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, 2025.

Second Quarter 2025 Summary of Financial Results (unaudited):

($ in thousands, except per share amounts)	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands, except per share amounts)	2025		2024		2025		2024
Operating income	$	2,232	$	3,544	$	3,635	$	6,102
Net income	$	1,637	$	2,497	$	2,701	$	4,296
Net income per share – diluted	$	0.05	$	0.07	$	0.08	$	0.12

(Non-GAAP Financial Measures)⁽¹⁾
EBITDA	$	2,350	$	3,691	$	3,871	$	6,390
Adjusted EBITDA	$	2,579	$	3,981	$	4,380	$	6,908

(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.

Second Quarter 2025 Review:

The Company recorded operating income of $2.2 million for the second quarter of 2025, compared to operating income of $3.5 million in the second quarter of 2024.
EBITDA totaled $2.4 million in the second quarter of 2025 versus EBITDA of $3.7 million in the second quarter of 2024, and Adjusted EBITDA was $2.6 million compared to $4.0 million in the prior-year quarter.
Net income was $1.6 million or $0.05 per diluted share for the second quarter of 2025, compared to net income of $2.5 million or $0.07 per diluted share in the prior-year quarter.
The Company had net working capital of $16.4 million at June 30, 2025 as compared to working capital of $18.5 million at December 31, 2024. The decrease in net working capital was primarily the result of the acquisition of a new corporate headquarters, ongoing share repurchases, and an opportunistic investment in the purchase of a complete pharmaceutical plant in the first quarter of 2025.
The Company repurchased 744,424 shares in the open market during the second quarter ended June 30, 2025 for a total of $1.6 million, or an average cost of $2.13 per share. On July 31, 2025, the Company's Board of Directors authorized the repurchase of up to $7.5 million of the Company's outstanding shares of common stock over a three-year period ending on June 30, 2028.

Ross Dove, Chief Executive Officer of Heritage Global commented, "Our solid second quarter results reflect strong operational execution across the business and continued the momentum we began to see late in the first quarter. As expected, we saw a healthy volume of auction activity in tandem with robust asset pricing levels for both the auction and resale businesses. Furthermore, operating income in the financial segment meaningfully increased sequentially compared to the first quarter, demonstrating the strength of the segment as we continue to add quality portfolios in the brokerage business.

"Our cash position is strong, which allowed us to repurchase 744,424 shares during the quarter, in-keeping with our commitment to support our share buyback program, and we continue to evaluate strategic M&A opportunities. As we move through the second half of the year, we'll continue to execute on our strategic vision to drive continued growth, profitability, and shareholder value," Mr. Dove concluded.

Second Quarter Conference Call

Management will host a webcast and conference call today, Thursday, August 7, 2025, at 5:00 p.m. ET to discuss financial results for second quarter 2025. Analysts and investors may participate via conference call, using the following dial-in information:

1-800-343-4136 (Domestic)
1-203-518-9843 (International)
Conference ID: HGBLQ2

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 21, 2025. To access the replay, dial 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The replay pin number is 11159533. 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 June 30,					Six Months Ended June 30,
	2025		2024			2025		2024
Revenues:
Services revenue	$	10,266	$	8,481		$	17,914	$	17,464
Asset sales		4,038		3,542			9,849		6,720
Total revenues		14,304		12,023			27,763		24,184

Operating costs and expenses:
Cost of services revenue		2,972		1,450			4,647		2,930
Cost of asset sales		2,921		2,271			6,694		4,682
Selling, general and administrative		6,140		6,346			12,674		12,704
Depreciation and amortization		118		147			236		288
Total operating costs and expenses		12,151		10,214			24,251		20,604
Earnings of equity method investments		79		1,735			123		2,522
Operating income		2,232		3,544			3,635		6,102
Interest income (expense), net		18		(108	)		74		(200	)
Income before income tax expense		2,250		3,436			3,709		5,902
Income tax expense		613		939			1,008		1,606
Net income	$	1,637	$	2,497		$	2,701	$	4,296

Weighted average common shares outstanding – basic		34,871,767		36,741,439			35,120,131		36,674,620
Weighted average common shares outstanding – diluted		35,506,250		36,816,610			35,800,352		36,759,995
Net income per share – basic	$	0.05	$	0.07		$	0.08	$	0.12
Net income per share – diluted	$	0.05	$	0.07		$	0.08	$	0.12

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

	June 30, 2025			December 31, 2024
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	19,846		$	21,749
Accounts receivable, net		2,168			1,559
Current portion of notes receivable, net		3,629			3,416
Inventory – equipment		5,626			5,348
Other current assets		841			1,056
Total current assets		32,110			33,128
Non-current portion of notes receivable, net		5,538			6,558
Equity method investments		21,278			20,892
Property and equipment, net		9,126			1,643
Right-of-use assets		1,868			2,208
Intangible assets, net		3,231			3,362
Goodwill		7,446			7,446
Deferred tax assets		5,453			6,008
Other assets		1,636			64
Total assets	$	87,686		$	81,309

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	6,599		$	5,979
Payables to sellers		8,122			7,417
Current portion of third party debt		134			395
Current portion of lease liabilities		817			807
Total current liabilities		15,672			14,598
Non-current portion of third party debt		4,100			—
Non-current portion of lease liabilities		1,158			1,510
Other non-current liabilities		1,050			—
Total liabilities		21,980			16,108

Stockholders' equity:
Preferred stock		6			6
Common stock		376			374
Additional paid-in capital		296,086			295,657
Accumulated deficit		(225,143	)		(227,844	)
Treasury stock		(5,619	)		(2,992	)
Total stockholders' equity		65,706			65,201
Total liabilities and stockholders' equity	$	87,686		$	81,309

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,
	2025			2024		2025			2024
Net income	$	1,637		$	2,497	$	2,701		$	4,296
Add back:
Depreciation and amortization		118			147		236			288
Interest expense, net		(18	)		108		(74	)		200
Income tax expense		613			939		1,008			1,606
EBITDA		2,350			3,691		3,871			6,390

Management add back:
Stock based compensation		229			290	509			518
Adjusted EBITDA	$	2,579		$	3,981	$	4,380		$	6,908

View source version on businesswire.com: https://www.businesswire.com/news/home/20250807557585/en/

Investor Relations Contact:

John Nesbett/Jennifer Belodeau

IMS Investor Relations

203/972.9200

InvestorRelations@hginc.com

Heritage Global Inc. Reports Second Quarter 2025 Results