Star Holdings (STHO) AI Stock Analysis

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Star Holdings

(NASDAQ:STHO)

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Rating:49Neutral

Price Target:$7.50▼(-4.46% Downside)

Action:reiterated

Date:11/07/26

The overall score is constrained by a critical cash flow weakness and bearish technical trends. While the company has achieved a notable operational turnaround and a strong, debt-free balance sheet, it continues to burn cash. A recent corporate event to de-lever and create buyback capacity is a positive step, but the stock's negative momentum and lack of profitability weigh heavily on the near-term outlook.

Positive Factors

Operating ReboundThe sharp TTM revenue increase and stronger operating margins indicate that the portfolio and asset-management platform has regained operating traction. If these improvements persist, they could support better earnings conversion, strengthen internal funding capacity, and improve the durability of results over the next several quarters.

Negative Factors

Persistent Net LossesDespite the operating rebound, Star remains substantially loss-making at the net-income level, while prior periods included deep losses and negative gross profit. This weak earnings consistency reduces confidence that current operating improvements will translate into durable shareholder returns or self-funded growth.

Star Holdings Business Overview & Revenue Model

Company Description

Star Holdings specializes in commercial real estate operations across the United States, specifically focusing on ventures that do not involve ground leases. The company's portfolio predominantly features equity interests in residential development i...

Star Holdings Financial Statement Overview

Summary

Financial performance is mixed. The income statement shows a strong operational turnaround with surging revenue and positive EBIT/EBITDA, but the company remains unprofitable with a net loss. The balance sheet is a strength, being debt-free with positive equity. However, deeply negative operating and free cash flow is a major concern, indicating cash burn. The overall score reflects improving operations offset by critical cash flow weakness.

Income Statement

45Neutral

Balance Sheet

72Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	96.69M	110.14M	88.86M	101.17M	96.11M
Gross Profit	21.26M	21.28M	-25.57M	-28.94M	-17.23M
EBITDA	27.63M	-47.22M	-68.28M	-168.75M	10.64M
Net Income	-33.02M	-64.25M	-86.75M	-196.36M	-36.35M
Balance Sheet
Total Assets	414.97M	570.20M	608.65M	669.20M	1.01B
Cash, Cash Equivalents and Short-Term Investments	63.57M	50.08M	34.96M	50.66M	4.23M
Total Debt	0	269.36M	218.44M	194.43M	2.01M
Total Liabilities	177.45M	304.33M	263.66M	235.36M	33.10M
Stockholders Equity	237.52M	251.77M	324.34M	411.55M	971.54M
Cash Flow
Free Cash Flow	-34.32M	-66.45M	-67.22M	-32.77M	-49.84M
Operating Cash Flow	-28.38M	-11.66M	-31.29M	-18.72M	-27.36M
Investing Cash Flow	76.93M	-1.54M	306.00K	186.02M	236.06M
Financing Cash Flow	-33.17M	34.83M	15.81M	-114.06M	-218.31M

Star Holdings Technical Analysis

Technical Analysis SentimentNeutral

Last Price7.85

Price Trends

50DMA8.36Negative

100DMA8.87Negative

200DMA8.64Negative

Market Momentum

MACD-0.15Negative

RSI48.51Neutral

STOCH43.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STHO, the sentiment is Neutral. The current price of 7.85 is above the 20-day moving average (MA) of 7.62, below the 50-day MA of 8.36, and below the 200-day MA of 8.64, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STHO.

Star Holdings Risk Analysis

Star Holdings disclosed 50 risk factors in its most recent earnings report. Star Holdings 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

3 New Risks

1.Legislative, regulatory or administrative changes could adversely affect us, our stockholders or our borrowers.Q4, 2025

2.Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities Issuer Purchases of Equity SecuritiesQ3, 2024

3.Item 3. Defaults Upon Senior SecuritiesQ3, 2024

Star Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

STHO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ASPS	50Neutral	$61.85M	-6.33	8.90%	―	5.11%	52.92%
STHO	49Neutral	$93.99M	-2.92	-13.08%	―	2.05%	76.09%
DOUG	47Neutral	$158.26M	2.66	32.79%	―	-3.46%	―
OPAD	43Neutral	$10.89M	-0.23	-106.24%	―	-44.28%	54.66%
FTHM	37Underperform	$4.99M	-0.18	-75.90%	―	4.33%	24.93%

* Real Estate Sector Average

Performance Comparison

STHO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
STHO	Star Holdings	7.85	0.47	6.37%
ASPS	Altisource Portfolio Solutions	5.50	-3.75	-40.49%
NEN	New England Realty Associates Limited Partnershi	43.75	-24.38	-35.78%
FTHM	Fathom Holdings Inc	0.14	-0.88	-86.08%
OPAD	Offerpad Solutions Inc.	1.96	-16.54	-89.41%
DOUG	Douglas Elliman Inc.	1.70	-0.71	-29.46%

Star Holdings Corporate Events

Business Operations and StrategyPrivate Placements and Financing

Star Holdings Updates Margin Loan Terms with Morgan Stanley

Neutral

Oct 9, 2026

On October 9, 2026, STAR Investment Holdings SPV LLC, a wholly owned subsidiary of Star Holdings, amended its margin loan agreement with Morgan Stanley, adjusting key collateral and repayment terms tied to Safehold common stock. The amendment lowered...

Business Operations and StrategyStock BuybackPrivate Placements and Financing

Star Holdings De-levers Balance Sheet, Boosts Shareholder Capacity

Positive

Oct 2, 2026

On September 29, 2026, Star Holdings amended its term loan credit agreement with Safehold, extending the loan maturity to March 31, 2029 with an option to push it to September 30, 2029 in exchange for fees and a higher interest rate during any extens...

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.

Date of analysis: Nov 07, 2026

Star Holdings AI Stock Analysis