Heritage Global Inc.

Second-quarter 2026 revenue was $12.3 million, down from $14.3 million in the second quarter of 2025. Adjusted EBITDA was $1.2 million versus $2.8 million in the prior-year period. Net loss was $15.9 million, or $0.46 per diluted share, compared with net income of $1.6 million, or $0.05 per diluted share, a year ago. Consolidated operating loss was $20.9 million versus operating income of $2.2 million in the prior-year quarter, with approximately $21.7 million in noncash charges from the HGC wind-down. Industrial Assets operating income was about $600,000 versus $1.3 million last year; Financial Assets reported an operating loss of $20.4 million versus operating income of $2.2 million due to the wind-down. On the balance sheet, stockholders’ equity was $51.9 million, net working capital was $9.4 million, cash was $13.2 million, and net available cash was $6.5 million. No formal quarterly or full-year financial guidance was given; management instead said the pipeline is growing, larger auctions are being signed, and DebtX revenue is seasonally weighted toward Q4.

Ross Dove framed the HGC wind-down as a necessary step to remove a management distraction and shift focus to businesses he described as profitable, strong, and core to the company’s future. He was upbeat about combining DebtX, NLEX, and Boston Note into an asset-light platform spanning performing and nonperforming financial assets, and said the group can build a broader, more scalable distribution network. On the industrial side, he said the company has expanded its sales force and is seeing a more diverse pipeline across bankruptcy, transportation, construction, pharma, food and beverage, EV, and cannabis-related opportunities. His tone was relieved and optimistic, with repeated emphasis on “move forward,” “grow it strong,” and “built to last.”

Brian Cobb said the second quarter included approximately $21.7 million of noncash charges related to writing down nonperforming loans in HGC, which drove the consolidated operating loss and the financial assets segment loss. He highlighted the reported figures: revenue of $12.3 million, adjusted EBITDA of $1.2 million, net loss of $15.9 million, and operating loss of $20.9 million, all versus better prior-year results. He also pointed to a balance sheet he described as a strength, with $51.9 million of stockholders’ equity, $9.4 million of net working capital, $13.2 million of cash, and $6.5 million of net available cash after client/seller-related liabilities. He added that Industrial Assets continued steady auction activity and that refurbishment/resale improvements were translating into better asset turnover and profitability.

Analysts focused on how DebtX and Boston Note fit together, whether DebtX had improved from Q1, and how the industrial auction pipeline looks for the second half. Ross said Boston Note became more compelling after DebtX was acquired, because the three businesses together can cover seller-financed residential, commercial, and nonperforming-loan opportunities; he also said the trial produced 8 transactions and over $0.5 million in revenue. On DebtX, management said the business is seasonal, with roughly 50% to 60% and sometimes as much as 2/3 of revenue historically coming in Q4, so they expect a clearer read after year-end. On industrial activity, Ross said larger auctions are now in the pipeline and that the company is signing several, which he believes supports a positive second half.