Star Equity Holdings (STRR) investor relations material

Executive summary

• Q3 2025 revenue rose 30.1% year-over-year to $48.0M, driven by the Star Operating Companies acquisition and recent merger, expanding operations to four divisions and increasing scale and diversification.

• Gross profit increased 10.9% to $20.6M, with adjusted EBITDA up 55.8% to $1.3M and pro forma adjusted EBITDA surging to $3.1M.

• Net loss widened to $1.8M ($0.54/share) from $0.8M ($0.28/share) prior year, but adjusted net income per share improved to $0.02 from an adjusted net loss of $0.13.

• Integration of the merger is progressing well, driving operational efficiencies and a more diversified platform.

• Year-to-date revenue grew 8.4% to $115.4M, with adjusted EBITDA at $2.0M versus $0.0M last year.

Financial highlights

• Q3 2025 revenue: $48.0M (+30.1% YoY); gross profit: $20.6M (+10.9% YoY); net loss: $1.8M ($0.54/share); adjusted diluted EPS: $0.02; pro forma adjusted EPS: $0.19.

• Total cash, including restricted, was $18.5M at quarter end; cash and equivalents at $15.4M.

• Net cash used in operations was $(2.7)M for Q3; net cash provided by investing activities was $6.2M, mainly from acquisition-related inflows.

• SG&A expenses rose 10.9% to $19.7M, excluding non-recurring items.

• Share count at quarter end approximately 3.26M (diluted).

Outlook and guidance

• Expect to realize $2M in annualized synergies from the merger within six months, with corporate costs targeted to decline to $2M per quarter.

• Anticipate continued operational improvements, disciplined capital allocation, and ongoing evaluation of accretive acquisitions.

• RPO business expected to recover to mid-cycle levels ($100M gross profit, $20M EBITDA) as attrition normalizes.

• Management expects continued demand in Building Solutions despite higher interest rates, with some execution delays due to project financing.

• The company believes it has sufficient liquidity for at least the next 12 months.