Key Highlights

  • Third quarter Revenue rose to $14.6 million from $11.4 million.
  • Third quarter Net Income was $1.0 million, or $0.03 per share.
  • Nine-month net loss totaled $14.1 million, compared with net income of $3.3 million a year earlier.
  • Nine-month operating loss was $18.9 million, compared with Operating Income of $4.9 million a year earlier.

Heritage Global Inc. (NASDAQ:HGBL), an asset services company focused on financial and industrial asset transactions, reported results for the third quarter and the first nine months of 2026. Third quarter revenue rose to $14.6 million from $11.4 million, and net income reached $1.0 million, or $0.03 per share, compared with $0.6 million a year earlier. The nine-month results present a different picture, with a net loss of $14.1 million against net income of $3.3 million in 2025.

Third Quarter Performance

Revenue increased about 28 percent year over year, a gain that outpaced the company's small operating base. Operating income, however, declined to $1.0 million from $1.3 million, which means the revenue increase did not translate into higher operating profit in the period.

Adjusted EBITDA was $1.4 million, compared with $1.6 million in the third quarter of 2025, while EBITDA came in at $1.3 million against $1.4 million. The small decline in both measures shows that revenue growth came with higher costs or lower contributions from other sources.

Third quarter net income of $1.0 million compared with $0.6 million a year earlier, an increase of about 77 percent on a small base. That gain came while operating income declined, which indicates that the net income improvement reflected items below operating income rather than operating activity alone.

The Nine-Month Loss

For the nine months ended September 30, 2026, revenue was $39.6 million, nearly unchanged from $39.1 million a year earlier. Earnings and losses from Equity method investments, however, swung to a loss of $17.7 million, compared with earnings of $0.2 million in the prior-year period. The equity method line therefore dominates the nine-month comparison.

Nine-month revenue was roughly flat at $39.6 million, while adjusted EBITDA fell about 34 percent to $4.0 million from $6.0 million. The gap between stable revenue and falling adjusted EBITDA shows that cost increases or lower contributions from other activities absorbed the difference.

Operating loss for the nine months was $18.9 million, compared with operating income of $4.9 million a year earlier. Net loss per share was $0.41, against earnings of $0.09. Adjusted EBITDA for the nine months was $4.0 million, down from $6.0 million, indicating that the underlying operating measure also declined over the period.

The swing in equity method results is the central Factor in the nine-month comparison. Because that line can move substantially from period to period, the nine-month figures should be read with attention to the composition of earnings rather than as a measure of operating activity alone.

Reading the Results

The company's quarterly and nine-month figures differ in direction, which makes the single quarter less representative of the full period. The third quarter reflects a return to positive net income, while the nine-month figures are dominated by the equity method loss, a line that can move significantly from one period to the next.

Final Takeaways

Heritage Global's third quarter shows revenue growth and a return to positive net income, while the nine-month period reflects a substantial loss driven by equity method investments. The company's operating measures moved lower over the same span. Future reporting will show whether the quarterly revenue gains carry through and whether equity Investment results stabilize in the coming periods.