Second-quarter revenue fell 15.7% year over year at BGSF (NYSE: BGSF) to $68.1 million and gross margin narrowed. The Plano, Texas-based staffing provider said it cut headcount and lowered fixed costs during the quarter, but President and CEO Beth Garvey said in a press release that she is cautiously optimistic about the second half of the year.

Revenue fell 17.2% in BGSF’s property management business; however, Garvey said the segment is showing early positive results and the company is moving into additional markets. In the BGSF’s other segment, the  professional segment, revenue fell 14.7% year over year.

“Although the professional segment has experienced a slowdown in customer spending due to macroeconomic headwinds and sustained higher interest rates, we are seeing significant growth in our managed services and consulting engagements,” Garvey said.

New contract wins in professional also outpaced contract ends by approximately 25%, and Garvey said the company won one of its most significant singe projects in its history — a major IT transformation project for a large international client.

“While our first-half results do not fully capture the momentum from these recent business wins, we anticipate a strong revenue ramp-up in the professional division starting in the third quarter and continuing into the fourth,” Garvey said. “Additionally, we are seeing an increase in our permanent placement activity in our finance & accounting services, with recent double-digit growth, which we believe is a positive sign for the future.”

The company is continuing to evaluate options in its strategic review.

BGSF - Q2 2024

Revenue by Segment

Share Price

Shares in BGSF were down 3.22% to $8.46 as of 10:57 a.m. Eastern time today. They were 32.25% above their 52-week low.