SPAR Group, Inc. Segments Disclosure
12. Segment Information
The Company has 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. | ||||||||||||
| 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 Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | May 16, 2025 | |
| 2023 | Apr 1, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Apr 15, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Apr 14, 2020 | |
| 2018 | Apr 15, 2019 | |
| 2017 | Apr 2, 2018 | |
| 2016 | Apr 17, 2017 | |
| 2015 | Mar 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.