Star Equity Holdings (STRR) Q4 2025 earnings summary

Executive summary

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

• Adjusted EBITDA for FY 2025 increased 364% to $4.2M, with pro forma adjusted EBITDA up 186% to $12.6M; Q4 adjusted EBITDA rose 156% to $2.2M.

• Net loss attributable to common shareholders was $(6.7)M for FY 2025 and $(2.4)M for Q4; adjusted net loss improved to $(0.6)M for the year and $(0.3)M for Q4.

• The August 2025 merger added Building Solutions and Energy Services divisions, driving scale, diversification, and operational improvements.

• Share repurchases exceeded $2.6M in 2025, with a new 10b5-1 plan and $2.5M remaining under the $3M buyback program.

Financial highlights

• FY 2025 gross profit increased 14% to $79.9M; Q4 gross profit rose 38% to $24.2M; pro forma gross profit for FY 2025 was $95.0M, up 6% year-over-year.

• Year-end 2025 cash, including restricted cash, was $13.4M; working capital (excluding cash) was $22.4M; total working capital was $62.5M.

• NOL carryforwards at year-end 2025 totaled $215M.

• Q4 2025 adjusted EBITDA margin was 3.9%; full-year adjusted EBITDA margin was 2.4%.

• Net cash used in operations for FY 2025 was $(7.3)M; capital expenditures were $(1.7)M.

Outlook and guidance

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

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

• Building Solutions backlog declined through 2025 but is expected to improve in 2026 as high-value projects move to backlog.

• Gradual, modest recovery expected in U.S. home construction, with focus on affordable homes and townhomes.

• Continued investments in people, technology, and M&A to drive organic and external growth.