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what it is
Heritage Global buys, sells, appraises, and lends against distressed industrial and financial assets.
how it gets paid
Last year Heritage Global made $51M in revenue. National Loan Exchange was the main engine at $21M, or 41% of sales.
why it's growing
Revenue grew 12.4% last year. Revenue was up 244% vs. prior year, and EPS was up 350%.
what just happened
Last quarter, revenue hit $39M and EPS reached $0.09.
At a glance
C++ balance sheet — some cracks in the foundation
35/100 earnings predictability — expect surprises
9.3x trailing p/e — the market's not buying it — or you found a deal
7.9% return on capital — nothing to write home about
$0.14 fy2024 eps est
xvary composite: 47/100 — below average
What they do
Heritage Global buys, sells, appraises, and lends against distressed industrial and financial assets.
Heritage makes money in four ugly places: auctions, refurbishing, receivables brokerage, and specialty lending. Receivables brokerage means selling bad debts for a fee, so you do not need one big winner to make the machine work. With 86 employees, it still ran a 15.4% operating margin on $51M of revenue.
How they make money
$51M
annual revenue · their business grew +12.4% last year
National Loan Exchange
$21M
+12.4%
Heritage Global Partners
$15M
+18.0%
Specialty Lending
$9M
+8.0%
Refurbishment & Resale
$6M
5.0%
The products that matter
auctions surplus equipment
Industrial Assets
$31M · 61% of revenue
it generated $31M last year and grew 15%. management also reported $1.1M of operating income in 2025 versus $800K the prior year. this is the piece keeping the growth story alive.
main growth engine
sells loans and receivables
Financial Assets
$20M · 39% of revenue
this segment fell 8% to $20M. in human-speak: a business that still matters got smaller, and the quarter's profit squeeze landed while this side was weak.
profit pressure
loan-sale and valuation platform
DebtX
acquired jan 2026
DebtX is supposed to broaden the business mix. here's the thing: until you see it in reported revenue or margins, it is still a strategic promise.
integration watch
Key numbers
$51M
TTM revenue
You are looking at a $51M business, not a giant. That makes every contract and every quarter matter.
15.4%
op margin
For every $100 of sales, $15.40 stays before interest and taxes. That is decent for a small asset shop.
$6M
debt
Debt is only $6M, so the balance sheet is not loaded. That gives the company room when deals get messy.
0.55
beta
The stock has moved about half as much as the market. That usually means less drama, not no drama.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $6M (13% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for HGBL right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Last quarter, revenue hit $39M and EPS reached $0.09.
Revenue was up 244% vs. prior year, and EPS was up 350%. Third-party data also showed gross margin near 60.9%, which is a strong number for a small asset business.
$39.0M
revenue
$0.09
eps
60.9%
gross margin
the number that mattered
The $39M quarter matters most because it was more than triple last year. That is how a tiny company stops looking tiny.
source: company earnings report, 2026
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What could go wrong
heritage global's problem is specific, not abstract: 39% of revenue still comes from a segment that fell 8% last year, while the latest quarter showed that more sales did not protect profit.
high
financial assets keeps sliding
that segment fell 8% to $20M. if it drops again, industrial assets has to outrun the decline just to keep consolidated revenue moving the right way.
puts 39% of annual revenue under pressure
high
q4 margin pressure was not a one-off
q4 revenue rose 10%, but adjusted EBITDA fell about 47% to $1.1M and operating income fell 47% to $800K. if that pattern repeats, the low p/e stops looking cheap and starts looking accurate.
raises the odds that earnings quality keeps deteriorating
med
DebtX adds complexity before it adds results
the acquisition closed in january 2026. if the next few reports show extra moving parts without better revenue mix or better margins, the strategic case weakens fast.
would undercut the diversification story
med
small-cap volatility does the rest
price stability is only 30 / 100, and the balance sheet grade is C++. when a company this small misses on execution, the stock often reacts before investors have time to reread the filing.
raises drawdown risk even without a balance-sheet break
the combined risk picture is blunt: one segment is shrinking, the latest quarter exposed margin fragility, and the acquisition meant to help has not shown up in reported numbers yet.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
does adjusted EBITDA recover from $1.1M
revenue growth is not enough. if adjusted EBITDA stays around $1.1M or lower, you are still looking at a low-quality earnings story.
next report
q1 2026 earnings
the next earnings release is expected in may 2026. you want to know whether q4 was a messy quarter or a cleaner preview of the new margin level.
segment mix
industrial assets versus financial assets
industrial assets grew 15% to $31M. financial assets fell 8% to $20M. watch which side wins from here, because that is what will shape the multiple.
integration risk
DebtX shows up in the numbers
the acquisition closed in january 2026. until reported revenue, mix, or margins improve, you should assume the integration story is still incomplete.
Analyst rankings
earnings predictability
35 / 100
in human-speak: the quarterly numbers can swing around, so you should not mistake one better print for a stable trend.
risk rank
3
middle of the pack on safety. not distressed, not defensive.
price stability
30 / 100
the stock trades like a small cap because it is one. if you own it, expect more wobble than polish.
source: institutional data
Institutional activity
institutional ownership data for HGBL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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