Key Highlights

  • Third-quarter Revenue rose 12.4% to $53.9 million, and Gross Profit rose 12.6% to $23.2 million.
  • The net loss attributable to common shareholders widened to $2.2 million, or $0.60 per diluted share.
  • Adjusted net loss was $0.26 per diluted share, compared with adjusted Net Income of $0.08 a year earlier.
  • Adjusted EBITDA rose to $1.5 million from $1.3 million.

Star Equity Holdings, Inc. (NASDAQ:STRR, STRRP), a diversified holding company, reported third-quarter 2026 results that combined higher revenue and gross profit with a larger loss per share. Revenue of $53.9 million rose 12.4% from a year earlier, while the net loss attributable to common shareholders increased to $2.2 million. The company's adjusted figures moved in the other direction, showing that the reported loss was shaped by items outside its operating measures. The company operates across several industries, so its results are shaped by different end markets, from energy equipment services to construction and staffing.

Revenue and Gross Profit Growth

Revenue of $53.9 million and gross profit of $23.2 million both increased, by 12.4% and 12.6% respectively. Gross profit grew at roughly the same pace as revenue, which suggests the mix of Business and margins were broadly stable across the period.

The company's total cash, including restricted cash, was $7.8 million at September 30, 2026. Because the company runs several distinct divisions, the growth figures need to be read alongside the performance of each, which the update describes in separate terms.

A diversified Holding Company earns revenue from businesses with different margins and cycles, so growth in one area can offset weakness in another. Gross profit rising in line with revenue suggests that the mix of work across divisions was broadly similar to the prior year.

Because the company reports both reported and pro forma figures, comparisons depend on the basis used. Pro forma numbers adjust prior-year results for portfolio changes, which makes them useful for judging the businesses that remain.

Net Loss Versus Adjusted Results

The net loss attributable to common shareholders was $2.2 million, or $0.60 per diluted share, against a loss of $1.8 million, or $0.56 per share, a year earlier. Adjusted net loss per diluted share was $0.26, compared with adjusted net income of $0.08 in the third quarter of 2025.

Adjusted EBITDA increased to $1.5 million from $1.3 million. The company also presented pro forma adjusted EBITDA of $3.1 million for the prior-year quarter, which reflects the effect of divestitures and other portfolio changes. Readers comparing periods should check which measure each figure uses.

Energy Services is tied to industrial and energy customers, and the Vernal Acquisition expands its ability to do repair and rebuild work in-house. That kind of vertical capability can shorten turnaround times and keep more of the work within the company.

The sections reviewed do not give revenue or Margin figures for Energy Services alone, so its contribution to the quarter's growth cannot be measured precisely.

Energy Services and Building Solutions

In Energy Services, gross profit and adjusted EBITDA increased on a pro forma basis. In October the company acquired a machine shop in Vernal, Utah, adding in-house machining, repair and rebuild capabilities to its existing operation there.

Building Solutions was lower than the prior-year quarter on a pro forma basis, reflecting softness in residential and multifamily new construction. A large KBS Builders project, for which the company had received a non-refundable deposit, shifted from 2026 into 2027. The division's backlog, excluding that project, rose to $11.4 million from $10.6 million.

Building Solutions depends on construction activity, which is sensitive to interest rates and project financing. A deposit-backed project that moves from one year to the next delays revenue, but it does not necessarily cancel the work.

The Backlog excluding the delayed project grew to $11.4 million, which indicates that other work is still being added to the division's pipeline.

Hudson Talent Solutions and Capital Allocation

Hudson Talent Solutions limited its year-over-year gross profit decline to 2%, supported by 4% growth in the Americas. The division invested $1.4 million in digital offerings, geographic expansion and other initiatives during the quarter, and increased its use of agentic AI and automation in recruiting.

In November the division acquired Cornerstone RPO, which adds U.S. presence and enterprise client relationships. Company-wide, Operating Cash Flow was $0.9 million in the quarter, and the company repurchased about $0.3 million of common stock. The company said it continues to evaluate capital allocation choices.

Staffing businesses face client budget decisions that can change quickly, and Hudson Talent Solutions is no exception. Its Investment in digital tools and agentic AI is aimed at improving productivity as clients reduce spending on recruiting.

Final Word

Star Equity Holdings grew revenue and gross profit in the quarter, but its net loss widened and its adjusted loss per share turned negative. Energy Services added capacity while Building Solutions faced delayed projects, and Hudson Talent Solutions held up through acquisitions and investment. The company's next results will show whether the Cornerstone deal and the delayed projects translate into the growth it expects. The Cornerstone acquisition and the delayed Building Solutions project will be the main factors to follow in the next results.