Start here if you're new
what it is
LGL sells precision timing gear and also parks capital in investments, which is an odd mix for a $41 million company.
how it gets paid
Last year Lgl made $2M in revenue. merchant investment income was the main engine at $1.86M, or 93% of sales.
why it's growing
Revenue grew 240.9% last year. $2 million of quarterly revenue matters most because it roughly matches the company's entire trailing annual revenue base from the SEC data set.
what just happened
The latest quarter showed $2M in revenue, but the bigger point is how lumpy a business this small can be.
At a glance
C++ balance sheet — some cracks in the foundation
15/100 earnings predictability — expect surprises
41.2x trailing p/e — you're paying up for this one
1.1% return on capital — nothing to write home about
$0.08 fy2024 eps est
xvary composite: 44/100 — below average
What they do
LGL sells precision timing gear and also parks capital in investments, which is an odd mix for a $41 million company.
LGL lives in niches where timing errors can break expensive systems. It has 7 employees and still posted a 31.4% operating margin, which tells you customers are paying for precision, not scale. If your electric utility or satellite station already runs on its timing gear, switching means retesting the whole setup, which is costly and annoying.
How they make money
$2M
annual revenue · their business grew +240.9% last year
merchant investment income
$1.86M
frequency and time standards
$0.04M
distribution amplifiers
$0.04M
network time protocol servers
$0.03M
redundancy switches
$0.03M
The products that matter
manufactures timing instruments
Electronic Components
$155K last quarter · 7% of total income
it brought in $155,000 last quarter and fell 6.0% from a year ago. if this segment is the operating thesis, it needs to become much more than a rounding error.
7% of income
holds cash and investments
Interest Income Portfolio
$2.07M last quarter · 93% of total income
this piece generated $2.07M last quarter. in plain English: the portfolio is paying the bills while the operating business stays small.
93% of income
Key numbers
31.4%
operating margin
Operating margin → profit left after running the business → so what: for a company this small, that is the one number proving the niche has pricing power.
$2M
annual revenue
Revenue → money coming in the door → so what: this is a tiny business, so one order can change the story.
41.2x
trailing p/e
P/E → price versus yearly profit → so what: you are paying up for a company that still needs to prove consistency.
7
employees
Headcount → how many people run the place → so what: this is less a corporation than a specialized shop with a ticker.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for LGL right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter showed $2M in revenue, but the bigger point is how lumpy a business this small can be.
EDGAR shows latest-quarter revenue of $2 million, up 150% vs. prior year, with EPS of $0.13, down 7% vs. prior year. That is the whole LGL setup in one line: strong top-line bursts, thin visibility, and a stock that trades on small-number math.
$2M
revenue
$0.13
eps
31.4%
operating margin
the number that mattered
$2 million of quarterly revenue matters most because it roughly matches the company's entire trailing annual revenue base from the SEC data set, which shows how distorted one quarter can make the trend.
source: company earnings report, 2026
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What could go wrong
the top risk is interest-income dependence — LGL's earnings power is tied far more to cash yields and investments than to selling electronic components.
high
Interest-income dependence
Last quarter, $2.07M of income came from interest and investments. Products contributed $155K. That means 93% of the current earnings mix sits outside the core operating business.
If rates move lower or portfolio income weakens, most of today's income base comes under pressure at once.
med
Operating business stays too small
Electronic components produced just $155K last quarter and fell 6.0% from a year ago. A business that small does not give you much margin for execution mistakes.
If the product side does not scale, investors keep valuing LGL as an odd holding company instead of a real industrial grower.
med
Buyback too small to rescue the story
Management outlined a $500K–$700K repurchase plan for up to 100,000 shares. That is about 1.7% of the market cap, based on the current page data.
Buybacks can help on the margin. This one is not large enough to offset a weak earnings mix or rebuild conviction by itself.
You are buying a company where 93% of last quarter's income came from interest and investments. That makes the stock sensitive to rate changes and to management's capital allocation choices.
source: institutional data · regulatory filings · risk analysis
Pay attention to
income mix
Does product revenue move off the floor
The number that matters is still $155K. If electronic components stay that small while interest income stays near $2.07M, nothing fundamental has changed.
rates
Watch the gap between portfolio income and operating income
With 93% of last quarter income tied to interest and investments, lower yields would hit the earnings mix faster than better factory execution can fix it.
calendar
Sidoti Micro-Cap Investor Conference
Executive Chairman Marc Gabelli is scheduled to present on January 22, 2026. You want detail on capital allocation and whether the operating business has a real path to relevance.
capital return
Repurchase pace versus authorization
LGL repurchased 51,463 shares in Q3 2025 and outlined up to 100,000 shares in total. If execution stalls, one of the few visible shareholder-friendly levers gets smaller.
Analyst rankings
earnings predictability
15 / 100
in human-speak, the earnings line is messy and you should expect sharp swings from quarter to quarter.
price stability
15 / 100
this stock has not behaved like a stable cash proxy. Low stability means the share price can move harder than the business size suggests.
source: institutional data
Institutional activity
institutional ownership data for LGL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$7
current price
n/a
target midpoint · n/a from current
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