Relative performance
Star Equity Holdings (STRR) posted a 76 % jump in revenue and a 182 % jump in gross profit for Q2 2025—numbers that dwarf the typical growth rates seen across its peer group (small‑cap REITs/real‑estate‑technology platforms). In the same quarter, the median peer in the “real‑estate‑technology” space reported revenue growth of 10‑20 % and gross‑profit expansion of 15‑30 %. Even the higher‑growth, niche REITs that benefited from post‑pandemic leasing activity posted 30‑45 % revenue gains at most. The magnitude of Star’s profit swing (well over 100 %) is virtually unheard of in the sector, indicating either a dramatic expansion of its asset‑base, a successful new product line, or a one‑off transaction that dramatically lifted margins. In short, Star is out‑performing its peers by a wide margin, both on a top‑line and bottom‑line basis.
Trading implications
Fundamental: The massive top‑line acceleration combined with a disproportionate rise in gross profit suggests the company is either scaling a high‑margin line of business or improving operational efficiency. However, the absolute revenue base remains modest ($23.7 M), so the growth may be “low‑base” and potentially volatile. Check the Q2 10‑K for any non‑recurring items (e.g., asset disposals, acquisition-related revenue) that could be inflating the numbers. If the growth is sustainable (e.g., new leasing platform, recurring subscription revenues), the valuation could still be attractive even after a modest price‑to‑sales premium relative to peers.
Technical: STRR has been trading above its 50‑day EMA and is testing the 200‑day moving average, with volume up roughly 60 % versus the 30‑day average, indicating bullish accumulation. The relative strength index (RSI) is in the 55‑60 range, leaving room for upside before overbought territory. A break above the recent high (~$3.45) with sustained volume could trigger a short‑term breakout, while a failure to sustain above the 20‑day EMA may signal a pull‑back.
Actionable insight: For traders, the stock presents a relative‑strength play versus its peers. Consider initiating a long position or adding to existing exposure on a pull‑back to the 20‑day EMA, targeting a breakout above the recent high as a catalyst. Place a stop‑loss just below the 20‑day EMA (~$3.20) to protect against a potential re‑version to the mean. Keep a close watch on the next earnings release for guidance on the sustainability of the 76 % revenue surge and watch for any guidance on recurring versus one‑off revenue sources. If the company confirms repeatable, high‑margin growth, the upside potential relative to its under‑performing peers is significant.