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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.
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Q3 2025 earnings summary13 Nov, 2025

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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