B Riley Financial (RILY) AI Stock Analysis

• Market Cap: $282.72M
• Dividend Yield: N/A
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.80
• Revenue Growth: -25.32%
• EPS Growth: 64.41%
• Country: US
• Employees: 2,383
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 2.91
• Shares Outstanding: 30,597,067
• 10 Day Avg. Volume: 3,785,190
• 30 Day Avg. Volume: 3,014,805
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.29
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 0.54
• Enterprise Value/Market Cap: 5.64
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 38.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $9.00 ▲(11.25% Upside)

The score is held back primarily by weak and volatile financial performance (declining revenue, negative operating profitability, negative equity, and negative TTM cash flow). Technical momentum is supportive with price above key moving averages and positive MACD, and valuation appears optically cheap (low P/E), but a significant lawsuit adds downside risk and limits the overall score.

Positive Factors

Diversified Business Model

B. Riley's multi-pronged business model—investment banking, brokerage/trading, wealth and asset management, advisory and principal investments—provides multiple fee and asset-based revenue streams, reducing reliance on any single market cycle and supporting more durable cash generation over months.

Positive Operating and Free Cash Flow

Despite headline losses, the company reports positive operating and free cash flow, which supports near-term liquidity and operational continuity. Positive cash generation provides runway to fund restructuring or strategic investments while working to restore profitability over the medium term.

Management Incentives Aligned to Revenue

Revising Co-CEO pay to tie compensation to revenue aligns executive incentives with restoring fee and transaction-based businesses. Over several quarters this can sharpen management focus on deal origination and client revenue, improving execution and accountability during a recovery phase.

Negative Factors

Highly Levered, Negative Equity

The company's negative shareholders' equity and extreme leverage signal solvency and covenant risks. High indebtedness constrains strategic flexibility, increases refinancing and interest burdens, and makes the firm vulnerable to liquidity shocks, undermining long‑term stability absent balance sheet repair.

Severe Revenue Decline and Deep Losses

A drastic revenue contraction paired with a deeply negative net margin indicates structural erosion in core fee and investment income. Persistent top-line weakness undermines recurring margins and client relationships, lengthening the recovery timeline and pressuring the company's ability to rebuild sustainable profitability.

Regulatory/Reporting Compliance Risk

Delinquent filings and conditional Nasdaq relief point to governance and reporting weaknesses. Compliance deadlines, risk of delisting, and the need for external consultants/CFO attention can divert management resources, hinder access to capital markets, and erode investor confidence over the medium term.

B Riley Financial Business Overview & Revenue Model

Company Description

B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments–Communications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, forensic accounting, litigation support, operations management and real estate consulting, and valuation and appraisal services. The Principal Investments–Communications segment provides consumer Internet access through United Online under the NetZero and Juno brands; VoIP communication and related products, and subscription services through magicJack; and mobile phone services and devices through Marconi Wireless. The Brands segments provides licensing of a brand investment portfolio, including Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. It also offers advisory services; brokerage services; senior secured and second lien secured loans to middle market public and the private U.S. companies; and consulting services. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. The company was founded in 1973 and is headquartered in Los Angeles, California.

How the Company Makes Money

B. Riley Financial generates revenue through several key streams. Primarily, the company earns fees from its investment banking services, which include advisory fees from mergers and acquisitions, capital raising, and underwriting services. The firm also generates income from its asset management activities, which involve managing investment funds and providing investment advisory services. Another significant revenue source is derived from brokerage services, where it earns commissions on trades executed for clients. Additionally, B. Riley benefits from proprietary trading and investment income through its own investment portfolio. The company has built strategic partnerships with various financial institutions and has a strong presence in the market, enabling it to capture a wide range of financial transactions and advisory opportunities, thus enhancing its earnings potential.

B Riley Financial Financial Statement Overview

Summary

Fundamentals are stressed: TTM revenue is down ~16.9% with negative EBIT/EBITDA margins, the balance sheet shows persistent negative equity (about -$213M TTM; -$488M in 2024), and TTM operating/free cash flow are both negative (~-$88.7M/~-$89.9M). While 2024 cash flow was strong, the swing back to negative TTM keeps financial risk elevated.

Income Statement

Operating performance is weak and volatile. TTM (Trailing-Twelve-Months) revenue declined ~16.9% with negative EBIT and EBITDA margins, despite a small positive net margin (~5.0%) and net income of ~$31M. Profitability has deteriorated sharply versus 2023 (positive EBIT) and especially 2020–2021 (strong profits), with 2024 showing a very large net loss and deeply negative margins. Overall, earnings quality and consistency remain a key concern.

Balance Sheet

Balance sheet strength is pressured by negative equity across the most recent periods (TTM equity about -$213M; 2024 equity about -$488M), which elevates financial risk and makes leverage measures unstable. Total assets have also fallen materially versus 2022–2023 levels, signaling a shrinking base. While TTM shows total debt reported as zero, prior years carried substantial debt (multi-billion in 2021–2024), and the negative equity position remains the dominant weakness.

Cash Flow

Cash flow is mixed. TTM (Trailing-Twelve-Months) operating and free cash flow are both negative (about -$88.7M and -$89.9M), indicating current cash burn. That said, 2024 generated strong positive operating and free cash flow (~$264M and ~$256M), and free cash flow has shown sharp improvement versus the prior period as reflected in the provided growth figure. The main drawback is the swing from strong 2024 generation to negative TTM, reducing confidence in sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	962.85M	1.16B	1.45B	993.82M	1.55B	834.22M
Gross Profit	648.31M	716.43M	913.22M	748.03M	1.42B	718.86M
EBITDA	41.51M	-700.02M	6.57M	-153.37M	733.09M	364.07M
Net Income	223.47M	-764.27M	-99.91M	-159.83M	445.05M	205.15M
Balance Sheet
Total Assets	1.67B	1.78B	6.08B	6.11B	5.85B	2.66B
Cash, Cash Equivalents and Short-Term Investments	184.22M	154.88M	222.69M	268.62M	278.93M	103.60M
Total Debt	1.49B	1.84B	2.45B	2.55B	2.10B	1.06B
Total Liabilities	1.88B	2.24B	5.72B	5.43B	4.80B	2.12B
Stockholders Equity	-260.46M	-488.18M	291.12M	446.51M	661.27M	512.59M
Cash Flow
Free Cash Flow	-37.22M	255.60M	16.79M	2.73M	50.22M	55.64M
Operating Cash Flow	-25.71M	263.55M	24.50M	6.65M	50.89M	57.69M
Investing Cash Flow	627.85M	440.53M	301.17M	-32.29M	-956.53M	-128.45M
Financing Cash Flow	-578.09M	-671.95M	-365.92M	17.64M	1.08B	69.54M

B Riley Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RILY, the sentiment is Positive. The current price of 8.09 is above the 20-day moving average (MA) of 7.20, above the 50-day MA of 5.55, and above the 200-day MA of 4.83, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 67.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RILY.

B Riley Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVBC	74 Outperform	$189.95M	13.41	8.95%	2.27%	10.35%	22.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SAMG	65 Neutral	$189.94M	21.73	9.23%	5.42%	4.18%	-9.53%
MSDL	64 Neutral	$1.41B	9.89	8.00%	12.60%	1.97%	-35.20%
TREE	60 Neutral	$846.35M	61.45	12.49%	―	37.01%	―
RILY	55 Neutral	$282.72M	1.90	―	―	-25.32%	64.41%
INBK	54 Neutral	$197.37M	-5.97	-8.99%	1.07%	2.49%	-248.43%

B Riley Financial Corporate Events

B Riley Financial amends credit terms amid holding transition

On January 14, 2026, BRC Group Holdings, Inc. and its wholly owned subsidiary BR Financial Holdings, LLC amended their existing credit agreement to permit the company to repurchase up to $25 million of unsecured notes through June 30, 2026, providing added flexibility in managing its capital structure and outstanding debt. As part of its broader transition to a holding company structure, BRC Group also modified the employment agreement of Executive Vice President and General Counsel Alan N. Forman, reducing his severance entitlement to two-thirds of his base salary, signaling a tightening of executive compensation terms during the corporate repositioning.

The most recent analyst rating on (RILY) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B Riley Financial Faces Major Lawsuit Over Take-Private Deal

On January 20, 2026, BRC Group Holdings, Inc. and several affiliated entities filed a complaint in New York State court against law firm Willkie Farr & Gallagher LLP and individuals Brian and Lauren Kahn, alleging aiding and abetting fraud, civil conspiracy to defraud, breach of fiduciary duty, common law fraud, fraudulent inducement, and breach of contract in connection with the August 2023 take-private transaction of Franchise Group, Inc. The plaintiffs are seeking more than $735 million in compensatory and punitive damages and disgorgement of fees paid to Willkie, signaling a significant legal escalation that could have material financial and reputational implications for the parties involved and may draw heightened scrutiny to advisory practices in large take-private deals.

The most recent analyst rating on (RILY) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B. Riley Financial Rebrands as BRC Group Holdings

On January 1, 2026, B. Riley Financial, Inc. formally changed its corporate name to BRC Group Holdings, Inc., amending its certificate of incorporation and related preferred stock designations to reflect the new identity. The company’s board also approved corresponding by-law amendments, executed an Eighth Supplemental Indenture to update its name across existing indentures and various series of publicly traded senior notes, and confirmed that its common and preferred shares and senior notes would continue trading on Nasdaq under existing ticker symbols with outstanding stock certificates remaining valid, indicating a legal and branding change with no immediate impact on securities holdings or trading mechanics for investors.

The most recent analyst rating on (RILY) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B Riley Financial Holds Annual Stockholder Meeting

On December 1, 2025, B. Riley Financial, Inc. held its annual meeting of stockholders where several proposals were voted on. The election of directors saw Bryant R. Riley, Thomas J. Kelleher, Robert L. Antin, Tammy Brandt, Robert D’Agostino, Renee E. LaBran, Randall E. Paulson, and Mimi K. Walters elected with varying levels of support. Additionally, the selection of BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. The stockholders also approved, on an advisory basis, the compensation of named executive officers and decided on a one-year frequency for advisory votes on executive compensation.

The most recent analyst rating on (RILY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B Riley Financial Receives Nasdaq Delinquency Notification

On November 28, 2025, B. Riley Financial announced it received a delinquency notification from Nasdaq due to delayed filing of its Form 10-Q for the third quarter of 2025. The company had previously been granted extended deadlines by the Nasdaq Hearing Panel, with the second and third quarter 10-Q filings due by December 23, 2025, and January 20, 2026, respectively. Despite the notification, there is no immediate impact on the company’s Nasdaq listing, and B. Riley Financial is taking steps to regain compliance with Nasdaq requirements.

The most recent analyst rating on (RILY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B Riley Financial Secures Nasdaq Listing Extension

On November 18, 2025, B. Riley Financial, Inc. received approval from the Nasdaq Hearings Panel to continue its listing on the Nasdaq Stock Market, contingent upon meeting specific conditions due to previous non-compliance with filing requirements. The company has faced challenges in financial reporting but has taken steps to address these issues, including hiring a new CFO and external consultants. The Panel has set deadlines for the company to file its overdue quarterly reports, with the risk of delisting if deadlines are missed. The company has already filed one of the required reports and plans to meet the remaining deadlines.

The most recent analyst rating on (RILY) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.

B Riley Financial Amends Co-CEO’s Compensation Structure

On October 30, 2025, B. Riley Financial’s Board approved an amended employment agreement for Co-CEO Bryant R. Riley, effective November 8, 2025. The new structure eliminates his base salary and cash bonuses in favor of compensation based on revenue generation, aligning with market practices and the company’s strategic focus on investment banking. This change aims to incentivize Riley to drive revenue growth, reflecting the company’s recent financial challenges and restructuring efforts.

The most recent analyst rating on (RILY) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on B Riley Financial stock, see the RILY Stock Forecast page.