Aug 13, 2026 earnings call — Wind-down, acquisitions, and industrial growth
Company recorded revenue of $12.3 million and a consolidated operating loss of $20.9 million in Q2 2026.
Revenue $0.0B (est $0.0B) · EPS $-0.46 (est $0.04)
Key quotes
"In connection with this wind-down, we recorded approximately $21.7 million in noncash charges during the second quarter related to the write-down of nonperforming loans within our specialty lending business."
"With DebtX, along with NLEX and Boston Note, we have an asset-light brokerage now that truly serves a broad and diverse range of financial asset classes, both performing and nonperforming, and covering institutional and private sellers with all the building blocks ready to accelerate growth."
"On the industrial side, we have expanded our sales force and already see an expanded and more diverse sector pipeline with more bankruptcy assignments, and also added transportation and construction products, which are additive to our well-respected and key manufacturing and processing auctions."
Analyst Q&A 3
how DebtX and Boston Note work together
Q (Jacob Stephan · Lake Street): Analyst asked how the two recent acquisitions fit together and asked if DebtX performance improved since Q1.
A: Management said Boston Note fits well with DebtX and creates synergy. They ran a trial and closed 8 transactions and over $0.5 million in revenue. DebtX is seasonal — "50% to 60%, sometimes even 2/3" of revenue comes in Q4 from banks, so they expect clearer results by January 1 as the pipeline grows.
"Once we acquired DebtX, we really saw that there was an opportunity for Boston Note to convert from just doing seller-financed residential products to also seller-financed commercial products." — Ross Dove (CEO)
exiting Capital segment, hiring for industrials
Q (Logan W Lillehaug · Craig-Hallum): Analyst asked what exiting the Capital segment frees up for management and how that supports more acquisitions. He also asked if hiring will focus on industrial/outside-the-building work.
A: Management said the Capital segment had become a burden, taking a lot of management time without effective improvement, so they chose to stop trying to fix it and focus on growing other parts of the business. They are adding select hires to widen sector and geographic coverage, noting growing demand in EV, cannabis, and food and beverage sectors, not hiring dozens but targeted people.
"It became a real burden because in the end of the day, it was taking a lot of management time without us necessarily doing anything really truly effective to improve it." — Ross Dove (CEO)
their auction niche and seller carryback explained
Q (Michael Diana · Maxim Group): Analyst asked what niche they pursue in construction and transportation auctions and asked for a definition of a seller note / carryback note and market size.
A: Management said their sweet spot is regional, one-off auctions roughly from $0.5 million to $5 million to $10 million, serving individual sellers or smaller companies rather than the largest firms. On seller carrybacks, they explained a seller can act as the lender and carry the loan, and Boston Note buys those loans to give the seller cash; Boston Note historically focused on residential, and their current business is under 2% of the market, so the market is about 100x bigger than what Boston Note was doing.
"The auctions from basically $0.5 million to $5 million to $10 million are our sweet spot." — Ross Dove (CEO)