Star Equity Holdings (STRR) Q4 2025 earnings summary

Executive summary

• Revenue for Q4 2025 rose 69% year-over-year to $56.8M; full-year revenue up 23% to $172.2M, with pro forma revenue up 7% to $224.7M.

• Adjusted EBITDA for Q4 2025 was $2.2M (up 156% YoY); full-year adjusted EBITDA was $4.2M (up 364%), with pro forma adjusted EBITDA up to $12.6M (up 186%).

• Net loss attributable to common shareholders was $2.4M in Q4 and $6.7M for the year; adjusted net loss per share improved to $0.10 in Q4 and $0.20 for the year.

• 2025 was transformative due to the August merger, adding Building Solutions and Energy Services divisions and driving scale and diversification.

• Integration post-merger is progressing well, with realized cost synergies and enhanced collaboration.

Financial highlights

• Full-year gross profit increased 14% to $79.9M; Q4 gross profit up 38% to $24.2M; pro forma gross profit up 6% to $95.0M.

• Ended 2025 with $13.4M in cash (including $3.1M restricted) and $22.4M in working capital (excluding cash).

• Working capital increased to $62.5M at year-end 2025 from $40.1M in 2024.

• Used $7.3M in cash flow from operations in 2025; capital expenditures were $1.7M.

• Usable NOL carryforwards totaled $215M at year-end.

Outlook and guidance

• Q1 2026 expected to be the weakest quarter, with sequential declines in revenue and EBITDA from Q4.

• Full-year 2026 guidance aligns with consensus estimates; significant improvement anticipated after Q1.

• Building Solutions backlog expected to improve in H1 2026 as high-value projects move to backlog.

• Modest recovery in U.S. home construction anticipated, with focus on affordable homes and townhomes.

• Management expects continued use of share buybacks to enhance shareholder value.