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Star Equity Holdings (STRR) investor relations material
Star Equity Holdings Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 revenue increased 30.1% year-over-year to $48.0 million, driven by the Star Operating Companies acquisition completed August 22, 2025, and rebranding as Star Equity Holdings, now operating four divisions.
Gross profit rose 10.9% to $20.6 million, with the acquisition contributing significantly to growth.
Adjusted EBITDA increased to $1.3 million (up 55.8%), and pro forma adjusted EBITDA surged to $3.1 million.
Net loss widened to $1.8 million ($0.54/share) from $0.8 million ($0.28/share) last year, but adjusted net income per share improved to $0.02 from an adjusted net loss of $0.13.
Integration is progressing smoothly, with operational efficiencies, cost structure improvements, and a more diversified platform.
Financial highlights
Q3 2025 revenue was $48.0 million (+30.1% YoY); gross profit $20.6 million (+10.9% YoY); adjusted EBITDA $1.3 million; pro forma adjusted EBITDA $3.1 million.
Net loss for Q3 2025 was $1.8 million ($0.54/share); adjusted net income per share was $0.02; pro forma adjusted EPS was $0.19.
Total cash, including restricted cash, was $18.5 million at quarter end; cash and equivalents were $15.4 million.
Working capital and shareholders' equity both increased to $67.8 million.
Net cash provided by investing activities was $6.2 million for Q3, mainly from acquisition-related inflows; net cash used in operations was $(2.7) million.
Outlook and guidance
Targeting $2 million in annualized synergies from the merger, expected to be fully realized within six months; corporate costs expected to decline to $2 million per quarter.
Business Services aims to return to 2022 levels of $100 million gross profit and $20 million EBITDA as market normalizes.
Focus remains on organic growth, disciplined capital allocation, and accretive acquisitions, with sufficient liquidity for at least the next 12 months.
Management expects continued demand in Building Solutions despite higher interest rates, with some execution delays due to project financing.
Business Services faces ongoing market challenges from inflation and labor market softness, expected to persist into Q4 2025.
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