SRCOOTCServices-Business Services, NECUS GAAP · USD

Sparta Commercial Services, Inc.

Sparta Commercial Services, Inc. is a U.S.-based holding company headquartered in New York that operates through subsidiaries and joint ventures across financial technology, financial services, e-commerce/mobile technology, and health and wellness. Its businesses include custom software and messaging solutions for merchants, financing-related services, and consumer wellness products sold through online channels.

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Revenue0.3m USD
+46.6 %y/y
Operating profit (EBIT)-2.1m USD
−72.4 %y/y
EBIT margin-611.8%
−91.7 ppy/y
Net income-2.9m USD
−34.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-2.5-2.0-1.5-1.0-0.50.00.5m USD2021: 0.26 m USD2021: EBIT -1.2 m USD20212022: 0.25 m USD2022: EBIT -1.7 m USD20222023: 0.26 m USD2023: EBIT -1.4 m USD20232024: 0.19 m USD2024: EBIT -0.86 m USD20242025: 0.24 m USD2025: EBIT -1.2 m USD20252026: 0.35 m USD2026: EBIT -2.1 m USD20260.35-2.1
RevenueOperating profit (EBIT)
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Business

Share of revenue
FinTech Services25 %

Technology-enabled financial products and related services offered through subsidiaries and joint ventures.

Financial Services20 %

Specialized financing and related financial solutions for business and consumer use cases.

E-Commerce & Mobile Technology30 %

Custom software, mobile apps, CRM, and ordering systems built for merchant clients.

Health and Wellness25 %

Online consumer products including nutritional supplements and related wellness offerings.

Products

Reported · share of revenue
50.2%40.9%9.0%FY2026100 %
  • Merchant Financing50.2 %
  • Information Technology40.9 %
  • Wellness Products9.0 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells to businesses that need custom digital tools, including e-commerce, CRM, and ordering systems, as well as text messaging services for marketing and customer engagement. It also serves merchants and food service operators that use kitchen ordering software, and consumers who buy health and wellness products online. In its financial services activities, the customer base includes businesses and other counterparties seeking specialized financing or related financial solutions.

Business software clients

Buy custom eCommerce, CRM, and mobile integration tools to improve customer communication and internal workflows.

Food service and grocery operators

Purchase kitchen ordering software with payment, printing, and messaging features to streamline orders.

Consumer wellness buyers

Purchase vitamins, minerals, and other supplements through the company's online health brand.

Financial services customers

Use specialized financing and related services offered through the company's financial businesses.

Strategy

The company’s strategy is built around combining software, messaging, financial services, and consumer products under one corporate structure. Its reported priorities include tailoring software to client needs, supporting customer retention through communication tools, and building brand trust for its wellness products. The mix of B2B technology and consumer-facing offerings gives it multiple paths to revenue, but also requires execution across different markets and operating models.

Grow client-specific software solutionsMedium term

Custom eCommerce and CRM tools can deepen customer relationships and create recurring implementation work.

Strengthen customer engagement toolsShort term

Text messaging services and platform features help clients market to and retain their own customers.

Build consumer wellness brand recognitionMedium term

The online supplement business depends on trust, product quality, and repeat purchases.

Geography

Sparta is headquartered in New York, with subsidiary addresses in Stamford, Connecticut, and its reported operations are centered in the United States. The company’s health and wellness products are sourced and manufactured in the U.S., which ties product quality and supply chain control to domestic operations. Its software and financial services businesses are also U.S.-based, so the company’s exposure is primarily to U.S. customers, regulation, and consumer demand.

Risks

Sparta faces execution risk across several unrelated businesses, including software development, financial services, and consumer wellness products. Its filings also highlight dependence on third-party payment processors, internet infrastructure, customer retention, regulatory changes, and access to capital, all of which can affect operations and growth. Because the company operates in competitive and fragmented markets, product relevance, pricing, and brand trust are important drivers of business performance.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →History of operating losses1Dependence on third-party merchant credit card processors2Customer retention and engagement risk3Regulatory and legislative risk4Competitive pressure in fragmented markets5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. History of operating lossesImpact: HighLikelihood: High

    Losses can limit internal funding and increase reliance on external capital.

    Exposure: Corporate-wide

  2. Dependence on third-party merchant credit card processorsImpact: HighLikelihood: Medium

    Payment processing is necessary for online and merchant transactions.

    Exposure: E-commerce and merchant services

  3. Customer retention and engagement riskImpact: MediumLikelihood: High

    Software and platform businesses depend on keeping clients active and satisfied.

    Exposure: FinTech and e-commerce software

  4. Regulatory and legislative riskImpact: MediumLikelihood: High

    Financial services, messaging, and consumer products are all subject to changing rules.

    Exposure: U.S. operations

  5. Competitive pressure in fragmented marketsImpact: MediumLikelihood: High

    Many larger and better-capitalized competitors can outspend the company on marketing and product development.

    Exposure: Health and wellness; digital commerce

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Accounting

Judgemental items
ASC 606 revenue recognition

Software, messaging, and product sales may be recognized at different points in time.

Impact: Affects reported revenue timing and deferred revenue balances

Deferred revenue

Customer prepayments are recognized only when performance obligations are met.

Impact: Can shift revenue between periods

Principal versus agent assessment

The company states it acts as principal in revenue transactions, which affects gross revenue presentation.

Impact: Impacts reported top line and margins

Consolidation and noncontrolling interest

A majority-owned subsidiary is consolidated while third-party ownership is shown separately.

Impact: Affects net income attribution and equity presentation

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Last updated: 24/09/2026

Sparta Commercial Services, Inc. (OTC) – Services-Business Services, NEC | Financial Analysis – Clarifo