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Hudson Global
(NASDAQ:STRR)
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Rating:46Neutral
Price Target:
$9.50
▼(-7.32% Downside)
Action:Reiterated
Date:09/23/26
The score is primarily held down by weak financial performance (ongoing losses and negative operating/free cash flow) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include moderate leverage and a mixed-but-improving strategic narrative from the earnings call, highlighted by synergy realization and projected acquisition-driven scale, though execution and integration risks remain meaningful.
Positive Factors
RPO contract retention and stable gross profit
The large renewal and expansion component of RPO contract value indicates an established client base and recurring demand for Hudson’s recruiting services. Stable trailing gross profit provides a foundation for rebuilding operating leverage as new business activity improves.
Negative Factors
Persistent losses and cash consumption
Negative earnings and operating cash flow show that current revenue does not yet fund the business or provide reliable internal capital. Continued cash consumption can reduce flexibility for investment and acquisitions, while ongoing losses may further erode equity.
Read all positive and negative factors
Positive Factors
Negative Factors
RPO contract retention and stable gross profit
The large renewal and expansion component of RPO contract value indicates an established client base and recurring demand for Hudson’s recruiting services. Stable trailing gross profit provides a foundation for rebuilding operating leverage as new business activity improves.
Read all positive factors
Hudson Global (STRR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.07M
Dividend Yield66.27%
Average Volume (3M)3.83K
Price to Earnings (P/E)―
Beta (1Y)0.67
Revenue Growth52.15%
EPS Growth-136.04%
CountryUS
Employees1,200
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)-3.06
Shares Outstanding3,689,403
10 Day Avg. Volume2,491
30 Day Avg. Volume3,827
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.55
Price to Sales (P/S)0.21
P/FCF Ratio-4.02
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit0.63
Enterprise Value/Ebitda-14.57
Forecast
1Y Price Target
$16.00Price Target Upside56.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.73
Revenue Forecast (FY)$222.81M
Hudson Global Business Overview & Revenue Model
Company Description
Star Equity Holdings, Inc. operates as a diversified multi-industry holding company in Australia, the United States, the United Kingdom, and internationally. It operates through four segments: Building Solutions, Business Services, Energy Services...
How the Company Makes Money
Hudson Global primarily makes money by delivering outsourced recruiting and talent acquisition services to employer clients, most notably through recruitment process outsourcing (RPO) engagements. Under an RPO model, clients contract Hudson Global...
Hudson Global Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operational wins and clear near-term challenges. Highlights include stronger-than-expected synergies to date, a notable surge in Energy Services (double- and triple-digit percentage gains in profit metrics), modest revenue growth in Business Services, an improving backlog and order intake at Building Solutions, and an accretive-seeming acquisition of Harte Hanks with projected $10M of synergies and pro forma scale (~$400M revenue). Lowlights include meaningful margin pressure and EBITDA declines in Business Services due to higher growth investments and a cautious talent market, significant year-over-year declines and timing issues in Building Solutions (revenue, gross profit and EBITDA materially below pro forma prior-year levels), weak new-logo wins in talent (YTD new logo ACV ~$2.1M), and integration/risk concerns given Harte Hanks’ recent revenue declines (one segment down ~30% YoY). Overall, positives (cost synergies, Energy Services momentum, deal rationale and liquidity) are balanced by execution and market-demand headwinds in two of the company’s larger operating segments, leaving the near-term outlook mixed while the medium-term case depends on successful integration and realization of projected synergies.Positive Updates
Achieved Merger Synergies and Corporate Cost Reduction
Reported approximately $3.0 million of merger synergies to date vs. $2.0 million originally projected; corporate costs were $3.6 million for the first half vs. $5.1 million pro forma prior, a $1.5 million reduction in six months (~29% reduction vs. pro forma).
Negative Updates
Business Services Margin Pressure and EBITDA Decline
Although revenue rose 2%, Business Services gross profit fell 4% to $17.8M (from $18.6M), and divisional adjusted EBITDA declined to $1.6M from $2.2M year-over-year. Trailing 12-month adjusted EBITDA margin fell to 5.4% from 7.9%, with higher growth investments ($1.5M vs. $0.8M prior year) and persistent soft demand in professional talent markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Achieved Merger Synergies and Corporate Cost Reduction
Reported approximately $3.0 million of merger synergies to date vs. $2.0 million originally projected; corporate costs were $3.6 million for the first half vs. $5.1 million pro forma prior, a $1.5 million reduction in six months (~29% reduction vs. pro forma).
Read all positive updates
Company Guidance
Management guided that they have already realized roughly $3.0M of merger synergies (vs. an initial $2M estimate), citing corporate costs of $3.6M in H1 down from $5.1M pro forma (a $1.5M six‑month saving); they reiterated disciplined capital allocation (Q2 buybacks $0.2M; $1.6M remaining of a $3.0M authorization) and outlined the Harte Hanks deal (signed at $5.00/share, ~ $38M implied fully diluted consideration, to be paid ~50% cash/50% preferred with 0.25 preferred share per Harte Hanks share, cash capped at $19.2M and funded from Star/Harte cash plus Harte’s $25M revolver) expected to close by year‑end and to create pro forma revenue of ~ $400M and pro forma adjusted EBITDA ≈ $30M after ~ $10M of cost synergies (phased, with much realizable within ~1 year); divisional guidance and metrics included Business Services Q2 revenue $36.4M (+2%), gross profit $17.8M (−4%), adj. EBITDA $1.6M (vs. $2.2M), RPO TCV $122.5M (new $8.3M; renewals/expansions $114.2M), TTM gross profit $72M and TTM adj. EBITDA margin 5.4% (vs. 7.9% YA); Building Solutions Q2 revenue $14.6M, gross profit $3.2M, adj. EBITDA $0.5M, backlog $10.6M, Q2 new orders $17.3M and a target mid‑cycle run rate of ~$20M/quarter with ~25% gross margin and 10–15% adj. EBITDA margin; Energy Services Q2 revenue $3.9M (+19%), gross profit $1.9M (+75%), adj. EBITDA $1.2M (+126%); and a balance sheet of $8.9M cash (incl. $2.1M restricted) with working capital ex‑cash $21.5M (vs. $22.4M YE).Hudson Global Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 209.75M | 172.16M | 53.36M | 161.34M | 200.92M | 106.56M |
| Gross Profit | 86.87M | 78.66M | 11.05M | 80.27M | 99.21M | 15.24M |
| EBITDA | -3.78M | -1.78M | -6.57M | 4.04M | 10.71M | -7.37M |
| Net Income | -9.11M | -5.92M | -10.44M | 2.20M | 7.13M | -2.98M |
Balance Sheet | ||||||
| Total Assets | 108.24M | 113.23M | 52.58M | 60.96M | 67.94M | 61.24M |
| Cash, Cash Equivalents and Short-Term Investments | 12.64M | 15.86M | 17.01M | 22.61M | 27.12M | 21.71M |
| Total Debt | 28.20M | 26.42M | 1.06M | 1.43M | 1.94M | 2.48M |
| Total Liabilities | 48.44M | 47.52M | 12.15M | 12.40M | 22.15M | 21.93M |
| Stockholders Equity | 59.80M | 65.71M | 40.43M | 48.55M | 45.79M | 39.32M |
Cash Flow | ||||||
| Free Cash Flow | -14.17M | -8.96M | -8.04M | 2.00M | -5.05M | -7.24M |
| Operating Cash Flow | -9.71M | -7.25M | -5.18M | 2.70M | -3.86M | -6.45M |
| Investing Cash Flow | 5.17M | 4.57M | -12.04M | 16.18M | -5.09M | 17.80M |
| Financing Cash Flow | -3.71M | -1.96M | 3.91M | -3.07M | 8.94M | -9.97M |
Hudson Global Technical Analysis
Positive
10.25
Price Trends
10.26
Positive
10.69
Negative
10.35
Negative
Market Momentum
-0.08
Negative
55.18
Neutral
60.12
Neutral
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 10.25 is above the 20-day moving average (MA) of 9.96, below the 50-day MA of 10.26, and below the 200-day MA of 10.35, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 55.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.12 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $221.46M | 155.02 | 1.28% | ― | -7.34% | ― | |
54 Neutral | $23.62M | -268.69 | -0.17% | ― | -18.54% | 99.76% | |
51 Neutral | $50.73M | -6.18 | -19.17% | 43.01% | -58.57% | 11.65% | |
46 Neutral | $38.07M | -3.37 | -14.34% | 66.27% | 52.15% | -136.04% | |
42 Neutral | $2.35M | -0.07 | -72.62% | 0.89% | -5.10% | -16.73% | |
34 Underperform | $8.24M | -1.17 | -87.31% | ― | 748.16% | 93.39% |
* Industrials Sector Average
STRR
Hudson Global
10.32
-0.91
-8.14%
DHX
DHI Group
5.10
2.97
139.44%
JOB
GEE Group
0.21
0.01
5.94%
IPDN
Professional Diversity
3.53
-114.97
-97.02%
BGSF
BGSF
4.75
1.02
27.35%
NIXX
Nixxy
0.29
-1.50
-83.99%
Hudson Global Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Hudson Global Highlights Growth Strategy and Asset Monetization
Positive
Sep 22, 2026
Star Equity Holdings, Inc., a diversified holding company trading on Nasdaq as STRR and STRRP, operates four divisions across business services, building solutions, energy services, and investments, and positions itself as a logical consolidator o...
Business Operations and StrategyDividends
Hudson Global Declares Cash Dividend on Preferred Stock
Positive
Aug 21, 2026
Star Equity Holdings, Inc., a diversified holding company with operations across building solutions, business services, energy services, and investments, focuses on acquiring and growing businesses with strong fundamentals in construction-related ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Hudson Global Expands Platform with Harte Hanks Acquisition
Positive
Aug 14, 2026
On August 14, 2026, Star Equity Holdings agreed to acquire Harte Hanks, a global customer experience and business process outsourcing firm, in a merger that will place Harte Hanks within Star’s Business Services division while preserving its...
Business Operations and StrategyDelistings and Listing Changes
Star Equity Added to Russell Microcap Index Benchmark
Positive
Jun 29, 2026
On June 29, 2026, Star Equity Holdings announced that its common stock was added to the Russell Microcap Index, following the annual Russell indexes reconstitution that became effective after the U.S. market close on June 26, 2026. The inclusion p...
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.