B Riley Financial (RILY) AI Stock Analysis

• Market Cap: $122.69M
• Dividend Yield: 12.47%
• Average Volume (3M): 537.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -42.96%
• EPS Growth: -383.87%
• Country: US
• Employees: 2,383
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 0.03
• Shares Outstanding: 30,597,067
• 10 Day Avg. Volume: 576,503
• 30 Day Avg. Volume: 537,774
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 44 Neutral
• Price Target: $3.50 ▼(-20.27% Downside)

B Riley Financial's overall stock score is primarily impacted by its weak financial performance, characterized by substantial losses and high leverage. Technical analysis indicates bearish momentum, further weighing on the score. While the high dividend yield offers some appeal, it is overshadowed by the company's financial distress.

Positive Factors

Cash Flow Resilience

Despite financial challenges, B Riley maintains positive cash flows, indicating some operational strength and ability to manage liquidity.

Strategic Partnerships

Strategic partnerships enhance B Riley's market presence and ability to capture financial transactions, supporting long-term revenue potential.

Diverse Revenue Streams

Diverse revenue streams provide stability and reduce dependency on any single business line, supporting long-term financial health.

Negative Factors

High Leverage

High leverage and negative equity suggest potential solvency issues, limiting financial flexibility and increasing risk.

Declining Revenue

Significant revenue decline indicates challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Nasdaq Compliance Issues

Compliance issues with Nasdaq listing rules can affect investor confidence and the company's ability to raise capital in the future.

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	1.05B	1.16B	1.64B	993.82M	1.55B	834.22M
Gross Profit	538.73M	716.43M	1.05B	748.03M	1.42B	718.86M
EBITDA	-643.10M	-700.02M	94.29M	-153.37M	733.09M	364.07M
Net Income	-741.15M	-764.27M	-99.91M	-159.83M	445.05M	205.15M
Balance Sheet
Total Assets	1.51B	1.78B	6.08B	6.11B	5.85B	2.66B
Cash, Cash Equivalents and Short-Term Investments	138.30M	154.88M	222.69M	268.62M	278.93M	103.60M
Total Debt	0.00	1.84B	2.45B	2.55B	2.10B	1.06B
Total Liabilities	1.96B	2.24B	5.72B	5.43B	4.80B	2.12B
Stockholders Equity	-453.97M	-488.18M	291.12M	446.51M	661.27M	512.59M
Cash Flow
Free Cash Flow	121.34M	255.60M	16.79M	2.73M	50.22M	55.64M
Operating Cash Flow	128.38M	263.55M	24.50M	6.65M	50.89M	57.69M
Investing Cash Flow	471.47M	440.53M	301.17M	-32.29M	-956.53M	-128.45M
Financing Cash Flow	-481.01M	-671.95M	-365.92M	17.64M	1.08B	69.54M

B Riley Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RILY, the sentiment is Negative. The current price of 4.39 is below the 20-day moving average (MA) of 4.72, below the 50-day MA of 5.32, and below the 200-day MA of 4.53, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RILY.

B Riley Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSDL	77 Outperform	$1.49B	10.39	8.00%	12.76%	1.97%	-35.20%
OVBC	70 Outperform	$181.37M	12.81	8.95%	2.35%	10.35%	22.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SAMG	65 Neutral	$167.05M	19.20	9.23%	5.73%	4.18%	-9.53%
TREE	59 Neutral	$761.73M	55.31	12.49%	―	37.01%	―
INBK	48 Neutral	$171.51M	―	-8.99%	1.22%	2.49%	-248.43%
RILY	44 Neutral	$122.69M	―	―	12.47%	-42.96%	-383.87%

B Riley Financial Corporate Events

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.

B. Riley Financial Delays Quarterly Report Filing

B. Riley Financial, Inc. has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending September 30, 2025. The company cited the need for additional time to finalize its quarterly reports for March and June 2025 as the primary reason for the delay. B. Riley Financial anticipates filing the delayed report as soon as practical, although no specific timeline has been provided. The company expects a significant positive change in its financial results, with estimated net income between $67 million and $77 million for the quarter, compared to a net loss in the same period last year. The notification was signed by Scott Yessner, the Chief Financial Officer, who assured stakeholders of the company’s commitment to compliance.

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 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.

The most recent analyst rating on (RILY) stock is a Hold with a $6.00 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 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.

The most recent analyst rating on (RILY) stock is a Hold with a $6.00 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 $30M Credit Agreement

On August 20, 2025, Tiger US Holdings, Inc., a subsidiary of B. Riley Financial, entered into a $30 million revolving credit agreement with FGI Worldwide LLC. This agreement, which matures in 2028, refinanced obligations under a previous credit agreement and includes a receivables purchase feature. The deal imposes certain covenants on the borrowers and is secured by a first priority lien on the assets of the FGI Loan Parties. Additionally, B. Riley Commercial Capital extended a subordinated loan to the borrower, increasing the loan amount to $10 million.

B Riley Financial Receives Nasdaq Non-Compliance Notice

On August 20, 2025, B. Riley Financial received a notice from Nasdaq due to a delay in filing its quarterly report for the period ended June 30, 2025, which resulted in non-compliance with Nasdaq Listing Rule 5250(c)(1). Nasdaq has granted the company an exception until September 29, 2025, to file its delinquent reports, and B. Riley Financial expects to file its 2024 Form 10-K shortly, followed by the delinquent Form 10-Qs. This notification does not immediately affect the listing of the company’s securities on Nasdaq, but the company must update its compliance plan by September 4, 2025.