Star Equity Holdings Reports 30.1% Revenue Growth but Increases Net Loss in Q3 2025

Star Equity Holdings, Inc. (formerly Hudson Global, Inc.) reported significant financial developments in its latest 10-Q filing for the third quarter of 2025. The company achieved total revenues of $48.0 million for the three months ended September 30, 2025, marking a 30.1% increase from $36.9 million in the same period of 2024. This growth was primarily driven by the acquisition of Star Operating Companies, which contributed approximately 30 percentage points to the revenue increase. For the nine months ended September 30, 2025, revenues reached $115.4 million, an 8.4% rise compared to $106.5 million in the prior year.

Despite the revenue growth, Star Equity reported a net loss of $1.8 million for the third quarter of 2025, compared to a net loss of $0.8 million in the same quarter of 2024. The increase in net loss was attributed to higher selling, general, and administrative expenses, which rose to $21.8 million from $18.9 million year-over-year. The company’s EBITDA loss for the quarter was $0.9 million, reflecting a deterioration from a loss of $0.3 million in the previous year. For the nine-month period, the net loss remained stable at $4.2 million, consistent with the prior year.

Strategically, the company completed the acquisition of Star Operating Companies on August 22, 2025, which has been a pivotal development in its growth strategy. This merger has expanded Star Equity's operational capabilities, particularly in the Building Solutions and Energy Services segments. Additionally, the company acquired Alpha Consulting Group, a Japan-based recruitment services provider, on July 23, 2025, further enhancing its Business Services segment and marking its entry into the Japanese market.

Operationally, Star Equity has seen an increase in customer engagement, with the Building Solutions segment generating $9.6 million in revenue for the third quarter, a notable achievement given that this segment was previously non-existent in the prior year. The Business Services segment reported revenues of $37.0 million, with a slight increase in recruitment process outsourcing (RPO) services. The Energy Services segment contributed $1.3 million in revenue, reflecting a gradual recovery in drilling activity. The company’s total assets as of September 30, 2025, stood at $117.1 million, a significant increase from $52.6 million at the end of 2024, largely due to the acquisitions.

Looking ahead, Star Equity Holdings remains focused on leveraging its recent acquisitions to drive growth and improve profitability. The company is optimistic about its ability to navigate current market challenges, including inflation and fluctuating demand, while continuing to explore strategic alternatives for enhancing shareholder value. The management believes that the integration of acquired businesses will yield positive results in the coming quarters, although they acknowledge the potential risks associated with market conditions and operational integration.