Star Equity Holdings generated $48 million in revenue and $3.1 million pro forma adjusted EBITDA in Q3 2025, a 30% year-over-year increase driven by its August 22 acquisition of Hudson Global's talent solutions business.
The merger, announced May 21 and completed for undisclosed terms, created a diversified holding company with four operating divisions. Hudson Talent Solutions contributed $37 million in Q3 revenue while maintaining $1.7 million adjusted EBITDA despite European client attrition.
Building Solutions posted the strongest growth trajectory with $21.4 million pro forma revenue versus $13.7 million in Q3 2024. The division's adjusted EBITDA jumped to $2.6 million from $700,000 as its backlog of committed orders reached $20 million and book-to-bill ratio hit 1.01 over trailing twelve months.
Chairman and CEO Jeffrey Eberwein authorized $500,000 in Q3 share repurchases, calling the stock undervalued during the November earnings call. The company held $18.5 million cash including restricted balances as of quarter-end.
Hudson Talent Solutions secured $11.1 million gross profit from new client logos over the trailing four quarters while renewals and extensions generated $39.8 million. The division ranked #1 in Asia Pacific and earned its 17th consecutive "Baker's Dozen" recognition at the highest-ever overall ranking.
The business deployed new AI capabilities including TalentIQ real-time market intelligence and agentic AI tools, positioning for digital transformation revenue. RPO contracts deliver 100% adjusted net revenue with no cost of goods sold, while contracting work concentrated in Australia carries roughly 50% margins.
Energy Services produced $3.7 million pro forma revenue and $1 million adjusted EBITDA despite lower drilling rig counts across oil-producing basins. Management cited outsized growth opportunities versus larger competitors in natural gas and geothermal drilling sectors.
The combined company reported net loss of $1.8 million or negative $0.54 per share in Q3, compared to $800,000 loss in the prior year period. Pro forma adjusted EPS turned positive at $0.19 versus negative $0.54 in Q3 2024.
Building Solutions faces Q4 headwinds from residential market softness and weather dependency, though the division is exploring reopening its idle Oxford, Maine manufacturing facility to address the $20 million order backlog.