The LGL Group, Inc. (NYSE American: LGL) announced its financial results for the third quarter ended September 30, 2026, reporting a 32.1% increase in total revenues compared to the prior year period. Total revenues for the third quarter of 2026 were $1,464,000, up from $1,108,000 in Q3 2025. This growth was attributed to higher net sales and increased net investment income driven by larger invested balances in United States Treasury money market funds and the Skyline Note.
Despite the top-line growth, the company reported a net loss attributable to common stockholders of $45,000 for Q3 2026, or $0.00 per diluted share. This compares to net income of $772,000, or $0.14 per diluted share, in Q3 2025. The company attributes the shift in profitability to a reversal of an uncertain tax position recorded in 2025 that did not occur in 2026. Additionally, gross margin contracted significantly to 31.8% in Q3 2026, a decrease of 2,100 basis points from 52.8% in the prior year. The company cites volume-based pricing extended to a single customer and higher inventory reserves as primary drivers of the margin compression.
For the first nine months of 2026, total revenues reached $3,702,000, representing a 25.5% increase over the first nine months of 2025. However, the company reported a cumulative net loss of $1,020,000 for the period, or ($0.13) per diluted share, compared to net income of $715,000, or $0.12 per diluted share, in the prior year. The year-to-date loss was primarily driven by increased Engineering, selling, and administrative expenses, including an $874,000 increase in stock-based compensation and a $451,000 increase in professional service fees.
LGL Group’s Electronic Instruments segment reported an income (loss) before income taxes of ($64,000) for Q3 2026, compared to $104,000 in Q3 2025. The Merchant Investment segment generated income before taxes of $122,000 in Q3 2026, a slight decrease from $129,000 in the prior year.
On the balance sheet, the company reported cash and cash equivalents and marketable securities of $87.0 million as of September 30, 2026, up from $41.6 million at the end of 2025. This increase was largely driven by $41.5 million in net proceeds from a rights offering completed on July 24, 2026, which issued 6,062,714 shares of common stock. As of September 30, 2026, the Electronic Instruments backlog stood at $6.5 million, providing visibility for future revenue. Book value attributable to common stockholders per share was $6.81 as of September 30, 2026, compared to $7.04 at December 31, 2025.
