Want to see HGBL full AI Analyst Report?
Top Page
Heritage Global
(NASDAQ:HGBL)
Select Model
Select Model
Rating:53Neutral
Price Target:
$1.50
▲(20.97% Upside)
Action:Reiterated
Date:09/23/26
The score is held back primarily by deteriorated profitability and weaker recent free cash flow, despite a solid low-leverage balance sheet cushion. Technicals are moderately supportive, while valuation lacks support due to current losses. Management’s guidance and strategy pivot are constructive but must translate into sustained earnings recovery; the new credit facility is a modest near-term positive for liquidity.
Positive Factors
Financial Assets Platform Expansion
The DebtX and Boston Note acquisitions broaden Heritage Global’s financial-assets platform across asset classes, seller-note channels, and investor relationships. This creates opportunities for cross-selling and greater transaction liquidity while supporting a more scalable, asset-light operating model over the next several quarters.
Negative Factors
Material Wind-Down Losses
The specialty-lending wind-down has produced a very large impairment burden that overwhelmed operating performance and reduced shareholder equity. Although the charges are noncash, they demonstrate prior capital-allocation and asset-quality problems and leave execution risk as management redirects resources toward the core businesses.
Read all positive and negative factors
Positive Factors
Negative Factors
Financial Assets Platform Expansion
The DebtX and Boston Note acquisitions broaden Heritage Global’s financial-assets platform across asset classes, seller-note channels, and investor relationships. This creates opportunities for cross-selling and greater transaction liquidity while supporting a more scalable, asset-light operating model over the next several quarters.
Read all positive factors
Heritage Global (HGBL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.76M
Dividend YieldN/A
Average Volume (3M)260.29K
Price to Earnings (P/E)―
Beta (1Y)0.03
Revenue Growth-1.50%
EPS Growth-508.82%
CountryUS
Employees84
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.41
Shares Outstanding34,639,446
10 Day Avg. Volume99,515
30 Day Avg. Volume260,287
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.64
Price to Sales (P/S)0.85
P/FCF Ratio-18.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$3.50Price Target Upside182.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$55.58M
Heritage Global Business Overview & Revenue Model
Company Description
Heritage Global Inc., through its various subsidiary companies, operates as a specialized asset services firm, primarily concentrating on transactions involving both financial and industrial assets. The company offers a diverse array of services, ...
How the Company Makes Money
Heritage Global primarily generates revenue from (1) asset disposition services and (2) financial/receivables-related activities. In its asset disposition business (commonly conducted through its auction and liquidation operations), the company ea...
Heritage Global Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Negative
The call conveyed a mixed picture: management executed a decisive strategic shift by winding down a troubled lending platform (HGC) that produced large noncash charges and drove significant operating and net losses this quarter, materially reducing revenue, adjusted EBITDA and equity levels and leaving limited net available cash. Offsetting these negatives are meaningful strategic positives — acquisitions (DebtX and Boston Note) that broaden an asset-light brokerage platform, early revenue traction from Boston Note integration, a growing and diversified industrial auction pipeline, improving refurbishment/resale profitability, and management's renewed focus on core, scalable businesses. However, the scale of the losses and write-downs this quarter outweigh the early strategic wins, leaving the near-term financial picture challenged even though the long-term strategy may be constructive.Positive Updates
Strategic Acquisitions and Platform Expansion
Acquired DebtX (Jan 2026) and subsequently Boston Note (post-quarter), creating an asset-light brokerage combining DebtX, NLEX and Boston Note to serve performing and nonperforming financial assets and expand into seller-financed note distribution channels.
Negative Updates
Large Noncash Charges from HGC Wind-Down
Recorded approximately $21.7 million in noncash charges in Q2 2026 related to write-downs of nonperforming loans within the specialty lending business (HGC) associated with the wind-down.
Read all updates
Q2-2026 Updates
Positive
Negative
Strategic Acquisitions and Platform Expansion
Acquired DebtX (Jan 2026) and subsequently Boston Note (post-quarter), creating an asset-light brokerage combining DebtX, NLEX and Boston Note to serve performing and nonperforming financial assets and expand into seller-financed note distribution channels.
Read all positive updates
Company Guidance
Management guided that, despite a Q2 hit of roughly $21.7M in non‑cash write‑downs that drove a consolidated operating loss of $20.9M and a net loss of $15.9M (−$0.46 per diluted share) on revenue of $12.3M and adjusted EBITDA of $1.2M, the company is refocusing on its profitable core businesses and expects a stronger second half as DebtX, NLEX and the recently acquired Boston Note (trial: 8 transactions, >$0.5M in revenue) are integrated over the next 6–24 months; DebtX is highly seasonal (roughly 50–60%, sometimes up to two‑thirds, of revenue in Q4), so management expects clearer results by Jan. 1, sees a growing pipeline of larger industrial auctions (Industrial Assets earned ≈$600k in Q2 vs $1.3M a year ago) across new sectors (transportation, construction, EV, cannabis), will add select hires to target $0.5M–$10M auctions, and points to a balance sheet with stockholders’ equity of $51.9M (vs $67.0M at 12/31/25), net working capital $9.4M, cash $13.2M and net available cash of $6.5M.Heritage Global Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.20M | 50.98M | 45.36M | 60.55M | 46.91M | 25.79M |
| Gross Profit | 23.63M | 13.80M | 14.21M | 21.39M | 10.39M | 11.01M |
| EBITDA | -17.15M | 6.75M | 10.31M | 14.83M | 11.66M | 3.47M |
| Net Income | -14.29M | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M |
Balance Sheet | ||||||
| Total Assets | 70.38M | 88.44M | 81.31M | 83.17M | 67.56M | 50.46M |
| Cash, Cash Equivalents and Short-Term Investments | 13.18M | 20.52M | 21.75M | 12.28M | 12.67M | 13.62M |
| Total Debt | 5.35M | 5.72M | 2.71M | 9.88M | 7.15M | 6.58M |
| Total Liabilities | 18.46M | 21.46M | 16.11M | 22.09M | 19.26M | 17.82M |
| Stockholders Equity | 51.91M | 66.98M | 65.20M | 61.08M | 48.30M | 32.64M |
Cash Flow | ||||||
| Free Cash Flow | -1.09M | -2.33M | 7.61M | 12.76M | 6.27M | -4.06M |
| Operating Cash Flow | 579.00K | 6.14M | 7.75M | 13.02M | 6.48M | -2.63M |
| Investing Cash Flow | -6.06M | -9.39M | 10.87M | -15.87M | -7.52M | -10.20M |
| Financing Cash Flow | -1.19M | 2.03M | -9.15M | 2.46M | 78.00K | 3.06M |
Heritage Global Technical Analysis
Positive
1.24
Price Trends
1.22
Positive
1.23
Positive
1.28
Positive
Market Momentum
0.04
Positive
53.22
Neutral
50.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGBL, the sentiment is Positive. The current price of 1.24 is below the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.22, and below the 200-day MA of 1.28, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HGBL.
Heritage Global Risk Analysis
Heritage Global disclosed 26 risk factors in its most recent earnings report. Heritage Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heritage Global Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $177.36M | 20.25 | 6.29% | 3.19% | 7.70% | 110.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
53 Neutral | $46.76M | -3.19 | -22.57% | ― | -1.50% | -508.82% | |
46 Neutral | $61.34M | -0.73 | -82.76% | 28.99% | 134.05% | -45.58% | |
41 Neutral | $38.20M | -0.94 | 21.74% | ― | ― | ― |
* Financial Sector Average
HGBL
Heritage Global
1.32
-0.43
-24.57%
DOMH
Dominari Holdings
2.57
-3.55
-57.98%
WHG
Westwood Holdings Group
18.83
2.19
13.13%
ARBK
Argo Blockchain
2.60
-57.64
-95.68%
TOP
Zhong Yang Financial Group Ltd.
15.40
8.80
133.33%
Heritage Global Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Heritage Global Establishes New $10 Million Credit Facility
Positive
Sep 22, 2026
On September 16, 2026, Heritage Global Inc. entered into a new $10.0 million revolving credit facility with C3bank, National Association, to be used solely for its business operations. The facility matures on January 16, 2028, carries a variable i...
Business Operations and StrategyM&A Transactions
Heritage Global Expands Financial Assets Platform with Boston Note Acquisition
Positive
Aug 3, 2026
On August 3, 2026, Heritage Global Inc. said its Financial Assets division acquired Boston Note Company, a national broker and buyer of privately held seller and carry-back notes backed by real estate. Following the deal, Boston Note will operate ...
Business Operations and StrategyFinancial Disclosures
Heritage Global Announces Strategic Exit From Specialty Lending
Negative
Jul 31, 2026
On July 30, 2026, Heritage Global’s Board approved a strategic exit plan to wind down its Specialty Lending segment, operated via subsidiary Heritage Global Capital, which financed investors in charged‑off and nonperforming asset portf...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.