Star Equity Holdings, Inc.

Greetings, ladies and gentlemen. Thank you for standing by, and welcome to the Star Equity Holdings third quarter 2025 results conference call. Please be advised that the discussions on today's call may include forward-looking statements. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Please refer to Star Equity's most recent 10-K, 10-Q, and other filings for more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events, or otherwise. Please note that on this call, management will reference non-GAAP financial measures including EBITDA, adjusted EBITDA, adjusted net income, and adjusted earnings per share, which are all financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most recent comparable gap financial measures in our earnings release issue this morning. If you do not receive a copy of the earnings release and would like one after the call, please contact Star Equity at 203-489-9500 or to Investor Relations Representative Misalina Cady of the Equity Group at 212-836-9611. Also, this call is being broadcast live over the Internet and may be accessed at Star Equity's website via www.starequity.com. Shortly after the call, a replay will also be available in the company's website. It is now my pleasure to introduce Mr. Jeff Eberwine, Chief Executive Officer of Star Equity. Please go ahead, sir.

Thank you, Operator, and welcome, everyone. We greatly appreciate your interest in Star Equity Holdings and thank you for joining us today. As a reminder, on August 22, 2025, the company completed its previously announced acquisition of Star Operating Companies, formerly known as Star Equity Holdings, pursuant to the agreement dated May 21. Effective September 5, the company changed its name to Star Equity Holdings from Hudson Global, and our trading symbols on NASDAQ from HSON to STRR. Following the merger, we are now operating as a diversified holding company with four divisions, building solutions, business services, energy services, and investments. I'll begin by reviewing our third quarter results for 2025 at the holding company level. After that, Jake Zabkiewicz, Global CEO of Hudson Talent Solutions, will give us an update on the performance of our business services segment. Finally, Rick Coleman, our chief operating officer, will provide additional insights into the performance of our building solutions and energy services segments. Third quarter results reflect the impact of our recent merger with revenue, gross profit, and adjusted EBITDA all showing year-over-year growth. These increases were largely driven by the inclusion of star operating companies beginning August 22nd. For the third quarter of 2025, revenue totaled $48 million, representing a 30% increase from the same quarter in 2024. Gross profit rose 11%. The company reported a net loss of $1.8 million, or $0.54 per share, compared to a net loss of $800,000, or $0.28 per diluted share, in the third quarter of last year. On a non-GAAP basis, adjusted net income share was 2 cents compared to an adjusted net loss of 13 cents per share in a prior year quarter. Importantly, on a pro forma basis, which includes the full third quarter's results from star operating companies, adjusted earnings per share were positive 19 cents versus negative 54 cents in the third quarter a year ago. Adjusted EBITDA increased to 1.3 million from 800,000 in the third quarter of last year, reflecting improved operating leverage following the merger. Proforma adjusted EBITDA was 3.1 million versus 600,000 in the third quarter of last year. Total cash, including restricted cash, was 18.5 million at the end of the quarter. I'll now turn the call over to Jake to discuss our business services segment.

Thank you, Jeff, and good morning. Our business services segment continues to demonstrate solid performance in the third quarter, despite the challenging macroeconomic environment impacting many industries. While the broader count acquisition market has contracted in 2025 compared to 2024, the Our HCS business has been able to maintain its profitability and even saw a slight increase in gross profit for both the third quarter and year to date. This resilience highlights the robustness of our business model, our ability to adapt to market shifts, and the strength of our longstanding client relationships, which continue to drive repeat business and steady demand for our services. I'm particularly proud to recognize our team has received in the marketplace. HCS was named to the prestigious Baker's Dozen for the 17th consecutive year, a testament to our consistent delivery of high-quality talent acquisition solutions. What's even more notable is that we achieved our highest ever overall ranking, reflecting the strength of our service offering and our commitment to excellence. Additionally, HCS is recognized as the number one provider in the Asia-Pac region, further underscoring our global reach and our trust in our clients' place in us. For the third quarter of 2025, business services revenue was $37 million, slightly up from $36.9 million the same period last year. Gross profit remained flat at $18.6 million compared to the prior year quarter, again speaking to the quality of our operations despite external challenges. Adjusted EBITDA for the segment was also flat at $1.7 million. This performance reflects our ability to effectively manage costs, sustain margins, while continuing to deliver value to our clients in a difficult market environment. Building on our momentum from the first half of the year, the third quarter we continued to execute our land and expand strategy. This strategy, which emphasizes expanding our geographical footprint and broadening our service offerings to both existing and prospective clients, has proven to be highly effective. As a result, we secured approximately $39.8 million in gross profit from renewals and extensions at existing clients, reflecting the strong relationships we have cultivated by our ability to deliver ongoing value. Additionally, we have secured approximately $11.1 million from new logo wins over the past four quarters. Looking ahead, we're focused on creating a more resilient, agile, and growth-oriented business for the long term. By continuing to invest in new technologies, such as our digital offering, we are confident in our ability to drive sustainable growth and create lasting value for our clients and stakeholders. Our commitment to execution and operational excellence will continue to guide us as we seize new opportunities and expand our market leadership. Now I'll turn the call over to Rick, who will discuss the financial and operational performance of our building solutions and energy services segments.