Steve Cole's questions to BGSF (BGSF) leadership • Q2 2025
Question
Inquired about the status and revenue contribution of exclusive client agreements, the competitive advantage of these agreements, the incremental margin on revenue above breakeven, and the breakdown of G&A costs related to office leases.
Answer
The strategic portfolio, including exclusive agreements, comprises roughly 11-15% of total revenue. The company's national footprint is a significant competitive advantage in securing these deals. They stated that about 35% of new revenue dollars should fall straight through to the bottom line due to operating leverage. They also clarified that office costs for the property management group are categorized under "selling costs," not corporate G&A.