Star Equity Holdings, Inc.

Greetings, ladies and gentlemen, and welcome to Star Equity Holdings' first quarter 2026 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 may 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 the most comparable GAAP financial measures in our earnings release issued yesterday afternoon. If you did not receive a copy of the earnings release and would like one after the call, please contact Star Equity at 203- Also, this call is being broadcast live over the Internet and may be accessed at the Star Equities 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 Eberwine, Chief Executive Officer of Star Equity.

Thank you, Operator, and welcome, everyone. We greatly appreciate your interest in Star Equity Holdings, and we thank you for joining us today. I'll begin by reviewing the first quarter results for 2026 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 division. Finally, Rick Coleman, our chief operating officer, will provide additional insights into the performance of our building solutions and energy services divisions. As highlighted on slide three of our earnings slides deck, our first quarter results reflect the merger we completed last August with revenue and gross profit showing strong year-over-year growth. These increases were driven largely by the inclusion of Star Operating Company's results beginning after the merger closed August 22, 2025. We have realized approximately 2.6 million of merger synergies on an annualized basis as shown on slide 4, and that beats our initial expectation of about 2 million in merger synergies. Going back to the first quarter, we were impacted by the timing of new project starts and broader macroeconomic conditions. Despite these near-term pressures, we continued to make progress advancing our strategic priorities and strengthening our operating platform. Revenue increased 57% year-over-year to 50.1 million Gross profit increased 25% to $20.6 million. We reported an adjusted EBITDA loss of $1.6 million compared to a loss of $0.7 million in the prior year period. At the division level, our performance was mixed. Energy services delivered a strong quarter and continued to gain market share across key end markets. Business services was worse than expected in a challenging talent environment and we continue to invest for growth. Building solutions was impacted by delayed project awards and weather-related disruptions. That said, we're already seeing signs of improvement as we move through the second quarter, supported by new business wins, improving activity levels, and continued operational and cost focus across the organization. As shown on slide five, we ended the first quarter with $10.3 million of total cash, including $2.2 million of restricted cash. During Q1, we used $1.4 million in operating cash flow. We generated a little over $3 million from the sale-leaseback transactions. We repurchased about $700,000 of stock on our share repurchase program, and we have $1.8 million remaining under the current authorization. Over the last 12 months, we've repurchased approximately 3.3 million of stock, and we continue to believe our stock is undervalued, and we view share repurchases as an extremely attractive use of our capital. Across the company, we remain focused on disciplined execution, cost management, and investing in growth initiatives that we believe will enhance our competitive position and drive improved financial performance over the balance of the year. Now I'll turn it over to Jake to discuss our Hudson Talent Solutions business.

Thank you, Jeff, and good morning. Our business services division continued to demonstrate solid top-line growth in the first quarter despite the challenging macroeconomic environment impacting many industries. As shown on slide 10 of the deck, revenue increased by 9.8%, and HTS year-over-year gross profit increased 6.4%, reflecting steady improvement despite continued macroeconomic sustained pressures in the talent market. Regionally, the Americas and OMEA formed well, with gross profit growth of 21% and 11% respectively, partially offset by an 8% decline in Asia-Pac market, where the conditions remain more challenging. We have maintained a strong focus on innovation and operational efficiencies, including the expanded deployment of our agentic AI solutions to enhance recruiter productivity, improve candidate matching, and deliver greater value to our clients. These efforts are helping us navigate the current environment while positioning us to capitalize on improving market conditions in the future. As an example, new business activity accelerated meaningfully in the first quarter of 2026, exceeding levels seen in any quarter of 2025. We've also achieved multiple renewals in Q1, with many of our existing clients opting for a non-competitive engagement process. This shows the depth and breadth of our partnerships in a very competitive market. We continue to take steps to strengthen our partnerships, maintain a disciplined approach to our investments, and grow the business. We're executing our playbook of land and expand with recent wins coming off the acquisition in Japan, giving us a foothold to address previously untapped opportunities. We've also taken steps to recalibrate our business in the Middle East. maintaining our commitment to have a presence in the region, but being realistic about the opportunity there given the broader macroeconomic environment. Additionally, the enhancements to our geographical footprint and our product offerings, particularly our digital offering, have driven robust new local interest. We have seen an uptick in customer conversations in recent months and are focused on forging long-term client relationships. We'll continue to take a disciplined approach as we execute our playbook for the remainder of the year. Looking ahead, we're focused on creating a more resilient, agile, and growth-oriented business for a longer term. Now, I'm turning the call over to Rick, who will discuss the financial and operational performance of our building solutions and our energy services divisions. Rick?