0001210708-26-000038
SEC filingStar Equity Holdings, Inc. reported FY 2025 revenues of $172.2 million, up 23% YoY from $140.1 million in 2024, driven by the August 2025 acquisition of Star Operating Companies adding Building Solutions ($27.6M) and Energy Services ($4.9M) segments, offsetting a slight decline in Business Services from $140.1M to $139.7M. Gross profit rose 14% to $79.9M from $70.2M, with gross margin contracting to 46.4% from 50.1% due to higher costs in new segments. Operating loss narrowed slightly to -$3.7M from -$3.8M, but net loss widened to -$5.9M from -$4.8M, reflecting a $2.1M tax provision and $0.7M preferred dividends, yielding EPS of -$2.00 vs. -$1.59 prior year. Cash used in operations was -$7.3M, with net cash decrease of -$4.3M; total assets grew to $113.2M from $52.6M post-merger. The merger enhances diversification across building, business services, energy, and investments, positioning for organic growth and acquisitions amid competitive markets.
Star Equity Holdings, Inc. (STRR) delivered FY 2025 revenues of $172.2M, a 23% increase from $140.1M in 2024, propelled by the August 22, 2025 merger with Star Operating Companies (SOC), introducing Building Solutions ($27.6M revenue) and Energy Services ($4.9M). Business Services remained steady at $139.7M vs. $140.1M. Gross profit grew 14% to $79.9M, but margins slipped to 46.4% from 50.1% due to integration costs. Operating loss improved marginally to -$3.7M from -$3.8M, while net loss expanded to -$5.9M from -$4.8M after $2.1M taxes and $0.7M preferred dividends. EPS attributable to common shareholders was -$2 vs. -$1.59. Balance sheet strengthened post-merger with total assets at $113.2M (up from $52.6M), equity $65.7M.
Revenues totaled $172.2M, segmented as Building Solutions $27.6M (new via SOC), Business Services $139.7M (flat YoY, 81% of total; RPO $68.4M, contracting $71.3M), Energy Services $4.9M (new), Investments minor. Growth stemmed from SOC acquisition adding $32.5M post-close revenue. Client concentration: top 25 clients 73% of revenue (vs. 85% prior), one client 23%. Geographic: Business Services across Americas, APAC, EMEA; new segments U.S.-focused (Maine, Midwest, Wyoming/Texas). No prior Building/Energy revenues.
Gross margin declined to 46.4% from 50.1%, reflecting higher costs in acquired segments (Building cost of revenues $21.3M, Energy $3.0M). Operating expenses rose to $83.6M (salaries $63.5M +16%, office/general $14.8M +39%), yielding -2.1% operating margin (-2.7% prior). Non-operating: interest income $0.3M, other expense -$0.4M. Taxes $2.1M on pre-tax loss -$3.9M due to valuation allowances and foreign rates.
Operating cash used -$7.3M (net loss -$5.9M, adjustments incl. D&A $2.1M, stock comp $1.5M; working capital changes -$2.5M payables). Investing provided $4.6M (SOC cash acquired $7.0M, offset capex $1.7M). Financing used -$2.0M (borrowings net $1.9M, dividends/repurchases -$3.8M). Net cash decline -$4.3M; ending cash/restricted $23.2M. Debt $14.5M (short-term $8.5M), current ratio supported by $62.5M current assets vs. $29.8M liabilities. Equity $65.7M incl. $530.1M APIC, -$435.9M deficit.
Management focuses on organic growth, service expansion, complementary acquisitions in construction, talent, energy. Strategy: leverage SOC for Building/Energy scale; Business Services RPO/contracting in 18 countries. Risks: client concentration (one at 23%), commodity prices (lumber), oil prices for Energy, competition, integration post-merger. Exploring M&A, share repurchases ($2.5M remaining authorization), capital allocation for shareholder value.