Star Equity Holdings, Inc. (NASDAQ: STRRP)

Star Equity Holdings, Inc. is a diversified multi industry holding company operating through four reportable segments: Building Solutions, Business Services, Energy Services and Investments. The company was formerly known as Hudson Global, Inc. and changed its name after a merger and a charter amendment in 2025. Its common stock and 10% Series A Cumulative Perpetual Preferred Stock are listed on the Nasdaq Global Market under the tickers STRR and STRRP respectively. The headquarters are located in the United States and the firm pursues a strategy of capital allocation, strategic oversight and active management of its investment portfolio. The board of directors oversees corporate governance while day to day operations are delegated to the managers of each operating subsidiary.

Revenue is generated through the sale of products and delivery of services across the four segments. Building Solutions brings in income from the manufacture and sale of modular buildings, structural wall panels, engineered wood products and glue laminated timber used in residential, commercial and industrial construction. Business Services earns revenue by providing recruitment process outsourcing, contingent workforce solutions, recruitment consulting, outsourced professional contract staffing and managed service provider solutions to corporate clients worldwide. Energy Services generates income from the design, manufacture and sale of specialized drilling tools and downhole equipment that support directional drilling for oil and gas wells as well as mining, geothermal and water well projects. Investments contributes to earnings through rental income from owned real estate assets and through capital gains, dividends and interest from its holdings in public and private companies. In addition the firm may receive licensing income from certain intellectual property assets though such income represents a minor portion of total revenue.

The company operates through the following segments: Building Solutions, Business Services, Energy Services and Investments. This segmentation reflects the internal management structure and the way the chief operating decision maker evaluates performance. Each segment maintains separate financial information and is considered material to the overall results of the firm. Segment results are reviewed regularly to assess profitability, growth trends and capital allocation needs.

• Building Solutions comprises KBS Builders Inc., EdgeBuilder Inc., Glenbrook Building Supply Inc. and Timber Technologies Solutions Inc. These entities produce modular buildings, structural wall panels, engineered wood products and glue laminated timber for a variety of residential, commercial and industrial projects. Manufacturing occurs in climate controlled factories where modules are built, inspected and readied for transport to construction sites. The process includes electrical, plumbing and HVAC checks to ensure compliance with local building codes. The segment serves home builders, commercial developers and institutional clients who seek faster construction schedules and reduced on site labor costs. Demand for its products is influenced by housing starts, interest rates and the availability of financing for construction projects.

• Business Services consists of Hudson Talent Solutions which delivers recruitment process outsourcing, contingent workforce solutions, recruitment consulting, outsourced professional contract staffing and managed service provider services. The segment operates in eighteen countries spanning the Americas, Asia Pacific and Europe Middle East and Africa. It serves mid to large multinational corporations by sourcing talent, managing contingent workforces and providing advisory on workforce planning. The business model relies on long term client relationships and often involves multi year service agreements that can be renewed based on performance. Revenue is derived from fees charged per placement, per hour of contracted staff and a percentage of managed service expenditures.

• Energy Services is represented by Alliance Drilling Tools Inc. which manufactures and supplies specialized drilling tools and downhole equipment used in directional drilling for oil and gas wells as well as for mining, geothermal and water well applications. The products are designed to withstand harsh downhole conditions and to improve drilling efficiency and safety. The segment benefits from a cost structure that allows most variable expenses to be passed through to customers. Demand for its tools correlates with activity levels in the oil and gas sector, which are driven by crude oil prices and exploration budgets. In addition the equipment finds use in renewable energy projects such as geothermal wells and in water well drilling for agricultural and municipal needs.

• Investments holds and manages corporate owned real estate assets and invests in a limited number of publicly traded and private companies. The real estate portfolio consists of office, industrial and mixed use properties. Investment decisions are guided by fundamental analysis and the pursuit of long term value creation. The segment may also hold equity stakes in companies operating in adjacent industries to create synergies with the operating businesses. Income is generated from rental payments, property appreciation and dividend distributions from the held securities.

The markets for Building Solutions, Business Services and Energy Services are highly competitive with low barriers to entry and a fragmented competitive landscape. Competition is based on factors such as industry expertise, product and service quality, geographic reach, operational scale, pricing and the ability to execute projects efficiently. In Energy Services demand fluctuates with oil prices as customer drilling activity and capital spending respond to market conditions. In Building Solutions activity levels follow trends in construction, interest rates and the availability of project financing. The company’s competitive strengths arise from its diversified portfolio, its flexibility to allocate capital across segments and its ability to transfer operational best practices among its subsidiaries. Additional advantages include a strong balance sheet that permits strategic acquisitions and a seasoned management team with expertise in capital markets and operational turnarounds. These strengths help the firm navigate market cycles and pursue growth opportunities while maintaining financial discipline.

The company serves a diverse client base that includes mid to large multinational corporations, commercial contractors, energy companies and government agencies. Revenue concentration is notable with a small number of clients accounting for a significant portion of sales. In the most recent fiscal year one client represented approximately twenty three percent of total revenue while the top twenty five clients together contributed about seventy three percent of revenue. The firm emphasizes long term relationships and often negotiates multi year contracts lasting three to five years with key partners. In the Building Solutions segment clients include residential builders, commercial developers and public works agencies. Business Services clients are multinational corporations seeking talent solutions across multiple regions. Energy Services customers are oil and gas operators, mining companies and renewable energy developers. Investments interacts with property tenants, joint venture partners and other shareholders in the companies it holds.