Sparta Commercial Services Narrows Net Loss 22% to $1.4M in Nine Months

Sparta Commercial Services, a Nevada-based commercial services company, posted a net loss of $1.40 million for the nine months ending January 31, 2026, down from a $1.79 million loss in the prior-year period. The improvement came despite a 22% increase in operating expenses to $1.03 million from $1.01 million. Read more earnings reports.

Revenue for the nine months climbed 71% to $288,157 from $168,357 a year earlier. The company reported gross profit of $265,398, up 80% from $147,672 in the same period last year. Cost of goods sold rose 10% to $22,759.

For the three months ending January 31, 2026, the company posted revenue of $92,162, up 17% from $78,998 in the prior-year quarter. The quarterly net loss held essentially flat at $405,288 versus $406,141 a year earlier.

Operating loss for the nine-month period narrowed to $761,725 from $858,410 in the prior year, an 11% improvement. The company reported an operating loss of $208,217 for the most recent quarter compared to $185,720 a year ago.

Balance Sheet Deteriorates

Total assets increased to $932,602 as of January 31, 2026, from $756,579 at fiscal year-end April 30, 2025. Cash and cash equivalents fell 46% to $70,116 from $131,003. Accounts receivable rose to $8,032 from $5,167.

Total liabilities climbed to $12.14 million from $11.35 million over the same period. Current liabilities swelled to $11.39 million from $10.32 million. Stockholders' deficit deepened to negative $12.25 million from negative $11.61 million.

The company's retained earnings deficit widened to negative $70.34 million from negative $68.92 million. Common shares outstanding increased to 45.67 million from 40.13 million.

Cash Flow Trends

Cash used in operations for the nine months totaled $725,087, an improvement from $1.18 million burned in the prior-year period. Cash from financing activities provided $664,200 compared to $1.13 million a year earlier.

The company reported a loss per share of $0.03 for the nine-month period on 42.88 million weighted average shares outstanding, compared to a loss of $0.05 per share on 33.95 million shares in the prior year.