Star Equity Posts Adjusted Loss of $0.26 per Share as Third-Quarter Revenue Rises 12.4%
Key Facts
Star Equity Holdings reported results on November 11 for the third quarter ended September 30, 2026, posting an adjusted loss of $0.26 per diluted share, according to the company’s statement. Revenue was $53.9 million, up 12.4% year over year, while gross profit rose 12.6% to $23.2 million. But net loss attributable to common shareholders was $2.2 million, or $0.60 per diluted share. The result therefore varies by measure: the adjusted loss was smaller than the loss reported under generally accepted accounting principles. Revenue and gross profit also recorded annual growth as the company continued to post a net loss.
Year over year, net loss widened from $1.8 million, or $0.56 per diluted share, in the third quarter of 2025 to $2.2 million, or $0.60 per share, in the comparable quarter of 2026. Adjusted net loss per diluted share was $0.26, compared with adjusted net income of $0.08 per share a year earlier. In another operating measure, adjusted EBITDA rose to $1.5 million from $1.3 million in the third quarter of 2025. Cash, including restricted cash, totaled $7.8 million on September 30, 2026. These figures put revenue growth alongside a wider net loss and differing operating measures in the same period.
Growth in total revenue came amid diverging performance across the company’s businesses. The Business Services segment recorded revenue of $33.8 million, compared with $37.0 million in the third quarter of 2025, and its gross profit fell to $18.2 million from $18.6 million. Regionally, gross profit rose 4% in the Americas, while declining 9% in Europe, the Middle East and Africa and 5% in Asia-Pacific. In the Building Solutions segment, revenue was $16.347 million, compared with $9.603 million a year earlier. The company said weakness in residential and multifamily construction markets affected the segment’s results compared with the year-earlier period on a pro forma basis.
In the Building Solutions segment, backlog stood at $11.4 million at the end of the third quarter, up from $10.6 million at the end of the second quarter, excluding a deferred project from the balance. The company said new orders in the segment exceeded $17 million for the second consecutive quarter. Meanwhile, the timing of a major project for KBS Builders shifted from 2026 to 2027, according to the company, which said it had received a non-refundable deposit for the project. Growth in backlog and new orders places forward activity indicators for the segment alongside the effect of the project’s delay. The chief executive also linked weak Building Solutions results to continued softness in residential and multifamily construction markets.
On liquidity, the company generated $0.9 million in operating cash flow during the third quarter of 2026, after using $2.7 million in operations in the year-earlier period. It repurchased 28,736 shares for about $0.3 million during the quarter. Total cash, including restricted cash, was $7.8 million at the end of September. These figures come alongside a net loss under the accounting measure and an adjusted per-share loss below the loss recorded on the same measure a year earlier. The company is scheduled to hold a call to discuss the results on November 12, 2026, at 10:00 a.m. Eastern Time.