Executive Summary

Q3 2025 delivered strong top-line growth on post-merger scale: revenue rose 30.1% to $48.0M, gross profit +10.9% to $20.6M; however GAAP diluted EPS was $(0.54) vs $(0.28) YoY as integration and non-recurring costs weighed on the quarter .
On a non-GAAP basis, adjusted diluted EPS was $0.02 and adjusted EBITDA improved to $1.3M; pro forma adjusted EBITDA was $3.1M and pro forma adjusted diluted EPS was $0.19, highlighting underlying earnings power of the combined platform .
Segments: Business Services was stable; Building Solutions showed significant pro forma growth and backlog remained healthy ($20.0M); Energy Services performed well on a pro forma basis despite sector softness .
Versus S&P Global consensus, Q3 revenue modestly beat while EPS missed materially on a primary/adjusted EPS basis; investors should expect estimate recalibration and watch execution on cost synergy realization and backlog conversion in Q4–FY25 (see Estimates Context) *.
Potential stock catalysts: synergy capture and opex normalization post-merger; continued backlog conversion in Building Solutions; Energy Services price/mix resilience; share repurchases (new $3M authorization) support per-share value .

What Went Well and What Went Wrong

What Went Well

Diversified platform scaling: “Third quarter results reflect the impact of our recent merger,” with revenue, gross profit, and adjusted EBITDA all higher YoY, driven by inclusion of acquired operations since August 22, 2025 .
Building Solutions momentum: pro forma revenue $21.4M (+56.5% YoY), pro forma gross profit $5.3M (+87.5%), pro forma adjusted EBITDA $2.6M (+287%) .
Energy Services resilience: pro forma revenue $3.7M and pro forma adjusted EBITDA $1.0M despite broader energy sector slowdown; management cites “exceptional sales execution, disciplined cost management, and strategic capital investments” as drivers .
Quote: “We are operating from a stronger, more diversified platform…already realizing efficiencies across shared services” and authorized a new share repurchase program; repurchased ~8% of outstanding shares in Q3 .

What Went Wrong

GAAP profitability pressure: net loss widened to $(1.8)M; diluted EPS $(0.54) vs $(0.28) last year, reflecting non-recurring merger-related expenses and higher corporate costs .
EMEA softness in Business Services offset APAC and Americas growth; segment adjusted EBITDA was flat YoY ($1.7M) .
Operating cash flow usage: used $2.7M in CFFO in Q3 (vs. $1.3M usage in Q3 2024), as working capital needs increased alongside scale; total cash including restricted cash ended Q3 at $18.5M .

Financial Results

Quarterly Performance (GAAP and Non-GAAP)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$12.924	$23.708	$47.959
Gross Profit ($USD Millions)	$3.136	$6.253	$20.627
Adjusted EBITDA ($USD Millions)	$(0.818)	$7.042	$1.335
Net Income (Loss) ($USD Millions)	$(1.176)	$3.451	$(1.764)
Diluted EPS (GAAP) ($)	$(0.37)	$1.07	$(0.54)
Adjusted Diluted EPS ($)	$(0.52)	$1.86	$0.02

YoY Comparison (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025
Revenue ($USD Millions)	$36.853	$47.959
Gross Profit ($USD Millions)	$18.603	$20.627
Adjusted EBITDA ($USD Millions)	$0.839	$1.335
Net Income (Loss) ($USD Millions)	$(0.846)	$(1.764)
Diluted EPS (GAAP) ($)	$(0.28)	$(0.54)
Adjusted Diluted EPS ($)	$(0.13)	$0.02

Segment Breakdown – Reported Q3 2025 (August 22–September 30)

Segment	Revenue ($USD Millions)	Gross Profit ($USD Millions)	Adjusted EBITDA ($USD Millions)
Building Solutions	$9.603	$1.684	$0.565
Business Services	$37.038	$18.630	$1.691
Energy Services	$1.318	$0.346	$0.128
Investments	$0.053	$0.020	$0.171
Corporate (elims)	$(0.053)	$(0.053)	$(1.220)
Total	$47.959	$20.627	$1.335

Segment Breakdown – Pro Forma Q3 2025 (full quarter comparison)

Segment	Pro Forma Revenue ($USD Millions)	Pro Forma Gross Profit ($USD Millions)	Pro Forma Adjusted EBITDA ($USD Millions)
Building Solutions	$21.386	$5.263	$2.617
Business Services	$37.038	$18.630	$1.691
Energy Services	$3.712	$1.538	$1.011
Investments	$0.156	$0.081	$0.412
Corporate (elims)	$(0.156)	$(0.156)	$(2.638)
Total	$62.136	$25.356	$3.093

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Building Solutions – Ending Backlog ($USD Thousands)	$19,567	$17,190	$27,913	$25,739	$20,032
LTM Book-to-Bill (Building Solutions)	0.95	1.23	1.19	1.01	—
Business Services – New RPO Business (Rolling 4Q, $USD Millions GP basis)	—	—	—	—	$50.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/EPS guidance	FY/Q4 2025	None (company does not provide formal guidance)	None reiterated	Maintained (no formal guidance)
Corporate cost synergies	Post-merger (next few quarters to one year)	~$2M redundant public company costs expected to be removed (prior commentary)	Integration “already realizing efficiencies”	In progress (execution emphasis)
Share repurchase authorization	As of Sep 2025	Completed $5M program	New $3M program authorized	Raised repurchase capacity
Preferred dividend (Series A)	Q3 2025	—	$0.025 declared per share	Initiated/continued

Note: Management continues to avoid explicit revenue/margin guidance; commentary indicates backlog conversion confidence in Building Solutions and stable-to-improving Business Services trajectory .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Guidance policy	Company stopped formal guidance pre-COVID; directional confidence by segment, $2M corporate cost removal targeted	No formal guidance; integration progressing well; share repurchases authorized	Unchanged (no formal guidance; focus on integration/efficiencies)
Building Solutions demand/backlog	Record backlog $27.9M; delays due to weather/project timing; strong modular value proposition vs stick-built	PF growth across revenue/GP/Adj. EBITDA; backlog $20.0M; exposure toward commercial/multi-family; healthy pipeline	Improving conversion; backlog normalizing post surge
Energy Services pricing/mix	Mission-critical tools enable selective price increases; focus on higher-demand inventory; commodity tools face pricing pressure	PF results strong despite sector slowdown; disciplined cost and inventory investments support utilization/pricing	Resilient pricing on high-demand tools; execution-led outperformance
Business Services macro	Past trough with several quarters of YoY improvement; aiming for continued growth	Segment GP flat YoY; APAC/Americas strength offset by EMEA weakness; adjusted EBITDA flat	Mixed regional performance; steady profitability
Capital allocation	Emphasis on accretive acquisitions and share repurchases	~8% block repurchase in Q3; new $3M program; evaluating acquisition pipeline	Intensified buybacks; active M&A pipeline
Cost structure/integration	Plan to remove redundant public company costs post-merger	“Realizing efficiencies across shared services”	Progressing per plan

Management Commentary

CEO Jeff Eberwein: “Third quarter results reflect the impact of our recent merger… Adjusted net income per diluted share was $0.02 in Q3 2025…an encouraging early signal of the combined company’s earnings potential.” He added that the company repurchased approximately 8% of outstanding shares and authorized a new $3M program .
Global CEO HTS Jake Zabkowicz: “Our Business Services segment continued to perform well despite a challenging macro… named to the Baker’s Dozen for the 17th consecutive year, highest-ever overall ranking, and number one in Asia-Pacific for the third consecutive year” .
COO Rick Coleman: “Building Solutions…strong performance, capitalizing on the rebound in commercial construction demand… Energy Services… particularly strong results… driven by exceptional sales execution, disciplined cost management, and strategic capital investments” .

Q&A Highlights

Pricing power and mix (Energy Services): Management highlighted selective price increases on mission-critical, high-demand tools and strategy to increase inventory of “more in demand” tools; commodity tools faced pricing pressure .
Modular vs. stick-built value: Quality and timing advantages from factory-built modules (lower waste, controlled environment), supporting competitiveness and backlog conversion in the Northeast .
Guidance and cost synergies: No formal guidance; confidence in Building Solutions and Energy Services outlook; plan to remove ~$2M redundant public company costs within a few quarters to a year .
Backlog dynamics/weather/project timing: Q1 weather-related/project-specific delays shifted revenue to later quarters; backlog is the key visibility anchor .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue beat, EPS miss (Primary/adjusted basis).

Metric	Q3 2025 Estimate	Q3 2025 Actual	Delta
Revenue ($USD)	$45,683,000*	$47,959,000	+$2,276,000
Primary EPS ($)	$0.32*	$0.02 (adjusted diluted)	−$0.30
EBITDA ($USD)	$1,767,000*	$(1,400,000)*	N/A (basis difference)

Forward consensus snapshot:

Metric	Q4 2025 Estimate	FY 2025 Estimate
Revenue ($USD)	$60,150,000*	$175,516,000*
Primary EPS ($)	$0.24*	$(0.04)*
EBITDA ($USD)	$2,907,000*	$4,628,000*

Values retrieved from S&P Global. An asterisk (*) denotes S&P Global consensus values. Note: S&P “Primary EPS” generally maps to normalized/adjusted EPS, consistent with the company’s adjusted diluted EPS disclosure; EBITDA basis may differ from company “Adjusted EBITDA” definitions .

Implications:

The EPS miss likely reflects higher non-recurring merger-related expenses and corporate costs in Q3; management indicated integration is progressing and efficiencies are being realized, which should support earnings normalization in subsequent quarters .
Modest revenue beat supports the demand backdrop and backlog conversion thesis, particularly in Building Solutions and stable Business Services performance .

Key Takeaways for Investors

Focus on normalization of corporate/non-recurring costs post-merger; as integration efficiencies accrue, adjusted EPS should better track consensus in Q4–FY25 .
Building Solutions PF strength and backlog conversion remain central to near-term revenue/EBITDA momentum; watch execution on large commercial projects and backlog replenishment .
Energy Services’ pricing/mix strategy underpins resilience despite sector headwinds; sustained utilization of high-demand tools is a positive earnings lever .
Business Services stability with regional dispersion (APAC/Americas up, EMEA down) suggests balanced risk; monitor macro-sensitive hiring cycles and client renewals .
Share repurchases are a tangible capital allocation tailwind (new $3M authorization and ~8% block buy in Q3); coupled with NOL assets and synergy capture, per-share value creation is plausible .
Near-term trading: EPS miss vs consensus may pressure sentiment; supports a “prove-it” phase where Q4 execution on margin/cost synergy and backlog conversion is key to rerating.
Medium-term thesis: diversified platform, disciplined capital allocation, and operational improvements across segments can compound value as integration benefits materialize and cyclicals stabilize .

Appendix: Additional Context and Documents

Q3 2025 8-K press release and presentation with full segment reconciliations and non-GAAP bridges .
Press releases: earnings release date notice (11/07/25) , LD Micro conference (10/14/25) –, share repurchase completion and new authorization (9/10/25) –, and governance-related update via Gyrodyne/Star Equity Fund (10/17/25) –.
Prior quarters: Q2 2025 8-K and full details including segment reconciliations and call transcript – –; Q1 2025 8-K and call transcript – –.

Note on availability: A Q3 2025 earnings call transcript was not available in the document catalog; searches for “earnings-call-transcript” in the November–December 2025 window returned no results. We used the Q3 8-K press release/presentation and prior quarter calls for qualitative context [ListDocuments 2025-11-01 to 2025-12-31 returned 0].

Star Equity Holdings, Inc. (STRR)·Q3 2025 Earnings Summary