Steve Coleby's questions to BGSF Inc (BGSF) leadership • Q2 2025
Question
Steve Coleby from Mangrove inquired about the proportion of business from exclusive versus non-exclusive agreements and its competitive advantage. He also asked about the incremental margin profile of the business above breakeven and sought to understand the composition of G&A costs, specifically regarding office lease expenses.
Answer
Interim Co-CEO Kelly Brown stated that the strategic portfolio, which includes exclusive and semi-exclusive agreements, comprises roughly 11-15% of total revenue and that BGSF's national footprint is a key competitive advantage. Interim Co-CEO & CFO Keith Schroeder explained that there is significant operating leverage, with about 35% of incremental revenue dollars expected to fall to the bottom line. He also clarified that property management office costs are included in 'selling costs,' not the corporate G&A line item.