The company's two largest divisions (Building Solutions and Business Services) both missed internal expectations, with Building Solutions gross profit collapsing 44% pro forma. The cash burn rate increased and backlog contracted sharply. Watch for Q2 2026 results to see if the $4.2M multifamily project and other delayed awards materialize into revenue. The $1.8M remaining buyback authorization provides minimal support for a $38M market cap company with deteriorating fundamentals.
Price Chart
Executive Summary
Star Equity Holdings reported Q1 2026 revenue of $50.1M (+57.1% YoY) but a net loss attributable to common shareholders of $4.4M, or -$1.17 per diluted share, worsening from a -$0.59 loss in Q1 2025. Both Building Solutions and Business Services divisions underperformed internal expectations due to project delays and soft markets, while Energy Services showed strong momentum. The company's cash position declined to $10.3M from $13.4M at year-end 2025, and it continues to burn cash from operations.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $50.1M, up 57.1% from $31.9M in Q1 2025 (pre-merger base)
- Net loss attributable to common shareholders $4.4M (-$1.17/diluted share) vs $1.8M loss (-$0.59) in Q1 2025
- Adjusted EBITDA loss widened to $1.6M from $0.7M loss in Q1 2025
- Building Solutions revenue $11.6M, down 4% pro forma; gross profit $1.6M, down 44% pro forma
- Business Services revenue $35.0M (+10% YoY) but swung to adjusted EBITDA loss of $0.3M from +$0.2M
- Energy Services revenue $3.5M (+35% pro forma); adjusted EBITDA $1.0M (+111% pro forma)
- Cash including restricted cash fell to $10.3M from $13.4M at Dec 31, 2025
- Operating cash flow used $1.4M in Q1 2026 vs $0.8M used in Q1 2025
- Backlog at Building Solutions fell to $8.0M from $9.6M at year-end; book-to-bill ratio 0.72
- Repurchased 70,424 shares for ~$0.7M in Q1 2026
Financial Impact
Net loss deepened by $2.6M YoY; adjusted EBITDA loss doubled to $1.6M; cash burn accelerated
Risk Factors
- Continued cash burn could pressure liquidity below $10M
- Building Solutions backlog at $8.0M with 0.72 book-to-bill signals further revenue decline ahead
- Business Services swung to adjusted EBITDA loss despite revenue growth, indicating margin compression
- Management cited 'startup delays' and 'macroeconomic conditions' — both may persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001210708-26-000052 |
| Document: strr-20260511.htm | 0001210708-26-000052 |
| Document: strrq12026earningsslides.htm | 0001210708-26-000052 |
| Document: 0001210708-26-000052-index-headers.html | 0001210708-26-000052 |
| Document: 0001210708-26-000052-index.html | 0001210708-26-000052 |
| Document: 0001210708-26-000052.txt | 0001210708-26-000052 |
| 8-K Data (Synthetic) | 0001210708-26-000052 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 18, 2026 22w ago | 8-K | $9.65 $10.14 | ▼ −5.09% | ▲ +1.20% | $8.80 (+8.81%) |
May 15, 2026 23w ago | 8-K | $10.26 $10.12 | ▼ −1.41% | ▼ −5.93% | $8.80 (−14.23%) |
May 11, 2026 23w ago | 8-K | $10.00 $10.06 | ▼ −0.59% | ▲ +3.79% | $8.80 (+12.01%) |
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