Star Equity Holdings (STRR) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $33.6M, down 1.1% year-over-year; adjusted net revenue rose 6.4% to $17.6M.

• Full-year 2024 revenue declined 13.2% to $140.1M; adjusted net revenue fell 12.6% to $70.2M.

• Q4 net loss was $0.6M ($0.20/share) vs. net income of $0.7M ($0.23/share) in Q4 2023; full-year net loss was $4.8M ($1.59/share) vs. net income of $2.2M ($0.70/share) in 2023.

• Adjusted EBITDA for Q4 was $0.9M, up from $0.1M in Q4 2023; full-year adjusted EBITDA was $0.9M, down from $5.9M in 2023.

• Significant investments in sales, marketing, technology, and digital capabilities were made to support future growth.

Financial highlights

• Q4 adjusted net revenue was $17.6M, up 6.4% year-over-year in constant currency.

• Q4 adjusted EBITDA improved to $0.9M from $0.1M year-over-year.

• Q4 net loss was $0.6M, or $0.20 per diluted share; adjusted net loss per diluted share was $0.05.

• Year-end cash balance was $17.7M (including $0.7M restricted); working capital was $11.9M at year-end.

• Free cash flow for 2024 was negative, with a $5.5M decrease in cash, cash equivalents, and restricted cash year-over-year.

Segment performance

• Americas Q4 revenue rose 18% to $7.3M; adjusted net revenue up 5%; adjusted EBITDA improved to $0.4M from a $0.7M loss.

• Asia Pacific Q4 revenue fell 10% to $20.0M; adjusted net revenue up 6%; adjusted EBITDA flat at $0.9M.

• EMEA Q4 revenue up 7% to $6.3M; adjusted net revenue up 5%; adjusted EBITDA down to $0.2M from $0.6M.

• Q4 revenue split: Asia Pacific 59%, Americas 22%, EMEA 19%; adjusted net revenue split: Asia Pacific 42%, Americas 36%, EMEA 22%.

• Q4 services split: RPO and Contracting each contributed 50% of revenue; RPO made up 94% of adjusted net revenue.