🧾 What This Document Is

This is an investor presentation attached to an SEC Form 8-K filing. An 8-K is used to announce major events to shareholders. This presentation, dated March 2026, is essentially the company's sales pitch to investors, explaining its strategy, financial performance, and outlook.

🏢 What The Company Does

👉 In simple terms, Star Equity Holdings is a diversified holding company. It owns and operates several different businesses across various industries.

Its stated strategy is to create shareholder value through three main ways: growing its existing businesses naturally, buying new companies, and buying back its own stock. It has two classes of stock: Common Stock (STRR) and a Series A 10% Preferred Stock (STRRP).

💰 Financial Highlights (Pro Forma 2025)

The presentation focuses heavily on "Pro Forma" financials for 2025. This means they're showing what the results would have looked like if all their recent acquisitions had been owned for the full year. This gives a better picture of the combined company's size and earning power.

• Total Pro Forma Revenue: $224.7 million
• Total Pro Forma Gross Profit: $95.0 million
• Total Pro Forma Adjusted EBITDA: $12.6 million
• Pro Forma Net Loss to Common Shareholders: ($6.6) million
• Adjusted Net Income (Loss) Per Diluted Share: $1.35 (This is the key non-GAAP "profit" number they highlight).

Why it matters: The company is showing that when you strip out one-time costs and accounting rules (like depreciation from buyouts), its core business operations were actually profitable on an adjusted basis in 2025, generating $1.35 per share.

📊 Segment Breakdown

Star Equity breaks its business into four main segments. Here’s how the full-year 2025 "Pro Forma" numbers looked for each:

1. Business Services (Largest Segment): Revenue of $139.7M, Adjusted EBITDA of $5.0M.
2. Building Solutions: Revenue of $71.9M, Adjusted EBITDA of $7.2M.
3. Investments: Revenue of $0.6M, but a significant Adjusted EBITDA of $7.1M (likely from investment income).
4. Energy Services: Revenue of $13.2M, Adjusted EBITDA of $2.9M.
5. Corporate: This segment shows losses, as it represents overhead costs that aren't assigned to a specific business.

🔮 What's Next

The presentation doesn't provide specific forward-looking guidance in these pages. However, it outlines the company's ongoing strategy:

• Organic Growth: Investing in its existing businesses.
• Acquisitions: Using its structure to buy more companies.
• Share Repurchases: Using cash to buy back its own stock, which can increase the value of remaining shares.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Diversified business model can reduce risk.
• Demonstrated ability to acquire and integrate companies.
• Shows a path to adjusted profitability on a combined basis.

⚠️ Risks:

• The company reports a net loss under standard accounting rules.
• Managing a diverse set of businesses is complex.
• Heavily reliant on "Adjusted" financial metrics, which are non-standard.
• Future performance depends on successful execution of its acquisition strategy.

🧠 The Analogy

Think of Star Equity like a renovation company for businesses. It buys different "fixer-upper" companies (acquisitions), works to improve their operations (organic growth), and holds them in a portfolio. The pro forma financials are like showing the蓝图 (blueprint) of what the entire portfolio could look like once all the projects are running smoothly, even if some are still under renovation and costing money right now.

📇 Key Contacts & People

• Jeff Eberwein - CEO
• Rick Coleman - COO
• Shawn Miles - EVP – Finance
• Company Email: [email protected]
• Investor Relations: Lena Cati, Senior Vice President at The Equity Group Inc.
  • Phone: 212-836-9611
  • Email: [email protected]

🧩 Final Takeaway

Star Equity is using this presentation to showcase its transformed size and scope after acquisitions, shifting the narrative from its reported net loss to an adjusted profit metric. For investors, the key question is whether its strategy of buying, integrating, and growing diverse businesses will consistently turn these "pro forma" profits into real, bottom-line gains.