Heritage Global Inc. Reports Third Quarter 2025 Results

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, 2025.

Third Quarter 2025 Summary of Financial Results (unaudited):

($ in thousands, except per share amounts)	Three Months Ended September 30,					Nine Months Ended September 30,
	2025			2024		2025			2024
Operating income	$	1,301		$	1,479	$	4,936		$	7,581
Net income	$	585		$	1,089	$	3,286		$	5,385
Net income per share – diluted	$	0.02		$	0.03	$	0.09		$	0.14
(Non-GAAP Financial Measures) (1)
EBITDA	$	1,421		$	1,631	$	5,292		$	8,021
Adjusted EBITDA	$	1,625		$	1,914	$	6,004		$	8,822

(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 2025 Review:

• The Company recorded operating income of $1.3 million for the third quarter of 2025, compared to operating income of $1.5 million in the third quarter of 2024.
• EBITDA totaled $1.4 million in the third quarter of 2025 versus EBITDA of $1.6 million in the third quarter of 2024, and Adjusted EBITDA was $1.6 million compared to $1.9 million in the prior-year quarter.
• Net income was $0.6 million or $0.02 per diluted share for the third quarter of 2025, compared to net income of $1.1 million or $0.03 per diluted share in the prior-year quarter.
• The Company had net working capital of $17.9 million at September 30, 2025 as compared to working capital of $18.5 million at December 31, 2024.

Ross Dove, Chief Executive Officer of Heritage Global commented, “We delivered solid execution across our businesses during the quarter, maintaining strong profitability in both our industrial and financial asset segments. While we won and conducted a large quantity of auctions in the quarter, they were primarily smaller in size and scale as certain clients adopted a ‘wait and see approach’ toward non-essential transactions given the uncertain economy. During the past two years we have built a stronger balance sheet in preparation for the execution of M&A that will be a key component of the next stage of our growth. We are optimistic about our advanced progress on this front, now on an accelerated timeframe, and have seen reciprocal interest from companies that will strategically expand our service offering and geographic footprint. As we close out the remainder of 2025, we remain focused on driving long-term growth throughout the business and maximizing shareholder value.”

Third Quarter Conference Call

Management will host a webcast and conference call today, Thursday, November 6, 2025, at 5:00 p.m. ET to discuss financial results for third quarter 2025. 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: 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 20, 2025. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11160164. 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.

-financial tables follow-

HERITAGE GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands of US dollars, except share and per share amounts) (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Revenues:
Services revenue		$	7,475			$	8,063			$	25,389			$	25,527
Asset sales			3,885				2,347				13,734				9,067
Total revenues			11,360				10,410				39,123				34,594
Operating costs and expenses:
Cost of services revenue			1,451				1,735				6,098				4,665
Cost of asset sales			2,609				1,458				9,303				6,140
Selling, general and administrative			5,968				5,686				18,642				18,390
Depreciation and amortization			120				152				356				440
Total operating costs and expenses			10,148				9,031				34,399				29,635
Earnings of equity method investments			89				100				212				2,622
Operating income			1,301				1,479				4,936				7,581
Interest income (expense), net			34				17				108				(183	)
Income before income tax expense			1,335				1,496				5,044				7,398
Income tax expense			750				407				1,758				2,013
Net income		$	585			$	1,089			$	3,286			$	5,385
Weighted average common shares outstanding – basic			34,547,477				36,576,931				35,585,976				36,641,820
Weighted average common shares outstanding – diluted			35,205,152				37,189,029				36,255,562				37,292,200
Net income per share – basic		$	0.02			$	0.03			$	0.09			$	0.15
Net income per share – diluted		$	0.02			$	0.03			$	0.09			$	0.14

HERITAGE GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of US dollars, except share and per share amounts)
		September 30, 2025				December 31, 2024
ASSETS		(unaudited)
Current assets:
Cash and cash equivalents		$	19,434			$	21,749
Accounts receivable, net			1,839				1,559
Current portion of notes receivable, net			4,158				3,416
Inventory – equipment			5,611				5,348
Other current assets			762				1,056
Total current assets			31,804				33,128
Non-current portion of notes receivable, net			5,162				6,558
Equity method investments			21,333				20,892
Property and equipment, net			9,486				1,643
Right-of-use assets			1,694				2,208
Intangible assets, net			3,164				3,362
Goodwill			7,446				7,446
Deferred tax assets			4,829				6,008
Other assets			1,591				64
Total assets		$	86,509			$	81,309
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	6,248			$	5,979
Payables to sellers			6,817				7,417
Current portion of third party debt			—				395
Current portion of lease liabilities			823				807
Total current liabilities			13,888				14,598
Non-current portion of third party debt			4,100				—
Non-current portion of lease liabilities			976				1,510
Other non-current liabilities			1,050				—
Total liabilities			20,014				16,108
Stockholders’ equity:
Preferred stock			6				6
Common stock			376				374
Additional paid-in capital			296,290				295,657
Accumulated deficit			(224,558	)			(227,844	)
Treasury stock			(5,619	)			(2,992	)
Total stockholders’ equity			66,495				65,201
Total liabilities and stockholders’ equity		$	86,509			$	81,309

HERITAGE GLOBAL INC. Reconciliation of EBITDA and Adjusted EBITDA (Non-GAAP Measures) (In thousands of US dollars) (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net income		$	585			$	1,089			$	3,286			$	5,385
Add back:
Depreciation and amortization			120				152				356				440
Interest expense, net			(34	)			(17	)			(108	)			183
Income tax expense			750				407				1,758				2,013
EBITDA			1,421				1,631				5,292				8,021
Management add back:
Stock based compensation			204				283			712				801
Adjusted EBITDA		$	1,625			$	1,914			$	6,004			$	8,822

 

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Investor Relations:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

InvestorRelations@hginc.com

Source: Heritage Global Inc.