Hudson Global, Inc.

Star Equity did not provide consolidated revenue or EPS in the transcript, but it did report division-level results. Business Services Q2 2026 revenue was $36.4 million, up 2% from $35.5 million, gross profit was $17.8 million versus $18.6 million, and adjusted EBITDA was $1.6 million versus $2.2 million. Building Solutions revenue was $14.6 million, gross profit was $3.2 million, and adjusted EBITDA was $0.5 million; on a pro forma basis for Q2 2025, those figures were $20.4 million, $5.2 million, and $2.3 million, respectively. Energy Services revenue was $3.9 million, up 19%, gross profit was $1.9 million, up 75%, and adjusted EBITDA was $1.2 million, up 126%; on a pro forma basis, Q2 2025 revenue was $3.3 million, gross profit was $1.1 million, and adjusted EBITDA was $0.5 million. The company ended the quarter with $8.9 million in cash, including $2.1 million of restricted cash, and $21.5 million in working capital excluding cash. No formal next-quarter or full-year consolidated guidance was given, but management said Building Solutions is targeting a normal run rate of about $20 million of quarterly revenue, about 25% gross margin, and 10% to 15% adjusted EBITDA margin over time. For Harte Hanks, management said the deal price is $5 per share, about $38 million on a fully diluted basis, with a target of roughly $10 million of cost savings and about $400 million of combined revenue and about $30 million of combined adjusted EBITDA once synergies are achieved.

Jeff Eberwein emphasized operating discipline, cost control, and capital allocation while framing the Harte Hanks merger as a strategic fit in business process outsourcing. He said Star has already achieved about $3 million of Hudson-related merger synergies versus the original $2 million expectation, and argued the Harte Hanks deal should be accretive without issuing common stock or raising external capital. His tone was confident but measured, noting that some businesses are still below expectations and that the Harte Hanks close likely comes before year-end, not immediately.

The CFO commentary focused on segment performance and balance-sheet use. Management said the company ended Q2 with $8.9 million in cash, including $2.1 million restricted, and $21.5 million in working capital excluding cash versus $22.4 million at year-end, while repurchasing about $0.2 million of stock in the quarter and leaving $1.6 million on the buyback authorization. On the operational side, Business Services had modest revenue growth but lower gross profit and EBITDA due to a $1.5 million growth investment, while Building Solutions suffered from weak construction markets and timing of revenue recognition; Energy Services benefited from higher utilization and new client wins. Management also said Energy Services capex has been elevated temporarily, with future maintenance capex estimated around $1 million per year.

Analysts pressed on why Building Solutions and Business Services were below expectations, and management pointed to soft end markets, slow new-logo activity, low attrition, and AI-related customer uncertainty delaying decisions. Questions on Harte Hanks focused on declining revenue and EBITDA, to which management responded that the right way to view the deal is after normalizing leases and pension, and that the initial priority is to capture cost synergies and then invest to stabilize and grow the business. Management also said the $10 million synergy target should be largely realized within about a year, with early savings coming from eliminated duplicative public-company costs and corporate overlap.