Heritage Global Inc. Reports 19% Revenue Growth to $14.3 Million in Q2 2025

Heritage Global Inc. reported a total revenue of $14.3 million for the three months ended June 30, 2025, marking a 19% increase from $12.0 million in the same period last year. For the first half of 2025, revenues reached $27.8 million, up 15% from $24.2 million in the prior year. The growth was driven by a 21% increase in services revenue, which totaled $10.3 million, and a 14% rise in asset sales revenue, amounting to $4.0 million. However, net income for the second quarter decreased by 34% to $1.6 million, compared to $2.5 million in the previous year, primarily due to increased operating costs and a significant drop in earnings from equity method investments.

The company's operating costs also rose, with total expenses for the second quarter increasing to $12.2 million from $10.2 million a year earlier. The cost of services revenue surged by 105% to $3.0 million, while the cost of asset sales rose by 29% to $2.9 million. Despite the increase in revenues, the operating income fell to $2.2 million from $3.5 million in the prior year, reflecting a 37% decline. The decrease in earnings from equity method investments was particularly notable, dropping to $79,000 from $1.7 million, which contributed to the overall decline in profitability.

In terms of strategic developments, Heritage Global completed a significant acquisition of real estate for $7.4 million, which will serve as its new corporate headquarters and operational space. The company also engaged in a share repurchase program, utilizing approximately $5.6 million of the authorized $6.0 million to repurchase 2.9 million shares by the end of June 2025. This program concluded on June 30, 2025, and a new repurchase program was authorized on July 31, 2025, allowing for the repurchase of up to $7.5 million of common stock through June 30, 2028.

Operationally, Heritage Global reported a decrease in cash and cash equivalents, which fell to $19.8 million from $21.7 million at the end of 2024. The company’s current liabilities increased to $15.7 million, up from $14.6 million, primarily due to higher accounts payable and accrued liabilities. The company’s total assets increased to $87.7 million, compared to $81.3 million at the end of 2024, driven by the acquisition of property and equipment. The company’s employee headcount remained stable, reflecting its ongoing operational needs.

Looking ahead, Heritage Global anticipates continued growth in its revenue streams, particularly in the auction and specialty lending segments, as market conditions evolve. The company aims to leverage its diversified business model and strong management team to navigate economic fluctuations and capitalize on emerging opportunities in the asset liquidation and specialty financing markets. However, the company remains cautious about the impact of its largest borrower's default status on its financial performance, as this could affect future earnings and cash flows.