The LGL Group, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues were $1,464,000 in Q3 2026, a 32.1% increase from $1,108,000 in Q3 2025.
• Net sales were $720,000 in Q3 2026 compared to $661,000 in Q3 2025.
• Net investment income was $744,000 in Q3 2026 compared to $442,000 in Q3 2025.
• Gross margin was 31.8% in Q3 2026, a decrease of 2,100 basis points from 52.8% in Q3 2025.
• Net loss attributable to LGL Group common stockholders was ($45,000) in Q3 2026, compared to net income of $772,000 in Q3 2025.
• Net loss per diluted share was ($0.00) in Q3 2026, compared to $0.14 in Q3 2025.
• For the nine months ended September 30, 2026, total revenues were $3,702,000, a 25.5% increase from $2,950,000 in the prior year period.
• Gross margin for the nine months ended September 30, 2026, was 44.0%, a decrease of 990 basis points from 53.9% in the prior year period.
• Net loss attributable to LGL Group common stockholders for the nine months ended September 30, 2026, was ($1,020,000), compared to net income of $715,000 in the prior year period.
• Net loss per diluted share for the nine months ended September 30, 2026, was ($0.13), compared to $0.12 in the prior year period.
• 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.
• Working capital was $86,786,000 as of September 30, 2026, compared to $45,409,000 as of December 31, 2025.
• Book value attributable to common stockholders was $85.9 million ($6.81 per share) as of September 30, 2026, compared to $43.5 million ($7.04 per share) as of December 31, 2025.
• Common stock outstanding was 12,613,149 as of September 30, 2026, compared to 6,174,950 as of December 31, 2025.

Business Segments and Product Lines:

• The Electronic Instruments segment reported a loss before income taxes of ($64,000) in Q3 2026, compared to income of $104,000 in Q3 2025.
• The Merchant Investment segment reported income before income taxes of $122,000 in Q3 2026, a 5.4% decrease from $129,000 in Q3 2025.
• The Corporate segment reported a loss before income taxes of ($33,000) in Q3 2026, compared to a loss of ($113,000) in Q3 2025.
• Electronic Instruments backlog was $6.5 million as of September 30, 2026, compared to $625,000 as of December 31, 2025.
• For the nine months ended September 30, 2026, Electronic Instruments revenue was $2,152,000, a 30.4% increase from $1,650,000 in the prior year period.
• For the nine months ended September 30, 2026, Merchant Investment revenue was $753,000, a 3.8% decrease from $783,000 in the prior year period.

Other Key Points:

• Completed a rights offering on July 24, 2026, issuing 6,062,714 shares with net proceeds of $41.5 million.
• Marc Gabelli, Executive Chairman, purchased 3,331,675 shares in the rights offering, increasing his total ownership to 4,387,727 shares.
• Completed a warrant dividend program in January 2026, issuing 1,051,664 shares of common stock with approximately $5.0 million in gross proceeds.
• Received $4.6 million in net proceeds from the warrant dividend program and $1.7 million in capital contributions from non-controlling interests into Skyline Instruments May 2026, a Series of CGF2021 LLC.
• Made a $2.5 million investment in a convertible promissory note issued by Skyline Instruments Corporation.
• Higher Engineering, selling, and administrative expenses for the nine months ended September 30, 2026, were driven by an $874,000 increase in stock-based compensation, 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.
• Gross margin compression in Q3 2026 and year-to-date 2026 was primarily due to volume-based pricing extended to a single customer and higher inventory reserves associated with increased inventory levels.
• The net loss for the nine months ended September 30, 2026, was also impacted by the reversal of a previously recorded uncertain tax position in 2025 that did not occur in 2026.