B Riley Financial (RILY) AI Stock Analysis

• Market Cap: $153.75M
• Dividend Yield: N/A
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -25.32%
• EPS Growth: 64.41%
• Country: US
• Employees: 2,383
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 2.31
• Shares Outstanding: 30,597,067
• 10 Day Avg. Volume: 4,153,880
• 30 Day Avg. Volume: 1,778,635
• 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: 8.67
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: -4.90
• 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: 42 Neutral
• Price Target: $5.00 ▲(13.90% Upside)

B Riley Financial's overall stock score is primarily impacted by its weak financial performance and regulatory challenges. The company's high leverage and negative equity raise solvency concerns, while the Nasdaq non-compliance issue adds regulatory risk. Technical indicators provide some short-term support, but the negative valuation metrics highlight ongoing financial distress.

Positive Factors

Revenue Growth

The significant increase in Q2 revenue indicates a strong recovery and potential for sustained growth, enhancing the company's market position.

Management Changes

Aligning the Co-CEO's compensation with revenue generation could drive strategic focus on growth, potentially improving financial performance.

Debt Management

Extending debt maturity provides financial flexibility, allowing the company to manage its obligations more effectively and focus on strategic initiatives.

Negative Factors

Regulatory Challenges

Non-compliance with Nasdaq filing requirements poses a risk to the company's market position and could impact investor confidence and stock liquidity.

High Leverage

High leverage and negative equity suggest financial instability, limiting the company's ability to invest in growth and weather economic downturns.

Declining Cash Generation

Declining cash generation capabilities could strain the company's ability to fund operations and strategic initiatives, impacting long-term sustainability.

B Riley Financial Business Overview & Revenue Model

Company Description

B. Riley Financial, Inc. is a diversified financial services company that operates through various segments including investment banking, financial advisory, and asset management. The firm provides a wide range of services such as capital markets, mergers and acquisitions, and restructuring advisory, as well as equity research and institutional sales. B. Riley serves a diverse set of clients including public and private companies, institutional investors, and high-net-worth individuals across multiple industries.

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

B Riley Financial is facing significant financial challenges. The income statement shows declining revenues and substantial losses, with a deeply negative net profit margin. The balance sheet reveals high leverage and negative equity, indicating potential solvency issues. Although cash flow remains positive, it is insufficient to offset the company's financial difficulties.

Income Statement

B Riley Financial has faced significant challenges in its income statement. The company experienced a sharp decline in revenue, with a negative growth rate of -54.76% in the most recent year. Gross profit margin has decreased significantly from previous years, and the net profit margin is deeply negative at -131.91%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and financial distress.

Balance Sheet

The balance sheet reveals a concerning financial position for B Riley Financial. The company has a negative stockholders' equity, leading to an unsustainable debt-to-equity ratio of -3.84. This indicates high financial leverage and potential solvency issues. Return on equity is positive due to negative equity, but this is misleading as it reflects losses rather than profitability. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows some resilience, with positive operating and free cash flows. However, the free cash flow growth rate is negative at -20.89%, indicating declining cash generation capabilities. The operating cash flow to net income ratio is 0.82, suggesting that cash flows are not sufficient to cover net losses. The free cash flow to net income ratio is close to 1, indicating that free cash flow is nearly equivalent to net losses, which is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	785.37M	1.16B	1.64B	993.82M	1.55B	834.22M
Gross Profit	407.27M	716.43M	1.05B	748.03M	1.42B	718.86M
EBITDA	-271.88M	-700.02M	94.29M	-153.37M	733.09M	364.07M
Net Income	-295.03M	-764.27M	-99.91M	-159.83M	445.05M	205.15M
Balance Sheet
Total Assets	1.55B	1.78B	6.08B	6.11B	5.85B	2.66B
Cash, Cash Equivalents and Short-Term Investments	267.39M	154.88M	231.96M	268.62M	278.93M	103.60M
Total Debt	1.51B	1.84B	2.45B	2.55B	2.10B	1.06B
Total Liabilities	1.85B	2.24B	5.72B	5.43B	4.80B	2.12B
Stockholders Equity	-351.71M	-488.18M	291.12M	446.51M	661.27M	512.59M
Cash Flow
Free Cash Flow	-13.65M	255.60M	16.79M	2.73M	50.22M	55.64M
Operating Cash Flow	-8.66M	263.55M	24.50M	6.65M	50.89M	57.69M
Investing Cash Flow	713.09M	440.53M	301.17M	-32.29M	-956.53M	-128.45M
Financing Cash Flow	-508.32M	-671.95M	-365.92M	17.64M	1.08B	69.54M

B Riley Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.39
• 50DMA: Positive
• 100DMA: Negative
• 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 4.39 is above the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.82, and below the 200-day MA of 4.50, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 42.27 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
MSDL	82 Outperform	$1.47B	10.26	8.00%	12.40%	1.97%	-35.20%
OVBC	68 Neutral	$194.09M	13.71	8.95%	2.21%	10.35%	22.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SAMG	65 Neutral	$183.33M	21.07	9.23%	5.47%	4.18%	-9.53%
TREE	60 Neutral	$715.66M	51.96	12.49%	―	37.01%	―
INBK	48 Neutral	$187.62M	-5.68	-8.99%	1.07%	2.49%	-248.43%
RILY	42 Neutral	$153.75M	-0.68	―	―	-25.32%	64.41%

B Riley Financial Corporate Events

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.

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.

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.

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.

B Riley Financial Director Announces Departure

On October 8, 2025, B. Riley Financial, Inc. and its subsidiary BR Financial Holdings, LLC amended their Credit Agreement, extending the earliest possible maturity date of their Initial Term Loans to no earlier than March 31, 2027. This amendment impacts the company’s financial strategy by providing more flexibility in managing its debt obligations. Additionally, on October 10, 2025, Michael Sheldon, a member of the company’s Board of Directors, announced he would not seek re-election, though he has no disagreements with the company’s operations or policies.

B Riley Financial Faces Nasdaq Non-Compliance Issue

On October 1, 2025, B. Riley Financial received a Staff Determination Letter from Nasdaq due to non-compliance with the Nasdaq Listing Rule 5250(c)(1) for not filing its Quarterly Reports for March and June 2025. Despite filing its annual report for 2024 in September 2025, the company has not met the deadline to regain compliance. The letter does not immediately affect the company’s trading or listing status, but B. Riley intends to request a hearing to seek continued listing. The outcome of this hearing could impact the company’s market position and stakeholder interests.