The LGL Group (LGL) investor relations material

Executive summary

• Revenues for Q2 2026 increased 24.8% year-over-year to $1,153,000, driven by a 52.7% rise in Electronic Instruments segment sales and strong order backlog conversion.

• Net loss attributable to common stockholders was $353,000 for Q2 2026, compared to a $51,000 loss in Q2 2025, reflecting higher engineering, selling, and administrative expenses.

• The company completed a rights offering in July 2026, raising $41.8 million in gross proceeds to support its defense technology strategy and boosting cash and equivalents to over $86.0 million.

• Backlog in Electronic Instruments surged to $3,628,000 as of June 30, 2026, reflecting strong demand and new orders, including $6.0 million from a satellite communications customer.

Financial highlights

• Net sales for Q2 2026 were $1,153,000, up 24.8% year-over-year; six-month revenues rose 21.5% to $2,238,000.

• Gross margin for Q2 2026 was 49.2%, down from 57.0% in Q2 2025 due to volume-based pricing for a major customer.

• Total expenses for Q2 2026 increased 67.5% year-over-year to $1.6 million, mainly from higher stock-based compensation and professional fees.

• Net investment income for Q2 2026 was $428,000, slightly down from $445,000 in Q2 2025 due to lower yields.

• Book value per share decreased to $6.77 as of June 30, 2026, from $7.04 at year-end 2025.

Outlook and guidance

• Management expects sufficient liquidity for ongoing operations and capital needs for at least the next 12 months.

• Proceeds from the rights offering will be used to advance defense technology and resilient infrastructure initiatives.

• Management highlighted strong demand in aerospace, defense, and commercial applications, with a focus on sustaining growth and creating long-term stockholder value.

• The company is monitoring macroeconomic and industry trends, including defense modernization and interest rate changes.