Filing Flows › Heritage Global (HGBL) › Q1 2025
Heritage Global (HGBL) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Heritage Global (HGBL) reported revenue of $13.5M for the first quarter 2025 (Q1 2025), +11% from a year earlier and +25% from the quarter before. Operating margin was 10.4%, net earnings $1.1M (7.9% of revenue).
Heritage Global, Q1 2025: revenue $13.5M (+11% year over year), operating margin 10.4%, net earnings $1.1M, operating cash flow $2.6M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $13.5M | +25% | +11% |
| Operating profit | $1.4M | -6% | -45% |
| Net earnings | $1.1M | — | -41% |
| Operating cash flow | $2.6M | — | +56% |
What changed
Revenue was $13.5M in Q1 2025, up 11% year over year and up 25% from the previous quarter. Service was the largest line at 57% of revenue. Product added $2.6M year over year (up 83%), 203% of the total change. Service declined 15%.
Operating profit was $1.4M, a 10.4% margin (down 10.6 points year over year). Operating profit fell $1.2M even though revenue rose $1.3M versus a year earlier, so costs grew faster than sales. Total costs grew 26% against revenue growth of 11%. The fastest-growing cost line was Other operating costs (+70%). Net earnings were $1.1M, down 41% year over year. The effective tax rate was 27.1%.
Operating cash flow was $2.6M (up 56% year over year), 246% of net earnings. Non-cash charges added back $118K of depreciation and amortization and $280K of share-based compensation. Working capital and other items added $1.2M. Capital expenditures of $7.4M exceeded it, leaving free cash flow of −$4.8M.
Questions
What was Heritage Global's revenue in the first quarter 2025?
Heritage Global (HGBL) reported revenue of $13.5M for the first quarter 2025 (Q1 2025), +11% from a year earlier and +25% from the quarter before.
Was Heritage Global profitable in the first quarter 2025?
Operating profit was $1.4M (10.4% of revenue) and net earnings $1.1M.
Source: Heritage Global 10-Q on SEC EDGAR.