The LGL Group, Inc. Reports Third Quarter 2026 Results

(FSE:51L) The LGL Group, Inc. announced its financial results for the third quarter ended September 30, 2026. Revenues for Q3 2026 were $1,464,000, a 32.1% increase from $1,108,000 in Q3 2025, driven by higher net sales and increased net investment income on larger invested balances. Net sales for the quarter were $720,000 compared to $661,000, while net investment income was $744,000 compared to $442,000. Gross margin for Q3 2026 was 31.8%, down from 52.8% in Q3 2025, primarily due to changes in product and pricing mix and higher inventory reserves. Net loss attributable to LGL Group common stockholders was ($45,000), or ($0.00) per diluted share, compared to net income of $772,000, or $0.14 per diluted share, in Q3 2025. For the first nine months of 2026, total revenues were $3,702,000, up from $2,950,000 in the same period of 2025. Net sales for the nine months were $2,152,000 versus $1,650,000, and net investment income was $1,545,000 versus $1,287,000. Gross margin for the nine months was 44.0%, down from 53.9% in 2025. Net loss attributable to LGL Group common stockholders for the nine months was ($1,020,000), or ($0.13) per diluted share, compared to net income of $715,000, or $0.12 per diluted share, in 2025. The decrease in net income was primarily due to higher engineering, selling, and administrative expenses, including 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. As of September 30, 2026, book value attributable to LGL Group common stockholders was $85,932,000, or $6.81 per share, compared to $43,488,000, or $7.04 per share, as of December 31, 2025. Common stock outstanding increased to 12,613,149 shares from 6,174,950. Electronic Instruments backlog was $6,463,000 as of September 30, 2026, compared to $625,000 as of December 31, 2025 and $776,000 as of September 30, 2025. Cash and cash equivalents and marketable securities totaled $87.0 million as of September 30, 2026, up from $41.6 million as of December 31, 2025, primarily due to $41.5 million in net proceeds from a subscription rights offering completed in July 2026, $4.6 million from a warrant dividend program completed in January 2026, and $1.7 million in capital contributions from non-controlling interests, partially offset by a $2.5 million investment in a convertible promissory note issued by Skyline Instruments Corporation. The company completed its warrant dividend program in January 2026, generating approximately $5.0 million in gross proceeds and issuing 1,051,664 shares of common stock. In July 2026, LGL Group completed a transferable subscription rights offering, generating $41.5 million in net proceeds and issuing 6,062,714 shares of common stock. Marc Gabelli, Executive Chairman of LGL Group, purchased 3,331,675 shares in the rights offering, increasing his total share ownership to 4,387,727 shares. Working capital as of September 30, 2026 was $86,786,000, up from $45,409,000 as of December 31, 2025.