Third-quarter revenue fell 14.7% year over year at BGSF (NYSE: BGSF) to $71.2 million, and gross margin narrowed. Revenue fell 17.1% in BGSF’s property management business, while its professional segment fell 12.9% year over year.

“Although economic uncertainties persist and the demand environment remains choppy for the entire IT consulting and workforce industry, we are pleased to report that our third quarter total revenues improved sequentially by 4.5%,” Beth Garvey, chair, president and CEO of the Plano, Texas-based staffing provider, said in a press release.

Sequentially, property management segment revenues increased 15.9% from the second quarter, driven by seasonal demand. Professional segment revenues stabilized late in the quarter but still declined 2.5% from the prior quarter due to a decline in billed hours in the finance and accounting division.

Permanent placements stabilized with flat revenues between second and third quarters.

“Conversely, managed solutions continued to grow sequentially, which aligns with our strategic goals of expanding our consulting efforts,” Garvey said. “We remain cautiously optimistic at the pockets of revenue categories that stabilized this quarter but continue to tightly manage costs and expenses.”

As part of ongoing technology enhancements, BGSF launched an advanced lead generation engine in the third quarter.

“We have other tech enhancements launching in the fourth quarter to drive better efficiencies and believe these initiatives demonstrate our commitment to BGSF’s digital transformation to improve client engagement and deliver cutting-edge workforce solutions,” Garvey said.

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

BGSF – Q3 2024

Revenue by Segment

Share Price

Shares in BGSF were down 5.19% to $7.30 as of 10:15 a.m. Eastern time on Nov. 7. They were 14.06% above their 52-week low.