Heritage Global (HGBL) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $12.3 million, down from $14.3 million in Q2 2025, reflecting declines in both services and asset sales revenue.

• Strategic wind down of the Specialty Lending/Heritage Global Capital segment resulted in significant non-cash impairment charges and a shift in business focus.

• Recent acquisitions of DebtX and Boston Note expanded the asset-light brokerage platform and are expected to enhance reach and revenue in financial asset classes in H2 2026.

• Industrial division expanded its sales force and diversified its sector pipeline, including new assignments in bankruptcy, transportation, and construction.

Financial highlights

• Net loss for Q2 2026 was $15.9 million, compared to net income of $1.6 million in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $1.2 million, down from $2.8 million in Q2 2025.

• Operating loss reached $20.9 million in Q2 2026, versus operating income of $2.2 million in Q2 2025.

• Recorded $21.7 million in non-cash charges related to the wind down of specialty lending, including $18.2 million impairment and $3.5 million credit losses.

• Cash and cash equivalents as of June 30, 2026 were $13.2 million, down from $20.5 million at year-end 2025.

Outlook and guidance

• Management expects a stronger second half with a growing pipeline of larger auctions and diversified sector opportunities.

• Integration of Boston Note and DebtX is anticipated to drive synergy and growth in both residential and commercial seller-financed loan markets.

• The wind down of the Specialty Lending segment is expected to continue into Q3 2026, with completion dependent on activity duration.

• Focus remains on expanding core business units and leveraging recent acquisitions for long-term growth.