Heritage Global (HGBL) investor relations material

Executive summary

• 2025 was profitable with many transactions, though lacking major 'needle-moving' deals; optimism is high for 2026 with expectations of larger transactions and increased activity across divisions.

• Internal growth drivers are in place, with new business personnel being added and a move to a new facility to support expansion and efficiency.

• The DebtX acquisition was completed and is expected to be accretive, expanding capabilities in the financial asset segment.

Financial highlights

• Q4 2025 consolidated operating income was $800,000, down from $1.5 million in Q4 2024, impacted by $400,000 in M&A due diligence expenses.

• Revenue for Q4 2025 was $11.9 million, up from $10.8 million in Q4 2024.

• Adjusted EBITDA was $1.1 million, down from $2.1 million in the prior year period.

• Net income for Q4 2025 was $300,000 ($0.01 per diluted share), compared to a net loss of $200,000 ($0.01 per diluted share) in Q4 2024.

• Stockholders' equity stood at $67 million as of December 31, 2025, with net working capital of $18.1 million and net available cash of $13.2 million.

Outlook and guidance

• 2026 is anticipated to be a breakout year with increased transaction flow, especially larger deals, as pent-up asset supply is expected to enter the market.

• DebtX acquisition is expected to be accretive on both operating income and net income bases, with some quarter-to-quarter variability.

• Share repurchases are expected to resume, with $7.5 million authorized over three years.