Star Equity Holdings Reports 2025 Third Quarter Results

Star Equity Holdings, Inc., a diversified holding company, has released its financial results for the third quarter of 2025. The company, which recently completed a merger with Star Operating Companies, Inc., reported significant growth in revenue and gross profit, despite a net loss for the period.

Financial Highlights

For the third quarter ended September 30, 2025, Star Equity Holdings reported:

• Revenue of $48.0 million, a 30.1% increase from the third quarter of 2024.
• Gross profit of $20.6 million, up 10.9% from the same period last year.
• Net loss of $1.8 million, or $0.54 per diluted share, compared to a net loss of $0.8 million, or $0.28 per diluted share, in the third quarter of 2024.
• Adjusted net income per diluted share (non-GAAP) of $0.02, compared to an adjusted net loss per diluted share of $0.13 in the third quarter of 2024.
• Adjusted EBITDA (non-GAAP) increased to $1.3 million from $0.8 million in the third quarter of 2024.
• Total cash, including restricted cash, was $18.5 million as of September 30, 2025.

Business and Operational Highlights

The company's performance across its segments was as follows:

• Building Solutions: Revenue of $9.6 million and gross profit of $1.7 million. Pro forma revenue was $21.4 million, up from $13.7 million in the third quarter of 2024.
• Business Services: Revenue of $37.0 million, with gross profit remaining flat at $18.6 million compared to the prior year.
• Energy Services: Revenue of $1.3 million and gross profit of $0.3 million. Pro forma revenue was $3.7 million.

Strategic Initiatives and Corporate Developments

Key corporate developments include:

• Completion of a $5 million common stock share repurchase program and authorization of a new $3 million repurchase program.
• Repurchase of approximately 8% of outstanding shares in the third quarter.
• As of December 31, 2024, the company had $240 million of usable net operating losses (NOL) in the U.S.

Management's Perspective

Jeff Eberwein, CEO of Star Equity Holdings, highlighted the positive impact of the recent merger on the company's financial performance. He noted the increase in revenue, gross profit, and adjusted EBITDA as early indicators of the combined company's earnings potential. Jake Zabkowicz, Global CEO of Hudson Talent Solutions, emphasized the resilience of the Business Services segment despite a challenging macroeconomic environment. Rick Coleman, COO, pointed out the strong performance of the Building Solutions and Energy Services segments.

Future Outlook

Looking ahead, the company is focused on driving long-term shareholder value through organic growth, disciplined capital allocation, and accretive acquisitions. The integration of the recent merger is progressing well, and the company is already realizing efficiencies across shared services.

Original SEC Filing: Star Equity Holdings, Inc. [ STRR ] - 8-K - Nov. 13, 2025