Financial Data and Key Metrics Changes - Consolidated operating income was $2,200,000 in Q2 2025, down from $3,500,000 in Q2 2024 [16] - Adjusted EBITDA decreased to $2,660,000 from $4,000,000 year-over-year [19] - Net income was $1,600,000 or $0.05 per diluted share, compared to $2,500,000 or $0.07 per diluted share in the prior year [19] Business Line Data and Key Metrics Changes - The Industrial Assets division reported operating income of $1,300,000 in Q2 2025, down from $2,100,000 in the prior year [16] - The Financial Assets division's operating income was $2,200,000 in Q2 2025, compared to $2,700,000 in Q2 2024 [17] - The appraisals business achieved operating income of approximately $250,000, recovering from a loss in the first quarter [17] Market Data and Key Metrics Changes - The company noted a healthy spread of large multinational firms managing their surplus diligently, leading to increased surplus assets and plant closures [8][9] - There is a growing trend of new sellers entering the market, particularly among regional banks and alternative lending companies [41][42] Company Strategy and Development Direction - The company is in a serious acquisition mode, actively looking at multiple companies to drive growth [12][14] - The focus is on building a stable operating platform and achieving consistent performance above the $2,000,000 operating income mark [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's stability and capability to navigate the current macroeconomic challenges [6][7] - There is a belief that the company is well-positioned to seize growth opportunities in the coming quarters [21][22] Other Important Information - The company repurchased approximately 750,000 shares for a total of $1,600,000 at an average cost of $2.13 per share [19] - The repurchase program has been extended for an additional three years with an allowable spend of $7,500,000 [19] Q&A Session Summary Question: Is $2,000,000 in operating income a good baseline? - Management indicated that while $2,000,000 is a reasonable expectation, it requires consistent performance and effort to maintain and exceed this level [25][26] Question: Are there more portfolios coming to market? - Management noted an increase in new sellers, particularly regional banks and alternative lenders, entering the market [41][42] Question: How are tariffs affecting demand for used equipment? - Management observed that there is a preliminary increase in demand for modern equipment, with concerns about supply chain issues driving buyers to pay premiums for timely access [33] Question: What types of new sellers are entering the NLEX market? - The company is seeing a mix of regional banks and alternative lenders, with a steady growth in the number of sellers [41][42] Question: Are there still opportunities for acquisitions in Europe? - The company confirmed ongoing interest in expanding internationally, particularly in Europe, with multiple opportunities being evaluated [44][45] Question: Any updates on legal collections for large borrowers? - Management stated that progress is steady, but no significant developments have been disclosed at this time [48][49]