Strong Top-Line Growth Driven by Merger
Total revenue increased 57% year-over-year to $50.1 million and gross profit rose 25% to $20.6 million, driven largely by inclusion of STAR Operating Companies after the August 22, 2025 merger.
Merger Synergies Exceed Expectations
Realized approximately $2.6 million of annualized merger synergies, beating the initial expectation of about $2.0 million.
Energy Services Outperformance
Energy Services delivered a strong quarter: revenue of $3.5 million, gross profit of $1.5 million and adjusted EBITDA of $1.0 million. The division is gaining market share (notably in mining and geothermal) even as rig counts decline.
Business Services Growth and Momentum
Hudson Talent Solutions (HTS) revenue increased 9.8% year-over-year and gross profit increased 6.4%. Regionally, gross profit growth was strong in the Americas (+21%) and EMEA (+11%), with acceleration in new business activity exceeding any quarter of 2025 and multiple client renewals.
Liquidity and Cash-Generating Actions
Ended Q1 with $10.3 million total cash (including $2.2 million restricted). Generated just over $3 million from sale-leaseback transactions during Q1 and repurchased ~$700 thousand of stock in the quarter (~$3.3 million repurchased over the last 12 months).
Notable New Wins and Geographic Expansion
Building Solutions announced a $4.2 million New Hampshire multifamily project and HTS gained a foothold in Japan from a recent acquisition, supporting future land-and-expand opportunities.
Technology & Operational Improvements
Expanded deployment of AgenTic AI to improve recruiter productivity and candidate matching; continued focus on cost management, disciplined capital allocation, and targeted investments to drive scalability and margin expansion.