HGBLMEDIUM SIGNALFINANCIAL10-K

HGBL experienced a notable decline in profitability with operating income falling significantly alongside reduced revenue and higher liabilities.

The company's core operational performance weakened materially, with operating margins compressing as revenue declined while the liability base expanded by one-third. The combination of reduced profitability and increased financial obligations suggests potential operational headwinds or strategic investments that have yet to generate returns.

Comparing 2026-03-12 vs 2025-03-13View on EDGAR →
FINANCIAL ANALYSIS

HGBL's financial performance deteriorated across key metrics, with revenue declining 15% to $20.1M while operating income fell more sharply to $5.7M, indicating margin compression. The company's balance sheet showed mixed signals as total liabilities increased substantially to $21.5M while working capital components like accounts receivable and inventory grew modestly. Despite lower profitability, the company maintained its share repurchase program at $2.6M, though operating cash flow declined to $6.1M, reflecting the underlying operational challenges.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-47.9%
$349K→$182K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Operating Income
P&L
-37%
$9.1M→$5.7M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Total Liabilities
Balance Sheet
+33.2%
$16.1M→$21.5M

Liabilities grew 33.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Net Income
P&L
-30.8%
$5.2M→$3.6M

Net income declined 30.8% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
-20.8%
$7.7M→$6.1M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Share Buybacks
Cash Flow
+19.5%
$2.2M→$2.6M

Share repurchases increased 19.5% — management returning capital, signals confidence in intrinsic value.

Accounts Receivable
Balance Sheet
+19.1%
$1.6M→$1.9M

Receivables grew 19.1% — monitor days sales outstanding for collection efficiency.

Revenue
P&L
-15.4%
$23.8M→$20.1M

Revenue softened 15.4% — monitor whether this is cyclical or structural.

Inventory
Balance Sheet
+10.9%
$5.3M→$5.9M

Inventory built 10.9% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2026-03-12
PRIOR — 2025-03-13
ADDED
As of March 1, 2026, there were 34,741,553 shares of Common Stock, $0.01 par value, outstanding.
Our corporate headquarters are located at 6130 Nancy Ridge Drive, San Diego, CA 92121.
3 The organization chart below outlines our basic domestic corporate structure as of December 31, 2025.
Employees As of December 31, 2025, we had 84 total and full-time employees, broken down by segment as follows: 35 are employed by HGP, 18 by NLEX, 21 by ALT, 4 by HGC and 6 by HG.
We own a warehouse and office space located in East Lyme, CT, which is related to our ALT operations, and a warehouse and office space located in San Diego, CA which is used as the Company s corporate headquarters and as warehouse and office space for the operations of HGP.
+7 more — sign up free →
REMOVED
As of March 1, 2025, there were 35,495,057 shares of Common Stock, $0.01 par value, outstanding.
Our corporate headquarters are located at 12625 High Bluff Drive, Suite 305, San Diego, CA 92130.
The organization chart below outlines our basic domestic corporate structure as of December 31, 2024.
Employees As of December 31, 2024, we had 86 total and full-time employees, broken down by segment as follows: 34 are employed by HGP, 19 by NLEX, 22 by ALT, 5 by HGC and 6 by HG.
Further, consumer lending and resulting charge-offs, specifically via credit cards, are expected to continue their upward trend to meet, and possibly exceed, pre-pandemic levels, which we believe will drive an increased supply of charged off and nonperforming assets.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
CRMHIGHSalesforce significantly increased debt by 71% to $14.4B while simultaneously ac...
2026-03-02
UNHHIGHUNH's operating income plummeted 41% despite 12% revenue growth, indicating seve...
2026-03-02
PFEHIGHPfizer achieved a dramatic 87.3% reduction in total debt from $31.4B to $4.0B, r...
2026-02-26
GILDHIGHGILD dramatically increased R&D spending by 81.5% to $9.1B while introducing new...
2026-02-24
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →