Hudson Global (STRR)
NASDAQ:STRR
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Hudson Global
(NASDAQ:STRR)
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Rating:52Neutral
Price Target:
$12.00
▲(24.35% Upside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by weak financial quality—losses and materially negative operating/free cash flow—despite strong top-line growth and a not overly levered balance sheet. Technically, shares are in an uptrend above key moving averages, but overbought momentum signals elevate near-term risk. The latest earnings call supports an improving narrative (synergies and expected EBITDA improvement), but current profitability and Building Solutions softness keep the overall score in the middle range.
Positive Factors
Strong revenue growth & healthy gross margin
Consistent top-line momentum (notably a 57% YoY quarter alongside TTM growth) and a ~43.6% gross margin indicate durable demand and pricing power in RPO and talent services. This base supports scalable operating leverage as higher contract volumes and renewals convert to longer-term margin expansion.
Negative Factors
Negative operating and free cash flow
Sustained cash burn means the business cannot self-fund growth or cover operating needs without monetizing assets or raising capital. Reliance on sale-leasebacks and planned real-estate monetization constrains reinvestment and increases execution risk if operating cash generation doesn't turn positive within several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth & healthy gross margin
Consistent top-line momentum (notably a 57% YoY quarter alongside TTM growth) and a ~43.6% gross margin indicate durable demand and pricing power in RPO and talent services. This base supports scalable operating leverage as higher contract volumes and renewals convert to longer-term margin expansion.
Read all positive factors
Hudson Global (STRR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.95M
Dividend YieldN/A
Average Volume (3M)35.09K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth37.91%
EPS Growth-116.68%
CountryUS
Employees194
SectorIndustrials
Sector Strength72
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-1.53
Shares Outstanding3,695,890
10 Day Avg. Volume14,352
30 Day Avg. Volume35,091
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.55
Price to Sales (P/S)0.21
P/FCF Ratio-4.02
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit0.72
Enterprise Value/Ebitda-13.79
Forecast
1Y Price Target
$22.00Price Target Upside127.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.63
Revenue Forecast (FY)$231.28M
Hudson Global Business Overview & Revenue Model
Company Description
Star Equity Holdings, Inc. provides healthcare solutions in the United States and internationally. It operates through four segments: Diagnostic Services, Diagnostic Imaging, Construction, and Investments. It offers imaging services primarily to c...
How the Company Makes Money
Hudson Global primarily makes money by delivering outsourced recruiting and talent acquisition services to client organizations. Its core revenue stream is recruitment process outsourcing (RPO), where clients contract with Hudson to manage some or...
Hudson Global Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a mix of clear top-line momentum and strategic progress (notably 57% revenue growth, $2.6M in merger synergies, and a strong Energy Services quarter) alongside meaningful near-term profitability and operational challenges (widening adjusted EBITDA loss, Building Solutions softness, low book-to-bill and regional headwinds in APAC). Management emphasized confidence in recovery through pipeline conversion, continued cost discipline, asset monetization and targeted investments, positioning the company to improve results later in the year.Positive Updates
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.
Negative Updates
Adjusted EBITDA Loss Widened
Reported adjusted EBITDA loss of $1.6 million in Q1 2026, compared to a loss of $700 thousand in the prior-year period, reflecting near-term pressures and timing of project starts.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management did not give formal line-item guidance but said they expect near‑term improvement (Q1 adjusted EBITDA loss of $1.6M vs a loss of $0.7M a year ago) with Bloomberg consensus for Q2 adjusted EBITDA of roughly $2.0–2.5M (which would make H1 positive) and full‑year adjusted EBITDA in the ~$8–10M range (management noted comfort with about $9M). They pointed to supporting metrics: consolidated revenue rose 57% year‑over‑year to $50.1M and gross profit rose 25% to $20.6M, merger synergies of ~$2.6M annualized (vs $2.0M target), Hudson Talent revenue +9.8% and gross profit +6.4% (regional GP: Americas +21%, EMEA +11%, APAC -8%), Building Solutions Q1 revenue $11.6M, GP $1.6M, adj. EBITDA -$0.9M with backlog $8.0M and book‑to‑bill 0.72, and Energy Services revenue $3.5M, GP $1.5M, adj. EBITDA $1.0M (with CapEx expected to stay near the Q1 run rate). On cash and capital allocation they ended Q1 with $10.3M total cash (including $2.2M restricted), used $1.4M of operating cash flow, generated just over $3M from sale‑leasebacks, repurchased ~$0.7M of stock in Q1 ($3.3M over 12 months, $1.8M remaining authorization), and reiterated plans to monetize ~$20M of non‑core real estate (two properties estimated at $8–10M).Hudson Global Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
56
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 190.35M | 172.16M | 53.36M | 161.34M | 112.15M | 106.56M |
| Gross Profit | 83.03M | 78.66M | 11.05M | 80.27M | 25.88M | 15.24M |
| EBITDA | -4.35M | -2.48M | -4.81M | 2.85M | -9.00K | -3.03M |
| Net Income | -7.95M | -5.92M | -10.44M | 2.20M | -5.25M | -2.98M |
Balance Sheet | ||||||
| Total Assets | 108.51M | 113.23M | 52.58M | 60.96M | 67.94M | 61.24M |
| Cash, Cash Equivalents and Short-Term Investments | 13.90M | 15.86M | 17.01M | 22.61M | 27.12M | 21.71M |
| Total Debt | 26.75M | 26.42M | 1.06M | 1.43M | 1.94M | 2.48M |
| Total Liabilities | 47.51M | 47.52M | 12.15M | 12.40M | 22.15M | 21.93M |
| Stockholders Equity | 61.00M | 65.71M | 40.43M | 48.55M | 45.79M | 39.32M |
Cash Flow | ||||||
| Free Cash Flow | -10.84M | -8.96M | -8.04M | 2.00M | -5.05M | -7.24M |
| Operating Cash Flow | -7.85M | -7.25M | -5.18M | 2.70M | -3.86M | -6.45M |
| Investing Cash Flow | 6.46M | 4.57M | -12.04M | 16.18M | -5.09M | 17.80M |
| Financing Cash Flow | -5.45M | -1.96M | 3.91M | -3.07M | 8.94M | -9.97M |
Hudson Global Technical Analysis
Positive
9.65
Price Trends
9.95
Positive
10.05
Positive
10.26
Positive
Market Momentum
0.55
Negative
71.57
Negative
86.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRR, the sentiment is Positive. The current price of 9.65 is below the 20-day moving average (MA) of 10.32, below the 50-day MA of 9.95, and below the 200-day MA of 10.26, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 86.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRR.
Hudson Global Risk Analysis
Hudson Global disclosed 45 risk factors in its most recent earnings report. Hudson Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hudson Global Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $152.49M | -69.93 | -2.30% | ― | -9.39% | 72.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $42.95M | -5.51 | -13.56% | ― | 37.91% | -116.68% | |
48 Neutral | $25.64M | -24.26 | -51.65% | ― | -18.78% | 98.07% | |
47 Neutral | $54.88M | -4.50 | -17.82% | 41.67% | -65.05% | -154.86% | |
42 Neutral | $7.58M | -0.28 | -78.12% | ― | 1.26% | -4.09% | |
| ― | $21.25M | -2.00 | -295.27% | ― | 6931.12% | 89.12% |
* Industrials Sector Average
STRR
Hudson Global
11.71
2.71
30.06%
DHX
DHI Group
3.76
1.46
63.48%
JOB
GEE Group
0.24
0.04
20.41%
IPDN
Professional Diversity
0.70
-0.99
-58.64%
BGSF
BGSF
5.09
2.01
65.21%
NIXX
Nixxy
0.76
-1.08
-58.74%
Hudson Global Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Hudson Global Outlines Vision 2030 in Investor Presentation
Positive
Jun 1, 2026
On June 1, 2026, Star Equity furnished an investor presentation detailing its business as of March 31, 2026, outlining current operations, strategy and financial profile for investors and analysts. The presentation, which is treated as furnished r...
Executive/Board ChangesShareholder Meetings
Hudson Global Shareholders Approve Directors and Executive Compensation
Positive
May 27, 2026
Star Equity Holdings, Inc. held its Annual Meeting of Stockholders on May 27, 2026, with 3,176,323 of 3,707,314 eligible common shares represented, constituting a quorum. At the meeting, shareholders elected seven directors to serve until the 2027...
Business Operations and StrategyPrivate Placements and Financing
Star Equity Launches ATM Preferred Stock Offering Program
Positive
May 18, 2026
On May 18, 2026, Star Equity Holdings, Inc. entered into an at-the-market issuance sales agreement with Ladenburg Thalmann Co. Inc. as sales agent, allowing the company to offer and sell up to $8.7 million of its 10% Series A Cumulative Perpetual...
Business Operations and StrategyDividends
Star Equity Declares Cash Dividend on Preferred Stock
Positive
May 15, 2026
On May 15, 2026, Star Equity Holdings, Inc. announced that its board has declared a cash dividend of $0.25 per share on its 10% Series A Cumulative Perpetual Preferred Stock. The dividend will be paid on June 10, 2026, to preferred shareholders of...
Business Operations and StrategyM&A Transactions
Hudson Global Completes Sale-Leaseback of Key Properties
Positive
Mar 30, 2026
On December 16, 2025, Alliance Drilling Tools, LLC entered into purchase and sale agreements for a trio of sale-leaseback transactions on properties in Texas, Utah, and Wyoming, with the Wyoming sale closing on February 27, 2026. On March 27, 2026...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Star Equity Updates Investor Presentation, Highlights Growth Strategy
Positive
Mar 30, 2026
Star Equity Holdings furnished an updated investor presentation on March 30, 2026, detailing its business and operations as of December 31, 2025, and clarifying that the materials are supplemental to its regulatory filings and not deemed filed und...
Business Operations and StrategyExecutive/Board Changes
Hudson Global Sets 2026 Executive Incentive and LTIP Plan
Positive
Mar 25, 2026
On March 19, 2026, Star Equity Holdings’ board compensation committee recalibrated 2025 incentive payouts after reviewing business results for the year ended December 31, 2025, awarding a mix of cash and restricted stock unit bonuses to seni...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Hudson Global Sets Earlier 2026 Annual Shareholder Meeting
Positive
Mar 17, 2026
Star Equity Holdings reported on March 17, 2026 that 2025 was a transformative year, marked by the August 2025 merger that added Building Solutions and Energy Services and drove strong top-line growth despite a wider net loss. Revenue for the four...
Business Operations and StrategyPrivate Placements and Financing
Hudson Global Executes Strategic Sale-Leaseback to Boost Liquidity
Positive
Mar 4, 2026
On December 16, 2025, Alliance Drilling Tools entered into a $1.7 million sale and leaseback agreement for its property at 101-107 Pasture Drive in Evanston, Wyo., with the transaction closing on February 27, 2026. The deal, later assigned to Past...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.