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olivLaw · US equity research

Star Equity Holdings, Inc. STRR

Services-Help Supply Services · SIC 7363 · Vertical: Services-Help Supply Services (SIC 7363)

9.61USD−0.52% · 1 dayClose 04 Nov 2026

Star Equity Holdings is a Nasdaq-listed diversified holding company with four segments: wood-based construction products, RPO recruitment services, drilling tools and investments. It matters now because after the August 2025 merger revenue grew sharply, yet profitability remains fragile, and the company relies on a large pool of US net operating losses.

At the close of 04 Nov 2026, Star Equity Holdings, Inc. (STRR) stock was 9.61 USD (−0.52% on the day), with market capitalisation 35.5 m USD, dividend yield 0.00%, beta 0.33, 52-week range 9.25–11.81 USD. Latest reported quarter (Q2 2026): revenue of 54.9 m USD (+54.6% YoY), net income of -1.8 m USD, diluted EPS -0.50 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
35.5 m USD
shares as of 31 Jul 2026
P/E (TTM)
unavailable
Diluted EPS TTM -2.53 · TTM to 30 Jun 2026
E/P (TTM)
-26.35%
TTM to 30 Jun 2026
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
0.33
Volatility (1y) 37%
52-week range
9.2511.81

Price history

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Technical reading

RSI (14)
42.0
weak (30–45)
Bollinger (20, 2)
9.39 – 10.39
in the lower half of the band · %B 0.22 · band width 10.2%
SMA 50 / 200
10.04 / 10.28
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.11 / -0.09
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−1.9%−1.1%−0.8 pp—
3 months−16.6%−0.5%−16.1 pp—
6 months+2.2%+4.4%−2.2 pp—
Year to date−14.6%+12.3%−26.9 pp—
1 year−11.8%+13.5%−25.4 pp+54.7%
3 years−40.7%+76.4%−117.1 pp−36.8%
5 years−56.1%+63.7%−119.8 pp—
Max drawdown (1y)
−18.6%
27 May 2026 → 02 Nov 2026
Max drawdown (5y)
−79.5%
04 Apr 2022 → 27 Jun 2025
Compound annual growth (5y)
−15.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
54.9 m USD
+54.6% YoY
Net income
-1.8 m USD
unavailable YoY
Diluted EPS
-0.50
unavailable YoY
net / operating
-3.4% / -2.5%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue36.9 m33.6 m31.9 m35.5 m48.0 m56.8 m50.1 m54.9 m
Cost of revenue18.3 m16.0 m15.5 m16.9 m27.3 m32.6 m29.5 m32.1 m
Gross profit18.6 m17.6 m16.4 m18.6 m20.6 m24.2 m20.6 m22.8 m
Operating income-457.0 k-125.0 k-1.7 m-211.0 k-1.6 m-109.0 k-4.0 m-1.4 m
Depreciation & amortisation358.0 k319.0 k283.0 k245.0 k666.0 k884.0 k942.0 k934.0 k
Pre-tax income-548.0 k252.0 k-1.7 m-343.0 k-1.5 m-274.0 k-4.1 m-1.6 m
Income tax298.0 k837.0 k32.0 k345.0 k249.0 k1.4 m-266.0 k270.0 k
Net income-846.0 k-585.0 k-1.8 m-688.0 k-1.8 m-1.7 m-3.8 m-1.8 m
Diluted EPS-0.28-0.20 ≈-0.59-0.23-0.54-0.48 ≈-1.01-0.50
Operating cash flow1.3 m ≈2.0 m-802.0 k139.0 k ≈-2.7 m ≈-3.9 m-1.4 m-1.7 m ≈
Capex-1.0 k ≈-4.0 k6.0 k37.0 k ≈615.0 k ≈1.0 m1.3 m1.5 m ≈
Share repurchases393.0 k ≈000 ≈2.6 m ≈66.0 k712.0 k157.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue66.9 m93.8 m101.4 m169.2 m200.9 m161.3 m140.1 m172.2 m
Revenue YoY+12.3%+40.2%+8.1%+66.8%+18.7%−19.7%−13.2%+22.9%
Net income7.9 m-955.0 k-1.2 m3.2 m7.1 m2.2 m-4.8 m-5.9 m
Net income YoYunavailable−112.1%unavailableunavailable+120.9%−69.2%−317.0%unavailable
Diluted EPSunavailableunavailable-0.431.072.270.70-1.59-1.85
Diluted EPS YoYunavailableunavailableunavailableunavailable+112.1%−69.2%−327.1%unavailable
net %11.8%-1.0%-1.2%1.9%3.5%1.4%-3.4%-3.4%
Free cash flow-16.0 m-4.9 m-1.4 m2.2 m8.9 m216.0 k-2.8 m-9.0 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
10.3 m USD
Financial debt
14.5 m USD
Net debt
4.3 m USD
Equity
65.7 m USD
Total assets
113.2 m USD
Debt / equity
0.22x
Current ratio
2.10x
ROE
-11.1%
ROA
-7.1%
FCF margin
-5.2%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
161.3 m
2024
140.1 m
2025
172.2 m

SEC (XBRL)· 20 Mar 2026verified

Cost of revenue
2023
—
2024
69.9 m
2025
92.3 m

SEC (XBRL)· 20 Mar 2026verified

Gross profit
2023
—
2024
70.2 m
2025
79.9 m

SEC (XBRL)· 20 Mar 2026verified

Operating income
2023
1.4 m
2024
-3.8 m
2025
-3.7 m

SEC (XBRL)· 20 Mar 2026verified

Depreciation & amortisation
2023
1.5 m
2024
1.4 m
2025
2.1 m

SEC (XBRL)· 20 Mar 2026verified

EBITDA
2023
2.9 m ≈
2024
-2.4 m ≈
2025
-1.6 m ≈

SEC (XBRL)· 20 Mar 2026derived

Pre-tax income
2023
2.6 m
2024
-3.5 m
2025
-3.9 m

SEC (XBRL)· 20 Mar 2026verified

Income tax
2023
370.0 k
2024
1.3 m
2025
2.1 m

SEC (XBRL)· 20 Mar 2026verified

Net income
2023
2.2 m
2024
-4.8 m
2025
-5.9 m

SEC (XBRL)· 20 Mar 2026verified

Diluted EPS
2023
0.70
2024
-1.59
2025
-1.85

SEC (XBRL)· 20 Mar 2026verified

Weighted average diluted shares
2023
3.1 m
2024
3.0 m
2025
3.2 m

SEC (XBRL)· 20 Mar 2026verified

Balance sheet · USD

Cash
2023
22.6 m
2024
17.0 m
2025
10.3 m

SEC (XBRL)· 20 Mar 2026verified

Receivables
2023
19.7 m
2024
20.1 m
2025
35.2 m

SEC (XBRL)· 20 Mar 2026verified

Inventories
2023
—
2024
0
2025
7.0 m

SEC (XBRL)· 20 Mar 2026verified

Current assets
2023
45.8 m
2024
40.1 m
2025
62.5 m

SEC (XBRL)· 20 Mar 2026verified

Property, plant & equipment, net
2023
421.0 k
2024
242.0 k
2025
18.6 m

SEC (XBRL)· 20 Mar 2026verified

Goodwill
2023
5.7 m
2024
5.7 m
2025
5.9 m

SEC (XBRL)· 20 Mar 2026verified

Intangibles (excl. goodwill)
2023
3.6 m
2024
2.5 m
2025
1.7 m

SEC (XBRL)· 20 Mar 2026verified

Total assets
2023
61.0 m
2024
52.6 m
2025
113.2 m

SEC (XBRL)· 20 Mar 2026verified

Accounts payable
2023
868.0 k
2024
1.8 m
2025
4.8 m

SEC (XBRL)· 20 Mar 2026verified

Short-term debt
2023
—
2024
0
2025
8.5 m

SEC (XBRL)· 20 Mar 2026verified

Long-term debt
2023
—
2024
0
2025
6.1 m

SEC (XBRL)· 12 May 2026verified

Current liabilities
2023
11.2 m
2024
11.2 m
2025
29.8 m

SEC (XBRL)· 20 Mar 2026verified

Total liabilities
2023
12.4 m
2024
12.2 m
2025
47.5 m

SEC (XBRL)· 20 Mar 2026verified

Equity
2023
48.6 m †
2024
40.4 m †
2025
65.7 m †

SEC (XBRL)· 20 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
315.0 k
2024
-2.8 m
2025
-7.3 m

SEC (XBRL)· 20 Mar 2026verified

Capex
2023
99.0 k
2024
18.0 k
2025
1.7 m

SEC (XBRL)· 20 Mar 2026verified

Free cash flow
2023
216.0 k ≈
2024
-2.8 m ≈
2025
-9.0 m ≈

SEC (XBRL)· 20 Mar 2026derived

Investing cash flow
2023
-2.2 m
2024
1.1 m
2025
4.6 m

SEC (XBRL)· 20 Mar 2026verified

Financing cash flow
2023
-2.5 m
2024
-3.1 m
2025
-2.0 m

SEC (XBRL)· 20 Mar 2026verified

Share repurchases
2023
959.0 k
2024
2.8 m
2025
2.6 m

SEC (XBRL)· 20 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
22.9%
computed by olivLawFY 2025
Revenue CAGR 3Y
-5.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
11.2%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
42.0%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
-1.8%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
-3.4%
computed by olivLawTTM to 30 Jun 2026
Net margin
-4.3%
computed by olivLawTTM to 30 Jun 2026
FCF margin
-6.8%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
-18.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
-8.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
-8.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROCE
-9.1%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
7.3 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
unavailable
insufficient data
Debt / equity
0.2x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
2.0x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
1.7x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.2x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-9.7 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
4.5 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
-14.2 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
unavailable
insufficient data
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
61 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
21 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
12 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
70 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
35.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
42.7 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-26.4%
computed by olivLawTTM to 30 Jun 2026
P/B
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
insufficient data
EV/EBIT
unavailable
insufficient data
EV/Sales
0.2x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-40.0%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026
Shareholder yield (distributions)
9.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

9.61 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 35.5 m USD

Key indicators

Market capitalisation
35.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
insufficient data
ROE
-18.2%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
-4.3%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
22.9%
computed by olivLawFY 2025
Dividend yield
0.0%
computed by olivLawTTM to 30 Jun 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 14 Aug 2026
verified 2224derived 171

Score by group

44% · Insufficient data

Estimated value range

Low
1.31
USD per share
Mid
1.51
USD per share
High
1.77
USD per share
Price: 9.61 USD
The price is above the range
Potential to the central value: -84.3% (value / price − 1)
Margin of safety: -537.5% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.31 – 1.77 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · the base of the ratio is not positive
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)1.31 – 1.77 (Mid 1.51)
Multiple comparisons use the SIC vertical: Services-Help Supply Services (SIC 7363)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%

FactorValueScoreWeight used
ROIC · Quality-8.9%17 (vs peers)24%
Net margin · Quality-4.3%31 (vs peers)14%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth-5.0%0 (on a fixed band)19%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet2.0x97 (on a fixed band)10%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-40.0%0 (on a fixed band)19%
Shareholder yield (distributions) · Returns9.9%100 (on a fixed band)14%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial97/100 · 1/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality22/100 · 2/3 factors with a value
  • Returns· partial100/100 · 1/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Star Equity Holdings, Inc. (STRR). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 172.2 m USD in 2025; YoY growth 22.9%; net margin -4.3%; ROE -18.2%.

The estimated value range is 1.31–1.77 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.51 USD, the price of 9.61 USD leaves a potential of -84.3% (value / price − 1) and a margin of safety of -537.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 2.0x
  • Shareholder yield (distributions): 9.9%

What contradicts it

  • ROIC: -8.9%
  • Revenue CAGR 3Y: -5.0%
  • FCF yield: -40.0%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Services-Help Supply Services (SIC 7363) · same industry (4-digit SIC) · compared with 16 companies

Multiples and returns vs the median

P/E
—
vertical median 24.4x
EV/EBITDA
—
vertical median 10.0x
P/S
0.2x
vertical median 0.4x
below median (−55.7%)
P/B
0.6x
vertical median 1.8x
below median (−67.2%)
ROE
-18.2%
vertical median 4.6%
below median (−498.3%)
Net margin
-4.3%
vertical median 0.3%
below median (−1,379.5%)
EBIT margin
-3.4%
vertical median 0.8%
below median (−513.2%)
Revenue YoY
22.9%
vertical median -2.9%
above median
Net debt/EBITDA
—
vertical median 2.5x
Dividend yield
0.0%
vertical median 2.7%
below median (−100.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
RHIRobert Half Inc.4.6 bn37.29.8%2.3%−7.2%+66% / −45%
MANManpowergroup Inc.2.2 bn18.55.8%0.6%+0.6%+63% / −37%
NSPInsperity, Inc.2.0 bn564.44.6%0.0%+3.5%+46% / −55%
AMNAmn Healthcare Services, Inc.1.8 bn17.815.6%3.1%−8.5%+187% / −30%
EFOREverforth, Inc.1.5 bn22.73.7%1.7%−2.9%−18% / −59%
KFRCKforce Inc1.0 bn24.430.5%3.0%−5.4%+98% / −16%
BBSIBarrett Business Services, Inc.802.2 m24.416.3%2.8%+8.4%−6% / +20%
TBITrueBlue, Inc.300.0 m—-15.9%-2.6%+3.1%+101% / −29%
RCMTRcm Technologies, Inc.248.1 m15.139.5%5.1%unavailable+78% / +29%
HQIHireQuest, Inc.246.4 m30.912.1%27.1%−11.4%+104% / +20%
TTECTTEC Holdings, Inc.75.4 m—-108.2%-10.2%−3.2%−54% / −92%
DLHCDlh Holdings Corp.53.5 m—-20.8%-8.5%−13.0%−41% / −73%
BGSFBgsf, Inc41.8 m—-4.4%-2.3%−10.6%−15% / −60%
STRRStar Equity Holdings, Inc.35.5 m—-18.2%-4.3%+22.9%−12% / −41%
CIRCCircle8 Group Inc.26.7 m——-19.4%−1.5%−89% / −94%
YFORYY Group Holding Ltd.4.3 m—-94.1%-11.8%+29.4%−100% / unavailable
KELYAKelly Services, Inc.——-24.3%-6.7%−1.9%+96% / −19%

1- and 3-year price returns: for STRR from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    In brief

    Star Equity Holdings is a Nasdaq-listed diversified holding company with four segments: wood-based construction products, RPO recruitment services, drilling tools and investments. It matters now because after the August 2025 merger revenue grew sharply, yet profitability remains fragile, and the company relies on a large pool of US net operating losses 13.

    SWOT

    Strengths

    • The company has a diversified four-segment portfolio and a valuable tax position from US net operating losses 13.
    • Business Services has deep client relationships and multi-year contracts, giving a stable revenue base 1.
    • Energy Services grew revenue and profit in 2026, and its model lets most costs be passed to customers 3.

    Weaknesses

    • Profitability remains under pressure, with net losses attributable to common shareholders in 2025 and in the second quarter of 2026 13.
    • Dependence on a few large clients means losing one contract can materially affect revenue 1.
    • Operating cash flow was negative in the second quarter of 2026, and cash on hand is modest 3.

    Opportunities

    • Workforce and senior housing projects could add orders for Building Solutions 3.
    • If merger synergies deepen, corporate and segment margins could improve 3.
    • The reported tax losses may become a tool for acquisitions that create value for shareholders 3.

    Threats

    • A weak labour market could reduce demand for RPO and recruitment contracts 1.
    • Tariffs and volatile wood prices could raise Building Solutions costs that cannot be passed to clients 1.
    • A fall in oil prices could reduce drilling activity and Energy Services revenue 1.

    Risks

    • Client concentrationhigh

      A small number of clients generates a large share of revenue, and clients can end engagements on short notice, which can quickly affect results 1.

    • Margin volatilityhigh

      Gross profit and net results were negative or weak in several recent periods, and cost pressure may persist 13.

    • Construction cyclemedium

      Interest rates and delays in project financing can reduce demand for modular buildings and wood panels 13.

    • Raw material pricesmedium

      Lumber and wood products have volatile prices, and trade tariffs can raise procurement costs 1.

    • Acquisitions and integrationmedium

      Acquisitions can bring unforeseen liabilities or harder integration than expected, affecting results 1.

    Investment thesis

    What would need to be true (bull case)

    • If merger synergies and Energy Services growth continue, results could become more stable and predictable over the medium term.
    • Reported tax losses could reduce tax payments on future projects, which could lift after-tax returns.
    • The market for workforce and senior housing could bring new orders for Building Solutions.

    What would break the thesis

    • Profitability has not clearly improved, and net losses could continue if Building Solutions and Business Services stay weak.
    • Dependence on a few large clients makes results vulnerable to the loss of a single contract.
    • The four-segment structure adds complexity, and integrating acquisitions could absorb resources without assured results.

    What to watch

    • Revenue and gross profit trend in Business ServicesQ3 2026
    • Revenue recognition on the large Building Solutions projectQ3 2026
    • Realisation of merger synergies and corporate cost levels2027
    • Changes in the NOL disclosure and client concentration in the next annual reportnext 10-K

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    The business

    Star Equity Holdings, Inc. (formerly Hudson Global) operates through four reportable segments: Building Solutions, Business Services, Energy Services and Investments. Its shares are listed on Nasdaq under STRR and STRRP. The company functions as a holding entity that allocates capital, acquires complementary businesses and leaves day-to-day operations to its subsidiaries 1.

    On 22 August 2025 Star completed its acquisition of Star Operating Companies, with former SOC shareholders receiving Star shares in exchange. The name change to Star Equity Holdings took effect on 5 September 2025 1.

    Client concentration is high: in 2025 about 73% of revenue came from the top 25 clients, and one client accounted for 23% of revenue, so losing a large contract would have a significant effect 1.

    Segments

    Energy Services

    Energy Services, through Alliance Drilling Tools, rents and sells downhole drilling tools for oil and gas, geothermal, mining and water-well markets. Revenue and gross profit rose strongly in the second quarter of 2026 on higher activity and new clients in geothermal and mining 3.

    Market context

    The RPO recruitment market is competitive and sensitive to the hiring cycle, with demand tied to client hiring. The wood construction market depends on interest rates and project financing, and wood prices are volatile. The drilling tools market depends on oil prices 1.

    The company operates in several countries, so exchange rates affect reported dollar results. Labour and material costs rose in the recent inflationary environment 1.

    Trends

    • Energy demand recoverytailwind

      Higher and stable oil prices could increase drilling activity and tool utilisation, which supported Energy Services in 2025 and 2026.

    • Rates and constructionheadwind

      High interest rates and harder project financing have delayed residential and commercial projects, slowing Building Solutions.

    • Labour market for RPOheadwind

      Demand for RPO depends on the hiring of multinational clients; if labour markets stay under pressure, Business Services revenue could remain modest.

    • Automation and AI in recruitingmixed

      The company is expanding agentic AI tools to raise recruiter productivity, which could support margins if the efficiency gains materialise.

    Competitive position

    Recruitment services, wood products and drilling tool markets are highly competitive with limited entry barriers, and scale and technology differentiation decide advantage. RPO clients run periodic bid processes, so the company must keep competing for contracts 1.

    The sources do not name individual competitors, so the profile lists categories only. In energy, competition depends on oil prices and access to equipment 1.

    • US RPO and recruitment providers

      Firms offering RPO and recruitment to large clients, in direct competition with Hudson Talent Solutions; the sources do not identify them individually.

    • Modular building and panel makers

      Regional makers of modular buildings and structural panels that compete with KBS and EdgeBuilder, especially in New England and the Midwest.

    • Directional drilling tool suppliers

      Companies renting and selling drilling tools for oil and gas, competing with Alliance Drilling Tools in the Rockies and the Permian.

    • Regional wood and building material distributors

      Regional distributors of wood and materials for professional builders, competing with Glenbrook in the Upper Midwest.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    • Current report04 Nov 2026
      Material agreement · Regulation FD disclosure · Financial statements and exhibits
    • Current report28 Oct 2026
      Material agreement · Item 3.02 · Regulation FD disclosure · Financial statements and exhibits
    • Current report14 Oct 2026
      Regulation FD disclosure · Financial statements and exhibits
    • Current report22 Sept 2026
      Regulation FD disclosure · Financial statements and exhibits
    • Current report21 Aug 2026
      Other events · Financial statements and exhibits
    • Current report14 Aug 2026
      Material agreement · Regulation FD disclosure · Financial statements and exhibits
    • Quarterly report14 Aug 2026
    • Current report14 Aug 2026
      Results of operations · Financial statements and exhibits
    • Current report29 Jun 2026
      Other events · Financial statements and exhibits
    • Current report01 Jun 2026
      Regulation FD disclosure · Financial statements and exhibits

    Sources

    1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Star Equity Holdings, Inc. · 20 Mar 2026
    2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Star Equity Holdings, Inc. · 14 Aug 2026
    3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Star Equity Holdings, Inc. · 14 Aug 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.