Heritage Global Q1 adjusted EBITDA misses estimates on DebtX weakness

Heritage Global

07/05/2026 22:05

Overview

Asset services firm's Q1 revenue and net income declined yr/yr

Q1 adjusted EBITDA missed analyst expectations

Company says DebtX acquisition underperformed in Q1, driving yr/yr decline

Outlook

Company expects DebtX to stabilize in the second quarter

Heritage Global says balance sheet allows for further investment and potential acquisitions

Result Drivers

DEBTX ACQUISITION IMPACT - Company said underperformance at newly acquired DebtX was the primary driver of yr/yr decline in consolidated Q1 operating income

INDUSTRIAL & LEGACY FINANCIAL ASSETS - Co said Industrial Assets and legacy Financial Assets divisions generated positive sequential and yr/yr performance

Company press release: ID:nBw89Hyfpa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.02
Q1 Net Income
$717,000
Q1 Adjusted EBITDA
Miss
$1.39 mln
$1.48 mln (3 Analysts)
Q1 Basic EPS
$0.02
Q1 Operating Income
$1.008 mln
Q1 Pretax Profit
$988,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the investment management & fund operators peer group is "buy"

Wall Street's median 12-month price target for Heritage Global Inc is $3.35, about 150% above its May 6 closing price of $1.34

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)