Heritage Global Inc.

Heritage Global Inc. reported total revenues of $51.0 million for FY 2025, an increase from $45.4 million in FY 2024. Net income was $3.6 million, down from $5.2 million in the prior year. The company generated $6.1 million in net cash from operating activities. Key drivers included a product mix shift from financial assets to industrial assets, with the Auction and Liquidation segment showing increased gross profit of approximately $0.4 million and the Refurbishment & Resale segment increasing by approximately $1.7 million. This was offset by decreases in the Brokerage and Specialty Lending segments. The company ended the year with $20.5 million in cash and cash equivalents, total assets of $88.4 million, and stockholders' equity of $67.0 million. A significant risk factor is the concentration in the Specialty Lending segment, with 76% of total gross notes receivable from a single borrower who is in default, placing $23.9 million of loans in nonaccrual status.

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