SAN DIEGO--(BUSINESS WIRE)--Heritage Global Inc. (NASDAQ: HGBL) (“Heritage Global,” “HG” or “the Company”), an asset services company specializing in financial and industrial asset transactions, today reported financial results for the third quarter and nine months ended September 30, 2026.
Third Quarter and First Nine Months 2026 Summary of Financial Results (unaudited):
($ in thousands, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
Revenue | $ | 14,591 | $ | 11,360 | $ | 39,581 | $ | 39,123 | |||
Earnings (loss) from equity method investments | $ | 5 | $ | 89 | $ | (17,666 | ) | $ | 212 | ||
Operating income (loss) | $ | 1,044 | $ | 1,301 | $ | (18,859 | ) | $ | 4,936 | ||
Net income (loss) | $ | 1,037 | $ | 585 | $ | (14,134 | ) | $ | 3,286 | ||
Net income (loss) per share – basic & diluted | $ | 0.03 | $ | 0.02 | $ | (0.41 | ) | $ | 0.09 | ||
(Non-GAAP Financial Measures) (1) | |||||||||||
EBITDA | $ | 1,250 | $ | 1,421 | $ | (18,239 | ) | $ | 5,292 | ||
Adjusted EBITDA | $ | 1,424 | $ | 1,625 | $ | 3,985 | $ | 6,005 | |||
| (1) | EBITDA and Adjusted EBITDA are commonly used non-GAAP financial measures utilized by management as a supplemental tool to evaluate the underlying operating performance of the Company on an ongoing basis and should be considered together with Heritage Global’s GAAP financial measures. Definitions and disclosures regarding non-GAAP financial information including reconciliations are included at the end of the press release. |
Third Quarter 2026 Review
- Revenue of $14.6 million compared to revenue of $11.4 million in the third quarter of 2025.
- The Company recorded operating income of $1.0 million for the third quarter of 2026, compared to operating income of $1.3 million in the third quarter of 2025.
- Adjusted EBITDA totaled $1.4 million in the third quarter of 2026 versus Adjusted EBITDA of $1.6 million in the third quarter of 2025.
- The Company had net working capital of $8.0 million at September 30, 2026 as compared to working capital of $18.1 million at December 31, 2025. The decrease in working capital reflects the impact of the Company’s strategic investments in both DebtX and Boston Note, which expanded our financial assets platform to new asset classes and distribution channels.
Ross Dove, Chief Executive Officer of Heritage Global commented, “We delivered solid execution across our foundation business in the third quarter, led by strong performance from our Industrial Assets division. Auction volume was healthy in the quarter and reflected more larger value opportunities, and we’re encouraged by the depth and quality of our auction pipeline moving forward. During the quarter we also made a $2 million investment in a joint venture that acquired two pharmaceutical sites in Colorado.
“We are also pleased with the early performance of Boston Note, which delivered strong execution during the quarter. DebtX had another challenging quarter and while there is work to be done, we remain confident in the business and its long-term potential in the growing secondary loan market. As we close out 2026, we’ll continue to execute on our strategic vision to drive growth, profitability, and long-term shareholder value.”
Third Quarter Conference Call
Management will host a webcast and conference call on Thursday, November 5, 2026, at 5:00 p.m. ET to discuss financial results for the third quarter of 2026. Analysts and investors may participate via conference call, using the following dial-in information:
- 1-800-420-1459 (Domestic)
- 1-203-518-9861 (International)
- Conference ID: HGBLQ3
To access the webcast, individuals can use this link. The conference call will also be available in the Investor Relations section of the Company’s website. To listen to a live broadcast, go to the site or click on the webcast link at least 10 minutes prior to the scheduled start time in order to register.
Individuals can click here to add the call details to their calendar.
Replay
A replay of the call will be available approximately three hours after the call ends through November 19, 2026. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11162590. A webcast replay can also be accessed on the Investor Relations section of the Company’s website.
About Heritage Global Inc. (“HG”)
Heritage Global Inc. (NASDAQ: HGBL) values and monetizes industrial & financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. This aids in facilitating the circular economy by diverting useful industrial assets from landfills and operating an ethical supply chain by overseeing post-sale account activity of financial assets. Specialties consist of acting as an adviser, in addition to acquiring or brokering turnkey manufacturing facilities, surplus industrial machinery and equipment, industrial inventories, real estate, and charged-off account receivable portfolios through its two business units: Industrial Assets and Financial Assets.
Definitions and Disclosures Regarding non-GAAP Financial Information
The Company defines EBITDA as net income/loss plus depreciation and amortization, interest and other expense, and provision for income taxes. Adjusted EBITDA reflects EBITDA adjusted further to eliminate the effects of stock-based compensation, and other non cash charges related to the wind down of its Specialty Lending segment. Management uses EBITDA and Adjusted EBITDA in assessing the Company’s results, evaluating the Company’s performance and in reaching operating and strategic decisions. Management believes that the presentation of EBITDA and Adjusted EBITDA, when considered together with our GAAP financial statements and the reconciliation to the most directly comparable GAAP financial measure, is useful in providing investors a more complete understanding of the factors and trends affecting the underlying performance of the Company on a historical and ongoing basis. The Company’s use of EBITDA and Adjusted EBITDA is not meant to be, and should not be, considered in isolation or as a substitute for, or superior to, any GAAP financial measure. You should carefully evaluate the financial information, below, which reconciles our GAAP reported net income to EBITDA and Adjusted EBITDA for the periods presented (in thousands).
Forward-Looking Statements
This communication includes forward-looking statements based on our current expectations and projections about future events. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. While the Company believes the forward-looking statements contained in this communication are accurate, these forward-looking statements represent the Company’s beliefs only as of the date of this communication, and there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including variability in magnitude and timing of asset liquidation transactions, the collectability of the charged off receivables that secure our loan portfolio, the impact of changes in the U.S. national and global economies, and interest rate and foreign exchange rate sensitivity, as well as other factors beyond the Company’s control. Unless required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see our filings with the Securities and Exchange Commission.
-financial tables follow-
HERITAGE GLOBAL INC.
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Three Months Ended
| Nine Months Ended
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2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenues: | ||||||||||||||||
Services revenue | $ | 9,821 | $ | 7,475 | $ | 24,642 | $ | 25,389 | ||||||||
Asset sales | 4,770 | 3,885 | 14,939 | 13,734 | ||||||||||||
Total revenues | 14,591 | 11,360 | 39,581 | 39,123 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of services revenue | 2,363 | 1,451 | 4,535 | 6,098 | ||||||||||||
Cost of asset sales | 3,003 | 2,609 | 9,180 | 9,303 | ||||||||||||
Selling, general and administrative | 7,980 | 5,968 | 26,439 | 18,642 | ||||||||||||
Depreciation and amortization | 206 | 120 | 620 | 356 | ||||||||||||
Total operating costs and expenses | 13,552 | 10,148 | 40,774 | 34,399 | ||||||||||||
Earnings (loss) of equity method investments | 5 | 89 | (17,666 | ) | 212 | |||||||||||
Operating income (loss) | 1,044 | 1,301 | (18,859 | ) | 4,936 | |||||||||||
Interest and other (expense) income, net | (83 | ) | 34 | (168 | ) | 108 | ||||||||||
Income (loss) before income tax (benefit) expense | 961 | 1,335 | (19,027 | ) | 5,044 | |||||||||||
Income tax (benefit) expense | (76) | 750 | (4,893 | ) | 1,758 | |||||||||||
Net income (loss) | $ | 1,037 | $ | 585 | $ | (14,134 | ) | $ | 3,286 | |||||||
Weighted average common shares outstanding – basic | 34,739,768 | 34,547,477 | 34,655,037 | 35,585,976 | ||||||||||||
Weighted average common shares outstanding – diluted | 35,070,982 | 35,205,152 | 34,655,037 | 36,255,562 | ||||||||||||
Net income (loss) per share – basic | $ | 0.03 | $ | 0.02 | $ | (0.41 | ) | $ | 0.09 | |||||||
Net income (loss) per share – diluted | $ | 0.03 | $ | 0.02 | $ | (0.41 | ) | $ | 0.09 | |||||||
HERITAGE GLOBAL INC.
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September 30, 2026 | December 31, 2025 | |||||||
ASSETS | (unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,591 | $ | 20,522 | ||||
Accounts receivable, net | 2,805 | 1,857 | ||||||
Current portion of notes receivable, net | 963 | 4,528 | ||||||
Inventory – equipment | 6,621 | 5,931 | ||||||
Other current assets | 925 | 756 | ||||||
Total current assets | 26,905 | 33,594 | ||||||
Non-current portion of notes receivable, net | 3,370 | 4,893 | ||||||
Equity method investments | 3,175 | 21,060 | ||||||
Property and equipment, net | 12,106 | 10,884 | ||||||
Right-of-use assets | 903 | 1,518 | ||||||
Intangible assets, net | 6,428 | 3,100 | ||||||
Goodwill | 13,954 | 7,446 | ||||||
Deferred tax assets | 9,509 | 4,402 | ||||||
Other assets | 814 | 1,542 | ||||||
Total assets | $ | 77,164 | $ | 88,439 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 5,472 | $ | 6,487 | ||||
Payables to sellers | 9,177 | 7,273 | ||||||
Current portion of third party debt | 2,000 | — | ||||||
Current portion of lease liabilities | 686 | 829 | ||||||
Other current liabilities | 1,604 | 948 | ||||||
Total current liabilities | 18,939 | 15,537 | ||||||
Non-current portion of third party debt | 4,100 | 4,100 | ||||||
Non-current portion of lease liabilities | 372 | 790 | ||||||
Other non-current liabilities | 637 | 1,029 | ||||||
Total liabilities | 24,048 | 21,456 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | 6 | 6 | ||||||
Common stock | 378 | 376 | ||||||
Additional paid-in capital | 297,017 | 296,477 | ||||||
Accumulated deficit | (238,391 | ) | (224,257 | ) | ||||
Treasury stock | (5,894 | ) | (5,619 | ) | ||||
Total stockholders’ equity | 53,116 | 66,983 | ||||||
Total liabilities and stockholders’ equity | $ | 77,164 | $ | 88,439 | ||||
HERITAGE GLOBAL INC.
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Net income (loss) | $ | 1,037 | $ | 585 | $ | (14,134 | ) | $ | 3,286 | |||||||
Add back: | ||||||||||||||||
Depreciation and amortization | 206 | 120 | 620 | 356 | ||||||||||||
Interest and other expense (income), net | 83 | (34 | ) | 168 | (108 | ) | ||||||||||
Income tax (benefit) expense | (76) | 750 | (4,893 | ) | 1,758 | |||||||||||
EBITDA | 1,250 | 1,421 | (18,239 | ) | 5,292 | |||||||||||
Management add back: | ||||||||||||||||
Stock-based compensation | 174 | 204 | 556 | 713 | ||||||||||||
Noncash provision for credit losses | — | — | 3,512 | — | ||||||||||||
Noncash impairment of equity method investments | — | — | 18,156 | — | ||||||||||||
Adjusted EBITDA | $ | 1,424 | $ | 1,625 | $ | 3,985 | $ | 6,005 | ||||||||