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 first quarter ended March 31, 2026.

First Quarter 2026 Summary of Financial Results (unaudited):

($ in thousands, except per share amounts)	Three Months Ended March 31,
($ in thousands, except per share amounts)	2026		2025
Revenue	$	12,725	$	13,459
Operating income	$	1,008	$	1,403
Net income	$	717	$	1,064
Net income per share – diluted	$	0.02	$	0.03

(Non-GAAP Financial Measures)⁽¹⁾
EBITDA	$	1,182	$	1,521
Adjusted EBITDA	$	1,393	$	1,800

(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.

First Quarter 2026 Review:

Revenue of $12.7 million compared to revenue of $13.5 million in the first quarter of 2025.
The Company recorded operating income of $1.0 million for the first quarter of 2026, compared to operating income of $1.4 million in the first quarter of 2025.
Net income was $0.7 million or $0.02 per diluted share for first quarter of 2026, compared to net income of $1.1 million or $0.03 per diluted share in the prior-year quarter.
EBITDA totaled $1.2 million in the first quarter of 2026 versus EBITDA of $1.5 million in the first quarter of 2025, and Adjusted EBITDA was $1.4 million compared to $1.8 million in the prior-year quarter.
The Company had net working capital of $11.6 million at March 31, 2026 as compared to working capital of $18.1 million at December 31, 2025.
The Company repurchased 106,799 shares in the open market during the first quarter ended March 31, 2026 for a total of $0.1 million, or an average cost per share of $1.32. The Company has approximately $7.4 million in remaining aggregative dollar value of shares that may be purchased under the 2025 Repurchase Program.

Ross Dove, Chief Executive Officer of Heritage Global commented, "We delivered continued profitability to start 2026, with our Industrial Assets and legacy Financial Assets divisions generating positive sequential performance and improvement year-over-year. Early in the first quarter we acquired DebtX, a significant addition to our Financial Assets division that fits our strategic plans, expanding our presence in the growing secondary loan market. DebtX's first quarter is seasonally its slowest, and together with the transition to a new parent company, the business underperformed and was the primary driver of our year-over-year decline in consolidated first quarter operating income. DebtX is expected to stabilize in the second quarter, and we remain confident in its prospects for the remainder of 2026. Finally, our balance sheet is healthy, which will allow us to invest further in driving organic growth while also evaluating additional value-enhancing acquisition opportunities."

First Quarter Conference Call

Management will host a webcast and conference call on Thursday, May 7, 2026, at 5:00 p.m. ET to discuss financial results for the first quarter of 2026. Analysts and investors may participate via conference call, using the following dial-in information:

1-800-274-8461 (Domestic)
1-203-518-9814 (International)
Conference ID: HGBLQ1

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 May 21, 2026. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 1161436. 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 March 31,
	2026			2025
Revenues:
Services revenue	$	6,911		$	7,648
Asset sales		5,814			5,811
Total revenues		12,725			13,459

Operating costs and expenses:
Cost of services revenue		1,052			1,675
Cost of asset sales		3,375			3,773
Selling, general and administrative		7,619			6,534
Depreciation and amortization		174			118
Total operating costs and expenses		12,220			12,100
Earnings of equity method investments		503			44
Operating income		1,008			1,403
Interest (expense) income, net		(20	)		56
Income before income tax expense		988			1,459
Income tax expense		271			395
Net income	$	717		$	1,064

Weighted average common shares outstanding – basic		34,596,265			35,282,855
Weighted average common shares outstanding – diluted		34,991,982			36,056,645
Net income per share – basic	$	0.02		$	0.03
Net income per share – diluted	$	0.02		$	0.03


HERITAGE GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of US dollars, except share and per share amounts)


	March 31, 2026			December 31, 2025
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	11,566		$	20,522
Accounts receivable, net		1,725			1,857
Current portion of notes receivable, net		4,369			4,528
Inventory – equipment		5,348			5,931
Other current assets		755			756
Total current assets		23,763			33,594
Non-current portion of notes receivable, net		4,182			4,893
Equity method investments		19,442			21,060
Property and equipment, net		12,029			10,884
Right-of-use assets		1,339			1,518
Intangible assets, net		6,066			3,100
Goodwill		12,747			7,446
Deferred tax assets		4,486			4,402
Other assets		935			1,542
Total assets	$	84,989		$	88,439

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	5,174		$	6,487
Payables to sellers		5,317			7,273
Current portion of lease liabilities		818			829
Other current liabilities		896			948
Total current liabilities		12,205			15,537
Non-current portion of third party debt		4,100			4,100
Non-current portion of lease liabilities		619			790
Other non-current liabilities		295			1,029
Total liabilities		17,219			21,456

Stockholders' equity:
Preferred stock		6			6
Common stock		377			376
Additional paid-in capital		296,687			296,477
Accumulated deficit		(223,540	)		(224,257	)
Treasury stock at cost		(5,760	)		(5,619	)
Total stockholders' equity		67,770			66,983
Total liabilities and stockholders' equity	$	84,989		$	88,439


HERITAGE GLOBAL INC. Reconciliation of EBITDA and Adjusted EBITDA (Non-GAAP Measures) (In thousands of US dollars) (unaudited)


	Three Months Ended March 31,
	2026			2025
Net income	$	717	$	1,064
Add back:
Depreciation and amortization		174		118
Interest expense (income), net		20		(56	)
Income tax expense		271		395
EBITDA		1,182		1,521

Management add back:
Stock based compensation		211		279
Adjusted EBITDA	$	1,393	$	1,800

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Investor Relations Contact:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

InvestorRelations@hginc.com

Heritage Global Inc. Reports First Quarter 2026 Results