Star Equity Holdings, Inc. operates as a diversified multi-industry holding company in Australia, the United States, the United Kingdom, and internationally. It ...
Star Equity Holdings, Inc. (NASDAQ: STRR) is a diversified holding company that builds long-term shareholder value by acquiring, managing, and growing businesses across multiple industries. The company operates through four segments: Building Solutions, Business Services, Energy Services, and Investments. Building Solutions manufactures modular buildings, structural wall panels, engineered wood products, ...Star Equity Holdings, Inc. (NASDAQ: STRR) is a diversified holding company that builds long-term shareholder value by acquiring, managing, and growing businesses across multiple industries. The company operates through four segments: Building Solutions, Business Services, Energy Services, and Investments. Building Solutions manufactures modular buildings, structural wall panels, engineered wood products, and glue-laminated timber for residential, commercial, and industrial markets, as well as distributing building materials. Business Services offers customized recruitment and contracting solutions, including recruitment process outsourcing (RPO), project-based RPO, contingent workforce solutions, recruitment consulting, outsourced professional contract staffing, and managed service provider services for mid-to-large multinational companies. Energy Services engages in manufacturing and supplying specialized drilling tools and downhole equipment used in directional drilling and other oil and gas well construction applications, also offering sales and rental of tools in oil and gas, geothermal, mining, and waterwells sectors. Additionally, the company holds and manages corporate-owned real estate and invests in various publicly traded and private companies.
Financially, as of the latest TTM data, Star Equity has a market capitalization of approximately $41.4 million, with an enterprise value of $58.4 million. Revenue per share is $50.84, but the company is currently unprofitable, posting a net profit margin of -4.2% and a negative return on equity of -13.6%. The company's gross profit margin is 43.6%, and it has a current ratio of 2.09, indicating a healthy liquidity position. The company has a low beta of 0.516, suggesting lower volatility compared to the market. The dividend yield is currently 0%, and the last dividend paid was $11, but it may not be sustainable given the negative earnings.
The company is led by CEO Jeffrey E. Eberwein, who has over 25 years of Wall Street experience and is also the founder and CEO of Lone Star Value Management. The executive team has experience in investing, operations, turnarounds, capital markets, and mergers & acquisitions. Star Equity seeks to unlock shareholder value through operational excellence, strategic planning, and efficient capital allocation. The company was incorporated in 2003 and is headquartered in Old Greenwich, Connecticut. It was formerly known as Hudson Global, Inc. and changed its name in September 2025 following the merger with Star Operating Companies, Inc. The company has approximately 1,200 full-time employees. With a mission to grow stockholder value, Star Equity continues to evaluate acquisition and growth opportunities across its target industries.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$172.2M
+222.6%
+9.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-5.9M
+43.3%
+51.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+45.7%
+120.5%
+1.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-2.1%
+86.4%
+68.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-3.4%
+82.4%
+55.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-9.0M
-11.5%
-20.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-5.2%
+65.5%
-9.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
40.2%
+1427.7%
+7.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.10x
-41.4%
-6.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Thank you. Greetings, ladies and gentlemen, and welcome to Star Equity Holdings Second Quarter 2026 Financial Results Conference Call. Please be advised that the discussions on today's call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to Star Equity's most recent 10-K, 10-Q, and other filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events, or otherwise. Please also note that on this call, management will reference non-GAAP financial measures including EBITDA, adjusted EBITDA, adjusted net income, and adjusted earnings per share, which are all financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our earnings release issued yesterday afternoon. If you did not receive a copy of the earnings release and would like one after the call, please contact Star Equity at (203) 489-9500 or its Investor Relations Representative, Lena Cati of The Equity Group at (212) 836-9611. Also, this call is being broadcast live over the Internet and may be accessed at Star Equity's website via www.starequity.com. Shortly after the call, this call is being recorded for a replay that will be available on the company's website. It is now my pleasure to introduce Jeff Eberwein, Chief Executive Officer of Star Equity. Please go ahead.
Thank you, operator, and welcome, everyone. We greatly appreciate your interest in Star Equity Holdings, and thank you for joining us today. I'll begin by reviewing some highlights from our second quarter results at the holding company level. After that, Jake Zabkowicz, CEO of Hudson Talent Solutions, will give us an update on the performance of that business, which is inside our Business Services division. Rick Coleman, our COO, will provide some insights into the performance of our Building Solutions and Energy Services divisions. And I'll discuss some of the key points in the merger with Harte Hanks that we announced this morning. One item I'd like to point out just to get started is Slide 5 from our earnings deck where you can see the progress we've made on the cost synergies. You may recall that a year ago when we announced the merger with Hudson, we projected approximately $2 million of merger synergies, and we believe we've achieved approximately $3 million of merger synergies at this point in time. And we measure that from the adjusted EBITDA table, which you can find on Pages 10 and 12 of our earnings release. In that table, you'll see that for the first half of the year, our corporate costs, if you look at the corporate column, were $3.6 million. …
