SPAR Group founder urges board to implement shareholder value plan

Robert G. Brown, founder and significant shareholder of SPAR Group Inc. (NASDAQ: SGRP), issued recommendations for the company's board to increase shareholder value, according to a statement released Monday.

Brown, who previously served as chairman and chief executive officer, proposed eight specific actions including authorizing a 6 million share repurchase program over three years and directing Lincoln International to solicit bids for the company's U.S. and Canadian merchandising business.

The recommendations include establishing a quarterly dividend of $0.01 per share once projected free cash flow reaches $500,000 per quarter and prohibiting common stock issuance below $1.00 per share. Brown also suggested focusing on artificial intelligence-driven retail software as a strategic direction.

SPAR Group reported $136.1 million in revenue for 2025, with a net loss attributable to the company of $24.6 million and net cash used in operating activities of approximately $18.4 million. As of March 31, 2026, the company reported cash and cash equivalents of approximately $4.31 million.

The company maintains a secured revolving credit facility with a $36.0 million total facility for the U.S. and Canada, with approximately $22.9 million outstanding and $11.4 million of unused availability.

Brown's proposals also include pursuing a spin-off and merger plan for the merchandising business with companies in related fields and implementing short-term free cash flow improvement targets. He stated the plan would address Nasdaq deficiency notices facing the company.

At current trading levels below $1.50 per share, Brown characterized share repurchases as demonstrating confidence in the company. He emphasized that issuing stock below $1.00 per share would damage shareholder value through dilution.

The recommendations aim to move the company toward higher-margin technology opportunities and away from low-gross-margin business lines, according to Brown's statement.

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