12% revenue growth for the year with continued profitability and cash generation
Executing on M&A strategy with recent acquisition of The Debt Exchange subsequent to year end

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,
($ in thousands, except per share amounts)	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:

Revenue grew 10% to $11.9 million compared to revenue of $10.8 million in the fourth quarter of 2024.
The Company recorded operating income of $0.8 million for the fourth quarter of 2025, compared to operating income of $1.5 million in the fourth quarter of 2024. Included within the fourth quarter of 2025 was approximately $0.4 million of expenses related to due diligence associated with M&A efforts.
Net income was $0.3 million or $0.01 per diluted share for the fourth quarter of 2025, compared to net loss of $0.2 million or a loss of $0.01 per diluted share in the prior-year quarter. Fourth quarter 2025 net income was impacted by a non-cash tax allowance adjustment of $0.1 million related to expiring net operating loss carryforwards, compared to a non-cash adjustment of $1.3 million in the fourth quarter of 2024.
EBITDA totaled $0.9 million in the fourth quarter of 2025 versus EBITDA of $1.6 million in the fourth quarter of 2024, and Adjusted EBITDA was $1.1 million compared to $2.1 million in the prior-year quarter.
The Company had net working capital of $18.1 million at December 31, 2025 as compared to working capital of $18.5 million at December 31, 2024.

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:

1-800-274-8461 (Domestic)
1-203-518-9814 (International)
Conference ID: HGBLQ4

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	)		66			123		2,688
Operating income		775			1,485			5,711		9,066
Interest income (expense), net		26			90			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			7,446
Deferred tax assets		4,402			6,008
Other assets		1,542			64
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		6			6
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	)		93
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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260312681085/en/

Investor Relations Contact:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

InvestorRelations@hginc.com

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