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:

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:

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

100

212

2,622

Operating income

1,301

1,479

4,936

7,581

Interest income (expense), net

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

Deferred tax assets

4,829

6,008

Other assets

1,591

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

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