The LGL Group, Inc. Announces Commencement of Share Repurchase

Rhea-AI Summary

LGL Group (NYSE American: LGL) has announced multiple significant updates, including a share repurchase program of $500,000 to $700,000 of common stock, not exceeding 100,000 shares. The company's warrants are exercisable through November 17, 2025, with a 5:1 ratio at a strike price of $4.75 per share.

The company provided updates on its pending acquisition of 1 million newly issued shares of Morgan Group Holding Co. (MGHL) at $2.00 per share, expected to close in 2025. Q2 2025 financial results showed revenue of $924,000, down 13.5% year-over-year, with a net loss of $51,000. The company maintains strong liquidity with $41.8 million in investments and working capital of $41.6 million.

Positive

• Authorization of share repurchase program worth $500,000-$700,000
• Strong liquidity position with $41.8 million in investments
• Healthy working capital of $41.6 million
• Backlog increased by $191,000 from December 2024 to $527,000
• Maintained stable gross margin of 54.7% for six months ended June 2025

Negative

• Q2 2025 revenue declined 13.5% year-over-year to $924,000
• Net loss of $51,000 in Q2 2025 compared to profit of $137,000 in Q2 2024
• Quarterly gross margin decreased to 57.0% from 59.7% year-over-year
• Backlog decreased by $210,000 compared to June 2024
• No material benefits expected from new initiatives in 2025

Insights

Financial Analyst

LGL announces $500K-$700K share repurchase program while facing declining financial performance and pursuing diversification through MGHL acquisition.

LGL Group's announcement of a $500,000 to $700,000 share repurchase program signals management's belief that shares are undervalued relative to book value. With the repurchase capped at 100,000 shares, this implies an effective price range of $5-$7 per share. The timing is particularly noteworthy given the company's deteriorating financial performance.

The Q2 results reveal concerning trends: revenue declined 13.5% year-over-year, gross margins contracted from 59.7% to 57%, and the company swung from a $137,000 profit to a $51,000 loss. While backlog increased 56.8% since December 2024, it remains 28.5% lower than the year-ago period, suggesting ongoing demand challenges.

The pending acquisition of a $2 million stake in Morgan Group Holding Co. (MGHL) represents a significant strategic pivot. This investment would give LGL substantial influence in MGHL's brokerage and investment conference business, potentially diversifying revenue streams beyond their current operations. The installation of LGL executives Herve Francois and Chris Nossokoff in leadership positions at MGHL indicates this is more than a passive investment.

The company's foray into AI-driven edge devices for agricultural applications through P3 Logistic Solutions demonstrates an attempt to leverage existing defense-oriented technology for commercial markets. However, management explicitly states no material benefits are expected in 2025, making this a longer-term strategic bet.

Most importantly, LGL maintains a strong liquidity position with $41.6 million in working capital and $41.8 million in investments, providing significant runway to weather current operational challenges while pursuing these strategic initiatives. The $25.2 million allocated to the Merchant Investment business indicates substantial dry powder for additional acquisitions or investments.

Orlando, Florida--(Newsfile Corp. - September 18, 2025) - The LGL Group, Inc. (NYSE American: LGL) ("LGL," "LGL Group," or the "Company") announced today that its Board of Directors authorized the commencement of the repurchase of $500,000 to $700,000 of shares of LGL Group common stock under its existing share repurchase plan at such times, amounts and prices management deems appropriate. The repurchase will be made subject to availability and relative to book value and is not expected to exceed 100,000 shares within its existing authority. This repurchase is expected to begin this quarter.

Additionally, LGL Group's warrants are exercisable today through November 17, 2025 and contain the following terms:

• Five (5) warrants to purchase one (1) share of common stock;
• Common stock can be purchased at a strike price of $4.75 per share;
• Oversubscription privilege available to warrant holders beginning October 16, 2025 that allows warrant holders to subscribe for additional shares of common stock that remain unsubscribed as a result of any unexercised Warrants; and
• No fractional shares will be issued.

Further information concerning how to exercise LGL Group warrants can be found on the Warrant FAQ page of the Company's website at www.lglgroup.com/WarrantFAQ.

To date, approximately 45,000 shares have been issued from the exercise of the warrants.

LGL Group to Present Today at Sidoti Small Cap Conference

LGL Group will present at the Sidoti Small Cap Virtual Conference on Thursday, September 18, 2025. The presentation will begin at 11:30 a.m. ET and can be accessed live here: https://sidoti.zoom.us/webinar/register/WN_t0HZAS1XStOfyp5mpRF-VQ.

To register for the presentation, visit www.sidoti.com/events. Registration is free and you don't need to be a Sidoti client.

Update to Purchase of 1 Million Newly Issued Shares of Morgan Group Holding Co. (OTC Pink: MGHL)

The purchase remains pending final multi-party agreements, certain approvals and final diligence. We continue to believe this transaction will be completed in 2025. LGL Group entered into an amended and restated subscription agreement to purchase, via a private placement, 1,000,000 newly issued shares of Morgan Group Holding Co. ("MGHL") common stock for $2.00 per share in April 2025. This transaction has received approval from MGHL's directors, and shareholders and once completed MGHL will have approximately 1.6 million shares outstanding.

MGHL, through its wholly owned subsidiary, G.research, LLC ("G.R"), provides brokerage, underwriting, and institutional research services. G.R is a broker-dealer registered under the Securities Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority ("FINRA"). G.R has over $5.0 billion of private client assets held in over 1,000 accounts. G.R also sponsors a series of industry-focused investment conferences featuring leading public and private companies in sectors with a high degree of investor interest. The conferences cover important sectors, including automotive and aerospace and defense. MGHL will continue to trade as an independently listed company with its own set of shareholders.

Once closed, Herve Francois will join MGHL as Chairman and Chief Executive Officer and Chris Nossokoff will join as Chief Financial Officer. G.R. will continue to be led by Vincent Amabile as President and Joseph Fernandez as Financial Operations Principal and Controller and continue to manage and build the strength of the platform.

New Initiatives Continue

Further expanding adjacent capabilities with the Company's PTF division, P3 Logistic Solutions LLC ("P3") is developing new opportunities with AI-driven tactical edge device prototypes. P3 is preparing to field test on farms, adapting technology originally engineered for U.S. Department of Defense use cases to meet the challenges of modern agriculture. These ruggedized edge systems deliver real-time, autonomous decision-making without relying on centralized networks — ensuring uninterrupted operation in remote and demanding conditions.

The trials will apply the technology to precision crop monitoring, smart irrigation control, and autonomous asset tracking, bringing smart analytics and resilience to the field. Testing will measure gains in efficiency, resource optimization, and operational performance across diverse farming environments, laying the foundation for scalable deployment.

We do not expect to recognize any material benefits from our new initiatives in 2025 but expect to develop value in the medium term.

Q2 2025 Results as Previously Reported

		Three Months Ended June 30,										Six Months Ended June 30,
		2025				2024				% Change		2025				2024				% Change
U.S. GAAP Financial Measures
Revenues		$	924			$	1,068			-13.5%		$	1,842			$	1,956			-5.8%
Gross margin			57.0%				59.7%			-4.5%			54.7%				54.7%			0.0%
Net (loss) income		$	(51	)		$	137			-137.2%		$	(57	)		$	158			-136.1%
Net (loss) income per diluted share		$	(0.01	)		$	0.02			-138.1%		$	(0.01	)		$	0.03			-137.4%

 

Consolidated Results from Operations

Second quarter 2025 net (loss) income available to LGL Group common stockholders was ($51,000), or ($0.01) per diluted share, compared with $137,000, or $0.02 per diluted share, in the second quarter of 2024. The decrease was primarily due to:

• lower Net sales due to lower product shipments during Q2 2025 and lower backlog as of March 31, 2025; and
• lower Net investment income on investments in U.S. Treasury money market funds due to lower yields.

Gross Margin

Gross margin decreased to 57.0% for the three months ended June 30, 2025 compared to 59.7% for the three months ended June 30, 2024. The decrease was primarily due to sales of lower margin products.

Fiscal year to date 2025 net (loss) income available to LGL group common stockholders was ($57,000), or ($0.01) per diluted share, compared with $158,000, or $0.03 per diluted share, in 2024. The decrease was primarily due to lower Net investment income on investments in U.S. Treasury money market funds due to lower yields partially offset by higher Net sales driven by higher product shipments.

Gross Margin

Gross margin was flat at 54.7% for the six months ended June 30, 2025 and 2024 reflecting the consistent nature of the fixed costs.

Backlog

As of June 30, 2025, our order backlog was $527,000, an increase of $191,000 from $336,000 as of December 31, 2024 and an decrease of $210,000 from $737,000 as of June 30, 2024. The backlog of unfilled orders includes amounts based on signed contracts, which we have determined are firm orders likely to be fulfilled primarily in the next 12 months but most of the backlog will ship in the next 90 days.

Liquidity

Our working capital metrics were as follows:

(in thousands)			June 30, 2025			December 31, 2024
Current assets		$	42,515			$	42,642
Less: Current liabilities			881				904
Working capital		$	41,634			$	41,738

 

As of June 30, 2025, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of $41.8 million, of which $25.2 million was held within the Merchant Investment business.

About The LGL Group, Inc.

The LGL Group, Inc. ("LGL," "LGL Group," or the "Company") is a holding company engaged in services, merchant investment and manufacturing business activities. Precise Time and Frequency, LLC ("PTF") is a globally positioned producer of industrial Electronic Instruments and commercial products and services. Founded in 2002, PTF operates from our design and manufacturing facility in Wakefield, Massachusetts. Lynch Capital International LLC is focused on the development of value through investments.

LGL Group was incorporated in 1928 under the laws of the State of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.lglgroup.com. LGL Group common stock and warrants are traded on the NYSE American ("NYSE") under the symbols "LGL" and "LGL WS", respectively.

LGL Group's business strategy is primarily focused on growth through expanding new and existing operations across diversified industries. The Company's engineering and design origins date back to the early 1900s. In 1917, Lynch Glass Machinery Company ("Lynch Glass"), the predecessor of LGL Group, was formed and emerged in the late 1920s as a successful manufacturer of glass-forming machinery. Lynch Glass was then renamed Lynch Corporation ("Lynch") and was incorporated in 1928 under the laws of the State of Indiana. In 1946, Lynch was listed on the "New York Curb Exchange," the predecessor to the NYSE American. The Company has a had a long history of owning and operating various business in the precision engineering, manufacturing, and services sectors.

Cautionary Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. These forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to us and our current plans or expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and our future financial condition and results. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

###

Contact:

The LGL Group, Inc.
(407) 298-2000
info@lglgroup.com

The LGL Group, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

			Three Months Ended June 30,								Six Months Ended June 30,
(in thousands, except share data)			2025				2024				2025				2024
Revenues:
Net sales		$	491			$	531			$	989			$	923
Net investment income			428				538				845				1,037
Net gains (losses)			5				(1	)			8				(4	)
Total revenues			924				1,068				1,842				1,956
Expenses:
Manufacturing cost of sales			211				214				448				418
Engineering, selling and administrative			744				617				1,384				1,222
Total expenses			955				831				1,832				1,640
(Loss) income from operations before income taxes			(31	)			237				10				316
Income tax expense			14				76				42				112
Net (loss) income			(45	)			161				(32	)			204
Less: Net income attributable to non-controlling interests			6				24				25				46
Net (loss) income attributable to LGL Group common stockholders		$	(51	)		$	137			$	(57	)		$	158
(Loss) income per common share attributable to LGL Group common stockholders:
Basic		$	(0.01	)		$	0.03			$	(0.01	)		$	0.03
Diluted		$	(0.01	)		$	0.02			$	(0.01	)		$	0.03
Weighted average shares outstanding:
Basic			5,352,937				5,352,937				5,352,937				5,352,937
Diluted			5,352,937				5,482,543				5,352,937				5,548,869

 

The LGL Group, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

(in thousands)		June 30, 2025				December 31, 2024
Assets:
Current assets:
Cash and cash equivalents		$	41,735			$	41,585
Marketable securities			26				17
Accounts receivable, net of reserves of $52 and $52, respectively			263				493
Inventories, net			254				267
Prepaid expenses and other current assets			237				280
Total current assets			42,515				42,642
Right-of-use lease assets			276				308
Intangible assets, net			25				36
Deferred income tax assets			214				159
Total assets		$	43,030			$	43,145
Liabilities:
Total current liabilities			881				904
Non-current liabilities			1,017				1,001
Total liabilities			1,898				1,905
Stockholders' equity:
Total LGL Group stockholders' equity			39,097				39,230
Non-controlling interests			2,035				2,010
Total stockholders' equity			41,132				41,240
Total liabilities and stockholders' equity		$	43,030			$	43,145

 

The LGL Group, Inc.
Segment Results
(Unaudited)

		Three Months Ended June 30,
(in thousands)		2025				2024				$ Change				% Change
Revenues:
Electronic Instruments		$	491			$	531			$	(40	)		-7.5%
Merchant Investment			262				315				(53	)		-16.8%
Corporate			171				222				(51	)		-23.0%
Total revenues			924				1,068				(144	)		-13.5%
Expenses:
Electronic Instruments			423				457				(34			-7.4%
Merchant Investment			114				78				36			46.2%
Corporate			418				296				122			41.2%
Total expenses			955				831				124			14.9
Income (loss) from operations before income taxes
Electronic Instruments			68				74				(6	)		-8.1%
Merchant Investment			148				237				(89	)		-37.6%
Corporate			(247	)			(74	)			(173	)		233.8%
Income (loss) from operations before income taxes			(31	)			237				(268	)		-113.1%
Income tax expense (benefit)			14				76				(62	)		-81.6%
Net income (loss)			(45	)			161				(206	)		-128.0%
Less: Net income attributable to non-controlling interests			6				24				(18	)		-75.0%
Net income (loss) attributable to LGL Group common stockholders		$	(51	)		$	137			$	(188	)		-137.2%

 

The LGL Group, Inc.
Segment Results
(Unaudited)

		Six Months Ended June 30,
(in thousands)		2025				2024				$ Change				% Change
Revenues:
Electronic Instruments		$	989			$	923			$	66			7.2%
Merchant Investment			509				604				(95	)		-15.7%
Corporate			344				429				(85	)		-19.8%
Total revenues			1,842				1,956				(114	)		-5.8%
Expenses:
Electronic Instruments			902				847				55			6.5%
Merchant Investment			208				127				81			63.8%
Corporate			722				666				56			8.4%
Total expenses			1,832				1,640				192			11.7%
Income (loss) from operations before income taxes
Electronic Instruments			87				76				11			14.5%
Merchant Investment			301				477				(176	)		-36.9%
Corporate			(378	)			(237	)			(141	)		59.5%
Income from operations before income taxes			10				316				(306	)		-96.8%
Income tax expense			42				112				(70	)		-62.5%
Net income			(32	)			204				(236	)		-115.7%
Less: Net income attributable to non-controlling interests			25				46				(21	)		-45.7%
Net income attributable to LGL Group common stockholders		$	(57	)		$	158			$	(215	)		-136.1%

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/266944

FAQ

What is the size of LGL Group's new share repurchase program?

LGL Group authorized a share repurchase program of $500,000 to $700,000 of common stock, not to exceed 100,000 shares, starting in Q3 2025.

What are the terms of LGL Group's warrant exercise program?

The warrants are exercisable through November 17, 2025, with five warrants required to purchase one share of common stock at a strike price of $4.75 per share.

How did LGL Group perform financially in Q2 2025?

LGL Group reported Q2 2025 revenue of $924,000 (down 13.5% YoY) with a net loss of $51,000 or $0.01 per share, compared to a profit of $137,000 in Q2 2024.

What is LGL Group's current financial position?

As of June 30, 2025, LGL Group had $41.8 million in investments and working capital of $41.6 million, with $25.2 million held within the Merchant Investment business.

What is the status of LGL Group's investment in Morgan Group Holding Co.?

LGL Group's purchase of 1 million newly issued MGHL shares at $2.00 per share remains pending, awaiting final multi-party agreements, approvals, and due diligence, expected to complete in 2025.