Star Equity Holdings Reports Q2 2025 Financial Results with 75.8% Revenue Growth, $3.5 Million Net Income, and Expected Merger with Hudson Global.

Star Equity Holdings reported Q2 2025 revenues of $23.7 million, up 75.8% YoY, with a net income of $3.5 million, a significant turnaround from a $3.8 million loss in Q2 2024. The merger with Hudson Global is expected to foster growth and cost synergies.

Star Equity Holdings, Inc. (Nasdaq: STRR; STRRP) reported robust financial results for the second quarter (Q2) of 2025, showcasing a significant turnaround from the previous year. The company's revenues increased by 75.8% to $23.7 million, while net income surged to $3.5 million, marking a substantial improvement from the $3.8 million loss recorded in Q2 2024. This performance was driven by strong growth in the Building Solutions division and the inclusion of revenues from recent acquisitions, Timber Technologies Solutions (TT) and Alliance Drilling Tools (ADT).

The Building Solutions segment played a pivotal role in this growth, with revenues increasing by 51.2% compared to the same period in 2024. The division's backlog stood at $25.7 million, indicating continued strong demand for new projects. Additionally, the company's Energy Services division demonstrated robust performance despite challenging macroeconomic conditions.

The company's non-GAAP adjusted net income for Q2 2025 was $6.0 million, up from a net loss of $0.9 million in the same period last year. This was primarily driven by realized gains on securities at the Investments Division, which contributed $5.8 million in adjusted EBITDA.

Star Equity Holdings also announced a definitive merger agreement with Hudson Global, Inc. (Nasdaq: HSON). The merger, subject to shareholder approval, is expected to create significant value for shareholders through increased scale, further diversification of revenue streams, and the elimination of redundant public company costs.

The company's operating cash flow improved, with a net outflow of $1.7 million in Q2 2025 compared to $1.9 million in the same period last year. This improvement was attributed to favorable operational results and strong accounts receivable collections.

The company's stock repurchase program remained active, with $721,000 authorized for share repurchases as of June 30, 2025. Additionally, the board of directors declared a cash dividend of $0.25 per share for Series A Preferred Stock holders, totaling approximately $0.7 million.

Star Equity Holdings has a strong NOL carryforward, with $44.6 million in U.S. federal and $17.6 million in state net operating losses as of December 31, 2024. The company's rights agreement and charter amendment limit beneficial ownership of common stock to 4.99%, ensuring the protection of the value of these NOLs for all stockholders.

The company will host a conference call on August 13, 2025, to discuss the results and management's outlook. The call can be accessed by dialing (833) 630-1956 (toll-free) or (412) 317-1837 (international), five minutes prior to the scheduled start time.

References:
[1] https://finance.yahoo.com/news/star-equity-holdings-inc-announces-123000347.html