Heritage Global Q2 adjusted EBITDA misses as specialty lending exit weighs

Overview

• US asset services firm's Q2 revenue declined yr/yr, while results were hit by specialty lending exit charges

• Q2 adjusted EBITDA missed analyst expectations

• Company completed Boston Note acquisition after quarter end to expand financial assets platform

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• SPECIALTY LENDING EXIT - Co said Q2 results were shaped by decision to substantially wind down Heritage Global Capital, leading to significant noncash charges

• NONCASH CHARGES - Co recorded $21.7 mln in noncash charges related to write-down of non-performing loans and impairment of equity method investments

• LOWER REVENUE - Revenue fell to $12.3 mln from $14.3 mln yr/yr

Company press release: ID:nBw7kbpLLa

Key Details

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(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.)