HGBLNasdaqServices-Business Services, NECUS GAAP · USD

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.

Revenue51.0m USD
+12.4 %y/y
Operating profit (EBIT)5.7m USD
−37.0 %y/y
EBIT margin11.2%
−8.8 ppy/y
Net income3.6m USD
−30.8 %y/y
Free cash flow-2.3m USD
−130.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

020406080m USD2020: 26 m USD2020: EBIT 6.1 m USD20202021: 26 m USD2021: EBIT 3.0 m USD20212022: 47 m USD2022: EBIT 11 m USD20222023: 61 m USD2023: EBIT 14 m USD20232024: 45 m USD2024: EBIT 9.1 m USD20242025: 51 m USD2025: EBIT 5.7 m USD2025515.7
RevenueOperating profit (EBIT)

Business

Share of revenue
Auction and Liquidation40 %

Global auction, appraisal, and asset advisory services for surplus or distressed industrial assets.

Refurbishment & Resale20 %

Acquisition, refurbishment, and resale of specialized laboratory equipment, especially in biotech and pharma.

Brokerage25 %

Brokerage of charged-off receivables in the U.S. and Canada for financial institutions and lenders.

Specialty Lending15 %

Financing solutions for investors in charged-off and nonperforming asset portfolios.

Products

Reported · share of revenue
65.3%34.7%FY2025100 %
  • 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.

Industrial asset sellers

Manufacturers and other owners of surplus or distressed equipment, facilities, and inventories that need monetization.

Financial institution sellers

Banks and specialty lenders that sell charged-off receivables through NLEX brokerage services.

Industrial equipment buyers

End-users and dealers purchasing used machinery, turnkey facilities, and inventories at auction or negotiated sale.

Biotech and pharma labs

Customers buying refurbished laboratory equipment from ALT for lower-cost access to specialized tools.

Distressed asset investors

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.

Expand deal sourcing through partnerships and joint venturesShort term

JV structures let the company pursue larger deals than it could fund alone and broaden transaction access.

Deepen relationships with banks and institutional sellersMedium term

More approved vendor lists and stronger lender ties should improve recurring deal flow and revenue visibility.

Broaden industrial sector coverage and geographic reachMedium term

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.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Inventory and credit risk1Intense competition for contracts and asset sourcing2Cybersecurity and third-party service disruption3Dependence on joint ventures and partners4Regulatory and compliance burden in auction activities5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. 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.

    ExposureRefurbishment & ResaleSpecialty Lending
  2. 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.

    ExposureAuction and LiquidationBrokerage
  3. 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

  4. Dependence on joint ventures and partnersImpact: MediumLikelihood: Low

    Larger transactions may require partners, and partner withdrawal could reduce the pool of available deals.

    ExposureSpecialty LendingAuctionLiquidation
  5. 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 items
Revenue recognition timing

Most 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

Collectability and valuation estimates

Management must estimate collectability of receivables and the value of notes receivable, inventory, and investments.

Impact: Can materially affect earnings and asset carrying values

Goodwill and intangible assets

Acquisitions and growth create goodwill and intangible balances that may require impairment testing.

Impact: Potential non-cash impairment charges

Deferred revenue

Customer deposits, especially in Refurbishment & Resale, are recorded as contract liabilities until performance is complete.

Impact: Impacts revenue deferral and working capital

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026