LGL Group Reports Decline in Revenue and Net Loss for Q2 2025

The LGL Group, Inc. reported a decline in financial performance for the second quarter of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, total revenues decreased by 13.5% to $924,000, down from $1,068,000 in the same period last year. This decline was primarily driven by a 7.5% drop in net sales, which fell to $491,000 from $531,000, attributed to lower backlog levels. Additionally, net investment income decreased by 20.4% to $428,000, reflecting lower yields on investments in U.S. Treasury money market funds.

In terms of expenses, LGL Group experienced a 14.9% increase, totaling $955,000 compared to $831,000 in the prior year. The rise in expenses was largely due to a significant 20.6% increase in engineering, selling, and administrative costs, which rose to $744,000 from $617,000, driven by higher professional services fees and employee-related costs. Consequently, the company reported a net loss attributable to common stockholders of $51,000 for the quarter, a stark contrast to the net income of $137,000 recorded in the same quarter of 2024.

For the first half of 2025, total revenues also decreased by 5.8% to $1.842 million, down from $1.956 million in the prior year. While net sales increased by 7.2% to $989,000, this was offset by a more significant 18.5% decline in net investment income, which fell to $845,000. Total expenses for the six-month period rose by 11.7% to $1.832 million, primarily due to increased manufacturing costs and higher administrative expenses. The company reported a net loss of $57,000 for the first half of 2025, compared to a profit of $158,000 in the same period last year.

Operationally, LGL Group's order backlog as of June 30, 2025, was $527,000, reflecting a 56.8% increase from $336,000 at the end of 2024, although it represented a 28.5% decrease from $737,000 a year earlier. The company continues to focus on its Electronic Instruments and Merchant Investment segments, with the former generating $491,000 in sales for the quarter, while the latter reported net investment income of $262,000.

Looking ahead, LGL Group remains cautious about the impact of macroeconomic conditions, including changing interest rates and tariffs, on its operations. The company is assessing the potential effects of the recently enacted One Big Beautiful Bill Act, which introduces significant changes to the U.S. federal tax system. Management believes that existing cash and cash equivalents, along with marketable securities, will provide sufficient liquidity to meet ongoing operational needs for the foreseeable future.