Heritage Global Inc. Reports Fourth Quarter and Year-End 2025 Results

Heritage Global Inc. Reports Fourth Quarter and Year-End 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 fourth quarter and year ended December 31, 2025.

Fourth Quarter and Year-End 2025 Summary of Financial Results (unaudited):

($ in thousands, except per share amounts)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

Revenue

11,855

10,767

50,978

45,361

Operating income

775

1,485

5,711

9,066

Net income

301

(203

)

3,587

5,182

Net income per share – diluted

0.01

(0.01

)

0.10

0.14

(Non-GAAP Financial Measures) (1)

EBITDA

891

1,636

6,183

9,657

Adjusted EBITDA

1,078

2,087

7,083

10,910

(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.

Fourth Quarter 2025 Review:

Ross Dove, Chief Executive Officer of Heritage Global commented, “We reported continued solid profitability in 2025, as we capitalized on key opportunities throughout the year with strong execution across our business units. While many companies held off on larger non-essential asset sales during the year given the uncertain economy, we managed to conduct a high volume of transactions throughout the year in both our industrial and financial assets segments and continue to be well positioned to service the needs of our expanding customer base.

“Most notably, we have executed an accretive and synergistic acquisition, securing a significant and defensible cornerstone within our strategic roadmap. As noted, subsequent to the end of the fourth quarter, we announced the acquisition of substantially all of the assets of The Debt Exchange (“DebtX”), a leading full-service commercial and residential real estate loan-sale brokerage and advisory platform. DebtX further strengthens our financial assets division by expanding our presence in the growing secondary loan market. As we move through 2026 and integrate DebtX, we will continue to leverage our core capabilities to drive long-term growth and profitability.”

Fourth Quarter and Year-End Conference Call

Management will host a webcast and conference call today, Thursday, March 12, 2026, at 5:00 p.m. ET to discuss financial results for the fourth quarter and year-end 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 March 26, 2026. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11161063. 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

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenues:

Services revenue

7,892

7,080

33,281

32,607

Asset sales

3,963

3,687

17,697

12,754

Total revenues

11,855

10,767

50,978

45,361

Operating costs and expenses:

Cost of services revenue

1,855

1,140

7,953

5,805

Cost of asset sales

2,690

2,181

11,993

8,321

Selling, general and administrative

6,330

5,876

24,972

24,266

Depreciation and amortization

116

151

472

591

Total operating costs and expenses

10,991

9,348

45,390

38,983

Earnings of equity method investments

(89

)

123

2,688

Operating income

775

1,485

5,711

9,066

Interest income (expense), net

134

(93

)

Income before income tax expense

801

1,575

5,845

8,973

Income tax expense

500

1,778

2,258

3,791

Net income

301

(203

)

3,587

5,182

Weighted average common shares outstanding – basic

34,541,253

35,790,808

34,834,540

36,430,211

Weighted average common shares outstanding – diluted

34,995,510

36,380,745

35,434,939

37,131,115

Net income per share – basic

0.01

(0.01

)

0.10

0.14

Net income per share – diluted

0.01

(0.01

)

0.10

0.14

HERITAGE GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of US dollars, except share and per share amounts)

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

20,522

21,749

Accounts receivable, net

1,857

1,559

Current portion of notes receivable, net

4,528

3,416

Inventory – equipment

5,931

5,348

Other current assets

756

1,056

Total current assets

33,594

33,128

Non-current portion of notes receivable, net

4,893

6,558

Equity method investments, net

21,060

20,892

Right-of-use assets

1,518

2,208

Property and equipment, net

10,884

1,643

Intangible assets, net

3,100

3,362

Goodwill

7,446

Deferred tax assets

4,402

6,008

Other assets

1,542

Total assets

88,439

81,309

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

6,487

5,429

Payables to sellers

7,273

7,417

Current portion of third party debt

—

395

Current portion of lease liabilities

829

807

Other current liabilities

948

550

Total current liabilities

15,537

14,598

Non-current portion of third party debt

4,100

—

Non-current portion of lease liabilities

790

1,510

Other non-current liabilities

1,029

—

Total liabilities

21,456

16,108

Stockholders’ equity:

Preferred stock

Common stock

376

374

Additional paid-in capital

296,477

295,657

Accumulated deficit

(224,257

)

(227,844

)

Treasury stock

(5,619

)

(2,992

)

Total stockholders’ equity

66,983

65,201

Total liabilities and stockholders’ equity

88,439

81,309

HERITAGE GLOBAL INC.

Reconciliation of EBITDA and Adjusted EBITDA (Non-GAAP Measures)

(In thousands of US dollars) (unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Net income

301

(203

)

3,587

5,182

Add back:

Depreciation and amortization

116

151

472

591

Interest (income) expense, net

(26

)

(90

)

(134

)

Income tax expense (benefit)

500

1,778

2,258

3,791

EBITDA

891

1,636

6,183

9,657

Management add back:

Stock based compensation

187

451

900

1,253

Adjusted EBITDA

1,078

2,087

7,083

10,910