Heritage Global Inc. Reports Second Quarter 2026 Results

Heritage Global Inc. Reports Second 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 second quarter and six months ended June 30, 2026.

Second Quarter and First Six Months 2026 Summary of Financial Results (unaudited):

($ in thousands, except per share amounts)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenue

12,265

14,304

24,990

27,763

Earnings (loss) from equity method investments

(18,174)

(17,671)

123

Operating (loss) income

(20,911)

2,232

(19,903)

3,635

Net (loss) income

(15,888)

1,637

(15,171)

2,701

Net (loss) income per share – basic & diluted

(0.46)

0.05

(0.44)

0.08

(Non-GAAP Financial Measures) (1)

EBITDA

(20,671)

2,350

(19,489)

3,871

Adjusted EBITDA

1,187

2,802

2,560

4,376

Strategic Update

As previously disclosed, the Company has made the strategic decision to substantially wind down Heritage Global Capital ("HGC"). In connection with this wind down, during the second quarter of 2026, Heritage Global recorded approximately $21.7 million in noncash charges related to the write-down of non-performing loans within its specialty lending business.

Second Quarter 2026 Review

Subsequent to quarter end, on July 31, 2026, Heritage Global completed the acquisition of substantially all of the assets of Boston Note & Mortgage III, LLC (“Boston Note Company”), a seller-financed real estate note brokerage with over 30 years of operating history. The transaction expands Heritage Global's Financial Assets platform with a complementary origination channel and is expected to contribute to segment revenue in the second half of 2026.

Ross Dove, Chief Executive Officer of Heritage Global commented, “Our second quarter was shaped by our decision to substantially exit HGC - a deliberate strategic move to focus our efforts on growing our core, capital-light businesses. While this decision comes with a significant one-time non-cash impact, we believe that it is the right path forward, creating a stronger platform to grow long term shareholder value.

“Just after the close of the quarter we closed our acquisition of Boston Note, which will roll into DebtX, and is in keeping with our strategy to expand our capabilities across key asset classes. Our balance sheet remains healthy, providing us with the financial flexibility to drive growth and enhanced profitability in our business.”

Second Quarter Conference Call

Management will host a webcast and conference call on Thursday, August 13, 2026, at 5:00 p.m. ET to discuss financial results for the second 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 August 27, 2026. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11162103. 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.

HERITAGE GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues:

Services revenue

7,910

10,266

14,821

17,914

Asset sales

4,355

4,038

10,169

9,849

Total revenues

12,265

14,304

24,990

27,763

Operating costs and expenses:

Cost of services revenue

1,120

2,972

2,172

4,647

Cost of asset sales

2,803

2,921

6,178

6,694

Selling, general and administrative

10,839

6,140

18,458

12,674

Depreciation and amortization

240

118

414

236

Total operating costs and expenses

15,002

12,151

27,222

24,251

Earnings (loss) of equity method investments

(18,174

)

(17,671

)

123

Operating (loss) income

(20,911

)

2,232

(19,903

)

3,635

Interest (expense) income, net

(65

)

(85

)

(Loss) income before income tax expense

(20,976

)

2,250

(19,988

)

3,709

Income tax (benefit) expense

(5,088)

613

(4,817)

1,008

Net (loss) income

(15,888

)

1,637

(15,171

)

2,701

Weighted average common shares outstanding – basic

34,627,501

34,871,767

34,611,969

35,120,131

Weighted average common shares outstanding – diluted

34,627,501

35,506,250

34,611,969

35,800,352

Net (loss) income per share – basic

(0.46

)

0.05

(0.44

)

0.08

Net (loss) income per share – diluted

(0.46

)

0.05

(0.44

)

0.08

HERITAGE GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

June 30, 2026

December 31, 2025

ASSETS

(unaudited)

Current assets:

Cash and cash equivalents

13,179

20,522

Accounts receivable, net

2,509

1,857

Current portion of notes receivable, net

836

4,528

Inventory – equipment

5,466

5,931

Other current assets

1,009

756

Total current assets

22,999

33,594

Non-current portion of notes receivable, net

3,927

4,893

Equity method investments

1,239

21,060

Property and equipment, net

12,178

10,884

Right-of-use assets

1,084

1,518

Intangible assets, net

5,973

3,100

Goodwill

12,747

7,446

Deferred tax assets

9,348

4,402

Other assets

882

1,542

Total assets

70,377

88,439

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

5,497

6,487

Payables to sellers

6,666

7,273

Current portion of lease liabilities

739

829

Other current liabilities

677

948

Total current liabilities

13,579

15,537

Non-current portion of third party debt

4,100

Non-current portion of lease liabilities

509

790

Other non-current liabilities

277

1,029

Total liabilities

18,465

21,456

Stockholders’ equity:

Preferred stock

Common stock

377

376

Additional paid-in capital

296,851

296,477

Accumulated deficit

(239,428

)

(224,257

)

Treasury stock at cost

(5,894

)

(5,619

)

Total stockholders’ equity

51,912

66,983

Total liabilities and stockholders’ equity

70,377

88,439

HERITAGE GLOBAL INC.

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

(In thousands of US dollars) (unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net (loss) income

(15,888

)

1,637

(15,171

)

2,701

Add back:

Depreciation and amortization

240

118

414

236

Interest expense (income), net

(18

)

(74

)

Income tax (benefit) expense

(5,088)

613

(4,817)

1,008

EBITDA

(20,671

)

2,350

(19,489

)

3,871

Management add back:

Stock based compensation

171

229

382

509

Noncash provision for (recovery of) credit losses

3,531

223

3,511

)

Noncash impairment of equity method investments

18,156

—

18,156

Adjusted EBITDA

1,187

2,802

2,560

4,376