Core Insights - Star Equity Holdings, Inc. reported a significant year-over-year increase in revenue, gross profit, and Adjusted EBITDA for Q3 2025, primarily due to the merger completed on August 22, 2025 [3][6][21] - The company achieved an adjusted net income per diluted share of $0.02 in Q3 2025, a notable improvement from a loss of $0.13 in Q3 2024, indicating a turnaround in profitability [3][6] - The Building Solutions and Energy Services segments showed strong performance, with Building Solutions revenue increasing to $21.4 million on a pro forma basis, up from $13.7 million in the prior year [9][12] Financial Performance - Total revenue for Q3 2025 was $48.0 million, a 30.1% increase from Q3 2024 [6] - Gross profit for the same period was $20.6 million, reflecting a 10.9% increase year-over-year [6] - Adjusted EBITDA rose to $1.3 million compared to $0.8 million in Q3 2024, while pro forma adjusted EBITDA was $3.1 million versus $0.6 million in the prior year [6] Segment Highlights - Building Solutions: Revenue reached $9.6 million with a gross profit of $1.7 million; pro forma revenue was $21.4 million, up from $13.7 million in Q3 2024 [9][10] - Business Services: Revenue was $37.0 million, slightly up from $36.9 million in the previous year, with gross profit remaining flat at $18.6 million [11] - Energy Services: Revenue was $1.3 million with a gross profit of $0.3 million; pro forma revenue was $3.7 million [12] Corporate Actions - The company repurchased approximately 8% of its outstanding shares in Q3 2025 and authorized a new $3 million share repurchase program, reflecting confidence in long-term value [4][17] - As of September 30, 2025, total cash, including restricted cash, was $18.5 million [15] Future Outlook - The company is focused on driving long-term shareholder value through organic growth, disciplined capital allocation, and potential acquisitions [5] - Star Equity is evaluating acquisition opportunities that align with its diversified holding company strategy, targeting scalable and cash-generating businesses [5]
Star Equity Holdings Reports 2025 Third Quarter Results