LGL GROUP INC
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
LGL$6.63+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001437749-25-026961
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001437749-25-035205
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 86 current paragraphs.
59 unchanged; 11 reworded; 16 added; 14 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 25 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Total revenues decreased $71, or 6.0%, from $1,179 for the three months ended September 30, 2024 to $1,108 for the three months ended September 30, 2025. The decrease was primarily driven by a $89, or 16.8%, decrease in Net investment income from $531 for the three months ended September 30, 2024 to $442 for the three months ended September 30, 2025 due to lower yields on investments in United States Treasury money market funds.
Current report
Total expenses decreased $53, or 5.1%, from $1,041 for the three months ended September 30, 2024 to $988 for the three months ended September 30, 2025. The decrease was primarily driven by a $56, or 15.2%, decrease in Manufacturing cost of sales from $368 for the three months ended September 30, 2024 to $312 for the three months ended September 30, 2025 due to sales of lower-cost products.
Current report
Income tax expense decreased $722, or 1,504.2%, from $48 for the three months ended September 30, 2024 to an income tax benefit of $674 for the three months ended September 30, 2025 primarily due to the reversal of a previously recorded uncertain tax position as the related tax matter is no longer subject to examination by the relevant taxing authority.
Current report
Net income attributable to non-controlling interests increased $4, or 22.2%, from $18 for the three months ended September 30, 2024 to $22 for the three months ended September 30, 2025 primarily due to higher Net income from LGL Systems in 2025 than in 2024.
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Current report
Total revenues decreased $185, or 5.9%, from $3,135 for the nine months ended September 30, 2024 to $2,950 for the nine months ended September 30, 2025. The decrease was primarily driven by a $281, or 17.9%, decrease in Net investment income from $1,568 for the nine months ended September 30, 2024 to $1,287 for the nine months ended September 30, 2025 due to lower yields on investments in United States Treasury money market funds.
Current report
Income tax expense decreased $792, or 495.0%, from $160 for the nine months ended September 30, 2024 to an income tax benefit of $632 for the nine months ended September 30, 2025 primarily due to the reversal of a previously recorded uncertain tax position as the related tax matter is no longer subject to examination by the relevant taxing authority.
Current report
Net income attributable to non-controlling interests decreased $17, or 26.6%, from $64 for the nine months ended September 30, 2024 to $47 for the nine months ended September 30, 2025 primarily due to lower Net income from LGL Systems in 2025 than in 2024.
Current report
Income from operations before income taxes increased $60, or 136.4%, from $44 for the three months ended September 30, 2024 to $104 for the three months ended September 30, 2025. The increase was primarily due to a $56, or 15.2%, decrease in Manufacturing cost of sales driven by sales of higher margin products.
Current report
Income from operations before income taxes increased $71, or 59.2%, from $120 for the three months ended September 30, 2024 to $191 for the three months ended September 30, 2025. The increase was primarily due to
Current report
Income from operations before income taxes decreased $99, or 43.4%, from $228 for the three months ended September 30, 2024 to $129 for the three months ended September 30, 2025. The decrease was primarily due to:
Current report
Income from operations before income taxes decreased $275, or 39.0%, from $705 for the nine months ended September 30, 2024 to $430 for the nine months ended September 30, 2025. The decrease was primarily due to partially offset by a $136, or 62.7%, increase in Engineering, selling, and administrative driven by higher corporate-level expenses allocated to the Merchant Investment segment.
Current report
Loss from operations before income taxes decreased $21, or 15.7%, from $134 for the three months ended September 30, 2024 to $113 for the three months ended September 30, 2025. The decrease was primarily due to a $45, or 21.1%, decrease in Net investment income reflecting lower yields on investments in United States Treasury money market funds partially offset by a $59, or 17.1%, decrease in Engineering, selling and administrative related to higher allocations of corporate-level expenses to the Electronic Instruments and Merchant Investment segments.
Current report
Loss from operations before income taxes increased $120, or 32.3%, from $371 for the nine months ended September 30, 2024 to $491 for the nine months ended September 30, 2025. The increase was primarily due to a $142, or 22.0%, decrease in Net investment income reflecting lower yields on investments in United States Treasury money market funds.
Current report
Financing Activities
Current report
Cash used in financing activities was $439 for the nine months ended September 30, 2025 compared to cash provided by financing activities of $0 for the nine months ended September 30, 2024, a decrease of $439, primarily due to net proceeds from the exercise of warrants and the repurchase of LGL Group common stock.
Removed paragraphs (14)
Previous report
Total revenues decreased $144, or 13.5%, from $1,068 for the three months ended June 30, 2024 to $924 for the three months ended June 30, 2025. The following items contributed to the overall decrease:
Previous report
Income tax expense (benefit) decreased $62, or 81.6%, from $76 for the three months ended June 30, 2024 to $14 for the three months ended June 30, 2025 primarily due to the decrease in Income from operations.
Previous report
Net income attributable to non-controlling interests decreased $18 from $24 for the three months ended June 30, 2024 to $6 for the three months ended June 30, 2025 primarily due to lower yields on United States Treasury money market funds and higher professional services fees within the Merchant Investment segment.
Previous report
Six months ended June 30, 2025 compared to six months ended June 30, 2024
Previous report
Total revenues decreased $114, or 5.8%, from $1,956 for the six months ended June 30, 2024 to $1,842 for the six months ended June 30, 2025. The decrease was primarily due to a $192, or 18.5%, decrease in Net investment income from $1,037 for the six months ended June 30, 2024 to $845 for the six months ended June 30, 2025 driven by lower yields on investments in United States Treasury money market funds.
Previous report
Total expenses increased $192, or 11.7%, from $1,640 for the six months ended June 30, 2024 to $1,832 for the six months ended June 30, 2025. The following items contributed to the overall increase:
Previous report
Income tax expense decreased $70, or 62.5%, from $112 for the six months ended June 30, 2024 to $42 for the six months ended June 30, 2025 primarily due to the decrease in Income from operations.
Previous report
Net income attributable to non-controlling interests decreased $21 from $46 for the six months ended June 30, 2024 to $25 for the six months ended June 30, 2025 primarily due to lower yields on United States Treasury money market funds and higher professional services fees within the Merchant Investment segment.
Previous report
Income from operations before income taxes decreased $6, or 8.1%, from $74 for the three months ended June 30, 2024 to $68 for the three months ended June 30, 2025. The decrease was primarily due to a $40, or 7.5%, decrease in Net sales reflecting lower backlog as of Q1 2025 partially offset by a $31, or 12.8%, decrease in Engineering, selling and administrative driven by lower commissions and sales and marketing expenses.
Previous report
Income from operations before income taxes increased $11, or 14.5%, from $76 for the six months ended June 30, 2024 to $87 for the six months ended June 30, 2025. The increase was primarily due to a $66, or 7.2%, increase in Net sales driven by higher product shipments.
Previous report
Income from operations before income taxes decreased $89 from $237 for the three months ended June 30, 2024 to $148 for the three months ended June 30, 2025. The following items contributed to the overall decrease:
Previous report
Income from operations before income taxes decreased $176 from $477 for the six months ended June 30, 2024 to $301 for the six months ended June 30, 2025. The following items contributed to the overall decrease:
Previous report
Loss from operations before income taxes increased $173, or 233.8%, from $74 for the three months ended June 30, 2024 to $247 for the three months ended June 30, 2025. The following items contributed to the overall increase:
Previous report
Loss from operations before income taxes increased $141, or 59.5%, from ($237) for the six months ended June 30, 2024 to ($378) for the six months ended June 30, 2025. The following items contributed to the overall increase:
Reworded paragraphs (11)
Previous wording
As of June 30, 2025, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of approximately $41.8 million, of which $25.2 million was held within the Merchant Investment business. The Company accounts for its Marketable securities under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 321,Investments - Equity Securities ("ASC 321") and as such, its Marketable securities are reported at fair value on its Consolidated Balance Sheets.
Current wording
As of September 30, 2025, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of approximately $41.0 million, of which $25.4 million was held within the Merchant Investment business. The Company accounts for its Marketable securities under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 321,Investments - Equity Securities ("ASC 321") and as such, its Marketable securities are reported at fair value on its Condensed Consolidated Balance Sheets.
Previous wording
The U.S. Federal Reserve decreased the federal funds rate a total of four times throughout 2024, resulting in a range from 4.25% to 4.50% as of December 31, 2024. Through the date of filing of this Quarterly Report on Form 10-Q, the Federal Reserve has maintained the federal funds rate in the same range as of December 31, 2024. It is expected that the U.S. Federal Reserve will continue to decrease the federal funds rate during 2025; however, the timing of any such decrease remains unclear. If interest rates continue to decline, the returns generated by our investments in U.S. Treasuries could be adversely impacted.
Current wording
The U.S. Federal Reserve decreased the federal funds rate a total of four times throughout 2024, resulting in a range from 4.25% to 4.50% as of December 31, 2024. Through the date of filing of this Quarterly Report on Form 10-Q, the U.S. Federal Reserve decreased the federal funds rate twice totaling 50 basis points to a range of 3.75% to 4.00%. It is expected that the U.S. Federal Reserve will maintain the federal funds rate at this range for the remainder of 2025. If interest rates continue to decline, the returns generated by our investments in U.S. Treasuries could be adversely impacted.
Previous wording
Three months ended June 30, 2025compared to three months ended June 30, 2024
Current wording
Three months ended September 30, 2025 compared to three months ended September 30, 2024
Previous wording
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) decreased 270 basis points from 59.7% for the three months ended June 30, 2024 to 57.0% for the three months ended June 30, 2025 reflecting sales of lower margin products.
Current wording
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) increased 940 basis points from 43.4% for the three months ended September 30, 2024 to 52.8% for the three months ended September 30, 2025 reflecting sales of higher margin products.
Previous wording
The decrease was partially offset by a $66, or 7.2%, increase in Net sales from $923 for the six months ended June 30, 2024 to $989 for the six months ended June 30, 2025 primarily due to higher product shipments.
Current wording
The decrease was partially offset by a $77, or 4.9%, increase in Net sales from $1,573 for the nine months ended September 30, 2024 to $1,650 for the nine months ended September 30, 2025 primarily due to higher product shipments.
Previous wording
Total expenses increased $124, or 14.9%, from $831 for the three months ended June 30, 2024 to $955 for the three months ended June 30, 2025. The increase was primarily due to a $127, or 20.6%, increase in Engineering, selling and administrative from $617 for the three months ended June 30, 2024 to $744 for the three months ended June 30, 2025 driven higher professional services fees and employee-related costs.
Current wording
Total expenses increased $139, or 5.2%, from $2,681 for the nine months ended September 30, 2024 to $2,820 for the nine months ended September 30, 2025. The increase: was primarily driven by a $165, or 8.7%, increase in Engineering, selling and administrative from $1,895 for the nine months ended September 30, 2024 to $2,060 for the nine months ended September 30, 2025 due to higher professional services fees and employee-related costs.
Previous wording
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) was flat at 54.7% for the six months ended June 30, 2025 and 2024 reflecting the consistent nature of the fixed costs.
Current wording
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) increased 390 basis points from 50.0% for the nine months ended September 30, 2024 to 53.9% for the nine months ended September 30, 2025 reflecting sales of lower margin products.
Previous wording
As of June 30, 2025, our order backlog was $527, an increase of $191, or 56.8%, from $336 as of December 31, 2024 and a decrease of $210, or 28.5%, from $737 as of June 30, 2024. The backlog of unfilled orders includes amounts based on signed contracts likely to be fulfilled largely in the next 12 months but usually will ship within the next 90 days. Order backlog is adjusted quarterly to reflect project cancellations, deferrals, and revised project scope and cost, if any.
Current wording
As of September 30, 2025, our order backlog was $776, an increase of $440, or 131.0%, from $336 as of December 31, 2024 and an increase of $271, or 53.7%, from $505 as of September 30, 2024. The backlog of unfilled orders includes amounts based on signed contracts likely to be fulfilled largely in the next 12 months but usually will ship within the next 90 days. Order backlog is adjusted quarterly to reflect project cancellations, deferrals, and revised project scope and cost, if any.
Previous wording
The increase was partially offset by:
Current wording
The increase was partially offset by a $32, or 4.8%, increase in Engineering, selling and administrative higher engineering-related costs due to changes in headcount and higher professional services fees.
Previous wording
As of June 30, 2025 and December 31, 2024, Cash and cash equivalents were $41,735 and $41,585, respectively.
Current wording
As of September 30, 2025 and December 31, 2024, Cash and cash equivalents were $41,571 and $41,585, respectively.
Previous wording
Cash provided by operating activities was $150 for the six months ended June 30, 2025 compared to $363 for the six months ended June 30, 2024, a decrease of $213, primarily due to the $236 decrease in Net income (loss) from $204 for the six months ended June 30, 2024 to ($32) for the six months ended June 30, 2025.
Current wording
Cash provided by operating activities was $425 for the nine months ended September 30, 2025 compared to $891 for the nine months ended September 30, 2024, a decrease of $466, primarily due to the following: