Heritage Global Inc.
Heritage Global Inc. is a U.S.-based asset services company that monetizes financial and industrial assets through auctions, appraisals, brokerage, refurbishment, and specialty lending. It operates through two divisions—Industrial Assets and Financial Assets—serving sellers, lenders, and buyers of surplus equipment, distressed assets, and charged-off receivables.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueGlobal auction, appraisal, and asset advisory services for surplus or distressed industrial assets.
Acquisition, refurbishment, and resale of specialized laboratory equipment, especially in biotech and pharma.
Brokerage of charged-off receivables in the U.S. and Canada for financial institutions and lenders.
Financing solutions for investors in charged-off and nonperforming asset portfolios.
Products
Reported · share of revenue- Services65.3 %
- Products34.7 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Heritage Global sells to a mix of corporate asset owners, financial institutions, and investors in distressed assets. Its buyers include end-users and dealers of industrial equipment, lenders and banks seeking to dispose of charged-off receivables, and investors needing financing for nonperforming portfolios.
Manufacturers and other owners of surplus or distressed equipment, facilities, and inventories that need monetization.
Banks and specialty lenders that sell charged-off receivables through NLEX brokerage services.
End-users and dealers purchasing used machinery, turnkey facilities, and inventories at auction or negotiated sale.
Customers buying refurbished laboratory equipment from ALT for lower-cost access to specialized tools.
Investors seeking specialty financing to acquire charged-off and nonperforming asset portfolios.
Strategy
The company is focused on expanding its integrated platform across auctions, brokerage, refurbishment, and specialty lending to capture more value from distressed and surplus assets. Management emphasizes partnerships and joint ventures, deeper bank relationships, and geographic expansion to access larger transactions and improve deal flow.
JV structures let the company pursue larger deals than it could fund alone and broaden transaction access.
More approved vendor lists and stronger lender ties should improve recurring deal flow and revenue visibility.
Operating across more than 25 sectors and new geographies increases sourcing opportunities and resilience across cycles.
Geography
Heritage Global is headquartered in San Diego, California and operates primarily in the United States, with brokerage activity also covering Canada. Its auction and liquidation business is described as global, but the company’s physical footprint is concentrated in California, Illinois, and Connecticut, which supports sourcing, warehousing, and transaction execution.
Risks
Heritage Global’s results depend on a steady supply of auction contracts, distressed assets, and receivable portfolios, so competition and deal flow volatility are central risks. The business also carries inventory, credit, and execution risk because it often buys or finances assets before resale or collection, while cybersecurity, regulation, and key-person dependence can disrupt operations.
- Inventory and credit riskImpact: HighLikelihood: High
The model includes principal asset purchases, refurbishment, and specialty lending, which expose the company to valuation and collectability risk.
Exposure - Intense competition for contracts and asset sourcingImpact: HighLikelihood: Medium
The company competes with larger liquidators, auction firms, dealers, and brokers for both supply and buyers.
Exposure - Cybersecurity and third-party service disruptionImpact: MediumLikelihood: Medium
The company relies on information systems and external providers to handle sensitive client and employee data.
Exposure: All segments
- Dependence on joint ventures and partnersImpact: MediumLikelihood: Low
Larger transactions may require partners, and partner withdrawal could reduce the pool of available deals.
Exposure - Regulatory and compliance burden in auction activitiesImpact: MediumLikelihood: Low
Auction and liquidation services can be subject to additional government regulation and compliance costs.
Exposure: Auction and Liquidation
Accounting
Judgemental itemsMost revenue is recognized when performance obligations are satisfied, but some contracts include advance payments and deferred revenue.
Impact: Affects quarterly revenue timing and contract liability balances
Management must estimate collectability of receivables and the value of notes receivable, inventory, and investments.
Impact: Can materially affect earnings and asset carrying values
Acquisitions and growth create goodwill and intangible balances that may require impairment testing.
Impact: Potential non-cash impairment charges
Customer deposits, especially in Refurbishment & Resale, are recorded as contract liabilities until performance is complete.
Impact: Impacts revenue deferral and working capital
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Last updated: 24/09/2026