Star Equity Holdings (STRR) investor relations material

Executive summary

• Q1 2026 revenue rose to $50.1 million, with year-over-year growth rates reported as 57%, 57.1%, and 8%, driven by merger synergies, new business wins, and contract renewals.

• Gross profit increased to $20.6 million, with growth rates cited as 25% and 25.4%, but nearly flat in one report.

• Adjusted EBITDA loss widened to $1.6 million from $0.7 million in the prior year; net loss attributable to common shareholders was $4.4 million.

• Merger synergies of $2.6 million annualized were realized, exceeding initial expectations.

• Energy Services delivered strong growth, offsetting weaker performance in Building Solutions and Business Services, which faced market softness, project delays, and talent challenges.

Financial highlights

• Revenue reached $50.1 million; gross profit was $20.6 million; adjusted EBITDA loss was $1.6 million.

• Net loss attributable to common shareholders was $4.4 million; adjusted net loss per diluted share was $0.99.

• Ended Q1 with $10.3 million in total cash (including $2.2 million restricted); cash and equivalents declined to $8.1 million in one report.

• Net cash used in operations was $1.4 million; capital expenditures were $1.3 million.

• Share repurchases totaled $0.7 million, with $1.8 million remaining under authorization.

Outlook and guidance

• Management expects improved results in subsequent quarters, citing operational improvements, new business wins, and investments in growth.

• Comfortable with consensus for Q2 Adjusted EBITDA above $2 million and full-year range of $8–$10 million.

• Focus remains on disciplined execution, cost management, and evaluating accretive M&A opportunities.