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1. Company Snapshot

1.a. Company Description

Hudson Global, Inc.provides talent solutions for mid-to-large-cap multinational companies and government agencies under the Hudson RPO brand in the Americas, the Asia Pacific, and Europe.It offers recruitment process outsourcing (RPO) services, such as complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting for clients' permanent staff hires; and RPO contracting services, including outsourced professional contract staffing and managed services.


The company was formerly known as Hudson Highland Group, Inc.and changed its name to Hudson Global, Inc.in April 2012.


Hudson Global, Inc.was founded in 1999 and is headquartered in Old Greenwich, Connecticut.

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1.b. Last Insights on HSON

Hudson Global's recent performance was driven by strategic growth initiatives, including its merger with Star Equity Holdings, which is expected to enhance its size, revenue streams, and profitability. The company's Q2 revenue topped 3%, and it declared a partial cash dividend for its 10% Series A Cumulative Perpetual Preferred Stock. Additionally, Hudson RPO's acquisition of Alpha Consulting Group (ACG) Japan marked its entrance into the Japanese market, strengthening its APAC region leadership. The company's name change to Star Equity Holdings, Inc. and ticker symbol change to STRR and STRRP on NASDAQ also reflect its evolving business condition.

1.c. Company Highlights

2. Star Equity Holdings' Q3 2025 Earnings: A Stronger and More Diversified Platform

Star Equity Holdings reported revenue of $48 million for the third quarter, a 30% increase from the same quarter in 2024, driven by the inclusion of Star Operating Companies. Gross profit rose 11%, and on a non-GAAP basis, adjusted net income per share was $0.02 compared to an adjusted net loss of $0.13 per share in the prior-year quarter. However, the actual EPS came out at -$0.59409, missing estimates of $0.29. Adjusted EBITDA increased to $1.3 million from $800,000 in the third quarter of last year.

Publication Date: Nov -26

📋 Highlights
  • Revenue Growth:: Q3 revenue surged to $48 million, a 30% increase YoY, driven by Star Operating Companies' inclusion.
  • Adjusted Net Income:: Improved to $0.02/share vs. a $0.13 loss YoY, reflecting post-merger operating leverage.
  • Adjusted EBITDA:: Rose to $1.3 million ($1.3M) from $800K YoY, with Building Solutions contributing $2.6M pro forma.
  • Cash Position & Buybacks:: $18.5 million in cash and a $3 million share repurchase program, with 8% of shares repurchased in Q3.
  • Merger Synergies:: $2 million in Q3, targeting $8 million annualized by mid-2026, with $100M gross profit and $20M EBITDA as mid-cycle goals.

Segment Performance

The Business Services segment, led by Hudson Talent Solutions, reported revenue of $37 million, slightly up from $36.9 million in the same period last year. Gross profit remained flat at $18.6 million, and adjusted EBITDA was also flat at $1.7 million. The Building Solutions segment delivered strong growth, capitalizing on the rebound in commercial construction demand, with pro forma revenue increasing to $21.4 million from $13.7 million in the third quarter of 2024.

Operational Highlights

Jeffrey Eberwein noted that the recent merger has significantly enhanced the company's scale, expanded its exposure to a broader range of end markets, and improved its operating leverage. The company is targeting a mid-20s gross margin in Building Solutions, which can vary due to business mix and construction accounting. As Eberwein stated, "We're operating from a much stronger and more diversified platform."

Valuation and Outlook

With a P/S Ratio of 0.34 and an EV/EBITDA ratio of 19.22, the market is pricing in a certain level of growth. Analysts estimate revenue growth at 45.3% next year. The company's goal is to reach $100 million in gross profit and $20 million in EBITDA, a 20% margin, which is considered a mid-cycle normalized level. The current valuation multiples suggest that the market is expecting significant growth, but the company's ability to achieve its goals will be crucial in determining the stock's performance.

Cash Position and Share Repurchase

Total cash, including restricted cash, was $18.5 million at the end of the quarter. The company repurchased about 8% of its shares outstanding and has authorized a new $3 million share repurchase program, indicating a focus on returning value to shareholders.

3. NewsRoom

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Star Equity Holdings Reports 2025 Third Quarter Results

Nov -13

Source: globenewswire.com

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Star Equity Holdings to Present at LD Micro Conference on October 20th

Oct -14

Source: globenewswire.com

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Optimind Pharma Announces Definitive Agreement for Proposed Change of Business with InterviewDesk

Sep -08

Source: newsfilecorp.com

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Hudson Global Renamed Star Equity Holdings, Inc.

Sep -04

Source: globenewswire.com

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Hudson Global Declares Partial Cash Dividend for its 10% Series A Cumulative Perpetual Preferred Stock

Aug -22

Source: globenewswire.com

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Hudson Global and Star Equity Holdings Announce Closing of Merger

Aug -22

Source: globenewswire.com

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Hudson Global, Inc. (HSON) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

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Hudson Global (HSON) Q2 Earnings Miss Estimates

Aug -08

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.68%)

6. Segments

Hudson Asia Pacific

Expected Growth: 10%

Hudson Asia Pacific's 10% growth driven by increasing demand for recruitment process outsourcing, expansion into emerging markets, and strategic partnerships. Strong presence in Australia, China, and Japan fuels growth. Additionally, the segment benefits from Hudson Global's expertise in talent management and leadership development, enabling clients to navigate Asia's complex labor markets.

Hudson Americas

Expected Growth: 11%

Hudson Americas' 11% growth is driven by increasing demand for recruitment process outsourcing (RPO) and professional staffing services, particularly in the IT and healthcare sectors. Strong client relationships, strategic acquisitions, and effective cost management also contribute to the segment's growth.

Hudson Europe

Expected Growth: 13%

Hudson Europe's 13% growth is driven by increasing demand for recruitment process outsourcing (RPO) and talent management services, particularly in the UK and Germany. Additionally, the segment benefits from a strong presence in the finance and technology sectors, as well as strategic acquisitions and investments in digital transformation.

7. Detailed Products

Recruitment Process Outsourcing (RPO)

Hudson RPO provides customized recruitment solutions to clients, managing the entire recruitment process from job posting to onboarding.

Contingent Workforce Solutions

Hudson's contingent workforce solutions provide clients with temporary, contract, and freelance workers to support business needs.

Permanent Recruitment

Hudson's permanent recruitment services connect clients with top talent for permanent positions, from entry-level to executive roles.

Talent Management

Hudson's talent management solutions help clients develop and retain their existing workforce, improving performance and reducing turnover.

Outplacement Services

Hudson's outplacement services support organizations undergoing restructuring, providing career transition assistance to departing employees.

8. Hudson Global, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Hudson Global, Inc. faces moderate threat from substitutes due to the presence of alternative staffing solutions and recruitment agencies.

Bargaining Power Of Customers

Hudson Global, Inc. has a high bargaining power of customers due to the presence of large corporate clients who can negotiate better prices and terms.

Bargaining Power Of Suppliers

Hudson Global, Inc. has a low bargaining power of suppliers due to the presence of many suppliers and a competitive market for recruitment services.

Threat Of New Entrants

Hudson Global, Inc. faces a moderate threat of new entrants due to the presence of barriers to entry, such as regulatory requirements and capital investments.

Intensity Of Rivalry

Hudson Global, Inc. operates in a highly competitive market with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.86%
Debt Cost 3.95%
Equity Weight 97.14%
Equity Cost 7.04%
WACC 6.95%
Leverage 2.95%

11. Quality Control: Hudson Global, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 4.8

Growth: 8.6

Quality: 8.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

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A-Score: 4.2/10

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Quality: 3.0

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Hudson Global

A-Score: 3.2/10

Value: 9.4

Growth: 0.9

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

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A-Score: 3.0/10

Value: 6.0

Growth: 3.6

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

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A-Score: 2.9/10

Value: 4.8

Growth: 2.9

Quality: 5.2

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.27$

Current Price

9.27$

Potential

-0.00%

Expected Cash-Flows