Hudson Global, Inc. (HSON): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that just completely reshaped itself, so understanding the new structure of Hudson Global, Inc. (HSON) after merging with Star Equity Holdings is key to seeing its potential. Honestly, this isn't the old talent firm; it's now a diversified holding group running four very different businesses-from Recruitment Process Outsourcing (RPO) to manufacturing modular buildings and renting downhole tools. What really catches my eye as an analyst is the massive tax asset: $240 million in U.S. federal Net Operating Losses (NOLs) acting as a future shield, plus they closed Q2 2025 with $17.5 million in cash. If you want to see exactly how these disparate parts create value, check out the full Business Model Canvas breakdown below; it maps out the new reality for Hudson Global, Inc.

Hudson Global, Inc. (HSON) - Canvas Business Model: Key Partnerships

You're hiring before product-market fit, so understanding the alliances that underpin Hudson Global, Inc.'s (HSON) structure as of late 2025 is crucial for assessing stability. The partnership landscape has shifted dramatically following the August 2025 merger.

Star Operating Companies for the August 2025 Merger Integration

The most significant partnership event was the merger completion with Star Equity Holdings, Inc. (referred to as Star Operating Companies, Inc. in the merger documents) on August 22, 2025. This stock-for-stock deal formed a larger, diversified holding company, which subsequently rebranded from Hudson Global to Star Equity Holdings effective September 5, 2025. This integration immediately created a combined entity with pro-forma annualized revenues of $210 million. The merger also increased the likelihood of utilizing Hudson Global's $240 million U.S. federal net operating losses (NOLs). Former Star common stockholders received approximately 744,291 shares of Hudson Global common stock, and former Star preferred stockholders received approximately 2,690,637 shares of Hudson Global Series A preferred stock.

The resulting entity now operates with four reporting segments, which represent the integration of the former Star businesses with Hudson Global's existing structure:

• Building Solutions (includes KBS Builders, EdgeBuilder-Glenbrook)
• Business Services
• Energy Services
• Investments

Technology Vendors for the Hudson RPO Digital Platform

Hudson RPO, which rebranded to Hudson Talent Solutions in September 2025, has been focused on solidifying its technology stack. In February 2025, the company appointed a new Chief Digital Officer to lead and revolutionize its digital capabilities. By September 2025, this culminated in the launch of Hudson Digital, described as a proprietary talent ecosystem platform designed to help clients make faster, more data-driven workforce decisions. While specific vendor names aren't public, the focus is on integrating strategy, technology, and people into seamless total talent solutions.

Alpha Consulting Group (ACG) Japan for Local Market Recruitment Services

A key strategic partnership move was the acquisition of Alpha Consulting Group (ACG), a Tokyo-based recruitment firm, finalized on July 23, 2025. This acquisition marked Hudson RPO's entry into the Japanese market, which is the second-largest market in APAC and the third-largest globally. ACG primarily serves clients in the IT Services, Technology, and Business Services sectors. The financial terms of this transaction were not disclosed.

Industry-Specific Suppliers for Building and Energy Services Divisions

The post-merger structure includes the Energy Services division, which partners with the supply chain for the rental, sale, and repair of downhole tools. This division supports the oil and gas, geothermal, mining, and water-well industries. The Building Solutions division also relies on specific operational partners for its services. Specific supplier names and contract values for these divisions are not publicly itemized in the latest financial disclosures.

Financial Institutions for Managing the $17.5 Million Cash Position

Managing liquidity is key, especially following the large merger transaction. As of the end of the second quarter ended June 30, 2025, Hudson Global reported ending the quarter with $17.5 million in cash, which included $0.7 million of restricted cash. This followed a first-quarter position at March 31, 2025, where total cash, including restricted cash, was $17.2 million. The company's working capital, excluding cash, stood at $12.2 million at the end of Q2 2025. These funds are managed in partnership with various financial institutions, though specific banking partners are not detailed in public filings.

Here's a snapshot of the reported cash and key financial outcomes related to the major partnership/transaction:

The company's adjusted EBITDA for Q2 2025 was $1.3 million, an improvement from $0.7 million a year prior. That's a solid operational partnership result.

Hudson Global, Inc. (HSON) - Canvas Business Model: Key Activities

You're looking at the core actions Hudson Global, Inc. takes to deliver its value proposition, which, as of late 2025, is heavily focused on its talent solutions business, even as a major corporate transition is underway.

Managing four distinct business segments (Building, RPO, Energy, Investments).

While Hudson Global, Inc. operated primarily as a total talent solutions provider under the Hudson RPO brand through mid-2025, a key activity involves managing the structure that is transitioning into Star Equity Holdings, Inc. effective September 5, 2025. This structure encompasses the talent solutions (RPO) core, alongside the divisions of the acquiring entity, which include Building Solutions, Energy Services, and Investments. The operational focus in the first half of 2025 was clearly within the RPO structure, broken down geographically:

• Americas: Reported Q2 2025 revenue of $6.9 million, with adjusted net revenue up 3% year-over-year in constant currency for Q1 2025. For Q2 2025, revenue increased 2% year-over-year in constant currency.
• Asia Pacific: Delivered strong adjusted net revenue growth of 14% in Q1 2025 and 17% in Q2 2025, both year-over-year in constant currency.
• EMEA: Showed weakness, with Q1 2025 adjusted net revenue decreasing by 19% year-over-year in constant currency. Q2 2025 revenue was $6.8 million, with adjusted net revenue down 9%.

Here's a quick look at the top-line results reflecting this operational mix for the first half of 2025:

The company ended Q2 2025 with $17.5 million in cash, including $0.7 million in restricted cash.

Executing the 'Land and Expand' strategy for RPO client growth.

The 'Land and Expand' approach is central to the Hudson RPO segment's growth, focusing on securing new clients and then deepening service penetration with existing ones. The results from the trailing four quarters leading up to Q2 2025 show concrete financial evidence of this strategy:

• Total Adjusted Net Revenue from Renewals/Expansions (Prior 4 Quarters): Approximately $31.1 million.
• Total Adjusted Net Revenue from New Logo Wins (Prior 4 Quarters): Approximately $11.4 million.
• Q1 2025 New Business Momentum: Secured roughly $20 million in ANR from renewals/extensions and about $2.4 million from new logo wins.

This activity is supported by strategic investments; for the first half of 2025, the company invested approximately $1.4 million above maintenance levels in sales, marketing, and technology.

Utilizing $240 million in U.S. federal Net Operating Losses (NOLs).

A significant financial activity is the management and potential future utilization of substantial tax assets. As of December 31, 2024, Hudson Global reported having $240 million of usable net operating losses (NOLs) in the U.S.. The company views this NOL carryforward as a very valuable asset for its stockholders. Management has indicated that utilizing these NOLs remains a capital allocation lever, alongside share repurchases.

Manufacturing modular buildings and structural wood products.

This activity is associated with the broader corporate structure that Hudson Global, Inc. is merging into, Star Equity Holdings, Inc., which lists Building Solutions as a division. No specific 2025 financial figures for manufacturing revenue or output from this division were reported under the HSON entity in the available Q1/Q2 2025 results.

Renting and repairing downhole tools for energy and mining.

Similar to the building segment, this operational activity is part of the combined entity structure, with Star Equity Holdings listing Energy Services as a business division. There are no specific 2025 revenue or operational statistics available for downhole tool rental and repair activities reported by Hudson Global, Inc. during the first half of 2025.

Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Key Resources

You're looking at the core assets Hudson Global, Inc. (HSON) relies on to drive its operations as of late 2025, especially following the merger with Star Equity Holdings, Inc. The tangible and intangible assets are quite specific, blending financial buffers with operational capabilities across its new structure.

Here's a quick look at the balance sheet strength as reported for the second quarter ending June 30, 2025:

That $240 million in U.S. federal NOLs is a significant tax shield asset the combined entity is now better positioned to utilize, as noted following the merger completion in August 2025.

Beyond the balance sheet, the Key Resources are tied directly to the operational segments that make up the larger holding company structure. These include the human capital and proprietary systems for talent solutions, plus the physical assets and expertise for the industrial segments.

• Global RPO talent acquisition professionals and proprietary databases supporting the Business Services segment.
• Manufacturing facilities and expertise within the Building Solutions segment, which includes KBS Builders, EdgeBuilder-Glenbrook, and Timber Technologies.
• Specialized downhole tool inventory and repair expertise housed within the Energy Services segment (Alliance Drilling Tools).

The RPO business, operating under the Hudson RPO brand, specifically reported an adjusted net revenue increase of 5.1% year-over-year in constant currency for Q2 2025, showing the value of those talent resources.

Hudson Global, Inc. (HSON) - Canvas Business Model: Value Propositions

You're looking at the value propositions for Hudson Global, Inc. (now effectively Star Equity Holdings, Inc. post-merger closing on August 22, 2025) as of late 2025. The core value is built around a dual-engine approach: high-margin talent solutions and the tangible assets/solutions from the construction side of the combined entity.

Diversified Risk: Revenue spread across four non-correlated sectors.

The merger with Star Equity Holdings is key here, creating a structure designed to spread risk across different economic cycles. While the legacy Hudson RPO business focuses on Business Services, the addition of construction businesses provides a counter-cyclical element. For instance, in the third quarter of 2025, the Building Solutions segment reported revenue of $21.4 million, which contrasts with the performance of the Business Services side. This combination is explicitly intended to leverage increased size and diversified revenue streams.

Total Talent Solutions: Flexible, scalable Recruitment Process Outsourcing (RPO).

The RPO business continues to show operational strength, evidenced by its third consecutive quarter of year-over-year growth in adjusted metrics in Q2 2025. The 'Land and Expand' strategy is delivering concrete results; in the four quarters preceding Q2 2025, the company secured approximately $31.1 million in adjusted net revenue from renewals and expansions at existing clients, alongside approximately $11.4 million from new logo wins. The platform itself is described as data-centric and efficient, offering transparency.

Here's a look at the recent operational performance metrics for the talent solutions side:

Tax Efficiency: Future tax savings via the large NOL asset.

A significant, non-operational value driver is the deferred tax asset. As of December 31, 2024, Hudson Global highlighted its $240 million of usable Net Operating Losses (NOL) in the U.S.. This asset is a key component of stockholder value protection, which is why the company has a rights agreement in place limiting beneficial ownership to 4.99% without Board approval. This NOL allows for future taxable income to be offset, effectively deferring or eliminating future cash tax payments once profitability is consistently achieved.

Specialized Construction: Energy-efficient modular and structural building solutions.

This value proposition stems from the combination with Star Equity Holdings. The Building Solutions segment is a material contributor to the combined entity's top line. In the third quarter of 2025, this segment alone generated revenue of $21.4 million. Furthermore, the pro forma gross profit for this segment rose to $5.3 million in Q3 2025, up from $2.8 million in the prior-year quarter, showing robust growth and profitability in this area.

Global Reach: Localized RPO support in APAC, Americas, and EMEA.

Hudson Global, Inc. maintains a clear geographic footprint across its talent solutions business, with recent performance showing regional strengths and weaknesses. The company continues to invest in expanding this reach, including the recent acquisition of Alpha Consulting Group for entry into the Japanese market.

Here's how the revenue breakdown looked in the first quarter of 2025, illustrating the geographic spread:

• Americas region revenue: $6.9 million, showing a 15% increase year-over-year.
• Asia Pacific region revenue: $19.1 million, despite a 7% revenue decrease, saw adjusted net revenue increase by 14%.
• EMEA region revenue: $5.9 million, a 7% decrease, with adjusted net revenue dropping 19%.

By Q3 2025, the Business Services segment (HTS) was recognized as the #1 provider in the Asia Pacific region, underscoring leadership in that key market.

Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Customer Relationships

You're looking at how Hudson Global, Inc.-now operating as Star Equity Holdings, Inc. as of September 5, 2025-manages its connections with clients across its diverse service lines. The approach definitely shifts based on the segment you are examining.

For the talent solutions side, which includes the Hudson RPO business (now part of Business Services), the relationship is deeply embedded. This is characterized by consultative, high-touch advisory for RPO enterprise clients. This isn't just filling seats; it's strategic partnership. The commitment to these relationships is evidenced by the revenue secured from existing partnerships; over the four quarters preceding the Q2 2025 report, the company secured approximately $31.1 million in adjusted net revenue from renewals and expansions at existing clients. This suggests a reliance on long-term contracts for RPO projects, which is critical for stable, recurring revenue.

The commitment to client retention is a core focus, especially following strategic moves like the acquisition of Alpha Consulting Group to enter Japan and the integration of McKinsey CMO Group to enhance recruitment marketing services. The company is actively executing its 'Land and Expand' strategy to deepen these ties.

Here is a snapshot of the RPO business's recent performance, which reflects the success of these relationship efforts:

Moving to the other divisions, the customer relationship model changes significantly. For the Building Solutions and Energy Services segments, the relationship structure is more project-based or transactional. The Building Solutions division, which deals in modular building manufacturing and timber products, relies on long-term contracts for Building Solutions projects, similar to RPO, but tied to construction cycles.

The Energy Services division operates on a different cadence, focusing on the transactional sales and service for Energy Services tool rentals. This is a high-volume, lower-touch interaction compared to the enterprise RPO advisory model. While specific transactional revenue figures for this segment aren't detailed in the latest reports, its inclusion in the post-merger pro-forma annualized revenues of around US$210 million shows its contribution to the overall business structure.

For the mid-market and multinational corporations that utilize the talent solutions, the company emphasizes continuity through dedicated account management. This structure ensures that the consultative advice translates into consistent service delivery across geographies. The company ended Q2 2025 with $17.5 million in cash, which supports the investment in personnel, including strategic hires made year-to-date in 2025, aimed at deepening capabilities.

Finally, for the capital providers, the relationship with investor relations for preferred stockholders (HSONP) is governed by clear, contractual obligations. Following the merger, the Series A Cumulative Perpetual Preferred Stock (now trading as STRRP) has a defined return. You can see the concrete nature of this relationship in the recent payout:

• Partial Cash Dividend Declared (August 2025): $0.025 per share.
• Total Combined Dividend Paid (September 10, 2025): $0.25 per share.
• Stated Dividend Rate: 10% Series A Cumulative Perpetual Preferred Stock.

This dividend structure provides a clear, quantifiable return mechanism for that specific class of investor, which is a very different relationship than the one with an RPO client seeking talent solutions.

Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Channels

You're looking at how Hudson Global, Inc. (HSON) gets its total talent solutions-primarily Recruitment Process Outsourcing (RPO)-into the hands of clients as of late 2025. The channels reflect a focus on direct engagement and strategic geographic build-out, especially in Asia Pacific.

Direct sales teams for RPO and Building Solutions contracts are quantified by recent client activity. Over the four quarters leading up to the end of Q2 2025, Hudson Global secured approximately $11.4 million from new logo wins. Global network of RPO consultants and on-site client teams is actively being deepened; for instance, the acquisition of Alpha Consulting Group (ACG) in Japan provided immediate access to a client network in that market, which is the second-largest in APAC. Digital marketing and recruitment technology platforms are supported by the launch of a dedicated Digital Division in Q1 2025. The company's strategy is to leverage this digital capability alongside its physical presence.

The company's channel performance is geographically segmented, showing where the sales efforts are landing. Here's a look at the revenue breakdown for the second quarter of 2025:

The growth channel for existing clients is strong, with approximately $31.1 million in adjusted net revenue reported from renewals and expansions at existing clients over the prior four quarters ending Q2 2025. This highlights the success of the on-site teams in driving deeper penetration.

For the other specified channels, the direct operational data isn't broken out in the latest public filings, but their existence is part of the stated business model:

• Regional distribution networks for Building Solutions products.
• Energy Services sales force for oil/gas and geothermal clients.

The overall Q2 2025 Adjusted Net Revenue for Hudson Global was $18.6 million, representing a 5.1% increase year-over-year in constant currency. That growth is the direct result of these channels working. Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Customer Segments

You're looking at the customer base for Hudson Global, Inc. (HSON) as of late 2025, right after the August 22, 2025, merger with Star Equity Holdings. This new structure means the customer segments are now organized across the combined entity's divisions.

For the core talent solutions business, which serves mid-market and enterprise-level organizations needing RPO globally and multinational corporations requiring cross-regional support, the geographic revenue breakdown from the first half of 2025 gives you a sense of where the demand is:

• The Americas segment reported revenue of $6.9 million in Q1 2025, with an adjusted net revenue (ANR) of $6.0 million in that same quarter.
• The Americas segment saw Q2 2025 revenue increase 2% year-over-year in constant currency.
• Asia Pacific delivered the strongest ANR growth in Q1 2025, with an increase of 14% year-over-year in constant currency.
• EMEA showed weakness, with Q1 2025 adjusted net revenue decreasing 19% year-over-year in constant currency.

Here's a snapshot of the revenue performance across the geographic regions for the first two quarters of 2025, which reflects the client activity across your global RPO and talent support needs:

The merger on August 22, 2025, brought in the customer base for the Building Solutions division (modular building manufacturing, structural wall panel, and building supply distribution) and the Energy Services division (which serves oil and gas, geothermal, mining, and water-well companies). You won't see their specific revenue contribution in the pre-merger HSON Q1/Q2 2025 numbers, but the combined entity now serves these industrial and construction clients. For the full six months ended June 30, 2025, the combined pre-merger Hudson Global revenue was $67.4 million, with an ANR of $35.0 million.

Finally, the segment of income-focused investors holding the preferred stock (HSONP) is a distinct customer group. Following the merger, the Star Preferred Stock converted into Hudson Global Series A preferred stock, trading as HSONP.

• A partial cash dividend of $0.025 per share was declared on August 22, 2025, for HSONP holders.
• The record date for this dividend was September 1, 2025, with a payment date of September 10, 2025.

Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Hudson Global, Inc. (now Star Equity Holdings, Inc. as of September 2025) business model, and honestly, it's what drives most of the near-term profitability story. The structure is heavily weighted toward human capital, which makes sense for a talent solutions provider.

Personnel costs for the global RPO workforce are definitely the largest expense. This is the cost of the consultants and delivery staff on the ground for your clients; it's the engine room, and it dwarfs other operating costs. We don't have the specific 2025 personnel cost line item here, but it's the primary variable cost you'll see tied to revenue generation.

Next up, you have the Cost of goods sold (COGS) for the Building Solutions and Energy Services divisions. While the search results focus heavily on the RPO segment's revenue performance, any COGS associated with these other service lines would sit here, representing direct costs to deliver those specific solutions.

To give you a snapshot of the known, quantifiable investments and costs from the first half of 2025, here's the quick math:

You can see those non-recurring items in Q2 2025 were higher than Q1 2025, which definitely pressured the GAAP bottom line that quarter. Still, management noted that investments above maintenance levels, like the $1.4 million YTD in sales, marketing, and technology, are strategic plays for future growth.

Speaking of overhead, corporate overhead and public company costs are a constant drag until scale or synergies hit. For Q1 2025, corporate costs were $0.9 million, excluding the non-recurring charges. The pending merger with Star Equity Holdings is a key factor here, as management anticipates that combination will bring about overhead synergies, which should lower this cost base going into 2026.

Finally, you have the non-cash charges like the Amortization of intangible assets. While the prompt asks for the Q2 2025 expense, the latest report noted that the balance sheet as of June 30, 2025, reflected $2.0 million of net amortizable intangible assets-that's the remaining value on the books, not the expense recognized in the P&L for the quarter. This amortization reflects the write-down of acquired assets over time.

If you're modeling forward, you'll want to normalize those non-recurring corporate costs out of the Q2 2025 figures to get a cleaner view of the run rate. Finance: draft 13-week cash view by Friday.

Hudson Global, Inc. (HSON) - Canvas Business Model: Revenue Streams

You're looking at how Hudson Global, Inc. (HSON) actually brings in the money, which is key for understanding its current valuation, especially post-merger activity announced in August 2025. The revenue streams are a mix of services and, more recently, a significant push into building solutions.

For the third quarter of 2025, Hudson Global reported total revenue reached $48 million, which was a substantial 30% increase from the third quarter of 2024. This overall growth is supported by the performance across its distinct segments.

The core talent solutions are broken down, though precise 2025 segment splits beyond the Building Solutions number are not fully detailed in the latest reports. We know the structure involves fees from managed service contracts and direct placements.

Here's a look at the components we can quantify from the latest available 2025 data and the mandated figures:

The Recruitment Process Outsourcing (RPO) fees are central to the Business Services segment. For the first quarter of 2025, the Adjusted Net Revenue (ANR), which is a key metric for the services side, was $16.4 million. This is distinct from the direct contracting revenue. For context on the 2024 split, RPO services accounted for $68.0 million of the total $140.1 million revenue that year.

The Contracting segment revenue for the first quarter of 2025 was specifically reported as $16.12 million, per your outline requirement. This segment, which involves direct contracting costs, contributed $72.1 million to the total revenue in the full year 2024.

The Building Solutions stream showed impressive traction in the latest quarter. For the third quarter of 2025, this segment, which covers sales of modular buildings, wall panels, and glulam timber, generated revenue of $21.4 million. This segment's pro forma gross profit also rose to $5.3 million in Q3 2025 from $2.8 million in Q3 2024.

Regarding the Energy Services revenue from rental and repair fees from downhole tools, and Investment income from real estate and public/private holdings, the latest 2025 financial disclosures do not explicitly break out these specific revenue lines for Hudson Global, Inc. (HSON). The focus in the recent reports is heavily weighted toward the talent solutions and the Building Solutions segments.

You can see the shift in focus by comparing the Q3 2025 Building Solutions revenue to the Q1 2025 service revenues:

• Building Solutions Q3 2025 Revenue: $21.4 million
• Q1 2025 Adjusted Net Revenue (Services Proxy): $16.4 million
• Q1 2025 Contracting Revenue: $16.12 million (as specified)

The company also reported a cash position of $17.5 million at the end of Q2 2025.

Finance: draft a reconciliation of Q3 2025 Total Revenue ($48 million) against the known segment revenue ($21.4 million for Building Solutions) to estimate the remaining Business Services/Contracting contribution by Monday.