BGSF BGSF, Inc.
$5.66
BGSF, Inc. Q2 F2026 Earnings Call Transcript
Thursday, August 6, 2026
AI Conference Call Analysis
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Investor/Analyst
That is really helpful. And actually, I do have one additional question circling back to the staffing side. Have you seen signs with rents improving and fewer incentives for move-ins, essentially a healthier industry, that your candidate, not your candidate list, but your prospective customer list is growing and that there are More firms that maybe aren't quite ready to engage in hiring, but that are interested in conversations. Essentially, your prospect pipeline growing is really the short way to ask that.
Kelly Brown
Chief Executive Officer
Sure. The great thing is, Bill, certainly the usage of staffing is still there. Our communities out there still need people. What we're really working with our customer partners on is, is, hey, you know, let's figure out how we can best have those needs fit into the limited budget that you have. So year over year, we're seeing the sheer volume of requests actually up whenever you compare year over year. However, you know, how many hours of work that translates to is what we're really having to work very carefully on with our customers because of that limited budget piece that we mentioned, you know, earlier in the call. So, you know, short answer to your question, We've already seen just the sheer volume of requests improving year over year. However, where we're having to really work is, okay, how many hours of work can that translate to? And that might be something that we need to see improve as we continue on in the industry, seeing those glimpses of optimism with the rent improvement and with pockets where we're seeing concessions go down, et cetera, et cetera. And that will loosen up some of those operating dollars that the communities can put towards services such as ours.
Bill
Investor/Analyst
Kelly, does that imply that there is a backlog of work that is building up? And maybe this is my ignorance, not understanding the business well, but if there's an air conditioner that's out, that needs to be replaced right now if it's summer. We understand that. But are there other activities that your candidates work on that can be deferred? and therefore this idea that the volume of requests is up indicates that there is a backlog of deferred work?
Kelly Brown
Chief Executive Officer
You know, I'm hesitant to believe that there is a large backlog of work, Bill, because feedback from customers also indicate that, hey, you know, let's be very careful in how we can leverage The team members that we have, if they can maybe take a team member that would have typically worked at one community and have them work at maybe two or three others that are within a reasonable proximity. As they float that staff around their portfolio, that's a strategy that's been used to try to, again, be mindful of the dollars that are going out for every help that we may fill in with. I think, frankly, you know, our operators are making it work. They're making it happen, you know, maybe with more limited resources. So could there be maybe a small backlog of work out there? Possibly, but I don't want to necessarily assume that because I really think our operators are just doing what they can to, with the resources they have, keep up as much as possible.
Bill
Investor/Analyst
Great. Thank you for the time, Kelly.
Kelly Brown
Chief Executive Officer
Of course. Good to hear from you, Bill.
Conference Operator
And the next question today will come from Michael Taglik of Aegis Capital. Please go ahead.
Michael Taglik
Analyst at Aegis Capital
Good morning, everyone. Quick question. You broke out a strategic alternatives review. Could you give me a little more detail on that spend?
Keith
Chief Financial Officer
Yeah, that was restructuring costs, Mike, because, you know, there's things like when we – When we finished the TSA in March, we had to sever people. And so those costs fell into Q2. There's some consulting type costs that were part of the studies that we had done early part of the year. There was a final bill came through there. So those were the types of costs that came through in the quarter.
Michael Taglik
Analyst at Aegis Capital
Okay. And from a... From a go-forward standpoint, do you have any thoughts about how that spend's going to work? So that's all restructuring costs, basically?
Keith
Chief Financial Officer
Yes. Yes, it is. So going forward, that cost would be very small. Okay.
Michael Taglik
Analyst at Aegis Capital
All right. And does MatchBond discuss at all any additional opportunities to – bring more of the gross margin down to the bottom line from a cost reduction standpoint?
Keith
Chief Financial Officer
Well, yeah, that is something I think I mentioned in my remarks. We are always looking at ways to bring down costs, whether it be people-wise, whether it be software-wise, both in G&A and in selling. So, yeah, while we've made a lot of steps, you know, so far the last, call it six to nine months, we are constantly looking at ways to bring those costs down and We ask them all the time.
Michael Taglik
Analyst at Aegis Capital
Okay.
Keith
Chief Financial Officer
Thanks. Thank you, Michael.
Michael Taglik
Analyst at Aegis Capital
Take care, Keith.
Conference Operator
At this time, we will conclude our question and answer session. I'd like to turn the conference back over to Kelly Brown for closing remarks.
Kelly Brown
Chief Executive Officer
Thank you for your time today. We appreciate your interest in BGSF and look forward to providing an update on our third quarter in a few months. Have a great day.
Keith
Chief Financial Officer
Thank you all.