v3.26.3
SEGMENT AND GEOGRAPHIC DATA
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
SEGMENT AND GEOGRAPHIC DATA

NOTE 17 - SEGMENT AND GEOGRAPHIC DATA

 

Segment Reporting

 

Corporate expenses are reported separately for the four reportable segments and pertain to certain functions, such as executive management, corporate governance, investor relations, legal, accounting, tax, and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them, and have been allocated to the segments as management service expenses, and are included in the segments’ non-operating other income (expense). We have disclosed for each reportable segment the significant expense that is reviewed by CODM in the tables below with no additional significant expenses beyond those presented. Segment information is presented in accordance with ASC 280, “Segment Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

 

Our reportable segments are based upon our internal organizational structure, the manner in which our operations are managed, the criteria used by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), to evaluate segment performance, the availability of separate financial information, and overall materiality considerations. Effective as of the acquisition of SOC on August 22, 2025, our business segments are organized into the following four reportable segments, reflecting the manner in which our CODM assesses performance and allocates resources:

 

1. Building Solutions

2. Business Services

3. Energy Services

4. Investments

 

Our reporting segments have been determined based on the nature of the products and services offered to customers or the nature of their function in the organization. We evaluate performance based on gross profit and operating income (loss). Our operating costs included in our shared service functions primarily consist of senior executive officers, finance, human resources, legal, and information technology. Star Equity shared service corporate costs have been separated from the reportable segments. Prior period presentation previously disclosed conforms to current year presentation.

 

 

Segment information for the three and six months ended June 30, 2026 and 2025, respectively, is as follows:

 

 

   Building Solutions   Business Services   Energy Services   Investments   Corporate and Intersegment eliminations   Total 
For The Three Months Ended June 30, 2026                              
Revenues  $14,612   $36,385   $3,944   $158   $(158)  $54,941 
Cost of revenues   11,454    18,570    2,048    74    -    32,146 
Gross profit (a)   3,158    17,815    1,896    84    (158)   22,795 
Salaries and related   (1,786)   (14,369)   (583)   -    (1,229)   (17,967)
Office and general   (1,074)   (2,032)   (506)   (157)   (1,104)   (4,873)
Marketing and promotion   (11)   (982)   (8)   -    -    (1,001)
Operating expenses depreciation and amortization   (101)   (213)   -    -    (10)   (324)
Operating income / (loss)  $186   $219   $799   $(73)  $(2,501)  $(1,370)
                               
EBITDA (loss) (b)  $23   $72   $1,102   $(56)  $(1,785)  $(644)
Total depreciation and amortization   (267)   (213)   (370)   (74)   (10)   (934)
Interest income / (expense), net   (140)   (169)   (49)   217    141    - 
                               
Provision for income tax   -    (461)   -    -    191    (270)
Net income / (loss)  $(384)  $(771)  $683   $87   $(1,463)  $(1,848)
For The Six Months Ended June 30, 2026                              
Revenues  $26,210   $71,390   $7,402   $317   $(317)  $105,002 
Cost of revenues   21,411    36,129    3,963    149    -    61,652 
Gross profit (a)   4,799    35,261    3,439    168    (317)   43,350 
Salaries and related   (3,378)   (29,461)   (1,266)   -    (2,602)   (36,707)
Office and general   (2,241)   (4,161)   (884)   (249)   (1,935)   (9,470)
Marketing and promotion   (23)   (1,879)   (21)   -    -    (1,923)
Operating expenses depreciation and amortization   (191)   (405)   (19)   -    (20)   (635)
Operating income / (loss)  $(1,034)  $(645)  $1,249   $(81)  $(4,874)  $(5,385)
                               
EBITDA (loss) (b)  $(1,331)  $(943)  $1,950   $(9)  $(3,415)  $(3,748)
Total depreciation and amortization   (531)   (405)   (771)   (149)   (20)   (1,876)
Interest income / (expense), net   (266)   (327)   (92)   390    282    (13)
                               
Provision for income tax   -    305    -    -    (309)   (4)
Net income / (loss)  $(2,128)  $(1,370)  $1,087   $232   $(3,462)  $(5,641)
                               
As of June 30, 2026                              
Accounts receivable, net  $7,940   $22,000   $4,971   $-   $29   $34,940 
Long-lived assets, net of accumulated depreciation and amortization (c)  $4,257   $7,597   $5,409   $6,437   $152   $23,852 
Total assets  $32,401   $41,525   $14,220   $21,099   $(1,009)  $108,236 

 

 

   Business Services   Corporate and Intersegment eliminations   Total 
For The Three Months Ended June 30, 2025               
Revenues  $35,541   $-   $35,541 
Cost of revenues   16,906    -    16,906 
Gross profit (a)   18,635    -    18,635 
Salaries and related   (14,460)   (377)   (14,837)
Office and general   (1,646)   (1,147)   (2,793)
Marketing and promotion   (971)   -    (971)
Operating expenses depreciation and amortization   (243)   (2)   (245)
Operating income (loss)  $1,315   $(1,526)  $(211)
                
EBITDA (loss) (b)  $954   $(1,106)  $(152)
Depreciation and amortization   (243)   (2)   (245)
Interest income (expense), net   (157)   211    54 
                
Provision for income taxes   (372)   27    (345)
Net income (loss)  $182   $(870)  $(688)
For The Six Months Ended June 30, 2025               
Revenues  $67,407   $-   $67,407 
Cost of revenues   32,374    -    32,374 
Gross profit (a)   35,033    -    35,033 
Salaries and related   (28,354)   (828)   (29,182)
Office and general   (3,284)   (2,073)   (5,357)
Marketing and promotion   (1,901)   -    (1,901)
Operating expenses depreciation and amortization   (523)   (5)   (528)
Operating income (loss)  $971   $(2,906)  $(1,935)
                
EBITDA (loss) (b)  $458   $(2,122)  $(1,664)
Total depreciation and amortization   (523)   (5)   (528)
Interest income (expense), net   (278)   403    125 
                
Provision for income taxes   (448)   71    (377)
Net loss  $(791)  $(1,653)  $(2,444)

 

As of December 31, 2025  Building Solutions   Business Services   Energy Services   Investments   Corporate and Intersegment eliminations   Total 
Accounts receivable, net  $8,671   $22,398   $4,045   $-   $106   $35,220 
Long-lived assets, net of accumulated depreciation and amortization (c)  $4,320   $7,934   $7,235   $6,586   $167   $26,242 
Total assets  $34,105   $43,418   $12,526   $21,689   $1,493   $113,231 

 

(a) Gross profit in the Business Services segment includes the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. The region where services are provided, the mix of RPO and contracting, and the functional nature of the staffing services provided can affect operating income and EBITDA. The salaries, commissions, payroll taxes, and employee benefits related to recruitment professionals are included under the caption “Salaries and related” in the Condensed Consolidated Statements of Operations.
   
(b) SEC Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation, and amortization. EBITDA is presented to provide additional information to investors about the Company’s operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company’s profitability.
   
(c) Comprised of property and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization.

 

 

Geographic Data Reporting

 

A summary of revenues for the three and six months ended June 30, 2026 and 2025 and net assets by geographic area as of June 30, 2026 and December 31, 2025, were as follows:

 

  

   Australia  

United

States

  

United

Kingdom

   Other   Total 
For The Three Months Ended June 30, 2026        
Revenue (a)  $18,079   $25,846   $5,424   $5,592   $54,941 
For The Three Months Ended June 30, 2025                         
Revenue (a)  $16,832   $6,739   $6,211   $5,759   $35,541 
For The Six Months Ended June 30, 2026                         
Revenue (a)  $35,505   $48,263   $10,223   $11,011   $105,002 
For The Six Months Ended June 30, 2025                         
Revenue (a)  $31,694   $13,249   $11,505   $10,959   $67,407 
As of June 30, 2026                         
Long-lived assets, net of accumulated depreciation and amortization (b)  $46   $21,814   $50   $1,942   $23,852 
Net assets  $2,046   $43,386   $2,074   $12,291   $59,797 
As of December 31, 2025                         
Long-lived assets, net of accumulated depreciation and amortization (b)  $32   $24,160   $35   $2,015   $26,242 
Net assets  $3,855   $47,524   $1,475   $12,853   $65,707 

 

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.
   
(b) Comprised of property and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization.

 

NOTE 17 - SEGMENT AND GEOGRAPHIC DATA

 

Segment Reporting

 

Corporate expenses are reported separately for the four reportable segments and pertain to certain functions, such as executive management, corporate governance, investor relations, legal, accounting, tax, and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them, and have been allocated to the segments as management service expenses, and are included in the segments’ non-operating other income (expense). We have disclosed for each reportable segment the significant expense that is reviewed by CODM in the tables below with no additional significant expenses beyond those presented. Segment information is presented in accordance with ASC 280, “Segment Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

 

Our reportable segments are based upon our internal organizational structure, the manner in which our operations are managed, the criteria used by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), to evaluate segment performance, the availability of separate financial information, and overall materiality considerations. Effective as of the acquisition of SOC on August 21, 2025, our businesses are organized into the following four reportable segments, reflecting the manner in which our CODM assesses performance and allocates resources:

 

1.Building Solutions

2.Business Services

3.Energy Services

4.Investments

 

Our reporting segments have been determined based on the nature of the products and services offered to customers or the nature of their function in the organization. We evaluate performance based on gross profit and operating income (loss). The Company also evaluates the performance of its reportable segments using a Non-GAAP EBITDA metric, which is defined as earnings before interest, income taxes, depreciation, and amortization. In addition, certain corporate-related costs are not allocated to the segments. Our operating costs included in our shared service functions primarily consist of senior executive officers, finance, human resources, legal, and information technology. Star Equity shared service corporate costs have been separated from the reportable segments. Prior period amounts have been reclassified to conform to current year presentation.

 

 

Segment information for the year ended December 31, 2025 and 2024, respectively, is as follows:

 

   Building Solutions   Business Services   Energy Services   Investments   Corporate and Intersegment Eliminations   Total 
                         
For the Year Ended December 31, 2025                              
Revenues  $27,578   $139,652   $4,929   $212   $(212)  $172,159 
Cost of revenues   21,303    67,879    3,001    107    -    92,290 
Gross profit (a)   6,275    71,773    1,928    105    (212)   79,869 
Salaries and related   (2,494)   (57,995)   (879)   -    (2,177)   (63,545)
Office and general   (1,592)   (6,917)   (579)   (119)   (5,636)   (14,843)
Marketing and promotion   (26)   (3,905)   (13)   -    (13)   (3,957)
Operating expenses depreciation and amortization   (135)   (1,028)   (27)   -    (22)   (1,212)
Operating income (loss)  $2,028   $1,928   $430   $(14)  $(8,060)  $(3,688)
                               
EBITDA (loss), unaudited (b)   $2,439    $1,385    $1,016    $(16)   $(6,862)   $(2,038)
Total depreciation and amortization   (361)   (1,028)   (560)   (107)   (22)   (2,078)
Interest income (expense), net   (212)   (510)   (99)   283    798    260 
Provision for income tax   -    (1,999)   -    -    (62)   (2,061)
Net income (loss)  $1,866   $(2,152)  $357   $160   $(6,148)  $(5,917)
                               
As of December 31, 2025                              
Accounts receivable, net  $8,671   $22,398   $4,045   $-   $106   $35,220 
Long-lived assets, net of accumulated depreciation and amortization (c)  $4,320    $7,934   $7,235    $6,586   $167   $26,242 
Total assets  $34,105   $43,418   $12,526   $21,689   $1,493   $113,231 

 

 

   Business Services   Corporate and Intersegment Eliminations   Total 
For the Year Ended December 31, 2024               
Revenues  $140,056   $-   $140,056 
Cost of revenues   69,904    -    69,904 
Gross profit (a)   70,152    -    70,152 
Salaries and related   (56,943)   (1,366)   (58,309)
Office and general   (7,295)   (3,408)   (10,703)
Marketing and promotion   (3,584)   (4)   (3,588)
Operating expenses depreciation and amortization   (1,350)   (11)   (1,361)
Operating income (loss)  $980   $(4,789)  $(3,809)
                
EBITDA (loss) (b)  $1,119    $(3,588)  $(2,469)
Total depreciation and amortization   (1,350)   (11)   (1,361)
Interest income (expense), net   (520)   880    360 
Provision for incomes taxes   (1,242)   (58)   (1,300)
Net loss  $(1,993)  $(2,777)  $(4,770)
                
As of December 31, 2024               
Accounts receivable, net  $20,093   $-   $20,093 
Long-lived assets, net of accumulated depreciation and amortization (c)  $8,410   $26   $8,436 
Total assets  $45,273   $7,310   $52,583 

 

(a)Gross profit in the Business Services segment includes the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. The region where services are provided, the mix of RPO and contracting, and the functional nature of the staffing services provided can affect operating income and EBITDA. The salaries, commissions, payroll taxes, and employee benefits related to recruitment professionals are included under the caption “Salaries and related” in the Consolidated Statements of Operations.
  
(b)SEC Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company’s operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company’s profitability.
  
(c)Comprised of property and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization.

 

 

Geographic Data Reporting

 

A summary of revenues for the year ended December 31, 2025 and 2024 and net assets by geographic area as of December 31, 2025 and 2024, were as follows:

 

   Australia   United
States		   United
Kingdom		   Other   Total 
For the Year Ended December 31, 2025            
Revenue (a)  $68,839   $60,504   $21,100   $21,716   $172,159 
For the Year Ended December 31, 2024                         
Revenue (a)  $70,674   $26,577   $22,900   $19,905   $140,056 
As of December 31, 2025                         
Long-lived assets, net of accumulated depreciation and amortization (b)  $32   $24,160   $35   $2,015   $26,242 
Net assets  $3,855   $47,524   $1,475   $12,853   $65,707 
As of December 31, 2024                         
Long-lived assets, net of accumulated depreciation and amortization (b)  $20   $6,667   $16   $1,733   $8,436 
Net assets  $7,788   $17,066   $3,076   $12,498   $40,428 

 

(a)Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.
  
(b)Comprised of property and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization.