Star Holdings (STHO) Quarterly Loss Of US$19.1 Million Reinforces Bearish Earnings Narratives

Star Holdings (STHO) closed out FY 2025 with Q4 revenue of US$33.4 million and a basic EPS loss of US$1.51, alongside a net loss of US$19.1 million, with trailing twelve month revenue at US$118.1 million and a TTM basic EPS loss of US$4.90. Over the past six quarters in the data, quarterly revenue has ranged from US$14.6 million to US$42.1 million while basic EPS has swung between a profit of US$6.90 and a loss of US$7.70. This sets the backdrop for a stock priced at US$8.84 today. For investors, the headline story is that profitability remains under pressure and margins look tight, so the key question is whether any earnings stabilisation can follow from this latest set of results. See our full analysis for Star Holdings.With the numbers on the table, the next step is to see how this earnings print lines up against the widely shared narratives about Star Holdings, highlighting where the story holds up and where it may need a rethink. Curious how numbers become stories that shape markets? Explore Community Narratives TTM loss of US$64.2 million keeps profitability under strain On a trailing twelve month basis to Q4 FY 2025, Star Holdings recorded a net loss of US$64.2 million on revenue of US$118.1 million, with a TTM basic EPS loss of US$4.90. Bears focus on the multi year pattern of losses increasing at about 11.8% a year, and the latest TTM loss of US$64.2 million fits that concern rather than easing it. The company has been unprofitable over the last 12 months, and each of the last four quarters in FY 2025 showed a net loss except Q3, which showed a comparatively small profit of US$1.8 million. Q2 FY 2025 alone carried a net loss of US$39.3 million on US$42.1 million of revenue, which critics highlight as a period where losses were very large relative to sales. On this track record, skeptics argue that the recent year of TTM results strengthens the cautious view on earnings durability, and they look to the detailed loss profile before forming any long term expectations. 🐻 Star Holdings Bear CaseFive year loss trend vs one off profitable quarters Over the last five years, earnings have declined at an annualised rate of 11.8%, even though there were isolated profitable quarters such as Q3 FY 2025 with US$1.8 million net income and Q3 FY 2024 with US$91.9 million net income. What stands out for investors who lean optimistic is that these profitable quarters sit alongside much larger loss making periods. The 11.8% annualised decline in earnings challenges any bullish view that one or two strong quarters alone can reset the story. For example, the US$91.9 million profit in Q3 FY 2024 was followed by a US$102.6 million loss in Q4 FY 2024, showing that profitability has not been consistent over the reported periods. Similarly, the swing from a US$1.8 million profit in Q3 FY 2025 to a US$19.1 million loss in Q4 FY 2025 underlines how volatile net income has been, which is a key point when weighing any optimistic thesis. P/S of 0.9x stands out against real estate peers Star Holdings trades on a P/S of 0.9x, compared with a US real estate industry average of 2.6x and a peer group average of 6.2x, meaning the stock is valued at a much lower sales multiple than those groups using the current TTM revenue base of US$118.1 million and share price of US$8.84. Supporters who argue the stock may be priced cautiously point to this lower P/S multiple. The five year 11.8% annualised earnings decline and the TTM net loss of US$64.2 million show why the market may still be demanding a discount. The combination of a sub 1x P/S multiple and repeated annual losses suggests investors are weighing the current loss making profile heavily when assigning a value to each dollar of revenue. At the same time, the gap between 0.9x and the 2.6x industry average is large enough that many readers will want to compare this pricing against other companies with similar loss profiles before drawing conclusions. If you want to see how other investors connect these revenue and valuation numbers into bigger picture stories, take a look at the Curious how numbers become stories that shape markets? Explore Community Narratives. Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Star Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. If this combination of losses and valuation gaps seems unclear to you, that is intentional. It is worth reviewing the details yourself to decide how you feel about the stock. To complete that view, do not overlook that our work highlights 1 important warning sign Explore Alternatives Star Holdings shows a five year earnings decline of 11.8%, repeated TTM net losses of US$64.2 million, and highly volatile quarterly profitability. If you want more consistent financial profiles and clear balance sheet strength, start comparing companies in the solid balance sheet and fundamentals stocks screener (44 results) so you can act with greater confidence. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.