Revenue remains highly inconsistent, fluctuating between $10.4 million and $15.3 million over the last ten quarters, while gross margins have swung from a negative 6.8% in 2025Q4 to a peak of 91.7% in 2026Q1.
Heritage Global Inc. (HGBL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | -19K | 134K | -93K | -324K | -113K | -22K | -45K | -64K | -214K | -95K | -63K | -349K | -495K | -556K | -290K | -245K | -336K | -325K | -43K | 0 | -10.9M | -12.81M | -8.88M | -6.95M | -7.5M | -4.69M | -1.02M | 0 | -8.4M | 0 | -2.2M |
| NII Growth % | -625.4% | 244.09% | 71.3% | -186.73% | -413.64% | 51.11% | 29.69% | 70.09% | -125.26% | -50.79% | 81.95% | 29.49% | 10.97% | -91.72% | -18.37% | 27.08% | -3.38% | -655.81% | - | 100% | 14.92% | -44.31% | -27.81% | 7.37% | -59.76% | -361.97% | - | 100% | - | 100% | -1000% |
| Net Interest Margin % | -0.02% | 0.15% | -0.11% | -0.39% | -0.17% | -0.04% | -0.1% | -0.29% | -1.04% | -0.71% | -0.42% | -1.86% | -1.55% | -1.11% | -0.47% | -0.52% | -2.01% | -2.8% | -0.79% | 0% | -786.44% | -367.11% | -36.98% | -17.79% | -16.21% | -10.03% | -4.69% | 0% | -35.15% | 0% | -19.3% |
| Interest Income | 26K | 134K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.47M | 1.22M | 395.23K | 81.02K | 487.13K | 0 | 0 | 0 | 0 |
| Interest Expense | -38K | 0 | 93K | 324K | 113K | 22K | 45K | 64K | 214K | 95K | 63K | 349K | 495K | 556K | 290K | 245K | 336K | 325K | 43K | 196K | 10.9M | 12.81M | 11.35M | 8.16M | 7.89M | 4.77M | 1.5M | 0 | 8.4M | 0 | 2.2M |
| Loan Loss Provision | 20.04M | 37.17M | 31.06M | 38.83M | 36.41M | 14.76M | 15.8M | 16.63M | 8.76M | 8.88M | 15.49M | 10.56M | 13.86M | 5.11M | 6.85M | 9.61M | 1.93M | 3.84M | 10.69M | -196K | -10.9M | -12.81M | 48.72M | 77.84M | 43.04M | 30.77M | 22.91M | 21.4M | 7.9M | 14M | -1.1M |
| Non-Interest Income | 51.41M | 50.84M | 45.36M | 60.55M | 46.91M | 25.79M | 26.18M | 26.17M | 23.66M | 20.13M | 23.83M | 17.43M | 19.99M | 8.89M | 14.13M | 17.24M | 3.27M | 5.99M | 17.63M | 0 | 0 | 0 | 110.66M | 134.71M | 87.69M | 55.9M | 29.92M | 32.62M | 25.6M | 14.1M | 200K |
| Non-Interest Income % | 100.04% | 99.74% | 100.21% | 100.54% | 100.24% | 100.09% | 100.17% | 100.25% | 100.91% | 100.47% | 100.27% | 102.04% | 102.54% | 106.67% | 102.1% | 101.44% | 111.47% | 105.74% | 100.24% | - | 0% | 0% | 108.72% | 105.44% | 109.35% | 109.17% | 103.52% | 100% | 148.84% | 100% | -10% |
| Total Net Revenue | 51.39M | 50.98M | 45.27M | 60.22M | 46.8M | 25.77M | 26.14M | 26.1M | 23.45M | 20.03M | 23.77M | 17.08M | 19.49M | 8.34M | 13.84M | 16.99M | 2.93M | 5.67M | 17.58M | 0 | -10.9M | -12.81M | 101.79M | 127.77M | 80.2M | 51.21M | 28.9M | 32.62M | 17.2M | 14.1M | -2M |
| Revenue Growth % | 3.01% | 12.61% | -24.83% | 28.67% | 81.61% | -1.41% | 0.13% | 11.32% | 17.05% | -15.72% | 39.15% | -12.36% | 133.82% | -39.76% | -18.57% | 479.97% | -48.29% | -67.77% | - | 100% | 14.92% | -112.59% | -20.33% | 59.32% | 56.6% | 77.2% | -11.4% | 89.65% | 21.99% | 805% | -168.97% |
| Non-Interest Expense | 31.53M | 8.22M | 5.15M | 7.08M | -728K | 8M | 4.28M | 6.43M | 10.61M | 10.79M | 8.09M | 16.88M | 7.53M | 6.16M | 9.44M | 2.81M | -4.43M | 2.66M | 1.29M | 1.24M | 1.3M | 3.18M | 67.08M | 69.83M | 44.68M | 42.39M | 30.09M | 28.63M | 28.9M | 25.9M | 18.5M |
| Efficiency Ratio | 61.35% | 16.12% | 11.37% | 11.75% | -1.56% | 31.03% | 16.36% | 24.63% | 45.24% | 53.88% | 34.03% | 98.8% | 38.65% | 73.88% | 68.23% | 16.51% | -151.16% | 46.89% | 7.35% | - | -11.94% | -24.81% | 65.9% | 54.65% | 55.72% | 82.78% | 104.1% | 87.76% | 168.02% | 183.69% | -925% |
| Operating Income | -84K | 5.59M | 9.07M | 14.32M | 11.12M | 3.01M | 6.06M | 3.05M | 4.08M | 364K | 190K | -10.35M | -1.9M | -2.94M | -2.45M | 4.58M | 5.43M | -833K | 5.6M | -1.24M | -1.3M | -3.18M | -14.01M | -19.9M | -7.53M | -21.95M | -24.1M | -17.41M | -19.6M | -25.8M | -19.4M |
| Operating Margin % | -0.16% | 10.96% | 20.03% | 23.78% | 23.76% | 11.7% | 23.18% | 11.68% | 17.39% | 1.82% | 0.8% | -60.61% | -9.75% | -35.23% | -17.73% | 26.97% | 185.32% | -14.7% | 31.87% | - | 11.94% | 24.81% | -13.76% | -15.58% | -9.39% | -42.87% | -83.38% | -53.36% | -113.95% | -182.98% | 970% |
| Operating Income Growth % | - | -38.36% | -36.69% | 28.77% | 268.94% | -50.26% | 98.66% | -25.21% | 1020.33% | 91.58% | 101.84% | -444.95% | 35.31% | -19.73% | -153.52% | -15.6% | 751.86% | -114.87% | 553.32% | 5% | 59.08% | 77.31% | 29.62% | -164.33% | 65.7% | 8.9% | -38.45% | 11.2% | 24.03% | -32.99% | -3133.33% |
| Pretax Income | -18.23M | 5.84M | 8.97M | 13.99M | 11.01M | 2.99M | 6.01M | 2.99M | 4.02M | -669K | 35K | -10.41M | -1.79M | -3.24M | -2.79M | 4.4M | 4.9M | -930K | 6M | -1.64M | -1.3M | -3.18M | -11.11M | 0 | -7.53M | -21.95M | -24.74M | -19.07M | -19.3M | -25.6M | -19.4M |
| Pretax Margin % | -35.47% | 11.47% | 19.82% | 23.24% | 23.52% | 11.61% | 23.01% | 11.44% | 17.15% | -3.34% | 0.15% | -60.92% | -9.19% | -38.88% | -20.17% | 25.87% | 167.1% | -16.41% | 34.14% | - | 11.94% | 24.81% | -10.91% | 0% | -9.39% | -42.87% | -85.59% | -58.47% | -112.21% | -181.56% | 970% |
| Income Tax | -4.39M | 2.26M | 3.79M | 1.52M | -4.49M | -61K | -3.64M | -913K | 270K | -420K | 21K | 15K | 24.72M | 3.03M | -978K | -26.32M | -1.32M | 269K | -125K | -1M | 10.74M | 11.73M | 8.77M | 6.42M | 7.8M | 4.02M | 1.66M | 7.25M | 8.4M | 4.1M | 2.8M |
| Effective Tax Rate % | 24.1% | 38.63% | 42.25% | 10.86% | -40.76% | -2.04% | -60.59% | -30.58% | 6.71% | 62.78% | 60% | -0.14% | -1379.58% | -93.46% | 35.04% | -598.66% | -26.92% | -28.92% | -2.08% | 61.01% | -825.9% | -368.92% | -79.01% | - | -103.59% | -18.33% | -6.69% | -38.03% | -43.52% | -16.02% | -14.43% |
| Net Income | -13.83M | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M | 9.66M | 3.9M | 3.75M | -249K | 14K | -10.42M | -26.51M | -6.4M | -1.81M | 30.71M | 4.83M | -1.26M | 5.83M | -645K | -7.68M | -18.49M | -22.78M | -31.43M | -27.84M | -44.5M | -25.75M | -24.66M | -28M | -29.9M | -23.1M |
| Net Margin % | -26.92% | 7.04% | 11.45% | 20.72% | 33.1% | 11.85% | 36.95% | 14.94% | 16% | -1.24% | 0.06% | -61.01% | -136.03% | -76.73% | -13.1% | 180.74% | 164.81% | -22.31% | 33.14% | - | 70.42% | 144.31% | -22.38% | -24.6% | -34.71% | -86.89% | -89.1% | -75.59% | -162.79% | -212.06% | 1155% |
| Net Income Growth % | -548.69% | -30.78% | -58.46% | -19.48% | 407.47% | -68.39% | 147.7% | 3.95% | 1606.43% | -1878.57% | 100.13% | 60.7% | -314.54% | -252.79% | -105.9% | 536.01% | 482.04% | -121.69% | 1003.41% | 91.6% | 58.48% | 18.85% | 27.51% | -12.9% | 37.44% | -72.79% | -4.43% | 11.93% | 6.35% | -29.44% | -3750% |
| Net Income (Continuing) | -13.83M | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M | 9.66M | 3.9M | 3.75M | -249K | 14K | -10.42M | -26.51M | -6.4M | -1.81M | 30.71M | 6.21M | -1.2M | 5.45M | -639K | -12.05M | -14.91M | -11.11M | -12.26M | -15.33M | -25.97M | -15.15M | -24.16M | -27.8M | -28.7M | -22.2M |
| EPS (Diluted) | -0.39 | 0.10 | 0.14 | 0.33 | 0.42 | 0.08 | 0.30 | 0.13 | 0.13 | -0.01 | 0.00 | -0.37 | -0.94 | -0.22 | -0.06 | 1.13 | 0.21 | -0.06 | 0.25 | -0.03 | -0.40 | -0.96 | -0.95 | -4.51 | -4.78 | -8.97 | -20.55 | -31.40 | -42.80 | -56.94 | -53.79 |
| EPS Growth % | -564.66% | -28.57% | -57.58% | -21.43% | 407.86% | -72.43% | 130.77% | 0% | 1400% | - | 100.14% | 60.64% | -327.27% | -243.21% | -105.67% | 438.1% | 477.7% | -122.24% | 996.06% | 93.03% | 58.33% | -1.05% | 78.94% | 5.65% | 46.71% | 56.35% | 34.55% | 26.64% | 24.83% | -5.86% | -589.62% |
| EPS (Basic) | - | 0.10 | 0.14 | 0.34 | 0.43 | 0.09 | 0.32 | 0.14 | 0.13 | -0.01 | 0.00 | -0.37 | -0.94 | -0.22 | -0.06 | 1.14 | 0.21 | -0.06 | 0.25 | -0.03 | -0.40 | -0.96 | -1.18 | -4.51 | -4.78 | -8.97 | -20.55 | -31.40 | -42.80 | -56.94 | -53.79 |
| Diluted Shares Outstanding | 35.07M | 35.43M | 37.13M | 37.59M | 37.1M | 36.9M | 32.71M | 29.27M | 28.89M | 28.47M | 28.43M | 28.25M | 28.17M | 28.61M | 28.29M | 27.1M | 22.89M | 22.72M | 22.91M | 23.09M | 19.26M | 19.24M | 19.26M | 5.83M | 5.83M | 4.96M | 1.33M | 1.21M | 884.14K | 525.14K | 429.49K |
Quick answers to the most common questions about buying HGBL stock.
For fiscal year 2025, Heritage Global Inc. (HGBL) reported total revenue of $51.0M.
Heritage Global Inc. (HGBL) is profitable, generating $3.6M in net income for the fiscal year ending 2025 with a net profit margin of 7.0%.
Heritage Global Inc. (HGBL) reported an operating income of $5.6M, resulting in an operating profit margin of 11.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Heritage Global Inc. (HGBL) generated $13.8M in gross profit for the year, representing a gross profit margin of 27.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Lumpy Transactional Revenue Volatility
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Trends
As evidenced by the quarterly data, HGBL's top-line performance remains highly inconsistent, with revenue fluctuating between $10.4 million and $15.3 million over the last ten quarters, reflecting the inherent lumpiness of project-based industrial liquidations and the timing of non-performing asset portfolio sales within the US market.
The lack of a clear growth trajectory suggests that the company's revenue is driven more by external corporate restructuring cycles than by consistent organic platform expansion. Investors should monitor whether the firm can transition toward more recurring fee-based income to smooth out these significant quarterly swings.
Structural Margin Compression and Variability
Based on reported financial statements, HGBL's gross margins have exhibited extreme volatility, ranging from negative territory in late 2024 to a peak of 91.7% in 2026Q1, which highlights the significant impact of principal-heavy inventory acquisitions versus pure agency-based brokerage commissions on the firm's profitability profile.
This margin instability appears to be a direct consequence of the company's hybrid business model, where principal transactions introduce inventory impairment risks that can rapidly erode gross profit. The wide variance suggests that investors should prioritize analyzing fee-based service revenue over headline gross margin figures to assess true operational health.
Operating Leverage Remains Highly Constrained
According to the provided income statement data, HGBL's operating income has failed to scale consistently with revenue, as evidenced by operating margins that swung from 29.8% in 2023Q4 to as low as 4.0% in 2026Q1, indicating that fixed overhead costs remain a significant burden on profitability.
The inability to maintain operating leverage suggests that the company's cost structure is not as variable as the business model might imply. This may indicate that the specialized appraisal and liquidation expertise required to maintain the firm's competitive moat necessitates a high, non-reducible fixed cost base.
Stock-Based Compensation Impacts Earnings Quality
As reported in recent filings, HGBL consistently utilizes stock-based compensation, with quarterly expenses reaching as high as $452,000 in 2024Q4, which serves to dilute shareholders and complicates the assessment of true cash-based profitability relative to the reported net income figures across the observed ten-quarter period.
The presence of these non-cash charges, combined with the lumpy nature of auction-driven revenue, suggests that reported EPS may not fully reflect the underlying cash-generating capability of the business. Analysts should adjust for these equity-based incentives to better understand the true economic earnings of the firm.
Principal Risk Threatens Margin Stability
Based on the provided financial data, the company's reliance on principal transactions creates a persistent risk of inventory impairment, as demonstrated by the negative gross profit figures observed in 2024Q4 and 2025Q4, which could lead to significant earnings volatility during periods of declining asset recovery values.
Short-term market participants may focus on these periodic margin collapses as evidence that the firm's valuation expertise is insufficient to mitigate the risks of holding distressed assets. This warrants further investigation into the firm's appraisal accuracy and the potential for future write-downs if industrial asset prices soften.