OLD GREENWICH, Conn., March 17, 2026 (GLOBE NEWSWIRE) -- Star Equity Holdings, Inc. (Nasdaq: STRR and STRRP) ("Star" or the "Company"), a diversified holding company, announced today financial results for the fourth quarter and full year ended December 31, 2025.
2025 Fourth Quarter Summary
-- Revenue of $56.8 million increased 69% from the fourth quarter of 2024.
-- Gross profit of $24.2 million increased 38% from the fourth quarter of
2024.
-- Net loss attributable to common shareholders of $2.4 million, or $0.67
loss per diluted share, versus net loss attributable to common
shareholders of $0.6 million, or $0.20 loss per diluted share, in the
fourth quarter of 2024. Adjusted net loss attributable to common
shareholders per diluted share (Non-GAAP measure)* was $0.10 compared to
adjusted net income attributable to common shareholders per diluted share
of $0.04 in the fourth quarter of 2024.
-- Adjusted EBITDA (Non-GAAP measure)* increased to $2.2 million, versus
adjusted EBITDA of $0.9 million in the fourth quarter of 2024.
2025 Full-Year Summary
-- Revenue of $172.2 million increased 23% from 2024. Full year 2025 pro
forma ("PF")(1) revenue of $224.7 million increased 7% from 2024.
-- Gross profit of $79.9 million increased 14% from 2024. PF gross profit of
$95.0 million increased 6% from 2024
-- Net loss attributable to common shareholders of $6.7 million, or 2.08
loss per diluted share, compared to net loss of $4.8 million, or $1.59
loss per diluted share, in 2024. Adjusted net loss attributable to common
shareholders per diluted share (Non-GAAP measure)* of $0.20 increased
from adjusted net loss attributable to common shareholders per diluted
share of $0.49 in the prior year.
-- Adjusted EBITDA (Non-GAAP measure)* was $4.2 million, versus adjusted
EBITDA of $0.9 million in 2024. PF adjusted EBITDA of $12.6 million
increased from $4.4 million in 2024.
-- Total cash including restricted cash was $13.4 million at December 31,
2025.
Jeff Eberwein, Chief Executive Officer at Star, said, "Our fourth quarter and full-year financial results reflect positive momentum and improvement over the prior year quarter, largely attributable to the addition of the Building Solutions and Energy Services divisions which occurred with the merger that closed in August 2025."
Jake Zabkowicz, Global CEO of Hudson Talent Solutions ("HTS"), noted, "HTS delivered a 4.8% revenue increase in the fourth quarter Full-year revenues remained relatively flat compared to 2024 despite macroeconomic challenges and significant ongoing pressure in the talent market. In 2025, we expanded our service offering with the implementation of agentic AI, positioning us at the forefront of the talent industry's digital transformation."
Rick Coleman, COO of Star, added, "Residential and commercial building demand were relatively soft throughout the year, but our Building Solutions segment delivered strong results, including significantly higher sales and profitability. Energy Services division performance was also strong as ADT expanded market share across all core markets with particularly robust growth in mining and geothermal. These results highlight the team's ability to combine strong execution with innovation across a broad range of end markets and applications."
Mr. Eberwein concluded, "2025 was a transformational year for Star. The merger that closed in August strengthened our operating and financial position, accelerated our growth strategy, and reinforced our conviction that our stock remains undervalued. To that end, we repurchased more than $2.6 million of stock during 2025 and expect to continue utilizing buybacks to enhance shareholder value."
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.
Segment Highlights
Building Solutions
Fourth quarter 2025 Building Solutions revenue was $18.0 million and gross profit was $4.6 million. Fourth quarter Adjusted EBITDA was $1.9 million.
Full year 2025 Building Solutions revenue was $27.6 million and gross profit was $6.3 million. Full year 2025 Adjusted EBITDA was $2.5 million.
Full year 2025 PF Building Solutions revenue was $71.9 million, up from $60.1 million in 2024, and full year 2025 PF gross profit was $18.0 million versus $14.0 million in the prior year. Full year 2025. PF adjusted EBITDA was $7.2 million, up from adjusted EBITDA of $5.3 million a year ago.
Building Solutions backlog as of December 31, 2025 was $9.6 million, and the trailing 12-month book-to-bill ratio was 0.89.
Business Services
Fourth quarter 2025 Business Services revenue was $35.2 million, up from $33.6 million in the prior year quarter, while gross profit was $18.1 million, up from $17.6 million in the prior year quarter. Business Services adjusted EBITDA was $0.9 million, down from $1.5 million in the prior year quarter.
Full year 2025 Business Services revenue was $139.7 million, down from $140.1 million in the prior year, while gross profit was $71.8 million, up from $70.2 million in the prior year. Full year 2025 Business Services adjusted EBITDA was $5.0 million, up from $4.3 million in the prior year.
Regionally, APAC and Americas gross profit for full year 2025 grew 11.7% and 4.4%, respectively. This growth was offset by EMEA, where gross profit declined by (18.7)%.
Energy Services
Fourth quarter 2025 Energy Services revenue was $3.6 million. Fourth quarter 2025 gross profit was $1.6 million, and adjusted EBITDA was $0.9 million.
Full year 2025 Energy Services revenue was $4.9 million. Full year 2025 gross profit was $1.9 million and adjusted EBITDA was $1.0 million.
PF Energy Services revenue for full year 2025 was $13.2 million, up from $10.1 million in 2024, while PF gross profit was $5.5 million, down from $5.7 million in 2024. Full year 2025 PF adjusted EBITDA was $2.9 million, up from $2.1 million in 2024.
(1) PF Building Solutions, Energy Services, and Investments results from Star Operating Companies, Inc. for the full year of 2025 and 2024. PF Building Solutions reflects results from Timber Technologies for the full year in 2024. Timber Technologies was acquired by Star Operating Companies on May 17, 2024. PF Energy Services in 2025 and 2024 reflects Alliance Drilling Tools results, which was acquired by Star Operating Companies on March 3, 2025.
Corporate Costs
The Company's corporate costs of $1.9 million for the fourth quarter of 2025 excluded $0.3 million of non-recurring expenses. This compares to corporate costs of $0.6 million in the fourth quarter of 2024, which excluded $0.0 million of non-recurring expenses.
The Company's corporate costs of $4.9 million for full year 2025 excluded $2.5 million of non-recurring expenses. This compares to corporate costs of $3.4 million for full year 2024, which excluded $0.9 million of non-recurring expenses.
Liquidity and Capital Resources
The Company ended the fourth quarter of 2025 with $13.4 million in cash, including $3.1 million in restricted cash. The Company used $3.9 million in cash flow from operations in the fourth quarter of 2025 compared to $2.0 million generated in the fourth quarter of 2024. For full year 2025, the company used $7.3 million in cash flow from operations compared to $2.8 million in cash flow from operations in 2024. Year-end 2025 working capital excluding cash was $22.4 million, representing a temporary build-up that is expected to decline in the first quarter of 2026.
Share Repurchase Program
In the fourth quarter of 2025, the Company repurchased 5,964 shares for approximately $66,000. For the full year 2025, the Company repurchased 280,886 shares for approximately $2.6 million and has repurchased about $10 million of common stock since 2020. As of year-end 2025, the Company has $2.5 million remaining under its $3 million repurchase program authorized in September 2025 and continues to view share repurchases as an attractive use of capital.
NOL Carryforward
As of December 31, 2025, Star had $215 million of usable net operating losses ("NOL") in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a rights agreement and charter amendment in place that limit beneficial ownership of Star Equity common stock to 4.99%. Stockholders who wish to own more than 4.99% of Star Equity common stock, or who already own more than 4.99% of Star Equity common stock and wish to buy more, may only acquire additional shares with the Board's prior written approval.
Preferred Stock Dividends
In Q4 2025, the Company's board of directors (the "Board") declared a quarterly cash dividend to holders of the Company's 10% Series A Cumulative Perpetual Preferred Stock of $0.25 per share, paid on December 10, 2025 to the shareholders of record as of December 1, 2025.
In addition, on February 13, 2026, the Board declared a cash dividend to holders of the Company's 10% Series A Cumulative Perpetual Preferred Stock of $0.25 per share. The record date for this dividend was March 1, 2026, and the payment date was March 10, 2026.
Conference Call/Webcast
The Company will conduct a conference call tomorrow, March 18, 2026, at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at www.starequity.com.
If you wish to join the conference call, please use the dial-in information below:
-- Toll-Free Dial-In Number: 1 (833) 890-6161 -- International Dial-In Number: 1 (412) 504-9848
The archived call will be available on the investor information section of the Company's web site at www.starequity.com.
About Star Equity Holdings, Inc.
Star Equity Holdings, Inc. is a diversified holding company that seeks to build long-term shareholder value by acquiring, managing, and growing businesses with strong fundamentals and market opportunities. Its current structure comprises four segments: Building Solutions, Business Services, Energy Services, and Investments. For more information visit www.starequity.com.
On August 22, 2025, the Company completed its previously announced acquisition of Star Operating Companies, Inc. ("Star Operating", formerly known as Star Equity Holdings, Inc.), pursuant to the Agreement and Plan of Merger, dated as of May 21, 2025 (the "Merger Agreement"), by and among the Company, Star Operating and HSON Merger Sub, Inc., a wholly owned subsidiary of the Company ("Merger Sub"). Upon the terms and subject to the conditions of the Merger Agreement, on August 22, 2025, at the effective time of the merger pursuant to the Merger Agreement (the "Merger"), Merger Sub merged with and into Star Operating, with Star Operating continuing as the surviving corporation of the Merger as a wholly owned subsidiary of the Company. Effective September 5, 2025, the Company changed (i) its name to Star Equity Holdings, Inc. and (ii) its trading symbols on Nasdaq to STRR and STRRP.
Building Solutions
The Building Solutions division operates in three niches: (i) modular building manufacturing; (ii) structural wall panel and wood foundation manufacturing, including building supply distribution operations; and (iii) glue-laminated timber (glulam) column, beam, and truss manufacturing.
Business Services
The Business Services division provides flexible and scalable recruitment solutions to a global clientele, servicing organizations at all levels, from entry-level positions to the C-suite. The division focuses on mid-market and enterprise organizations worldwide, partnering consultatively with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success.
Energy Services
The Energy Services division engages in the rental, sale, and repair of downhole tools used in the oil and gas, geothermal, mining, and water-well industries.
Investments
The Investments division manages and finances the Company's real estate assets as well as its investment positions in private and public companies.
Investor Relations:
The Equity Group
Lena Cati
(212) 836-9611
lcati@theequitygroup.com
Forward-Looking Statements
This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe," and similar words, expressions, and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties, and assumptions include, but are not limited to, (1) global economic fluctuations, (2) changes in the cost and availability of commodities, materials, and equipment, (3) risks related to providing uninterrupted service to clients, (4) the ability of clients to terminate their relationship with the Company at any time, (5) risks associated with real estate ownership, (6) the Company's ability to successfully achieve its strategic initiatives, (7) risks related to fluctuations in the Company's operating results from quarter to quarter, (8) risks related to potential acquisitions or dispositions of businesses by the Company, (9) our profitability and growth being tied to the success of our operating businesses, (10) risks associated with our financial investments in other businesses, (11) our ability to improve existing products and services and develop, introduce, and market new products and services successfully, (12) the loss of or material reduction in our business with any of the Company's largest customers, (13) competition in the Company's markets, (14) risks related to potential decreases in demand for products, (15) our ability to maintain costs at an acceptable level, (16) the negative cash flows and operating losses that may recur in the future, (17) risks related to international operations, including foreign currency fluctuations, political events, trade wars, natural disasters or health crises, including the Russia-Ukraine war, and potential conflict in the Middle East, (18) risks relating to how future credit facilities may affect or restrict our operating flexibility, (19) our ability to generate or borrow sufficient cash to make payments on our indebtedness, (20) risks related to indebtedness, (21) risks associated with the Company's investment strategy, (22) the Company's dependence on key management personnel, (23) the Company's ability to attract and retain highly skilled professionals, management, and advisors, (24) the Company's ability to collect accounts receivable, (25) the Company's exposure to legal proceedings, investigations and disputes, and limits on related insurance coverage, (26) the Company's ability to utilize net operating loss carryforwards, (27) the potential for goodwill impairment, (28) volatility of the Company's stock price, (29) risks related to our historically low trading volume, (30) risks related to securities or industry analysts, (31) the Company's ability to declare dividends, (32) risks associated with failure to pay dividends on our Series A Preferred Stock, (33) our history of annual net losses, (34) risks related to our international operations, (35) risks related to compliance with federal and state laws, regulations, and other rules, (36) our exposure to employment-related claims, legal liability, and costs from clients, employees, and regulatory authorities, (37) risks related to the imposition of licensing or tax requirements or new regulations, (38) the effect of Anti-takeover provisions in our organizational documents, (39) the effect of the protective amendment contained in our Restated Certificate of Incorporation, (40) the impact of our stockholder rights plan, or "poison pill," on stockholder decision making, (41) risks related to our scaled disclosure requirements as a smaller reporting company, (42) risks related to evolving ESG and DEI rules and regulations, (43) the Company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology, (44) the adverse impacts of cybersecurity threats and attacks, and (45) risks related to the use of new and evolving technologies, and (46) those risks set forth in "Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2025." The foregoing list should not be construed to be exhaustive. Actual results could differ materially from the forward-looking statements contained in this press release. In view of these uncertainties, you should not place undue reliance on any forward-looking statements, which are based on our current expectations. These forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Financial Tables Follow
STAR EQUITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------
2025 2024 2025 2024
------ ------- -------
Revenues:
Building
Solutions $17,975 $ -- $ 27,578 $ --
Business
Services 35,207 33,600 139,652 140,056
Energy Services 3,611 -- 4,929 --
Investments -- -- -- --
------ ------ ------- -------
Total revenues 56,793 33,600 172,159 140,056
------ ------ ------- -------
Cost of revenues:
Building
Solutions 13,384 -- 21,303 --
Business
Services 17,097 15,996 67,879 69,904
Energy Services 2,029 -- 3,001 --
Investments 74 -- 107 --
------ ------ ------- -------
Total cost of
revenues 32,584 15,996 92,290 69,904
------ ------ ------- -------
Gross profit 24,209 17,604 79,869 70,152
Operating
expenses:
Salaries and
related 18,228 13,910 63,545 58,309
Office and
general 4,667 2,539 14,843 10,703
Marketing and
promotion 1,143 961 3,957 3,588
Depreciation
and
amortization 280 319 1,212 1,361
------ ------ ------- -------
Total
operating
expenses 24,318 17,729 83,557 73,961
------ ------ ------- -------
Operating
income
(loss) (109) (125) (3,688) (3,809)
Non-operating
income
(expense):
Interest
(expense)
income, net 54 80 260 360
Other income /
(expense),
net (219) 297 (428) (21)
------ ------ ------- -------
Loss before income
taxes (274) 252 (3,856) (3,470)
Provision for
income taxes 1,435 837 2,061 1,300
------ ------ ------- -------
Net loss (1,709) (585) (5,917) (4,770)
Dividends on
Series A
perpetual
preferred stock (673) -- (740) --
------ ------ ------- -------
Net loss
attributable
to common
shareholders (2,382) (585) (6,657) (4,770)
====== ====== ======= =======
Loss per share:
Basic $ (0.48) $ (0.20) $ (1.85) $ (1.59)
Diluted $ (0.48) $ (0.20) $ (1.85) $ (1.59)
Loss per share,
attributable to
common
shareholders
Basic $ (0.67) $ (0.20) $ (2.08) $ (1.59)
Diluted $ (0.67) $ (0.20) $ (2.08) $ (1.59)
Weighted-average
shares
outstanding:
Basic 3,543 2,974 3,198 3,000
Diluted 3,543 2,974 3,198 3,000
Dividends
declared per
share of
Series A
perpetual
preferred
stock $ 0.250 $ -- $ 0.275 $ --
STAR EQUITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
December 31, December 31,
2025 2024
-------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 10,269 $ 17,011
Restricted cash, current 1,819 476
Investments in equity securities 3,767 --
Accounts receivable, less
allowance for expected credit
losses of $275 and $391,
respectively 35,220 20,093
Inventories, net 6,988 --
Note receivable, current portion 256 --
Prepaid and other 4,168 2,560
--------- ---------
Total current assets 62,487 40,140
Property and equipment, net of
accumulated depreciation of $6,367
and $1,668, respectively 18,610 242
Operating lease right-of-use assets 11,675 1,024
Goodwill 5,944 5,703
Intangible assets, net of accumulated
amortization of $4,795 and $3,897,
respectively 1,688 2,491
Long term investments 953 --
Notes receivable, net of current
portion 8,629 --
Deferred tax assets 1,911 2,648
Restricted cash 1,322 180
Other assets 12 155
--------- ---------
Total assets $ 113,231 $ 52,583
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,769 $ 1,789
Accrued salaries, commissions, and
benefits 7,526 4,306
Accrued expenses and other current
liabilities 6,907 4,375
Short-term debt 8,473 --
Deferred revenue 1,496 129
Operating lease obligations,
current 655 623
--------- ---------
Total current liabilities 29,826 11,222
Income tax payable 99 93
Operating lease obligations 11,235 441
Note payable--long term 6,056 --
Other liabilities 308 399
--------- ---------
Total liabilities 47,524 12,155
--------- ---------
Commitments and contingencies
Stockholders' equity:
Series A Preferred stock, $0.001
par value, 10,000 shares
authorized; 2,691 and 0 issued;
2,370 and 0 shares outstanding,
respectively 3 --
Common stock, $0.001 par value,
20,000 shares authorized; 5,366
and 4,033 shares issued; 3,755
and 2,750 shares outstanding,
respectively 5 4
Additional paid-in capital 530,136 494,209
Accumulated deficit (435,934) (430,017)
Accumulated other comprehensive
loss, net of applicable tax (1,364) (2,717)
Treasury stock, 1,611 and 1,283
common shares; 321 and 0
preferred shares, respectively,
at cost (27,139) (21,051)
--------- ---------
Total stockholders' equity 65,707 40,428
--------- ---------
Total liabilities and
stockholders' equity $ 113,231 $ 52,583
========= =========
STAR EQUITY HOLDINGS, INC.
SEGMENT ANALYSIS - QUARTER TO DATE
(in thousands)
(unaudited)
For The Three Months
Ended December 31, Building Business Energy
2025 Solutions Services Services Investments Corporate Total
----------- -------- ---------- --------------- ----------- ----------
Revenue, from external
customers $ 17,975 $35,207 $ 3,611 $ 159 $ (159) $56,793
------ ------ ----- --- ------ ------ ------
Gross profit $ 4,591 $18,110 $ 1,582 $ 85 $ (159) $24,209
------ ------ ----- --- ------ ------ ------
Net loss attributable
to common
shareholders $ 1,531 $(1,678) $ 425 $ 105 $ (2,765) $(2,382)
Dividends on Series A
perpetual preferred
stock -- -- -- -- 673 673
------ ------ ----- --- ------ ------ ------
Net loss 1,531 (1,678) 425 105 (2,092) (1,709)
Provision from income
taxes -- 1,548 -- -- (113) 1,435
Interest (income)
expense, net 161 104 60 (190) (189) (54)
Total depreciation and
amortization 252 156 391 75 10 884
------ ------ ----- --- ------ ------ ------
EBITDA (loss)(1) 1,944 130 876 (10) (2,384) 556
Foreign currency
gain/loss -- 44 -- -- 13 57
Corporate
administrative
charges -- 176 -- -- (176) --
Other non-operating
expense (income) (51) 109 (2) (40) 30 46
Stock-based
compensation expense 11 215 -- -- 273 499
Interest income(2) -- -- -- 305 -- 305
Unrealized (gain) loss
on equity securities -- -- -- 116 -- 116
Severance/contingent
salary -- 124 -- -- -- 124
Transaction costs
related to mergers
and acquisitions -- 72 -- -- 299 371
Financing cost 16 4 20 -- 4 44
Other non-recurring
expenses 21 15 14 -- 40 90
------ ------ ----- --- ------ ------ ------
Adjusted EBITDA
(loss)(1) $ 1,941 $ 889 $ 908 $ 371 $ (1,901) $ 2,208
====== ====== ===== === ====== ====== ======
For The Three Months Ended Business
December 31, 2024 Services Corporate Total
----------- ----------- ----------
Revenue, from external
customers $ 33,600 $ -- $33,600
------ ------ ------
Gross profit $ 17,604 $ -- $17,604
------ ------ ------
Net loss $ (485) $ (100) $ (585)
Provision for income taxes 875 (38) 837
Interest (income) expense,
net 130 (210) (80)
Total depreciation and
amortization 316 3 319
------ ------ ------
EBITDA (loss)(1) 836 (345) 491
Corporate administrative
charges 298 (298) --
Foreign currency gain/loss (151) (7) (158)
Other non-operating expense
(income) (34) (105) (139)
Stock-based compensation
expense 168 66 234
Severance/contingent salary 392 -- 392
Other non-recurring expenses -- 41 41
Adjusted EBITDA (loss)(1) $ 1,509 $ (648) $ 861
====== ====== ======
1. Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and non-GAAP earnings before interest, income
taxes, depreciation and amortization, non-operating income (expense),
stock-based compensation expense, and other non-recurring severance and
professional fees ("Adjusted EBITDA") are presented to provide additional
information about the Company's operations on a basis consistent with the
measures which the Company uses to manage its operations and evaluate its
performance. Management also uses these measurements to evaluate capital
needs and working capital requirements. EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for operating income,
cash flows from operating activities, and other income or cash flow
statement data prepared in accordance with generally accepted accounting
principles or as a measure of the Company's profitability or liquidity.
Furthermore, EBITDA and Adjusted EBITDA as presented above may not be
comparable with similarly titled measures reported by other companies.
2. The Company allocates all corporate interest income to the Investments
Division
STAR EQUITY HOLDINGS, INC.
SEGMENT ANALYSIS - YEAR TO DATE
RECONCILIATION OF ADJUSTED EBITDA
(in thousands)
(unaudited)
For The Year Ended Building Business Energy
December 31, 2025 Solutions Services Services Investments Corporate Total
----------- --------- ---------- --------------- ----------- -----------
Revenue, from external
customers $ 27,578 $139,652 $ 4,929 $ 212 $ (212) $172,159
------ ------- ----- --- ------ ------ -------
Gross profit $ 6,275 $ 71,773 $ 1,928 $ 105 $ (212) $ 79,869
------ ------- ----- --- ------ ------ -------
Net loss attributable
to common
shareholders $ 1,866 $ (2,152) $ 357 $ 160 $ (6,888) $ (6,657)
Dividends on Series A
perpetual preferred
stock -- -- -- -- 740 740
------ ------- ----- --- ------ ------ -------
Net loss 1,866 (2,152) 357 160 (6,148) (5,917)
Provision from income
taxes -- 1,999 -- -- 62 2,061
Interest (income)
expense, net 212 510 99 (283) (798) (260)
Total depreciation and
amortization 361 1,028 560 107 22 2,078
------ ------- ----- --- ------ ------ -------
EBITDA (loss)(1) 2,439 1,385 1,016 (16) (6,862) (2,038)
Corporate
administrative
charges -- 1,084 -- -- (1,084) --
Foreign currency
gain/loss -- 289 -- -- 14 303
Other non-operating
expense (income) (51) 199 (26) (40) (106) (24)
Stock-based
compensation expense 16 850 -- -- 631 1,497
Interest income(2) -- -- -- 449 -- 449
Unrealized (gain) loss
on equity securities -- -- -- 149 -- 149
Severance/contingent
salary -- 891 -- -- -- 891
Transaction costs
related to mergers
and acquisitions -- 269 -- -- 2,259 2,528
Financing cost 21 4 32 -- 6 63
Other non-recurring
expenses 81 33 14 -- 245 373
------ ------- ----- --- ------ ------ -------
Adjusted EBITDA
(loss)(1) $ 2,506 $ 5,004 $ 1,036 $ 542 $ (4,897) $ 4,191
====== ======= ===== === ====== ====== =======
For The Year Ended Business
December 31, 2024 Services Corporate Total
---------------- ----------- -----------
Revenue, from external
customers $ 140,056 $ -- $140,056
----------- ------ -------
Gross profit $ 70,152 $ -- $ 70,152
----------- ------ -------
Net loss $ (1,993) $ (2,777) $ (4,770)
Provision for income
taxes 1,242 58 1,300
Interest (income)
expense, net 520 (880) (360)
Total depreciation and
amortization 1,350 11 1,361
----------- ------ -------
EBITDA (loss)(1) 1,119 (3,588) (2,469)
Corporate
administrative
charges 1,030 (1,030) --
Foreign currency
gain/loss 161 -- 161
Other non-operating
expense (income) 17 (157) (140)
Stock-based
compensation expense 815 465 1,280
Severance/contingent
salary 1,180 -- 1,180
Other non-recurring
expenses 10 881 891
Adjusted EBITDA
(loss)(1) $ 4,332 $ (3,429) $ 903
=========== ====== =======
1. Non-GAAP earnings before interest, income taxes, and depreciation and
amortization ("EBITDA") and non-GAAP earnings before interest, income
taxes, depreciation and amortization, non-operating income (expense),
stock-based compensation expense, and other non-recurring severance and
professional fees ("Adjusted EBITDA") are presented to provide additional
information about the Company's operations on a basis consistent with the
measures which the Company uses to manage its operations and evaluate its
performance. Management also uses these measurements to evaluate capital
needs and working capital requirements. EBITDA and Adjusted EBITDA should
not be considered in isolation or as a substitute for operating income,
cash flows from operating activities, and other income or cash flow
statement data prepared in accordance with generally accepted accounting
principles or as a measure of the Company's profitability or liquidity.
Furthermore, EBITDA and Adjusted EBITDA as presented above may not be
comparable with similarly titled measures reported by other companies.
2. The Company allocates all corporate interest income to the Investments
Division.
STAR EQUITY HOLDINGS, INC.
SEGMENT ANALYSIS - YEAR TO DATE
RECONCILIATION OF PRO FORMA ADJUSTED EBITDA
(in thousands)
(unaudited)
For The Year Ended Building Business Energy
December 31, 2025 Solutions Services Services Investments Corporate Total
----------- --------- -------- ------------- --------- -----------
Pro forma revenue,
from external
customers(1) $ 71,862 $139,652 $13,203 $ 631 $ (631) $224,717
------ ------- ------ --- ------- ------- -------
Pro forma gross
profit(1) $ 18,034 $ 71,773 $ 5,461 $ 333 $ (631) $ 94,970
------ ------- ------ --- ------- ------- -------
Pro forma net loss
attributable to
common
shareholders(1) $ 3,494 $ (2,152) $ 669 $ 5,073 $(13,638) $ (6,554)
Dividends on Series A
perpetual preferred
stock -- -- -- -- 2,496 2,496
------ ------- ------ --- ------- ------- -------
Pro forma net loss 3,494 (2,152) 669 5,073 (11,142) (4,058)
Provision from income
taxes 1 1,999 -- -- (1,670) 330
Interest (income)
expense, net 666 510 220 (704) (770) (78)
Total depreciation and
amortization 2,835 1,028 1,415 299 41 5,618
------ ------- ------ --- ------- ------- -------
Pro forma EBITDA
(loss)(2) 6,996 1,385 2,304 4,668 (13,541) 1,812
Corporate
administrative
charges -- 1,084 -- -- (1,084) --
Foreign currency
gain/loss -- 289 -- -- 14 303
Other non-operating
expense (income),
including corporate
administration
charges (51) 199 (6) (38) (108) (4)
Stock-based
compensation expense 46 850 -- -- 775 1,671
Interest income(3) -- -- -- 1,249 -- 1,249
Unrealized (gain) loss
on equity securities -- -- -- 35 -- 35
Severance/contingent
salary -- 891 -- -- -- 891
Transaction costs
related to mergers
and acquisitions -- 269 595 -- 4,140 5,004
Impairment of cost
method investment -- -- -- 432 -- 432
Loss (gain) on equity
method investment -- -- -- 755 -- 755
Financing cost 61 4 32 -- 17 114
Other non-recurring
expenses 132 33 14 -- 184 363
------ ------- ------ --- ------- ------- -------
Pro forma adjusted
EBITDA (loss)(2) $ 7,184 $ 5,004 $ 2,939 $ 7,101 $ (9,603) $ 12,625
====== ======= ====== === ======= ======= =======
1. Pro forma Building Solutions and Investments results for the full year of
2025 as opposed to August 22, 2025 through December 31, 2025. Pro forma
Energy Services reflects results from Alliance Drilling Tools for the
full year in 2025. Alliance Drilling Tools was acquired by Star Operating
Companies on March 3, 2025.
2. Pro forma Non-GAAP earnings before interest, income taxes, and
depreciation and amortization ("EBITDA") and non-GAAP earnings before
interest, income taxes, depreciation and amortization, non-operating
(income) expense, stock-based compensation expense, and other
non-recurring expenses ("Adjusted EBITDA") are presented to provide
additional information about the Company's operations on a basis
consistent with the measures which the Company uses to manage its
operations and evaluate its performance. Management also uses these
measurements to evaluate capital needs and working capital requirements.
EBITDA and Adjusted EBITDA should not be considered in isolation or as a
substitute for operating income, cash flows from operating activities,
and other income or cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of the Company's
profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as
presented above may not be comparable with similarly titled measures
reported by other companies.
3. The Company allocates all corporate interest income to the Investments
Division.
STAR EQUITY HOLDINGS, INC.
SEGMENT ANALYSIS - YEAR TO DATE
RECONCILIATION OF PRO FORMA ADJUSTED EBITDA
(in thousands)
(unaudited)
For The Year Ended Building Business Energy
December 31, 2024 Solutions Services Services Investments Corporate Total
----------- --------- -------- ------------- --------- -----------
Pro forma revenue,
from external
customers(1) $ 60,131 $140,056 $10,111 $ 731 $ (731) $210,298
------ ------- ------ --- ------- ------- -------
Pro forma gross
profit(1) $ 13,967 $ 70,152 $ 5,678 $ 510 $ (731) $ 89,576
------ ------- ------ --- ------- ------- -------
Pro forma net loss
attributable to
common
shareholders(1) $ 568 $ (1,993) $ 1,401 $ (1,797) $(11,880) $(13,701)
Dividends on Series A
perpetual preferred
stock -- -- -- -- 2,040 2,040
------ ------- ------ --- ------- ------- -------
Pro forma net loss 568 (1,993) 1,401 (1,797) (9,840) (11,661)
Provision for income
taxes 13 1,242 -- -- 321 1,576
Interest (income)
expense, net 481 520 (33) (716) (1,301) (1,049)
Total depreciation and
amortization 3,406 1,350 637 221 54 5,668
------ ------- ------ --- ------- ------- -------
Pro forma EBITDA
(loss)(2) 4,468 1,119 2,005 (2,292) (10,766) (5,466)
Foreign currency
gain/loss -- 161 -- -- -- 161
Corporate
administrative
charges -- 1,030 -- -- (1,030) --
Other non-operating
expense (income) 18 17 -- -- (157) (122)
Stock-based
compensation expense 39 815 -- -- 665 1,519
Interest income(3) -- -- -- 1,251 -- 1,251
Unrealized (gain) loss
on equity securities -- -- -- 177 -- 177
Severance/contingent
salary -- 1,180 -- -- -- 1,180
Purchase accounting
adjustments(4) 786 -- -- -- -- 786
Transaction costs
related to mergers
and acquisitions -- -- 115 -- 1,531 1,646
Impairment of cost
method investment -- -- -- 4,615 -- 4,615
Loss (gain) on equity
method investment -- -- -- 1,850 -- 1,850
Financing cost 24 -- -- -- 11 35
Gains on sale and
leaseback
transactions -- -- -- (3,755) -- (3,755)
Other non-recurring
expenses (80) 10 -- -- 608 538
------ ------- ------ --- ------- ------- -------
Pro forma adjusted
EBITDA (loss)(2) $ 5,255 $ 4,332 $ 2,120 $ 1,846 $ (9,138) $ 4,415
====== ======= ====== === ======= ======= =======
1. Pro forma Building Solutions, Energy Services, and Investments results
from Star Operating Companies, Inc. for the full year of 2024. Pro forma
Building Solutions reflects results from Timber Technologies for the full
year in 2024. Timber Technologies was acquired by Star Operating
Companies on May 17, 2024. Pro forma Energy Services in 2024 reflects
Alliance Drilling Tools results, which was acquired by Star Operating
Companies on March 3, 2025.
2. Pro forma Non-GAAP earnings before interest, income taxes, and
depreciation and amortization ("EBITDA") and non-GAAP earnings before
interest, income taxes, depreciation and amortization, non-operating
(income) expense, stock-based compensation expense, and other
non-recurring expenses ("Adjusted EBITDA") are presented to provide
additional information about the Company's operations on a basis
consistent with the measures which the Company uses to manage its
operations and evaluate its performance. Management also uses these
measurements to evaluate capital needs and working capital requirements.
EBITDA and Adjusted EBITDA should not be considered in isolation or as a
substitute for operating income, cash flows from operating activities,
and other income or cash flow statement data prepared in accordance with
generally accepted accounting principles or as a measure of the Company's
profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as
presented above may not be comparable with similarly titled measures
reported by other companies.
3. The Company allocates all corporate interest income to the Investments
Division.
4. Reflects purchase accounting adjustments related to the fair value of TT
inventory and BLL earn-out that impacted net income.
STAR EQUITY HOLDINGS, INC.
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) PER DILUTED
SHARE
(in thousands, except per share amounts)
(unaudited)
Adjusted Diluted Shares Per Diluted
For The Three Months
Ended December 31, 2025 Net Loss Outstanding Share(1)
-------- -------------- ---------------
Net loss $(1,709) 3,543 $ (0.48)
Dividends on Series A
perpetual preferred
stock (673) 3,543 (0.19)
------ --------
Net loss attributable to
common shareholders (2,382) 3,543 (0.67)
Intangible amortization
from acquisitions 179 3,543 0.05
Deferred tax on
subsidiary write-downs 1,111 3,543 0.31
Unrealized (gain) loss on
equity securities 116 3,543 0.03
Severance/contingent
salary 124 3,543 0.04
Transaction costs related
to mergers and
acquisitions 371 3,543 0.10
Financing cost 44 3,543 0.01
Other non-recurring
expenses 90 3,543 0.03
------ --------
Adjusted net loss
attributable to common
shareholders(2) $ (347) 3,543 $ (0.10)
====== ========
Adjusted Diluted Shares Per Diluted
For The Three Months
Ended December 31,
2024 Net Income Outstanding Share(1)
------------ -------------- ---------------
Net loss $ (585) 2,974 $ (0.20)
Intangible amortization
from acquisitions 257 2,974 0.09
Severance/contingent
salary 392 2,974 0.13
Other non-recurring
expenses 41 2,974 0.01
Stock-based
compensation expense
related to
acquisitions 5 2,974 --
------- --------
Adjusted net income(2) $ 110 2,974 $ 0.04
======= ========
Adjusted Diluted Shares Per Diluted
For The Year Ended
December 31, 2025 Net Loss Outstanding Share(1)
-------- -------------- ---------------
Net loss $(5,917) 3,198 $ (1.85)
Dividends on Series A
perpetual preferred
stock (740) 3,198 (0.23)
------ --------
Net loss attributable to
common shareholders (6,657) 3,198 (2.08)
Intangible amortization
from acquisitions 901 3,198 0.28
Deferred tax on
subsidiary write-downs 1,111 3,198 0.35
Unrealized (gain) loss on
equity securities 149 3,198 0.05
Severance/contingent
salary 891 3,198 0.28
Transaction costs related
to mergers and
acquisitions 2,528 3,198 0.79
Financing cost 63 3,198 0.02
Other non-recurring
expenses 373 3,198 0.12
------ --------
Adjusted net loss
attributable to common
shareholders(2) $ (641) 3,198 $ (0.20)
====== ========
Adjusted Diluted Shares Per Diluted
For The Year Ended
December 31, 2024 Net Loss Outstanding Share(1)
-------- -------------- ---------------
Net loss $(4,770) 3,000 $ (1.59)
Intangible amortization
from acquisitions 1,129 3,000 0.38
Severance/contingent
salary 1,180 3,000 0.39
Other non-recurring
expenses 891 3,000 0.30
Stock-based compensation
expense related to
acquisitions 107 3,000 0.04
------ --------
Adjusted net loss(2) $(1,463) 3,000 $ (0.49)
====== ========
1. Amounts may not sum due to rounding.
2. Adjusted net income or loss attributable to common shareholders per
diluted share are Non-GAAP measures defined as reported net income or
loss attributable to common shareholders and reported net income or loss
attributable to common shareholders per diluted share before items such
as acquisition-related costs and non-recurring expenses after tax that
are presented to provide additional information about the Company's
operations on a basis consistent with the measures that the Company uses
to manage its operations and evaluate its performance. Management also
uses these measurements to evaluate capital needs and working capital
requirements. Adjusted net income or loss per diluted share should not be
considered in isolation or as substitutes for net income or loss and net
income or loss per share and other income or cash flow statement data
prepared in accordance with generally accepted accounting principles or
as measures of the Company's profitability or liquidity. Further,
adjusted net income or loss and adjusted net income or loss per diluted
share as presented above may not be comparable with similarly titled
measures reported by other companies.
STAR EQUITY HOLDINGS, INC.
RECONCILIATION OF PRO FORMA ADJUSTED NET INCOME (LOSS)
PER DILUTED SHARE
(in thousands, except per share amounts)
(unaudited)
Adjusted Diluted Shares Per Diluted
For The Year Ended
December 31, 2025 Net Income Outstanding Share(1)
------------ -------------- ---------------
Pro forma net loss(3) $ (4,058) 3,671 $ (1.11)
Dividends on Series A
perpetual preferred
stock (2,496) 3,671 (0.68)
------- --------
Pro forma net loss
attributable to common
shareholders(3) (6,554) 3,671 (1.79)
Intangible amortization
from acquisitions 2,814 3,671 0.77
Deferred tax on
subsidiary
write-downs 1,111 3,671 0.30
Unrealized (gain) loss
on equity securities 35 3,671 0.01
Severance/contingent
salary 891 3,671 0.24
Transaction costs
related to mergers and
acquisitions 5,004 3,671 1.36
Impairment of cost
method investment 432 3,671 0.12
Loss (gain) on equity
method investment 755 3,671 0.21
Financing cost 114 3,671 0.03
Other non-recurring
expenses 363 3,671 0.10
------- --------
Pro forma adjusted net
income attributable to
common
shareholders(2) $ 4,965 3,671 $ 1.35
======= ========
Adjusted Diluted Shares Per Diluted
For The Year Ended
December 31, 2024 Net Loss Outstanding Share(1)
--------- -------------- ---------------
Pro forma net loss(3) $(11,661) 3,744 $ (3.11)
Dividends on Series A
perpetual preferred
stock (2,040) 3,744 (0.54)
------- --------
Pro forma net loss
attributable to common
shareholders(3) (13,701) 3,744 (3.66)
Intangible amortization
from acquisitions 3,608 3,744 0.96
Unrealized (gain) loss
on equity securities 177 3,744 0.05
Severance/contingent
salary 1,180 3,744 0.32
Purchase accounting
adjustment 786 3,744 0.21
Transaction costs
related to mergers and
acquisitions 1,646 3,744 0.44
Impairment of cost
method investment 4,615 3,744 1.23
Loss (gain) on equity
method investment 1,850 3,744 0.49
Financing cost 35 3,744 0.01
Gains on sale and
leaseback transactions (3,755) 3,744 (1.00)
Stock-based compensation
expense related to
acquisitions 107 3,744 0.03
Other non-recurring
expenses 538 3,744 0.14
------- --------
Pro forma adjusted net
loss attributable to
common shareholders(2) $ (2,914) 3,744 $ (0.78)
======= ========
1. Amounts may not sum due to rounding.
2. Adjusted net income or loss attributable to common shareholders per
diluted share are Non-GAAP measures defined as reported net income or
loss attributable to common shareholders and reported net income or loss
attributable to common shareholders per diluted share before items such
as acquisition-related costs and non-recurring expenses after tax that
are presented to provide additional information about the Company's
operations on a basis consistent with the measures that the Company uses
to manage its operations and evaluate its performance. Management also
uses these measurements to evaluate capital needs and working capital
requirements. Adjusted net income or loss per diluted share should not be
considered in isolation or as substitutes for net income or loss and net
income or loss per share and other income or cash flow statement data
prepared in accordance with generally accepted accounting principles or
as measures of the Company's profitability or liquidity. Further,
adjusted net income or loss and adjusted net income or loss per diluted
share as presented above may not be comparable with similarly titled
measures reported by other companies.
3. Pro forma Building Solutions, Energy Services, and Investments results
for the full year of 2024 and 2025 as opposed to August 22, 2025 through
December 31, 2025. Pro forma Building Solutions in 2024 reflects Timber
Technologies results from January 1, 2024 through the date of acquisition
of May 17, 2024. Pro forma Energy Services in 2024 and 2025 reflects
Alliance Drilling Tools results, which was acquired by Star Operating
Companies on March 3, 2025.
(END) Dow Jones Newswires
March 17, 2026 16:50 ET (20:50 GMT)
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