--- title: "Star Equity | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 50.06 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286000545.md" datetime: "2026-05-11T21:31:34.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286000545.md) - [en](https://longbridge.com/en/news/286000545.md) - [zh-HK](https://longbridge.com/zh-HK/news/286000545.md) --- # Star Equity | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 50.06 M Revenue: As of FY2026 Q1, the actual value is USD 50.06 M, missing the estimate of USD 52.57 M. EPS: As of FY2026 Q1, the actual value is USD -1.17, missing the estimate of USD -0.08. EBIT: As of FY2026 Q1, the actual value is USD -4.028 M. ### Consolidated Financial Results (Q1 2026 vs Q1 2025) #### Revenue Star Equity Holdings, Inc. reported revenue of $50.1 million in Q1 2026, an 8% increase from $46.5 million in Q1 2025 . #### Gross Profit Gross profit was $20.6 million in Q1 2026, remaining stable with a 0% change from $20.5 million in Q1 2025 . #### Adjusted SG&A Adjusted Selling, General & Administrative expenses increased by 3% to $23.2 million in Q1 2026 from $22.5 million in Q1 2025 . #### Adjusted EBITDA Adjusted EBITDA decreased by 39%, resulting in a loss of - $1.6 million in Q1 2026 compared to a loss of - $1.2 million in Q1 2025 . #### Net Income (Loss) attributable to common shareholders The net loss attributable to common shareholders widened by 17% to - $4.4 million in Q1 2026 from - $3.7 million in Q1 2025 . #### Adjusted Net Income (Loss) attributable to common shareholders The adjusted net loss attributable to common shareholders significantly increased by 357% to - $3.7 million in Q1 2026 from - $0.8 million in Q1 2025 . ### Balance Sheet: Selected Items (as of 3/31/2026 vs 12/31/2025) #### Cash Cash decreased to $8.1 million as of March 31, 2026, from $10.3 million as of December 31, 2025 . #### Restricted Cash Restricted cash was $2.2 million as of March 31, 2026, down from $3.1 million as of December 31, 2025 . #### Accounts Receivable Accounts receivable decreased to $32.8 million as of March 31, 2026, from $35.2 million as of December 31, 2025 . #### Stockholders’ Equity Stockholders’ Equity was $61.0 million as of March 31, 2026, a decrease from $65.7 million as of December 31, 2025 . #### Working Capital Working capital stood at $30.3 million as of March 31, 2026, compared to $32.7 million as of December 31, 2025 . #### Working Capital ex-cash Working capital excluding cash was $22.2 million as of March 31, 2026, a slight decrease from $22.4 million as of December 31, 2025 . ### Segment Financial Results (Q1 2026 vs Q1 2025) #### Building Solutions - **Revenue**: Revenue for the Building Solutions segment decreased by 4% to $11.6 million in Q1 2026 from $12.1 million in Q1 2025 . - **Gross Profit**: Gross profit for the segment declined by 44% to $1.6 million in Q1 2026 from $2.9 million in Q1 2025 . - **Adjusted EBITDA**: Adjusted EBITDA for Building Solutions saw a significant decrease of 387%, resulting in a loss of - $0.9 million in Q1 2026 compared to a positive $0.3 million in Q1 2025 . - **Ending Backlog**: Ending backlog was $7,983 thousand in Q1 2026 . - **New Orders**: New orders amounted to $9,983 thousand in Q1 2026 . - **Recognized Revenue (from backlog)**: Recognized revenue from backlog was $11,598 thousand in Q1 2026 . - **LTM Book to Bill Ratio**: The LTM Book to Bill Ratio was 0.72 in Q1 2026 . #### Business Services - **Revenue**: The Business Services segment’s revenue increased by 10% to $35.0 million in Q1 2026 from $31.9 million in Q1 2025 . - **Gross Profit**: Gross profit for Business Services grew by 6% to $17.4 million in Q1 2026 from $16.4 million in Q1 2025 . - **Adjusted EBITDA**: Adjusted EBITDA for Business Services decreased by 250%, resulting in a loss of - $0.3 million in Q1 2026 compared to a positive $0.2 million in Q1 2025 . - **TTM New Business**: Trailing Twelve Months (TTM) new business totaled $75.0 million, comprising $13.7 million in new logos and $61.3 million in renewals and expansions from legacy clients over the past four quarters . - **TTM Gross Profit**: TTM Gross Profit was $71.8 million, showing relative stability with a slight increase over the past four quarters . - **TTM Adjusted EBITDA Margin**: The TTM Adjusted EBITDA Margin decreased versus Q3 2025 but remained above Q3 FY24 . #### Energy Services - **Revenue**: Energy Services revenue increased by 35% to $3.5 million in Q1 2026 from $2.6 million in Q1 2025 . - **Gross Profit**: Gross profit for the Energy Services segment rose by 23% to $1.5 million in Q1 2026 from $1.3 million in Q1 2025 . - **Adjusted EBITDA**: Adjusted EBITDA for Energy Services increased by 111% to $1.0 million in Q1 2026 from $0.5 million in Q1 2025 . #### Investments - **Revenue (external customers)**: Revenue from external customers for the Investments segment was $0.2 million in Q1 2026 . - **Gross Profit**: Gross profit for Investments was $0.1 million in Q1 2026 . - **Net Loss attributable to common shareholders**: Net loss attributable to common shareholders for Investments was $0.1 million in Q1 2026 . - **Adjusted EBITDA**: Adjusted EBITDA for Investments was $0.5 million in Q1 2026 . - **Pro forma revenue (external customers, Q1 2025)**: Pro forma revenue from external customers for the Investments segment was $0.2 million in Q1 2025 . - **Pro forma gross profit (Q1 2025)**: Pro forma gross profit for Investments was $0.1 million in Q1 2025 . - **Pro forma net loss attributable to common shareholders (Q1 2025)**: Pro forma net loss attributable to common shareholders for Investments was - $0.3 million in Q1 2025 . - **Pro forma adjusted EBITDA (Q1 2025)**: Pro forma adjusted EBITDA for Investments was $0.3 million in Q1 2025 . ### Corporate Costs Corporate costs for the first quarter of 2026 were $1.9 million, an increase from $0.9 million in the prior year quarter, but a decrease of $0.7 million on a pro forma basis . ### Liquidity and Capital Resources Star Equity Holdings, Inc. ended the first quarter of 2026 with $10.3 million in total cash, which included $2.2 million in restricted cash . #### Cash Flow from Operations Star Equity Holdings, Inc. used - $1.4 million in cash flow from operations during the first quarter of 2026, compared to using - $0.8 million in the first quarter of 2025 . ### Share Repurchase Program In the first quarter of 2026, Star Equity Holdings, Inc. repurchased 70,424 shares for approximately $0.7 million . As of the end of Q1 2026, $1.8 million remained under the $3 million repurchase program authorized in September 2025 . ### NOL Carryforward As of December 31, 2025, Star Equity Holdings, Inc. had $215 million of usable net operating losses (NOL) in the U.S., which it considers a valuable asset for stockholders . ### Outlook / Guidance Star Equity Holdings, Inc. anticipates improved results as the year progresses due to operational and cost improvements and continued investments in growth . The Business Services division expects to capitalize on improving market conditions, while the Energy Services division is projected to maintain strong performance . Management remains focused on disciplined execution, cost management, capital allocation, and evaluating M&A opportunities to drive profitability and long-term shareholder value . ### Related Stocks - [STRR.US](https://longbridge.com/en/quote/STRR.US.md) ## Related News & Research - [Star Equity Launches ATM Preferred Stock Offering Program](https://longbridge.com/en/news/286826139.md) - [Federal Signal posts May 2026 investor presentation, raises 2026 outlook and margin targets](https://longbridge.com/en/news/287104853.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md)