Heritage Global Inc. Reports Third Quarter 2026 Results

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

(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

Third Quarter 2026 Review

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:

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

(17,666

)

212

Operating income (loss)

1,044

1,301

(18,859

)

4,936

Interest and other (expense) income, net

(83

)

(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

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

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

(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