Heritage Global Q4 adjusted core profit misses estimates

Heritage Global

12/03/2026 20:15

Overview

US asset services firm's Q4 revenue grew 10% yr/yr to $11.9 mln

Q4 adjusted EBITDA missed analyst expectations

Company completed Debt Exchange acquisition after year-end to expand financial assets division

Outlook

Company expects DebtX acquisition to strengthen financial assets division and expand in secondary loan market

Result Drivers

HIGH TRANSACTION VOLUME - Co said it conducted a high volume of transactions in both industrial and financial asset segments despite broader market caution

M&A EXPENSES - Q4 operating income was reduced by about $0.4 mln in due diligence expenses related to M&A efforts

NON-CASH TAX ADJUSTMENT - Q4 net income was impacted by a non-cash tax allowance adjustment of $0.1 mln related to expiring net operating loss carryforwards

Company press release: ID:nBw7SqmVla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$0.01
Q4 Net Income
$301,000
Q4 Adjusted EBITDA
Miss
$1.08 mln
$2.01 mln (3 Analysts)
Q4 Basic EPS
$0.01
Q4 Operating Income
$775,000


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 $3.20, about 156% above its March 11 closing price of $1.25

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.)