765 

Depreciation and amortization

          1,634 

Interest expense

          2,415 

Other expenses, net

          1,235 

Loss before income tax expense

         $(20,553)
             

 

  

Year Ended December 31, 2024

 

(in thousands)

 

US

  

Canada

  

Total

 
             

Net revenues

 $117,507  $14,305  $131,812 

Other net revenues (a)

          31,817 

Consolidated net revenues

          163,629 

Cost of revenue

  93,397   9,848     

Segment gross profit

  24,109   4,457   60,384 
             

Reconciling items (income) expense:

            

Other cost of revenue (a)

         $26,787 

Selling, general, and administrative expense

          33,880 

Gain on sale of business

          (2,536)

Depreciation and amortization

          1,553 

Interest expense

          2,191 

Other expenses, net

          171 

Loss before income tax expense

         $(1,662)

(a) Other net revenues and other cost of revenue includes all international operations that were sold in 2024 that did not qualify for discontinued operation presentation.

 

 

 

There were no inter-segment sales for 2025 or 2024.

 

  

December 31,

 

(in thousands)

 2025  2024 

Assets:

        

United States

 $38,482  $53,767 

Canada

  5,577   2,664 

Total assets

 $44,059  $56,431 

 

Geographic Data 

  

Year Ended December 31,

 
  

2025

  

2024

 

(in thousands)

     

% of consolidated net revenue

      % of consolidated net revenue 

Net revenue:

                

United States

 $122,053   89.7% $117,507   71.8%

Canada

  14,051   10.3%  14,305   8.7%

South Africa

  -   -   8,277   5.1%

Mexico

  -   -   12,235   7.5%

China

  -   -   2,698   1.6%

Japan

  -   -   3,778   2.3%

India

  -   -   4,829   3.0%

Total net revenue

 $136,104   100.0% $163,629   100.0%

 

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Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024May 16, 2025
2023Apr 1, 2024
2022Apr 17, 2023
2021Apr 15, 2022
2020Mar 31, 2021
2019Apr 14, 2020
2018Apr 15, 2019
2017Apr 2, 2018
2016Apr 17, 2017
2015Mar 30, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.