Heritage Global Inc. Reports Second Quarter 2026 Results
Key Terms
ebitda financial
adjusted ebitda financial
equity method investments financial
noncash impairment charge financial
Second Quarter and First Six Months 2026 Summary of Financial Results (unaudited):
($ in thousands, except per share amounts) |
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||
|
2026 |
|
|
2025 |
|
2026 |
|
|
2025 |
|
Revenue |
$ |
12,265 |
|
$ |
14,304 |
$ |
24,990 |
|
$ |
27,763 |
Earnings (loss) from equity method investments |
$ |
(18,174) |
|
$ |
79 |
$ |
(17,671) |
|
$ |
123 |
Operating (loss) income |
$ |
(20,911) |
|
$ |
2,232 |
$ |
(19,903) |
|
$ |
3,635 |
Net (loss) income |
$ |
(15,888) |
|
$ |
1,637 |
$ |
(15,171) |
|
$ |
2,701 |
Net (loss) income per share – basic & diluted |
$ |
(0.46) |
|
$ |
0.05 |
$ |
(0.44) |
|
$ |
0.08 |
|
|
|
|
|
|
|
||||
(Non-GAAP Financial Measures) (1) |
|
|
|
|
|
|
||||
EBITDA |
$ |
(20,671) |
|
$ |
2,350 |
$ |
(19,489) |
|
$ |
3,871 |
Adjusted EBITDA |
$ |
1,187 |
|
$ |
2,802 |
$ |
2,560 |
|
$ |
4,376 |
- 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.
Strategic Update
As previously disclosed, the Company has made the strategic decision to substantially wind down Heritage Global Capital ("HGC"). In connection with this wind down, during the second quarter of 2026, Heritage Global recorded approximately
Second Quarter 2026 Review
-
Revenue of
$12.3 million $14.3 million -
The Company recorded an operating loss of
$20.9 million $2.2 million $18.2 million $3.5 million -
Adjusted EBITDA totaled
$1.2 million $2.8 million -
The Company had net working capital of
$9.4 million $18.1 million
Subsequent to quarter end, on July 31, 2026, Heritage Global completed the acquisition of substantially all of the assets of Boston Note & Mortgage III, LLC (“Boston Note Company”), a seller-financed real estate note brokerage with over 30 years of operating history. The transaction expands Heritage Global's Financial Assets platform with a complementary origination channel and is expected to contribute to segment revenue in the second half of 2026.
Ross Dove, Chief Executive Officer of Heritage Global commented, “Our second quarter was shaped by our decision to substantially exit HGC - a deliberate strategic move to focus our efforts on growing our core, capital-light businesses. While this decision comes with a significant one-time non-cash impact, we believe that it is the right path forward, creating a stronger platform to grow long term shareholder value.
“Just after the close of the quarter we closed our acquisition of Boston Note, which will roll into DebtX, and is in keeping with our strategy to expand our capabilities across key asset classes. Our balance sheet remains healthy, providing us with the financial flexibility to drive growth and enhanced profitability in our business.”
Second Quarter Conference Call
Management will host a webcast and conference call on Thursday, August 13, 2026, at 5:00 p.m. ET to discuss financial results for the second quarter of 2026. Analysts and investors may participate via conference call, using the following dial-in information:
- 1-800-274-8461 (Domestic)
- 1-203-518-9814 (International)
- Conference ID: HGBLQ2
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 August 27, 2026. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11162103. 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. 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.
HERITAGE GLOBAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of US dollars, except share and per share amounts)
(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Services revenue |
|
$ |
7,910 |
|
|
$ |
10,266 |
|
|
$ |
14,821 |
|
|
$ |
17,914 |
|
Asset sales |
|
|
4,355 |
|
|
|
4,038 |
|
|
|
10,169 |
|
|
|
9,849 |
|
Total revenues |
|
|
12,265 |
|
|
|
14,304 |
|
|
|
24,990 |
|
|
|
27,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of services revenue |
|
|
1,120 |
|
|
|
2,972 |
|
|
|
2,172 |
|
|
|
4,647 |
|
Cost of asset sales |
|
|
2,803 |
|
|
|
2,921 |
|
|
|
6,178 |
|
|
|
6,694 |
|
Selling, general and administrative |
|
|
10,839 |
|
|
|
6,140 |
|
|
|
18,458 |
|
|
|
12,674 |
|
Depreciation and amortization |
|
|
240 |
|
|
|
118 |
|
|
|
414 |
|
|
|
236 |
|
Total operating costs and expenses |
|
|
15,002 |
|
|
|
12,151 |
|
|
|
27,222 |
|
|
|
24,251 |
|
Earnings (loss) of equity method investments |
|
|
(18,174 |
) |
|
|
79 |
|
|
|
(17,671 |
) |
|
|
123 |
|
Operating (loss) income |
|
|
(20,911 |
) |
|
|
2,232 |
|
|
|
(19,903 |
) |
|
|
3,635 |
|
Interest (expense) income, net |
|
|
(65 |
) |
|
|
18 |
|
|
|
(85 |
) |
|
|
74 |
|
(Loss) income before income tax expense |
|
|
(20,976 |
) |
|
|
2,250 |
|
|
|
(19,988 |
) |
|
|
3,709 |
|
Income tax (benefit) expense |
|
|
(5,088) |
|
|
|
613 |
|
|
|
(4,817) |
|
|
|
1,008 |
|
Net (loss) income |
|
$ |
(15,888 |
) |
|
$ |
1,637 |
|
|
$ |
(15,171 |
) |
|
$ |
2,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding – basic |
|
|
34,627,501 |
|
|
|
34,871,767 |
|
|
|
34,611,969 |
|
|
|
35,120,131 |
|
Weighted average common shares outstanding – diluted |
|
|
34,627,501 |
|
|
|
35,506,250 |
|
|
|
34,611,969 |
|
|
|
35,800,352 |
|
Net (loss) income per share – basic |
|
$ |
(0.46 |
) |
|
$ |
0.05 |
|
|
$ |
(0.44 |
) |
|
$ |
0.08 |
|
Net (loss) income per share – diluted |
|
$ |
(0.46 |
) |
|
$ |
0.05 |
|
|
$ |
(0.44 |
) |
$ |
0.08 |
||
HERITAGE GLOBAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars, except share and per share amounts)
|
|
|
|
|
|
|
||
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||
ASSETS |
|
(unaudited) |
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
13,179 |
|
|
$ |
20,522 |
|
Accounts receivable, net |
|
|
2,509 |
|
|
|
1,857 |
|
Current portion of notes receivable, net |
|
|
836 |
|
|
|
4,528 |
|
Inventory – equipment |
|
|
5,466 |
|
|
|
5,931 |
|
Other current assets |
|
|
1,009 |
|
|
|
756 |
|
Total current assets |
|
|
22,999 |
|
|
|
33,594 |
|
Non-current portion of notes receivable, net |
|
|
3,927 |
|
|
|
4,893 |
|
Equity method investments |
|
|
1,239 |
|
|
|
21,060 |
|
Property and equipment, net |
|
|
12,178 |
|
|
|
10,884 |
|
Right-of-use assets |
|
|
1,084 |
|
|
|
1,518 |
|
Intangible assets, net |
|
|
5,973 |
|
|
|
3,100 |
|
Goodwill |
|
|
12,747 |
|
|
|
7,446 |
|
Deferred tax assets |
|
|
9,348 |
|
|
|
4,402 |
|
Other assets |
|
|
882 |
|
|
|
1,542 |
|
Total assets |
|
$ |
70,377 |
|
|
$ |
88,439 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
5,497 |
|
|
$ |
6,487 |
|
Payables to sellers |
|
|
6,666 |
|
|
|
7,273 |
|
Current portion of lease liabilities |
|
|
739 |
|
|
|
829 |
|
Other current liabilities |
|
|
677 |
|
|
|
948 |
|
Total current liabilities |
|
|
13,579 |
|
|
|
15,537 |
|
Non-current portion of third party debt |
|
|
4,100 |
|
|
|
4,100 |
|
Non-current portion of lease liabilities |
|
|
509 |
|
|
|
790 |
|
Other non-current liabilities |
|
|
277 |
|
|
|
1,029 |
|
Total liabilities |
|
|
18,465 |
|
|
|
21,456 |
|
|
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
6 |
|
|
|
6 |
|
Common stock |
|
|
377 |
|
|
|
376 |
|
Additional paid-in capital |
|
|
296,851 |
|
|
|
296,477 |
|
Accumulated deficit |
|
|
(239,428 |
) |
|
|
(224,257 |
) |
Treasury stock at cost |
|
|
(5,894 |
) |
|
|
(5,619 |
) |
Total stockholders’ equity |
|
|
51,912 |
|
|
|
66,983 |
|
Total liabilities and stockholders’ equity |
|
$ |
70,377 |
|
|
$ |
88,439 |
|
HERITAGE GLOBAL INC.
Reconciliation of EBITDA and Adjusted EBITDA (Non-GAAP Measures)
(In thousands of US dollars) (unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net (loss) income |
|
$ |
(15,888 |
) |
|
$ |
1,637 |
|
|
$ |
(15,171 |
) |
|
$ |
2,701 |
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
240 |
|
|
|
118 |
|
|
|
414 |
|
|
|
236 |
|
Interest expense (income), net |
|
|
65 |
|
|
|
(18 |
) |
|
|
85 |
|
|
|
(74 |
) |
Income tax (benefit) expense |
|
|
(5,088) |
|
|
|
613 |
|
|
|
(4,817) |
|
|
|
1,008 |
|
EBITDA |
|
|
(20,671 |
) |
|
|
2,350 |
|
|
|
(19,489 |
) |
|
|
3,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management add back: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock based compensation |
|
|
171 |
|
|
|
229 |
|
|
|
382 |
|
|
|
509 |
|
Noncash provision for (recovery of) credit losses |
|
|
3,531 |
|
|
|
223 |
|
|
|
3,511 |
|
|
|
(4 |
) |
Noncash impairment of equity method investments |
|
|
18,156 |
|
|
|
— |
|
|
|
18,156 |
|
|
|
0 |
|
Adjusted EBITDA |
|
$ |
1,187 |
|
|
$ |
2,802 |
|
|
$ |
2,560 |
|
|
$ |
4,376 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260813946064/en/
Investor Relations:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
203/972.9200
InvestorRelations@hginc.com
Source: Heritage Global Inc.