Star Equity Holdings Reports 75.8% Revenue Growth to $23.7 Million in Latest Quarter

Star Equity Holdings, Inc. reported significant financial improvements in its latest quarterly filing, with total revenues reaching $23.7 million for the three months ended June 30, 2025, a 75.8% increase from $13.5 million in the same period last year. The company's gross profit also saw a substantial rise, climbing to $6.3 million, compared to $2.2 million in the prior year, reflecting a gross margin of 26.4%. Net income for the quarter was $3.5 million, a notable turnaround from a net loss of $3.8 million in the second quarter of 2024. For the first half of 2025, total revenues were $36.6 million, up 62.1% from $22.6 million in the first half of 2024, with net income of $2.3 million compared to a loss of $6 million in the previous year.

The company's financial performance was bolstered by the inclusion of revenues from Timber Technologies Solutions, Inc. (TT), which was fully integrated into Star's operations following its acquisition in May 2024. The Building Solutions division, which includes KBS Builders, EdgeBuilder, and Glenbrook, reported a revenue increase of 51.2% to $20.4 million, driven by improved business activity and a growing backlog of projects. The newly established Energy Services division, resulting from the acquisition of Alliance Drilling Tools, Inc. (ADT), contributed $3.3 million in revenue during the quarter.

Operationally, Star Equity has made strategic moves to enhance its market position. The company is actively pursuing a merger with Hudson Global, Inc., which is expected to close in the near future, subject to stockholder approval. This merger aims to consolidate resources and expand operational capabilities. Additionally, Star Equity has been focusing on organic growth and exploring opportunities for complementary acquisitions to strengthen its portfolio further.

As of June 30, 2025, Star Equity reported total assets of $102.4 million, up from $83 million at the end of 2024. The company’s cash and cash equivalents stood at $1.9 million, with total debt of $14.3 million. The increase in assets is attributed to the successful integration of TT and the acquisition of ADT, which has expanded Star's operational footprint in the energy sector. The company also noted a decrease in cash used in operating activities, reflecting improved operational efficiency.

Looking ahead, Star Equity remains optimistic about its growth trajectory, citing strong demand in its Building Solutions division and the potential for increased activity in the Energy Services sector as market conditions stabilize. The company plans to leverage its diversified portfolio to navigate economic uncertainties and capitalize on emerging opportunities in both construction and energy services.