Star Equity Holdings, Inc.

Greetings, everyone, and welcome to Star Equity Holdings' fourth quarter 2025 Financial 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 a 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 also 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 comparable GAAP financial measures in our earnings release issued this morning. If you did not receive a copy of the earnings release and would like one after the call, please contact Star Equity at 203-489-9500 or its investors representative, Lena Caddy, from 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 on the company's website. It is now my pleasure to introduce Jeff Eberwein, Chief Executive Officer of Star Equity.

Thank you, Operator, and welcome, everyone. We greatly appreciate your interest in Star Equity Holdings, and thank you for joining us today. I'll begin by reviewing our fourth quarter results for 2025 at the holding company level. After that, Jake Zabkiewicz, our Global CEO of Hudson Talent Solutions, will give us an update on the performance of our business services segment. Then Rick Coleman, our Chief Operating Officer, will provide insights into the performance of two business segments, Building Solutions and Energy Services. Our fourth quarter financial results reflect positive momentum and improvement over the prior year quarter, largely attributable to the addition of Building Solutions and Energy Services divisions, which were added in August 2025. As compared to the fourth quarter of 2024, our fourth quarter 2025 revenue grew 69%, gross profit increased 38%, and adjusted EBITDA grew 156% to $2.2 million. Similarly, our 2025 full-year results were impacted by the addition of these divisions starting in August. when compared to 2024, it drove a revenue increase of 23%, a 14% increase in gross profit, and an increase in adjusted EBITDA from 0.9 million to 4.2 million. If we look at the results on a pro forma basis, our full year revenue grew to approximately 225 million, a 7% increase, Our gross profit grew to approximately $95 million, a 6% increase, and our adjusted EBITDA almost tripled to $12.6 million. We ended the year with $13.4 million in cash, including restricted cash. Year-end working capital, excluding cash, jumped to $22.4 million, which represents a temporary buildup that is expected to decline in the first quarter of 2026. Lastly, we ended 2025 with $215 million of usable NOL carry-forwards. Now I'll turn the call over to Jake to discuss our business services segment.

Thank you, Jeff, and good morning. Our business services segment delivered another strong quarter, demonstrating solid performance despite a challenging macroeconomic landscape that has affected many industries. We've continued to adapt to market shifts supported by enduring strength of our client relationships, which drive repeat business and consistent demand for our services. In the fourth quarter, our business services division achieved 3% increase in gross profit versus Q4 of 2024, while a full year gross profit increased 2% compared to 2024, a resilient outcome given the economic challenges facing the talent market in 2025, and many companies in the sector experienced a continued revenue declines. Regionally, both APAC and the Americas delivered strong performances with gross profit of 11.7% and 4.4% respectively. These gains were partially offset by EMEA where gross profit declined 18.7%. Throughout 2025, we made strategic investments to accelerate future growth while realizing cost efficiencies throughout operational improvements. We've also expanded our go-to-market strategy, enhancing our services portfolio to better meet the evolving needs of existing and prospective clients. At the same time, we continue to lead in digital transformation of the hiring industry, leveraging agentic AI and advanced automation to streamline workflows, enhance decision-making, and respond rapidly to the evolving client demands. By expanding our digital ecosystem and strengthening our enterprise capabilities, we are delivering more innovative and efficient, cost-effective talent solutions at scale. These investments enable us to improve speed, accuracy, transparency across hiring life cycles while empowering our teams and clients with smarter tools and data-driven insights. Looking ahead, our talented and dedicated team is well-positioned to sustain this momentum. We remain focused on building a resilient, agile, and growth-orientated business that can quickly adapt and shift to the market dynamics while continuously delivering value to our clients and partners. This commitment is underpinned by continued investments in our people, technology, and culture of service excellence that prioritizes collaboration, accountability, and innovation. Now I'm turning the call over to Rick, who will be discussing financial and operational performance of our building solutions and energy services segments.