Star Equity Holdings Reports 2025 Fourth Quarter and Full-Year Results
2025 Fourth Quarter Summary
- Revenue of
$56.8 million increased 69% from the fourth quarter of 2024. - Gross profit of
$24.2 million increased 38% from the fourth quarter of 2024. - Net loss attributable to common shareholders of
$2.4 million , or$0.67 loss per diluted share, versus net loss attributable to common shareholders of$0.6 million , or$0.20 loss per diluted share, in the fourth quarter of 2024. Adjusted net loss attributable to common shareholders per diluted share (Non-GAAP measure)* was$0.10 compared to adjusted net income attributable to common shareholders per diluted share of$0.04 in the fourth quarter of 2024. - Adjusted EBITDA (Non-GAAP measure)* increased to
$2.2 million , versus adjusted EBITDA of$0.9 million in the fourth quarter of 2024.
2025 Full-Year Summary
- Revenue of
$172.2 million increased 23% from 2024. Full year 2025 pro forma ("PF")(1) revenue of$224.7 million increased 7% from 2024. - Gross profit of
$79.9 million increased 14% from 2024. PF gross profit of$95.0 million increased 6% from 2024 - Net loss attributable to common shareholders of
$6.7 million , or 2.08 loss per diluted share, compared to net loss of$4.8 million , or$1.59 loss per diluted share, in 2024. Adjusted net loss attributable to common shareholders per diluted share (Non-GAAP measure)* of$0.20 increased from adjusted net loss attributable to common shareholders per diluted share of$0.49 in the prior year. - Adjusted EBITDA (Non-GAAP measure)* was
$4.2 million , versus adjusted EBITDA of$0.9 million in 2024. PF adjusted EBITDA of$12.6 million increased from$4.4 million in 2024. - Total cash including restricted cash was
$13.4 million atDecember 31, 2025 .
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in
Segment Highlights
Building Solutions
Fourth quarter 2025
Full year 2025
Full year 2025 PF Building Solutions revenue was
Building Solutions backlog as of
Business Services
Fourth quarter 2025 Business Services revenue was
Full year 2025 Business Services revenue was
Regionally, APAC and
Energy Services
Fourth quarter 2025 Energy Services revenue was
Full year 2025 Energy Services revenue was
PF Energy Services revenue for full year 2025 was
(1) PF Building Solutions, Energy Services, and Investments results from
Corporate Costs
The Company's corporate costs of
The Company's corporate costs of
Liquidity and Capital Resources
The Company ended the fourth quarter of 2025 with
Share Repurchase Program
In the fourth quarter of 2025, the Company repurchased 5,964 shares for approximately
NOL Carryforward
As of
Preferred Stock Dividends
In Q4 2025, the Company’s board of directors (the "Board") declared a quarterly cash dividend to holders of the Company’s 10% Series A Cumulative Perpetual Preferred Stock of
In addition, on
Conference Call/Webcast
The Company will conduct a conference call tomorrow,
If you wish to join the conference call, please use the dial-in information below:
- Toll-Free Dial-In Number: 1 (833) 890-6161
- International Dial-In Number: 1 (412) 504-9848
The archived call will be available on the investor information section of the Company's web site at www.starequity.com.
About
On
Building Solutions
The
Business Services
The Business Services division provides flexible and scalable recruitment solutions to a global clientele, servicing organizations at all levels, from entry-level positions to the C-suite. The division focuses on mid-market and enterprise organizations worldwide, partnering consultatively with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success.
Energy Services
The Energy Services division engages in the rental, sale, and repair of downhole tools used in the oil and gas, geothermal, mining, and water-well industries.
Investments
The Investments division manages and finances the Company’s real estate assets as well as its investment positions in private and public companies.
Investor Relations:
The Equity Group
(212) 836-9611
lcati@theequitygroup.com
Forward-Looking Statements
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company’s future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe,” and similar words, expressions, and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties, and assumptions include, but are not limited to, (1) global economic fluctuations, (2) changes in the cost and availability of commodities, materials, and equipment, (3) risks related to providing uninterrupted service to clients, (4) the ability of clients to terminate their relationship with the Company at any time, (5) risks associated with real estate ownership, (6) the Company’s ability to successfully achieve its strategic initiatives, (7) risks related to fluctuations in the Company’s operating results from quarter to quarter, (8) risks related to potential acquisitions or dispositions of businesses by the Company, (9) our profitability and growth being tied to the success of our operating businesses, (10) risks associated with our financial investments in other businesses, (11) our ability to improve existing products and services and develop, introduce, and market new products and services successfully, (12) the loss of or material reduction in our business with any of the Company’s largest customers, (13) competition in the Company’s markets, (14) risks related to potential decreases in demand for products, (15) our ability to maintain costs at an acceptable level, (16) the negative cash flows and operating losses that may recur in the future, (17) risks related to international operations, including foreign currency fluctuations, political events, trade wars, natural disasters or health crises, including the
Financial Tables Follow
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues: | ||||||||||||||||
| Building Solutions | $ | 17,975 | $ | — | $ | 27,578 | $ | — | ||||||||
| Business Services | 35,207 | 33,600 | 139,652 | 140,056 | ||||||||||||
| Energy Services | 3,611 | — | 4,929 | — | ||||||||||||
| Investments | — | — | — | — | ||||||||||||
| Total revenues | 56,793 | 33,600 | 172,159 | 140,056 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Building Solutions | 13,384 | — | 21,303 | — | ||||||||||||
| Business Services | 17,097 | 15,996 | 67,879 | 69,904 | ||||||||||||
| Energy Services | 2,029 | — | 3,001 | — | ||||||||||||
| Investments | 74 | — | 107 | — | ||||||||||||
| Total cost of revenues | 32,584 | 15,996 | 92,290 | 69,904 | ||||||||||||
| Gross profit | 24,209 | 17,604 | 79,869 | 70,152 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and related | 18,228 | 13,910 | 63,545 | 58,309 | ||||||||||||
| Office and general | 4,667 | 2,539 | 14,843 | 10,703 | ||||||||||||
| Marketing and promotion | 1,143 | 961 | 3,957 | 3,588 | ||||||||||||
| Depreciation and amortization | 280 | 319 | 1,212 | 1,361 | ||||||||||||
| Total operating expenses | 24,318 | 17,729 | 83,557 | 73,961 | ||||||||||||
| Operating income (loss) | (109 | ) | (125 | ) | (3,688 | ) | (3,809 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest (expense) income, net | 54 | 80 | 260 | 360 | ||||||||||||
| Other income / (expense), net | (219 | ) | 297 | (428 | ) | (21 | ) | |||||||||
| Loss before income taxes | (274 | ) | 252 | (3,856 | ) | (3,470 | ) | |||||||||
| Provision for income taxes | 1,435 | 837 | 2,061 | 1,300 | ||||||||||||
| Net loss | (1,709 | ) | (585 | ) | (5,917 | ) | (4,770 | ) | ||||||||
| Dividends on Series A perpetual preferred stock | (673 | ) | — | (740 | ) | — | ||||||||||
| Net loss attributable to common shareholders | (2,382 | ) | (585 | ) | (6,657 | ) | (4,770 | ) | ||||||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.48 | ) | $ | (0.20 | ) | $ | (1.85 | ) | $ | (1.59 | ) | ||||
| Diluted | $ | (0.48 | ) | $ | (0.20 | ) | $ | (1.85 | ) | $ | (1.59 | ) | ||||
| Loss per share, attributable to common shareholders | ||||||||||||||||
| Basic | $ | (0.67 | ) | $ | (0.20 | ) | $ | (2.08 | ) | $ | (1.59 | ) | ||||
| Diluted | $ | (0.67 | ) | $ | (0.20 | ) | $ | (2.08 | ) | $ | (1.59 | ) | ||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 3,543 | 2,974 | 3,198 | 3,000 | ||||||||||||
| Diluted | 3,543 | 2,974 | 3,198 | 3,000 | ||||||||||||
| Dividends declared per share of Series A perpetual preferred stock | $ | 0.250 | $ | — | $ | 0.275 | $ | — | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
2025 |
2024 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,269 | $ | 17,011 | ||||
| Restricted cash, current | 1,819 | 476 | ||||||
| Investments in equity securities | 3,767 | — | ||||||
| Accounts receivable, less allowance for expected credit losses of |
35,220 | 20,093 | ||||||
| Inventories, net | 6,988 | — | ||||||
| Note receivable, current portion | 256 | — | ||||||
| Prepaid and other | 4,168 | 2,560 | ||||||
| Total current assets | 62,487 | 40,140 | ||||||
| Property and equipment, net of accumulated depreciation of |
18,610 | 242 | ||||||
| Operating lease right-of-use assets | 11,675 | 1,024 | ||||||
| 5,944 | 5,703 | |||||||
| Intangible assets, net of accumulated amortization of |
1,688 | 2,491 | ||||||
| Long term investments | 953 | — | ||||||
| Notes receivable, net of current portion | 8,629 | — | ||||||
| Deferred tax assets | 1,911 | 2,648 | ||||||
| Restricted cash | 1,322 | 180 | ||||||
| Other assets | 12 | 155 | ||||||
| Total assets | $ | 113,231 | $ | 52,583 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,769 | $ | 1,789 | ||||
| Accrued salaries, commissions, and benefits | 7,526 | 4,306 | ||||||
| Accrued expenses and other current liabilities | 6,907 | 4,375 | ||||||
| Short-term debt | 8,473 | — | ||||||
| Deferred revenue | 1,496 | 129 | ||||||
| Operating lease obligations, current | 655 | 623 | ||||||
| Total current liabilities | 29,826 | 11,222 | ||||||
| Income tax payable | 99 | 93 | ||||||
| Operating lease obligations | 11,235 | 441 | ||||||
| Note payable–long term | 6,056 | — | ||||||
| Other liabilities | 308 | 399 | ||||||
| Total liabilities | 47,524 | 12,155 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Series A Preferred stock, |
3 | — | ||||||
| Common stock, |
5 | 4 | ||||||
| Additional paid-in capital | 530,136 | 494,209 | ||||||
| Accumulated deficit | (435,934 | ) | (430,017 | ) | ||||
| Accumulated other comprehensive loss, net of applicable tax | (1,364 | ) | (2,717 | ) | ||||
| (27,139 | ) | (21,051 | ) | |||||
| Total stockholders’ equity | 65,707 | 40,428 | ||||||
| Total liabilities and stockholders' equity | $ | 113,231 | $ | 52,583 | ||||
| SEGMENT ANALYSIS - QUARTER TO DATE | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| For The Three Months Ended |
Building Solutions | Business Services | Energy Services | Investments | Corporate | Total | ||||||||||||||||||
| Revenue, from external customers | $ | 17,975 | $ | 35,207 | $ | 3,611 | $ | 159 | $ | (159 | ) | $ | 56,793 | |||||||||||
| Gross profit | $ | 4,591 | $ | 18,110 | $ | 1,582 | $ | 85 | $ | (159 | ) | $ | 24,209 | |||||||||||
| Net loss attributable to common shareholders | $ | 1,531 | $ | (1,678 | ) | $ | 425 | $ | 105 | $ | (2,765 | ) | $ | (2,382 | ) | |||||||||
| Dividends on Series A perpetual preferred stock | — | — | — | — | 673 | 673 | ||||||||||||||||||
| Net loss | 1,531 | (1,678 | ) | 425 | 105 | (2,092 | ) | (1,709 | ) | |||||||||||||||
| Provision from income taxes | — | 1,548 | — | — | (113 | ) | 1,435 | |||||||||||||||||
| Interest (income) expense, net | 161 | 104 | 60 | (190 | ) | (189 | ) | (54 | ) | |||||||||||||||
| Total depreciation and amortization | 252 | 156 | 391 | 75 | 10 | 884 | ||||||||||||||||||
| EBITDA (loss)(1) | 1,944 | 130 | 876 | (10 | ) | (2,384 | ) | 556 | ||||||||||||||||
| Foreign currency gain/loss | — | 44 | — | — | 13 | 57 | ||||||||||||||||||
| Corporate administrative charges | — | 176 | — | — | (176 | ) | — | |||||||||||||||||
| Other non-operating expense (income) | (51 | ) | 109 | (2 | ) | (40 | ) | 30 | 46 | |||||||||||||||
| Stock-based compensation expense | 11 | 215 | — | — | 273 | 499 | ||||||||||||||||||
| Interest income(2) | — | — | — | 305 | — | 305 | ||||||||||||||||||
| Unrealized (gain) loss on equity securities | — | — | — | 116 | — | 116 | ||||||||||||||||||
| Severance/contingent salary | — | 124 | — | — | — | 124 | ||||||||||||||||||
| Transaction costs related to mergers and acquisitions | — | 72 | — | — | 299 | 371 | ||||||||||||||||||
| Financing cost | 16 | 4 | 20 | — | 4 | 44 | ||||||||||||||||||
| Other non-recurring expenses | 21 | 15 | 14 | — | 40 | 90 | ||||||||||||||||||
| Adjusted EBITDA (loss)(1) | $ | 1,941 | $ | 889 | $ | 908 | $ | 371 | $ | (1,901 | ) | $ | 2,208 | |||||||||||
| For The Three Months Ended |
Business Services |
Corporate | Total | |||||||||
| Revenue, from external customers | $ | 33,600 | $ | — | $ | 33,600 | ||||||
| Gross profit | $ | 17,604 | $ | — | $ | 17,604 | ||||||
| Net loss | $ | (485 | ) | $ | (100 | ) | $ | (585 | ) | |||
| Provision for income taxes | 875 | (38 | ) | 837 | ||||||||
| Interest (income) expense, net | 130 | (210 | ) | (80 | ) | |||||||
| Total depreciation and amortization | 316 | 3 | 319 | |||||||||
| EBITDA (loss)(1) | 836 | (345 | ) | 491 | ||||||||
| Corporate administrative charges | 298 | (298 | ) | — | ||||||||
| Foreign currency gain/loss | (151 | ) | (7 | ) | (158 | ) | ||||||
| Other non-operating expense (income) | (34 | ) | (105 | ) | (139 | ) | ||||||
| Stock-based compensation expense | 168 | 66 | 234 | |||||||||
| Severance/contingent salary | 392 | — | 392 | |||||||||
| Other non-recurring expenses | — | 41 | 41 | |||||||||
| Adjusted EBITDA (loss)(1) | $ | 1,509 | $ | (648 | ) | $ | 861 | |||||
- Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income (expense), stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
- The Company allocates all corporate interest income to the Investments Division
| SEGMENT ANALYSIS - YEAR TO DATE | ||||||||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| For The Year Ended |
Building Solutions | Business Services | Energy Services | Investments | Corporate | Total | ||||||||||||||||||
| Revenue, from external customers | $ | 27,578 | $ | 139,652 | $ | 4,929 | $ | 212 | $ | (212 | ) | $ | 172,159 | |||||||||||
| Gross profit | $ | 6,275 | $ | 71,773 | $ | 1,928 | $ | 105 | $ | (212 | ) | $ | 79,869 | |||||||||||
| Net loss attributable to common shareholders | $ | 1,866 | $ | (2,152 | ) | $ | 357 | $ | 160 | $ | (6,888 | ) | $ | (6,657 | ) | |||||||||
| Dividends on Series A perpetual preferred stock | — | — | — | — | 740 | 740 | ||||||||||||||||||
| Net loss | 1,866 | (2,152 | ) | 357 | 160 | (6,148 | ) | (5,917 | ) | |||||||||||||||
| Provision from income taxes | — | 1,999 | — | — | 62 | 2,061 | ||||||||||||||||||
| Interest (income) expense, net | 212 | 510 | 99 | (283 | ) | (798 | ) | (260 | ) | |||||||||||||||
| Total depreciation and amortization | 361 | 1,028 | 560 | 107 | 22 | 2,078 | ||||||||||||||||||
| EBITDA (loss)(1) | 2,439 | 1,385 | 1,016 | (16 | ) | (6,862 | ) | (2,038 | ) | |||||||||||||||
| Corporate administrative charges | — | 1,084 | — | — | (1,084 | ) | — | |||||||||||||||||
| Foreign currency gain/loss | — | 289 | — | — | 14 | 303 | ||||||||||||||||||
| Other non-operating expense (income) | (51 | ) | 199 | (26 | ) | (40 | ) | (106 | ) | (24 | ) | |||||||||||||
| Stock-based compensation expense | 16 | 850 | — | — | 631 | 1,497 | ||||||||||||||||||
| Interest income(2) | — | — | — | 449 | — | 449 | ||||||||||||||||||
| Unrealized (gain) loss on equity securities | — | — | — | 149 | — | 149 | ||||||||||||||||||
| Severance/contingent salary | — | 891 | — | — | — | 891 | ||||||||||||||||||
| Transaction costs related to mergers and acquisitions | — | 269 | — | — | 2,259 | 2,528 | ||||||||||||||||||
| Financing cost | 21 | 4 | 32 | — | 6 | 63 | ||||||||||||||||||
| Other non-recurring expenses | 81 | 33 | 14 | — | 245 | 373 | ||||||||||||||||||
| Adjusted EBITDA (loss)(1) | $ | 2,506 | $ | 5,004 | $ | 1,036 | $ | 542 | $ | (4,897 | ) | $ | 4,191 | |||||||||||
| For The Year Ended |
Business Services | Corporate | Total | |||||||||
| Revenue, from external customers | $ | 140,056 | $ | — | $ | 140,056 | ||||||
| Gross profit | $ | 70,152 | $ | — | $ | 70,152 | ||||||
| Net loss | $ | (1,993 | ) | $ | (2,777 | ) | $ | (4,770 | ) | |||
| Provision for income taxes | 1,242 | 58 | 1,300 | |||||||||
| Interest (income) expense, net | 520 | (880 | ) | (360 | ) | |||||||
| Total depreciation and amortization | 1,350 | 11 | 1,361 | |||||||||
| EBITDA (loss)(1) | 1,119 | (3,588 | ) | (2,469 | ) | |||||||
| Corporate administrative charges | 1,030 | (1,030 | ) | — | ||||||||
| Foreign currency gain/loss | 161 | — | 161 | |||||||||
| Other non-operating expense (income) | 17 | (157 | ) | (140 | ) | |||||||
| Stock-based compensation expense | 815 | 465 | 1,280 | |||||||||
| Severance/contingent salary | 1,180 | — | 1,180 | |||||||||
| Other non-recurring expenses | 10 | 881 | 891 | |||||||||
| Adjusted EBITDA (loss)(1) | $ | 4,332 | $ | (3,429 | ) | $ | 903 | |||||
- Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income (expense), stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
- The Company allocates all corporate interest income to the Investments Division.
| SEGMENT ANALYSIS - YEAR TO DATE | ||||||||||||||||||||||||
| RECONCILIATION OF PRO FORMA ADJUSTED EBITDA | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| For The Year Ended |
Building Solutions | Business Services | Energy Services | Investments | Corporate | Total | ||||||||||||||||||
| Pro forma revenue, from external customers(1) | $ | 71,862 | $ | 139,652 | $ | 13,203 | $ | 631 | $ | (631 | ) | $ | 224,717 | |||||||||||
| Pro forma gross profit(1) | $ | 18,034 | $ | 71,773 | $ | 5,461 | $ | 333 | $ | (631 | ) | $ | 94,970 | |||||||||||
| Pro forma net loss attributable to common shareholders(1) | $ | 3,494 | $ | (2,152 | ) | $ | 669 | $ | 5,073 | $ | (13,638 | ) | $ | (6,554 | ) | |||||||||
| Dividends on Series A perpetual preferred stock | — | — | — | — | 2,496 | 2,496 | ||||||||||||||||||
| Pro forma net loss | 3,494 | (2,152 | ) | 669 | 5,073 | (11,142 | ) | (4,058 | ) | |||||||||||||||
| Provision from income taxes | 1 | 1,999 | — | — | (1,670 | ) | 330 | |||||||||||||||||
| Interest (income) expense, net | 666 | 510 | 220 | (704 | ) | (770 | ) | (78 | ) | |||||||||||||||
| Total depreciation and amortization | 2,835 | 1,028 | 1,415 | 299 | 41 | 5,618 | ||||||||||||||||||
| Pro forma EBITDA (loss)(2) | 6,996 | 1,385 | 2,304 | 4,668 | (13,541 | ) | 1,812 | |||||||||||||||||
| Corporate administrative charges | — | 1,084 | — | — | (1,084 | ) | — | |||||||||||||||||
| Foreign currency gain/loss | — | 289 | — | — | 14 | 303 | ||||||||||||||||||
| Other non-operating expense (income), including corporate administration charges | (51 | ) | 199 | (6 | ) | (38 | ) | (108 | ) | (4 | ) | |||||||||||||
| Stock-based compensation expense | 46 | 850 | — | — | 775 | 1,671 | ||||||||||||||||||
| Interest income(3) | — | — | — | 1,249 | — | 1,249 | ||||||||||||||||||
| Unrealized (gain) loss on equity securities | — | — | — | 35 | — | 35 | ||||||||||||||||||
| Severance/contingent salary | — | 891 | — | — | — | 891 | ||||||||||||||||||
| Transaction costs related to mergers and acquisitions | — | 269 | 595 | — | 4,140 | 5,004 | ||||||||||||||||||
| Impairment of cost method investment | — | — | — | 432 | — | 432 | ||||||||||||||||||
| Loss (gain) on equity method investment | — | — | — | 755 | — | 755 | ||||||||||||||||||
| Financing cost | 61 | 4 | 32 | — | 17 | 114 | ||||||||||||||||||
| Other non-recurring expenses | 132 | 33 | 14 | — | 184 | 363 | ||||||||||||||||||
| Pro forma adjusted EBITDA (loss)(2) | $ | 7,184 | $ | 5,004 | $ | 2,939 | $ | 7,101 | $ | (9,603 | ) | $ | 12,625 | |||||||||||
- Pro forma
Building Solutions and Investments results for the full year of 2025 as opposed toAugust 22, 2025 throughDecember 31, 2025 . Pro forma Energy Services reflects results from Alliance Drilling Tools for the full year in 2025. AllianceDrilling Tools was acquired by Star Operating Companies onMarch 3, 2025 . - Pro forma Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
- The Company allocates all corporate interest income to the Investments Division.
| SEGMENT ANALYSIS - YEAR TO DATE | ||||||||||||||||||||||||
| RECONCILIATION OF PRO FORMA ADJUSTED EBITDA | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||
| For The Year Ended |
Building Solutions | Business Services | Energy Services | Investments | Corporate | Total | ||||||||||||||||||
| Pro forma revenue, from external customers(1) | $ | 60,131 | $ | 140,056 | $ | 10,111 | $ | 731 | $ | (731 | ) | $ | 210,298 | |||||||||||
| Pro forma gross profit(1) | $ | 13,967 | $ | 70,152 | $ | 5,678 | $ | 510 | $ | (731 | ) | $ | 89,576 | |||||||||||
| Pro forma net loss attributable to common shareholders(1) | $ | 568 | $ | (1,993 | ) | $ | 1,401 | $ | (1,797 | ) | $ | (11,880 | ) | $ | (13,701 | ) | ||||||||
| Dividends on Series A perpetual preferred stock | — | — | — | — | 2,040 | 2,040 | ||||||||||||||||||
| Pro forma net loss | 568 | (1,993 | ) | 1,401 | (1,797 | ) | (9,840 | ) | (11,661 | ) | ||||||||||||||
| Provision for income taxes | 13 | 1,242 | — | — | 321 | 1,576 | ||||||||||||||||||
| Interest (income) expense, net | 481 | 520 | (33 | ) | (716 | ) | (1,301 | ) | (1,049 | ) | ||||||||||||||
| Total depreciation and amortization | 3,406 | 1,350 | 637 | 221 | 54 | 5,668 | ||||||||||||||||||
| Pro forma EBITDA (loss)(2) | 4,468 | 1,119 | 2,005 | (2,292 | ) | (10,766 | ) | (5,466 | ) | |||||||||||||||
| Foreign currency gain/loss | — | 161 | — | — | — | 161 | ||||||||||||||||||
| Corporate administrative charges | — | 1,030 | — | — | (1,030 | ) | — | |||||||||||||||||
| Other non-operating expense (income) | 18 | 17 | — | — | (157 | ) | (122 | ) | ||||||||||||||||
| Stock-based compensation expense | 39 | 815 | — | — | 665 | 1,519 | ||||||||||||||||||
| Interest income(3) | — | — | — | 1,251 | — | 1,251 | ||||||||||||||||||
| Unrealized (gain) loss on equity securities | — | — | — | 177 | — | 177 | ||||||||||||||||||
| Severance/contingent salary | — | 1,180 | — | — | — | 1,180 | ||||||||||||||||||
| Purchase accounting adjustments(4) | 786 | — | — | — | — | 786 | ||||||||||||||||||
| Transaction costs related to mergers and acquisitions | — | — | 115 | — | 1,531 | 1,646 | ||||||||||||||||||
| Impairment of cost method investment | — | — | — | 4,615 | — | 4,615 | ||||||||||||||||||
| Loss (gain) on equity method investment | — | — | — | 1,850 | — | 1,850 | ||||||||||||||||||
| Financing cost | 24 | — | — | — | 11 | 35 | ||||||||||||||||||
| Gains on sale and leaseback transactions | — | — | — | (3,755 | ) | — | (3,755 | ) | ||||||||||||||||
| Other non-recurring expenses | (80 | ) | 10 | — | — | 608 | 538 | |||||||||||||||||
| Pro forma adjusted EBITDA (loss)(2) | $ | 5,255 | $ | 4,332 | $ | 2,120 | $ | 1,846 | $ | (9,138 | ) | $ | 4,415 | |||||||||||
- Pro forma
Building Solutions , Energy Services, and Investments results fromStar Operating Companies, Inc. for the full year of 2024. Pro formaBuilding Solutions reflects results from Timber Technologies for the full year in 2024. Timber Technologies was acquired by Star Operating Companies onMay 17, 2024 . Pro forma Energy Services in 2024 reflects Alliance Drilling Tools results, which was acquired by Star Operating Companies onMarch 3, 2025 . - Pro forma Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring expenses (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.
- The Company allocates all corporate interest income to the Investments Division.
- Reflects purchase accounting adjustments related to the fair value of TT inventory and BLL earn-out that impacted net income.
| RECONCILIATION OF ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE | ||||||||||
| (in thousands, except per share amounts) | ||||||||||
| (unaudited) | ||||||||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Three Months Ended |
Net Loss | Outstanding | Share(1) | |||||||
| Net loss | $ | (1,709 | ) | 3,543 | $ | (0.48 | ) | |||
| Dividends on Series A perpetual preferred stock | (673 | ) | 3,543 | (0.19 | ) | |||||
| Net loss attributable to common shareholders | (2,382 | ) | 3,543 | (0.67 | ) | |||||
| Intangible amortization from acquisitions | 179 | 3,543 | 0.05 | |||||||
| Deferred tax on subsidiary write-downs | 1,111 | 3,543 | 0.31 | |||||||
| Unrealized (gain) loss on equity securities | 116 | 3,543 | 0.03 | |||||||
| Severance/contingent salary | 124 | 3,543 | 0.04 | |||||||
| Transaction costs related to mergers and acquisitions | 371 | 3,543 | 0.10 | |||||||
| Financing cost | 44 | 3,543 | 0.01 | |||||||
| Other non-recurring expenses | 90 | 3,543 | 0.03 | |||||||
| Adjusted net loss attributable to common shareholders(2) | $ | (347 | ) | 3,543 | $ | (0.10 | ) | |||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Three Months Ended |
Net Income | Outstanding | Share(1) | |||||||
| Net loss | $ | (585 | ) | 2,974 | $ | (0.20 | ) | |||
| Intangible amortization from acquisitions | 257 | 2,974 | 0.09 | |||||||
| Severance/contingent salary | 392 | 2,974 | 0.13 | |||||||
| Other non-recurring expenses | 41 | 2,974 | 0.01 | |||||||
| Stock-based compensation expense related to acquisitions | 5 | 2,974 | — | |||||||
| Adjusted net income(2) | $ | 110 | 2,974 | $ | 0.04 | |||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Year Ended |
Net Loss | Outstanding | Share(1) | |||||||
| Net loss | $ | (5,917 | ) | 3,198 | $ | (1.85 | ) | |||
| Dividends on Series A perpetual preferred stock | (740 | ) | 3,198 | (0.23 | ) | |||||
| Net loss attributable to common shareholders | (6,657 | ) | 3,198 | (2.08 | ) | |||||
| Intangible amortization from acquisitions | 901 | 3,198 | 0.28 | |||||||
| Deferred tax on subsidiary write-downs | 1,111 | 3,198 | 0.35 | |||||||
| Unrealized (gain) loss on equity securities | 149 | 3,198 | 0.05 | |||||||
| Severance/contingent salary | 891 | 3,198 | 0.28 | |||||||
| Transaction costs related to mergers and acquisitions | 2,528 | 3,198 | 0.79 | |||||||
| Financing cost | 63 | 3,198 | 0.02 | |||||||
| Other non-recurring expenses | 373 | 3,198 | 0.12 | |||||||
| Adjusted net loss attributable to common shareholders(2) | $ | (641 | ) | 3,198 | $ | (0.20 | ) | |||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Year Ended |
Net Loss | Outstanding | Share(1) | |||||||
| Net loss | $ | (4,770 | ) | 3,000 | $ | (1.59 | ) | |||
| Intangible amortization from acquisitions | 1,129 | 3,000 | 0.38 | |||||||
| Severance/contingent salary | 1,180 | 3,000 | 0.39 | |||||||
| Other non-recurring expenses | 891 | 3,000 | 0.30 | |||||||
| Stock-based compensation expense related to acquisitions | 107 | 3,000 | 0.04 | |||||||
| Adjusted net loss(2) | $ | (1,463 | ) | 3,000 | $ | (0.49 | ) | |||
- Amounts may not sum due to rounding.
- Adjusted net income or loss attributable to common shareholders per diluted share are Non-GAAP measures defined as reported net income or loss attributable to common shareholders and reported net income or loss attributable to common shareholders per diluted share before items such as acquisition-related costs and non-recurring expenses after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.
| RECONCILIATION OF PRO FORMA ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE | ||||||||||
| (in thousands, except per share amounts) | ||||||||||
| (unaudited) | ||||||||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Year Ended |
Net Income | Outstanding | Share(1) | |||||||
| Pro forma net loss(3) | $ | (4,058 | ) | 3,671 | $ | (1.11 | ) | |||
| Dividends on Series A perpetual preferred stock | (2,496 | ) | 3,671 | (0.68 | ) | |||||
| Pro forma net loss attributable to common shareholders(3) | (6,554 | ) | 3,671 | (1.79 | ) | |||||
| Intangible amortization from acquisitions | 2,814 | 3,671 | 0.77 | |||||||
| Deferred tax on subsidiary write-downs | 1,111 | 3,671 | 0.30 | |||||||
| Unrealized (gain) loss on equity securities | 35 | 3,671 | 0.01 | |||||||
| Severance/contingent salary | 891 | 3,671 | 0.24 | |||||||
| Transaction costs related to mergers and acquisitions | 5,004 | 3,671 | 1.36 | |||||||
| Impairment of cost method investment | 432 | 3,671 | 0.12 | |||||||
| Loss (gain) on equity method investment | 755 | 3,671 | 0.21 | |||||||
| Financing cost | 114 | 3,671 | 0.03 | |||||||
| Other non-recurring expenses | 363 | 3,671 | 0.10 | |||||||
| Pro forma adjusted net income attributable to common shareholders(2) | $ | 4,965 | 3,671 | $ | 1.35 | |||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Year Ended |
Net Loss | Outstanding | Share(1) | |||||||
| Pro forma net loss(3) | $ | (11,661 | ) | 3,744 | $ | (3.11 | ) | |||
| Dividends on Series A perpetual preferred stock | (2,040 | ) | 3,744 | (0.54 | ) | |||||
| Pro forma net loss attributable to common shareholders(3) | (13,701 | ) | 3,744 | (3.66 | ) | |||||
| Intangible amortization from acquisitions | 3,608 | 3,744 | 0.96 | |||||||
| Unrealized (gain) loss on equity securities | 177 | 3,744 | 0.05 | |||||||
| Severance/contingent salary | 1,180 | 3,744 | 0.32 | |||||||
| Purchase accounting adjustment | 786 | 3,744 | 0.21 | |||||||
| Transaction costs related to mergers and acquisitions | 1,646 | 3,744 | 0.44 | |||||||
| Impairment of cost method investment | 4,615 | 3,744 | 1.23 | |||||||
| Loss (gain) on equity method investment | 1,850 | 3,744 | 0.49 | |||||||
| Financing cost | 35 | 3,744 | 0.01 | |||||||
| Gains on sale and leaseback transactions | (3,755 | ) | 3,744 | (1.00 | ) | |||||
| Stock-based compensation expense related to acquisitions | 107 | 3,744 | 0.03 | |||||||
| Other non-recurring expenses | 538 | 3,744 | 0.14 | |||||||
| Pro forma adjusted net loss attributable to common shareholders(2) | $ | (2,914 | ) | 3,744 | $ | (0.78 | ) | |||
- Amounts may not sum due to rounding.
- Adjusted net income or loss attributable to common shareholders per diluted share are Non-GAAP measures defined as reported net income or loss attributable to common shareholders and reported net income or loss attributable to common shareholders per diluted share before items such as acquisition-related costs and non-recurring expenses after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies.
- Pro forma
Building Solutions , Energy Services, and Investments results for the full year of 2024 and 2025 as opposed toAugust 22, 2025 throughDecember 31, 2025 . Pro formaBuilding Solutions in 2024 reflects Timber Technologies results fromJanuary 1, 2024 through the date of acquisition ofMay 17, 2024 . Pro forma Energy Services in 2024 and 2025 reflects Alliance Drilling Tools results, which was acquired by Star Operating Companies onMarch 3, 2025 .
Source: Star Equity Holdings, Inc.
