Heritage Global Inc. Reports Third Quarter 2026 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, 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. 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,
	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. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of US dollars, except share and per share amounts)
	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. 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,
	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