Star Equity Holdings (STRR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $35.7 million, down 20.5% year-over-year, with adjusted net revenue falling 22% to $17.6 million, driven by persistent lower hiring volumes and challenging market conditions across all regions.

• Net loss for Q2 2024 was $0.4 million ($0.15 per diluted share), compared to net income of $0.6 million ($0.18 per diluted share) in Q2 2023.

• Adjusted EBITDA was $0.7 million, down from $2.6 million a year ago, reflecting a 71.8% year-over-year decline.

• Strategic acquisitions, including Striver and Executive Solutions, expanded the company's global footprint and service offerings.

• Cost-saving initiatives and workforce reductions were implemented to protect profitability and optimize operations.

Financial highlights

• Q2 2024 revenue was $35.7 million, down 20.5% year-over-year; adjusted net revenue was $17.6 million, down 22%.

• Adjusted net income per diluted share was $0.04, down from $0.36 in Q2 2023.

• Cash and equivalents at quarter-end were $14.7 million, with total liquidity including restricted cash at $15.3 million.

• Cash flow from operations was negative $4.3 million in Q2 2024, compared to positive $2.6 million in Q2 2023.

• SG&A expenses decreased 15.4% year-over-year to $16.9 million, excluding non-recurring items.

Segment performance

• Americas: Q2 revenue $7.0 million (down 19%), adjusted net revenue $6.3 million (down 24%), adjusted EBITDA $0.6 million (up from breakeven in Q2 2023).

• Asia Pacific: Q2 revenue $22.6 million (down 19%), adjusted net revenue $7.6 million (down 19%), adjusted EBITDA $0.8 million (down from $2.5 million in Q2 2023).

• EMEA: Q2 revenue $6.1 million (down 24%), adjusted net revenue $3.6 million (down 23%), adjusted EBITDA $0.3 million (down from $1.1 million in Q2 2023).

• Asia Pacific contributed 63% of Q2 revenue, Americas 20%, and Europe 17%.