Star completes merger, adds 3 segments but posts wider loss despite 57% revenue jump

Filed May 12, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 13, 2025 · ~2 min read

Key Changes

• high

  Completed merger with Star Operating Companies in August 2025, transforming from pure RPO business into diversified holding company with Building Solutions, Energy Services, and Investments divisions alongside legacy Business Services.

  MD&A: Merger and Structure verify on EDGAR →
• high

  Net loss more than doubled to $3.8M from $1.8M year-over-year despite 57% revenue growth to $50.1M, driven by Building Solutions' $1.4M EBITDA loss (12% negative margin) from weather disruptions and weak demand.

  MD&A: Profitability verify on EDGAR →
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  Cash declined $3.1M during quarter to $10.3M, reflecting $2.2M debt payments, $0.7M share repurchases, and $0.6M in new preferred stock dividends—a recurring cash obligation from merger that reduces earnings available to common shareholders.

  MD&A: Liquidity & Preferred Dividends verify on EDGAR →