The LGL Group (LGL) investor relations material

Executive summary

• Achieved net income of $688K for 2025, up 59.3% year-over-year, driven by higher net sales and investment income, partially offset by increased expenses.

• Net sales rose 10.2% to $2.45M, while net investment income declined 18.1% to $1.70M due to lower yields on Treasury money market funds.

• Maintained strong liquidity with $41.5M in cash and equivalents at year-end 2025.

• Completed the spin-off of MtronPTI, focusing operations on Electronic Instruments and Merchant Investment segments.

Financial highlights

• Total revenues decreased 2.9% to $4.17M, reflecting lower investment income despite higher product sales.

• Gross margin slightly decreased to 52.9% from 53.0% year-over-year.

• Operating expenses increased 9.1% to $3.92M, mainly due to higher salaries, benefits, and professional fees.

• Income tax benefit of $506K in 2025, primarily from reversal of a previously recorded uncertain tax position.

• Diluted EPS was $0.11, up from $0.08 in 2024.

Outlook and guidance

• Management expects continued focus on growth through acquisitions and organic expansion in core markets.

• Sufficient liquidity is anticipated to meet working capital and capital expenditure needs for the next 12 months and beyond.

• No cash dividends are planned as capital is prioritized for growth and strategic investments.