SGRPHIGH SIGNALFINANCIAL10-K

SGRP experienced massive operational deterioration with operating income swinging from $924K profit to -$16.9M loss despite 35% revenue growth, accompanied by severe cash drain and balance sheet weakening.

The company's fundamental business model appears broken, generating substantial losses even as revenues increased significantly, suggesting major cost structure or operational execution problems. The dramatic cash burn of -$18.4M from operations combined with an 82% decline in cash reserves creates immediate liquidity concerns that could threaten business continuity.

Comparing 2026-03-31 vs 2025-05-16View on EDGAR →
FINANCIAL ANALYSIS

While SGRP achieved strong 35% revenue growth to $181.4M, the company suffered catastrophic profitability collapse with operating income plunging from $924K profit to -$16.9M loss and net losses expanding to -$24.6M. The balance sheet deteriorated significantly with cash reserves falling 82% to just $3.3M while debt increased 49% and total liabilities grew 35%, creating a concerning liquidity profile. The massive -$18.4M operating cash outflow signals fundamental operational problems that revenue growth alone cannot overcome, raising serious questions about the sustainability of current operations.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-2673.4%
-$665K→-$18.4M

Operating cash flow fell 2673.4% — earnings quality concerns; investigate working capital changes and non-cash items.

Operating Income
P&L
-1929.3%
$924K→-$16.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Income
P&L
-681.8%
-$3.1M→-$24.6M

Net income declined 681.8% — review whether driven by operations, interest costs, or non-recurring items.

Interest Expense
P&L
+153.4%
$133K→$337K

Interest expense surged 153.4% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
-82.1%
$18.2M→$3.3M

Cash declined 82.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Debt
Balance Sheet
+49.3%
$4.3M→$6.4M

Debt increased 49.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Gross Profit
P&L
-43.6%
$38.5M→$21.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Total Liabilities
Balance Sheet
+35.2%
$32.1M→$43.4M

Liabilities grew 35.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Revenue
P&L
+35%
$134.3M→$181.4M

Strong top-line growth of 35% — accelerating demand or successful expansion into new markets.

Current Assets
Balance Sheet
-31.7%
$46.0M→$31.4M

Current assets declined 31.7% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-05-16
ADDED
false --12-31 FY 2025 true true true false Cybersecurity holds a significant role within our risk management procedures and remains a focal point for our Board and management.
true true false false false false true false 0.01 0.01 2,000,000 2,000,000 0 0 0 0 0.01 0.01 47,000,000 47,000,000 24,129,991 24,129,991 23,449,701 23,449,701 632,485 1,205,485 2 1 3 0 2 1 0 0 3 7 3 7 3 5 5 25 1.5 2.0 800,000 3 0 1 4 0 0 no 0 0 no 0 0 0 0 0 117,500 3 0 2 0 1.04 0.13 1.04 0.13 827 545 851 915 State taxes in Georgia, Mississippi, Michigan, and California for 2025 made up the majority (greater then 50 percent) of the tax effect in this category.
These expenses are reflected in "Selling, general, and administrative expense" in the consolidated statements of operations and comprehensive loss.
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.
and Canada, we successfully execute programs through our robust logistics, reporting and communication technology, which provides clients value through real-time insight on store / product conditions.
+7 more — sign up free →
REMOVED
false --12-31 FY 2024 true true true true true false false false false false 0.01 0.01 2,000,000 2,000,000 0 0 650,000 650,000 0.01 0.01 47,000,000 47,000,000 23,449,701 23,449,701 23,240,959 23,240,959 1,205,485 205,485 3 0 0 3 7 3 7 3 5 944 - 438 1,382 856 - - 856 5 25 1.5 2.0 http://fasb.org/us-gaap/2025#PrimeRateMember 0.3 0 - 5,173 1 4 0 0 0 0 0 0 0 0 0 3 0 0 545 875 915 1,253 Represent loans due from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans).
The loans have no payment terms, are due on demand, and are classified as current liabilities in the unaudited condensed consolidated balance sheets.
Represent loans from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans).
EXPLANATORY NOTE In connection with our year-end financial statement close and preparation of this Annual Report on Form 10-K for the year ended December 31, 2024, misstatements were identified in certain of our previous interim financial statements.
The determination to restate was made upon the recommendation of the audit committee (the Audit Committee ) of our Board of Directors after consultation with our independent auditors and management team.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →