<span item_type="fundamental" item_id="ff9f36ed023232ef9e8facc4cb8b4292" counter_id="ST/US/STRR" env="prod"></span><span item_type="announcement" item_id="647307648303433601" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 50.06 M, missing the estimate of USD 52.57 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -1.17, missing the estimate of USD -0.08.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -4.028 M.</p><p></p><h3>Consolidated Financial Results (Q1 2026 vs Q1 2025)</h3><h4>Revenue</h4><p>Star Equity Holdings, Inc. reported revenue of $50.1 million in Q1 2026, an 8% increase from $46.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Gross Profit</h4><p>Gross profit was $20.6 million in Q1 2026, remaining stable with a 0% change from $20.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Adjusted SG&amp;A</h4><p>Adjusted Selling, General &amp; Administrative expenses increased by 3% to $23.2 million in Q1 2026 from $22.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA decreased by 39%, resulting in a loss of - $1.6 million in Q1 2026 compared to a loss of - $1.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Net Income (Loss) attributable to common shareholders</h4><p>The net loss attributable to common shareholders widened by 17% to - $4.4 million in Q1 2026 from - $3.7 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Adjusted Net Income (Loss) attributable to common shareholders</h4><p>The adjusted net loss attributable to common shareholders significantly increased by 357% to - $3.7 million in Q1 2026 from - $0.8 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h3>Balance Sheet: Selected Items (as of 3/31/2026 vs 12/31/2025)</h3><h4>Cash</h4><p>Cash decreased to $8.1 million as of March 31, 2026, from $10.3 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Restricted Cash</h4><p>Restricted cash was $2.2 million as of March 31, 2026, down from $3.1 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Accounts Receivable</h4><p>Accounts receivable decreased to $32.8 million as of March 31, 2026, from $35.2 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Stockholders’ Equity</h4><p>Stockholders’ Equity was $61.0 million as of March 31, 2026, a decrease from $65.7 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Working Capital</h4><p>Working capital stood at $30.3 million as of March 31, 2026, compared to $32.7 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h4>Working Capital ex-cash</h4><p>Working capital excluding cash was $22.2 million as of March 31, 2026, a slight decrease from $22.4 million as of December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</p><h3>Segment Financial Results (Q1 2026 vs Q1 2025)</h3><h4>Building Solutions</h4><ul><li><strong>Revenue</strong>: Revenue for the Building Solutions segment decreased by 4% to $11.6 million in Q1 2026 from $12.1 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Gross Profit</strong>: Gross profit for the segment declined by 44% to $1.6 million in Q1 2026 from $2.9 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Adjusted EBITDA</strong>: Adjusted EBITDA for Building Solutions saw a significant decrease of 387%, resulting in a loss of - $0.9 million in Q1 2026 compared to a positive $0.3 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Ending Backlog</strong>: Ending backlog was $7,983 thousand in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>New Orders</strong>: New orders amounted to $9,983 thousand in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Recognized Revenue (from backlog)</strong>: Recognized revenue from backlog was $11,598 thousand in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>LTM Book to Bill Ratio</strong>: The LTM Book to Bill Ratio was 0.72 in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li></ul><h4>Business Services</h4><ul><li><strong>Revenue</strong>: The Business Services segment’s revenue increased by 10% to $35.0 million in Q1 2026 from $31.9 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Gross Profit</strong>: Gross profit for Business Services grew by 6% to $17.4 million in Q1 2026 from $16.4 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Adjusted EBITDA</strong>: Adjusted EBITDA for Business Services decreased by 250%, resulting in a loss of - $0.3 million in Q1 2026 compared to a positive $0.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>TTM New Business</strong>: Trailing Twelve Months (TTM) new business totaled $75.0 million, comprising $13.7 million in new logos and $61.3 million in renewals and expansions from legacy clients over the past four quarters <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>TTM Gross Profit</strong>: TTM Gross Profit was $71.8 million, showing relative stability with a slight increase over the past four quarters <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>TTM Adjusted EBITDA Margin</strong>: The TTM Adjusted EBITDA Margin decreased versus Q3 2025 but remained above Q3 FY24 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li></ul><h4>Energy Services</h4><ul><li><strong>Revenue</strong>: Energy Services revenue increased by 35% to $3.5 million in Q1 2026 from $2.6 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Gross Profit</strong>: Gross profit for the Energy Services segment rose by 23% to $1.5 million in Q1 2026 from $1.3 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Adjusted EBITDA</strong>: Adjusted EBITDA for Energy Services increased by 111% to $1.0 million in Q1 2026 from $0.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li></ul><h4>Investments</h4><ul><li><strong>Revenue (external customers)</strong>: Revenue from external customers for the Investments segment was $0.2 million in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Gross Profit</strong>: Gross profit for Investments was $0.1 million in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Net Loss attributable to common shareholders</strong>: Net loss attributable to common shareholders for Investments was $0.1 million in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Adjusted EBITDA</strong>: Adjusted EBITDA for Investments was $0.5 million in Q1 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Pro forma revenue (external customers, Q1 2025)</strong>: Pro forma revenue from external customers for the Investments segment was $0.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Pro forma gross profit (Q1 2025)</strong>: Pro forma gross profit for Investments was $0.1 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Pro forma net loss attributable to common shareholders (Q1 2025)</strong>: Pro forma net loss attributable to common shareholders for Investments was - $0.3 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li><li><strong>Pro forma adjusted EBITDA (Q1 2025)</strong>: Pro forma adjusted EBITDA for Investments was $0.3 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strrq12026earningsslides.htm"></span>.</li></ul><h3>Corporate Costs</h3><p>Corporate costs for the first quarter of 2026 were $1.9 million, an increase from $0.9 million in the prior year quarter, but a decrease of $0.7 million on a pro forma basis <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p><h3>Liquidity and Capital Resources</h3><p>Star Equity Holdings, Inc. ended the first quarter of 2026 with $10.3 million in total cash, which included $2.2 million in restricted cash <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p><h4>Cash Flow from Operations</h4><p>Star Equity Holdings, Inc. used - $1.4 million in cash flow from operations during the first quarter of 2026, compared to using - $0.8 million in the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p><h3>Share Repurchase Program</h3><p>In the first quarter of 2026, Star Equity Holdings, Inc. repurchased 70,424 shares for approximately $0.7 million <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>. As of the end of Q1 2026, $1.8 million remained under the $3 million repurchase program authorized in September 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p><h3>NOL Carryforward</h3><p>As of December 31, 2025, Star Equity Holdings, Inc. had $215 million of usable net operating losses (NOL) in the U.S., which it considers a valuable asset for stockholders <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p><h3>Outlook / Guidance</h3><p>Star Equity Holdings, Inc. anticipates improved results as the year progresses due to operational and cost improvements and continued investments in growth <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>. The Business Services division expects to capitalize on improving market conditions, while the Energy Services division is projected to maintain strong performance <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>. Management remains focused on disciplined execution, cost management, capital allocation, and evaluating M&amp;A opportunities to drive profitability and long-term shareholder value <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1210708/000121070826000052/strr202603318kex991.htm"></span>.</p>

Star Equity | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 50.06 M