- Total revenues were $1,464,000 in Q3 2026 compared to $1,108,000 in Q3 2025
- Net income (loss) attributable to LGL Group common stockholders was ($45,000) in Q3 2026 compared to $772,000 in Q3 2025
- Backlog within the Electronic Instruments segment was $6.5 million as of September 30, 2026 compared to $625,000 as of December 31, 2025
- Cash and cash equivalents and marketable securities were $87.0 million as of September 30, 2026 compared to $41.6 million as of December 31, 2025
- Book value attributable to LGL Group common stockholders per share was $6.81 as of September 30, 2026 compared to $7.04 as of December 31, 2025
- Completed rights offering on July 24, 2026, issuing 6,062,714 shares with net proceeds of $41.5 million
Arlington, Virginia--(Newsfile Corp. - November 12, 2026) - The LGL Group, Inc. (NYSE American: LGL) ("LGL," "LGL Group," or the "Company") announced today its financial results for the third quarter ended September 30, 2026.
"Our third quarter results reflect continued demand in our Electronic Instruments segment. Revenues increased 32.1% from Q3 2025, driven by higher net sales and increased net investment income on larger invested balances," said Jason Lamb, LGL Group Chief Executive Officer. "While volume discounts and costs associated with scaling production weighed on gross margin, we remain focused on disciplined pricing and cost management. Our $6.5 million backlog as of September 30, 2026 provides visibility heading into the fourth quarter, and we continue to invest in the business to support mission-critical defense, aerospace, and communications applications."
Summary Financial Results
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| (in thousands, except per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||
| U.S. GAAP Financial Measures | |||||||||||||||||||
| Revenues | $ | 1,464 | $ | 1,108 | 32.1% | $ | 3,702 | $ | 2,950 | 25.5% | |||||||||
| Gross margin | 31.8% | 52.8% | (2,100) bps | 44.0% | 53.9% | (990) bps | |||||||||||||
| Net (loss) income attributable to LGL Group common stockholders | $ | (45 | ) | $ | 772 | n/m | $ | (1,020 | ) | $ | 715 | n/m | |||||||
| Net (loss) income attributable to LGL Group common stockholders per diluted share | $ | (0.00 | ) | $ | 0.14 | n/m | $ | (0.13 | ) | $ | 0.12 | n/m | |||||||
| (in thousands, except share and per share data) | September 30, 2026 | December 31, 2025 | % Change | |||||||
| U.S. GAAP Financial Measures | ||||||||||
| Book value attributable to LGL Group common stockholders | $ | 85,932 | $ | 43,488 | 97.6% | |||||
| Book value attributable to LGL Group common stockholders per share | $ | 6.81 | $ | 7.04 | (3.3%) | |||||
| Common stock outstanding | 12,613,149 | 6,174,950 | ||||||||
1
Summary Segment Financial Results
The following table summarizes income (loss) before income taxes of our reportable segments and Corporate:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| (in thousands) | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||
| Electronic Instruments | $ | (64 | ) | $ | 104 | n/m | $ | (19 | ) | $ | 191 | n/m | |||||||
| Merchant Investment | 122 | 129 | (5.4%) | 257 | 430 | (40.2%) | |||||||||||||
| Corporate | (33 | ) | (113 | ) | 70.8% | (1,445 | ) | (491 | ) | (194.3%) | |||||||||
| Income (loss) before income taxes | $ | 25 | $ | 120 | (79.2%) | $ | (1,207 | ) | $ | 130 | n/m | ||||||||
Consolidated Results
Third Quarter 2026
Total revenues were $1,464,000 in Q3 2026 compared to $1,108,000 in Q3 2025. Net sales were $720,000 compared to $661,000, reflecting higher product shipments. Net investment income was $744,000 compared to $442,000, reflecting higher balances invested in United States Treasury money market funds and accrued interest earned on the Skyline Note.
Gross margin was 31.8% in Q3 2026 compared to 52.8% in Q3 2025, a decrease of 2,100 basis points, primarily due to changes in product and pricing mix associated with volume-based pricing extended to a single customer in connection with increased order volume as well as higher inventory reserves associated with increased inventory levels.
Net (loss) income attributable to LGL Group common stockholders was ($45,000), or ($0.00) per diluted share, in Q3 2026 compared to $772,000, or $0.14 per diluted share, in Q3 2025. The change was primarily due to the reversal of a previously recorded uncertain tax position in 2025 that did not occur in 2026.
Fiscal Year to Date 2026
Total revenues were $3,702,000 for the first nine months of 2026 compared to $2,950,000 for the first nine months of 2025. Net sales were $2,152,000 compared to $1,650,000, reflecting higher product shipments. Net investment income was $1,545,000 compared to $1,287,000, reflecting higher balances invested in United States Treasury money market funds and accrued interest earned on the Skyline Note.
Gross margin was 44.0% for the first nine months of 2026 compared to 53.9% for the first nine months of 2025, a decrease of 990 basis points, primarily due to changes in product and pricing mix associated volume-based pricing extended to a single customer in connection with increased order volume as well as higher inventory reserves associated with increased inventory levels.
Net (loss) income attributable to LGL Group common stockholders was ($1,020,000), or ($0.13) per diluted share, compared with $715,000, or $0.12 per diluted share, in 2025. The change was primarily due to higher Engineering, selling and administrative expenses driven by an $874,000 increase in stock-based compensation due to grants made to key employees in January and May 2026, a $451,000 increase in professional service fees, a $140,000 increase in salaries, wages, and benefits, and a $178,000 increase in other corporate expenses partially offset by the increase in revenues discussed above.
Segment and Corporate Results
Third Quarter 2026
Electronic Instruments
Electronic Instruments income (loss) before income taxes was ($64,000) in Q3 2026 compared to $104,000 in Q3 2025. The change was primarily due to higher Manufacturing cost of sales driven by the growth in revenues and changes in product and pricing mix and higher Engineering, selling and administrative driven by higher engineering-related costs and professional services fees partially offset by higher net sales driven by higher product shipments.
Merchant Investment
Merchant Investment income (loss) before income taxes was $122,000 in Q3 2026 compared to $129,000 in Q3 2025. The change was primarily due to higher Net investment income driven by accrued interest earned on the Skyline Note partially offset by lower yields on investments in United States Treasury money market funds and higher Engineering, selling and administrative driven by higher corporate-level expenses allocated to the Merchant Investment segment.
Corporate
Corporate income (loss) before income taxes was ($33,000) in Q3 2026 compared to ($113,000) in Q3 2025. The change was primarily due to higher Net investment income driven by higher balances invested in United States Treasury money market funds partially offset by higher Engineering, selling and administrative related to higher stock-based compensation, higher salaries and wages and related benefits, and higher professional services fees.
Fiscal Year to Date 2026
Electronic Instruments
Electronic Instruments income (loss) before income taxes was ($19,000) for the first nine months of 2026 compared to $191,000 for the first nine months of 2025. The change was primarily due to higher Manufacturing cost of sales driven by the growth in revenues and changes in product and pricing mix and higher Engineering, selling and administrative expenses driven by higher engineering-related costs and professional services fees partially offset by higher net sales driven by higher product shipments.
Merchant Investment
Merchant Investment income (loss) before income taxes was $257,000 for the first nine months of 2026 compared to $430,000 for the first nine months of 2025. The change was primarily due to lower Net investment income driven by lower yields on investments in United States Treasury money market funds partially offset by accrued interest earned on the Skyline Note and higher Engineering, selling and administrative driven by higher corporate-level expenses allocated to the Merchant Investment segment and formation costs related to Skyline SPV.
Corporate
Corporate income (loss) before income taxes was ($1,445,000) for the first nine months of 2026 compared to ($491,000) for the first nine months of 2025. The change was primarily due to higher Engineering, selling and administrative driven by higher stock-based compensation, higher salaries and wages and related benefits, and higher professional services fees partially offset by higher Net investment income driven by higher balances invested in United States Treasury money market funds.
Backlog and Orders
As of September 30, 2026, Electronic Instruments backlog was $6,463,000 compared to $625,000 as of December 31, 2025 and $776,000 as of September 30, 2025. Backlog consists of amounts under signed contracts that have not yet been fulfilled. Backlog is adjusted quarterly to reflect cancellations, deferrals, and revisions to scope and cost, if any.
Liquidity and Capital
Cash and cash equivalents and marketable securities was $87.0 million as of September 30, 2026 compared to $41.6 million as of December 31, 2025. The change was primarily due to $41.5 million of net proceeds from the subscription rights offering completed in July 2026, $4.6 million of net proceeds from the warrant dividend program completed in January 2026, and $1.7 million in capital contributions from non-controlling interests into Skyline Instruments May 2026, a Series of CGF2021 LLC partially offset by the $2.5 million investment in the convertible promissory note issued by Skyline Instruments Corporation.
Our working capital metrics were as follows:
| (in thousands) | September 30, 2026 | December 31, 2025 | |||||
| Current assets | $ | 88,741 | $ | 46,324 | |||
| Less: Current liabilities | 1,955 | 915 | |||||
| Working capital | $ | 86,786 | $ | 45,409 |
Book value attributable to LGL Group common stockholders was $85.9 million, or $6.81 per share, as of September 30, 2026 compared to $43.5 million, or $7.04 per share, as of December 31, 2025. The change was primarily due to the Net loss attributable to LGL Group common stockholders as well as the warrant dividend and rights offering proceeds, which were issued at a discount to book value.
Warrant Dividend Program
In January 2026, LGL Group completed its warrant dividend program, generating approximately $5.0 million in gross proceeds. The warrants were distributed on November 16, 2020 and expired on December 31, 2025. The Company issued 1,051,664 shares of common stock, par value $0.01 (the "Common Stock"), representing 100% of the shares issuable.
Rights Offering
In July 2026, LGL Group completed a transferable subscription rights offering (the "Rights Offering") generating $41.5 million in net proceeds. The Rights Offering commenced on June 8, 2026 and expired at 5:00 p.m., Eastern time, on Wednesday, July 15, 2026. The Company issued 6,062,714 shares of Common Stock, representing approximately 92.6% of the 6,550,435 shares offered in the Rights Offering.
Marc Gabelli, Executive Chairman of LGL Group, purchased 3,331,675 shares, increasing his total share ownership to 4,387,727 shares.
About The LGL Group, Inc.
The LGL Group, Inc. (NYSE American: LGL) is a publicly traded holding company that acquires, owns and builds businesses and makes strategic investments, with an emphasis on critical technologies. LGL Group conducts its business through two complementary activities: Platform Operations and Merchant Investment.
Through Platform Operations, LGL Group develops operating companies through organic growth, operational improvement and complementary acquisitions. Platform Operations is currently anchored by Precise Time and Frequency, LLC ("PTF"), a provider of precision time and frequency instruments, systems and related solutions based in Wakefield, Massachusetts.
Through Merchant Investment, LGL Group selectively deploys capital in minority investments, co-investments and strategic partnerships. These activities broaden LGL Group's opportunity set, develop strategic relationships and can support future platform development.
Across both activities, LGL Group seeks to compound shareholder value through disciplined capital allocation, active ownership, operational excellence and prudent financial management.
Incorporated in 1928, LGL Group has been publicly traded since 1946. Additional information is available at www.lglgroup.com.
Cautionary Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the Company's financial condition, results of operations, business strategy and financial needs. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words "believe," "expect," "anticipate," "should," "plan," "will," "may," "could," "intend," "estimate," "predict," "potential," "continue" or the negative of these terms and similar expressions, as they relate to LGL Group, are intended to identify forward-looking statements.
These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by LGL Group with the Securities and Exchange Commission ("SEC"), including those risks set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on March 30, 2026. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.
These forward-looking statements speak only as of the date of this press release. LGL Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, LGL Group claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
###
Contact:
The LGL Group, Inc.
(571) 543-1946
ir@lglgroup.com
The LGL Group, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| (in thousands, except share and per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenues: | |||||||||||||
| Net sales | $ | 720 | $ | 661 | $ | 2,152 | $ | 1,650 | |||||
| Net investment income | 744 | 442 | 1,545 | 1,287 | |||||||||
| Net gains | - | 5 | 5 | 13 | |||||||||
| Total revenues | 1,464 | 1,108 | 3,702 | 2,950 | |||||||||
| Expenses: | |||||||||||||
| Manufacturing cost of sales | 491 | 312 | 1,206 | 760 | |||||||||
| Engineering, selling and administrative | 948 | 676 | 3,703 | 2,060 | |||||||||
| Total expenses | 1,439 | 988 | 4,909 | 2,820 | |||||||||
| Income (loss) before income taxes | 25 | 120 | (1,207 | ) | 130 | ||||||||
| Income tax expense (benefit) | 25 | (674 | ) | (250 | ) | (632 | ) | ||||||
| Net income (loss) | - | 794 | (957 | ) | 762 | ||||||||
| Less: Net income attributable to non-controlling interests | 45 | 22 | 63 | 47 | |||||||||
| Net (loss) income attributable to LGL Group common stockholders | $ | (45 | ) | $ | 772 | $ | (1,020 | ) | $ | 715 | |||
| (Loss) income per common share attributable to LGL Group common stockholders: | |||||||||||||
| Basic | $ | (0.00 | ) | $ | 0.14 | $ | (0.13 | ) | $ | 0.13 | |||
| Diluted | $ | (0.00 | ) | $ | 0.14 | $ | (0.13 | ) | $ | 0.12 | |||
| Weighted average shares outstanding: | |||||||||||||
| Basic | 10,960,348 | 5,371,308 | 7,958,795 | 5,415,721 | |||||||||
| Diluted | 10,960,348 | 5,708,254 | 7,958,795 | 5,738,317 | |||||||||
The LGL Group, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands) | September 30, 2026 | December 31, 2025 | |||||
| Assets: | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 86,930 | $ | 41,514 | |||
| Restricted cash and cash equivalents | 20 | - | |||||
| Marketable securities | 41 | 36 | |||||
| Accounts receivable, net of allowance | 558 | 572 | |||||
| Inventories, net | 992 | 297 | |||||
| Prepaid expenses and other current assets | 200 | 255 | |||||
| Warrant proceeds receivable | - | 3,650 | |||||
| Total current assets | 88,741 | 46,324 | |||||
| Convertible promissory note, at fair value | 2,464 | - | |||||
| Right-of-use lease assets | 231 | 247 | |||||
| Intangible assets, net | 10 | 15 | |||||
| Deferred income tax assets | 458 | 190 | |||||
| Other assets | 68 | - | |||||
| Total assets | $ | 91,972 | $ | 46,776 | |||
| Liabilities: | |||||||
| Total current liabilities | 1,955 | 915 | |||||
| Non-current liabilities | 290 | 296 | |||||
| Total liabilities | 2,245 | 1,211 | |||||
| Stockholders' equity: | |||||||
| Total LGL Group stockholders' equity | 85,932 | 43,488 | |||||
| Non-controlling interests | 3,795 | 2,077 | |||||
| Total stockholders' equity | 89,727 | 45,565 | |||||
| Total liabilities and stockholders' equity | $ | 91,972 | $ | 46,776 |
The LGL Group, Inc.
Segment Financial Information
(Unaudited)
| Three Months Ended September 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||
| Revenues: | |||||||||||||
| Electronic Instruments | $ | 720 | $ | 661 | $ | 59 | 8.9% | ||||||
| Merchant Investment | 291 | 274 | 17 | 6.2% | |||||||||
| Corporate | 453 | 173 | 280 | 161.8% | |||||||||
| Total revenues | 1,464 | 1,108 | 356 | 32.1% | |||||||||
| Expenses: | |||||||||||||
| Electronic Instruments | 784 | 557 | 227 | 40.8% | |||||||||
| Merchant Investment | 169 | 145 | 24 | 16.6% | |||||||||
| Corporate | 486 | 286 | 200 | 69.9% | |||||||||
| Total expenses | 1,439 | 988 | 451 | 45.6% | |||||||||
| Income (loss) before income taxes: | |||||||||||||
| Electronic Instruments | (64 | ) | 104 | (168 | ) | n/m | |||||||
| Merchant Investment | 122 | 129 | (7 | ) | (5.4%) | ||||||||
| Corporate | (33 | ) | (113 | ) | 80 | 70.8% | |||||||
| Income before income taxes | 25 | 120 | (95 | ) | (79.2%) | ||||||||
| Income tax expense (benefit) | 25 | (674 | ) | 699 | n/m | ||||||||
| Net income | - | 794 | (794 | ) | n/m | ||||||||
| Less: Net income attributable to non-controlling interests | 45 | 22 | 23 | 104.5% | |||||||||
| Net (loss) income attributable to LGL Group common stockholders | $ | (45 | ) | $ | 772 | $ | (817 | ) | n/m | ||||
The LGL Group, Inc.
Segment Financial Information
(Unaudited)
| Nine Months Ended September 30, | |||||||||||||
| (in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||
| Revenues: | |||||||||||||
| Electronic Instruments | $ | 2,152 | $ | 1,650 | $ | 502 | 30.4% | ||||||
| Merchant Investment | 753 | 783 | (30 | ) | (3.8%) | ||||||||
| Corporate | 797 | 517 | 280 | 54.2% | |||||||||
| Total revenues | 3,702 | 2,950 | 752 | 25.5% | |||||||||
| Expenses: | |||||||||||||
| Electronic Instruments | 2,171 | 1,459 | 712 | 48.8% | |||||||||
| Merchant Investment | 496 | 353 | 143 | 40.5% | |||||||||
| Corporate | 2,242 | 1,008 | 1,234 | 122.4% | |||||||||
| Total expenses | 4,909 | 2,820 | 2,089 | 74.1% | |||||||||
| Income (loss) before income taxes: | |||||||||||||
| Electronic Instruments | (19 | ) | 191 | (210 | ) | n/m | |||||||
| Merchant Investment | 257 | 430 | (173 | ) | (40.2%) | ||||||||
| Corporate | (1,445 | ) | (491 | ) | (954 | ) | (194.3%) | ||||||
| (Loss) income before income taxes | (1,207 | ) | 130 | (1,337 | ) | n/m | |||||||
| Income tax benefit | (250 | ) | (632 | ) | 382 | 60.4% | |||||||
| Net (loss) income | (957 | ) | 762 | (1,719 | ) | n/m | |||||||
| Less: Net income attributable to non-controlling interests | 63 | 47 | 16 | 34.0% | |||||||||
| Net (loss) income attributable to LGL Group common stockholders | $ | (1,020 | ) | $ | 715 | $ | (1,735 | ) | n/m | ||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323827
Source: The LGL Group Inc.