B. Riley Financial (RILY)
NASDAQ:RILY
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B Riley Financial
(NASDAQ:RILY)
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Rating:56Neutral
Price Target:
$7.50
▼(-7.29% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by higher-risk financial fundamentals (notably balance-sheet concerns and earnings/revenue volatility). Valuation is a key offset (extremely low P/E), while technical signals are mixed and recent updates add both modest risk-reduction (deleveraging/compliance) and a significant legal overhang.
Positive Factors
Profitability recovery
The company swung from a large 2024 loss to meaningful 2025 profitability and strong adjusted EBITDA, demonstrating operational leverage and the ability to generate recurring earnings when markets and execution align. This step-change improves sustainable cash generation and strategic optionality over the medium term.
Negative Factors
High-risk balance sheet
The balance sheet has shown extreme swings and limited equity cushion historically; past debt-to-equity reached ~8.4x and 2024 negative equity warns of structural fragility. Even after reductions, the small equity base leaves limited shock absorption if earnings or asset realizations reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
The company swung from a large 2024 loss to meaningful 2025 profitability and strong adjusted EBITDA, demonstrating operational leverage and the ability to generate recurring earnings when markets and execution align. This step-change improves sustainable cash generation and strategic optionality over the medium term.
Read all positive factors
B Riley Financial (RILY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$264.34M
Dividend YieldN/A
Average Volume (3M)823.32K
Price to Earnings (P/E)0.5
Beta (1Y)0.83
Revenue Growth-25.32%
EPS Growth64.41%
CountryUS
Employees2,383
SectorFinancial
Sector Strength70
IndustryFinancial - Conglomerates
Share Statistics
EPS (TTM)2.77
Shares Outstanding35,150,932
10 Day Avg. Volume838,895
30 Day Avg. Volume823,319
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.83
Price to Sales (P/S)0.15
P/FCF Ratio-2.01
Enterprise Value/Market Cap5.70
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda7.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 M...
How the Company Makes Money
B. Riley Financial generates revenue primarily from fees, commissions, and investment/asset-based income across its operating businesses. Key revenue streams typically include: (1) Investment banking and advisory fees earned for services such as m...
B Riley Financial Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a clear operational and financial recovery: the company returned to profitability, produced strong adjusted EBITDA improvements, materially reduced debt and completed strategic divestitures that strengthened liquidity. Investment portfolio appreciation (notably Babcock & Wilcox and SpaceX-related marks) and the launch of BRC Specialty Finance are positive catalysts. Offsetting risks include meaningful declines in service and fee revenue (notably investment banking), subscription attrition in Communications, ongoing pressures in the Consumer Products segment (tariffs, inventory write-downs, chip shortages), elevated professional costs, and remaining 2026 debt maturities that require continued active balance-sheet management. Overall, the positive items (profitability, debt reduction, cash proceeds from divestitures and investment gains) materially outweigh the operational and revenue headwinds.Positive Updates
Return to Profitability and Strong EPS
Full year 2025 net income available to common shareholders of $299.4 million and earnings per share of $9.80, compared with a net loss of $772 million in 2024 — a material swing to profitability for the year.
Negative Updates
Decline in Service & Fee Revenues
Full year 2025 saw $150 million lower service and fee revenues year-over-year, including ~ $66 million lower revenue from exited businesses and $22 million lower investment banking revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Return to Profitability and Strong EPS
Full year 2025 net income available to common shareholders of $299.4 million and earnings per share of $9.80, compared with a net loss of $772 million in 2024 — a material swing to profitability for the year.
Read all positive updates
Company Guidance
The Company’s guidance emphasized continued deleveraging and opportunistic capital deployment: after 2025 results of revenues of $968M (Q4 $279M), net income available to common of $299.4M (Q4 $85M), EPS $9.80, adjusted EBITDA $231M (Q4 $104M) and net debt down $437M to $627M, management said it will use capital actions, cash from operations and investment liquidations (securities & other investments $447M, up $165M) to fund remaining 2026 senior note maturities (initially $457M at 12/31/25, with March actions including ~$96M Riley K redemption and $30M of exchanges/buybacks; remaining RILYN/Riley G balances reported near $167–178M and $170–177M), pursue loan and credit opportunities via a new Specialty Finance platform (example: a $10M 4‑month receivables loan), and expects 2026 interest expense to fall to about $81M (vs $93M in 2025) while reducing elevated professional/administrative costs; liquidity at 12/31/25 included cash & equivalents $229M, loans receivable at fair value $26M (fundings ~$110M, repayments ~$170M), equity method investments $90M (GA Group ~$83M), SpaceX carried value marked at $421/share and Babcock & Wilcox valuation based on $6.34/share for ~27.5M shares, and Wealth ended 2025 with $13B AUM and 197 RRs after an April sale of ~36 advisers and ~$4B AUM for $26M.B Riley Financial Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
28
Negative
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 968.05M | 1.16B | 1.45B | 993.82M | 1.55B |
| Gross Profit | 677.47M | 716.43M | 913.22M | 748.03M | 1.42B |
| EBITDA | 357.47M | -700.02M | 6.57M | -153.37M | 733.09M |
| Net Income | 307.42M | -764.27M | -99.91M | -159.83M | 445.05M |
Balance Sheet | |||||
| Total Assets | 1.71B | 1.78B | 6.08B | 6.11B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 226.60M | 154.88M | 222.69M | 268.62M | 278.93M |
| Total Debt | 1.47B | 1.84B | 2.45B | 2.55B | 2.10B |
| Total Liabilities | 1.83B | 2.24B | 5.72B | 5.43B | 4.80B |
| Stockholders Equity | -171.53M | -488.18M | 291.12M | 446.51M | 661.27M |
Cash Flow | |||||
| Free Cash Flow | -71.03M | 255.60M | 16.79M | 2.73M | 50.22M |
| Operating Cash Flow | -59.71M | 263.55M | 24.50M | 6.65M | 50.89M |
| Investing Cash Flow | 311.48M | 440.53M | 301.17M | -32.29M | -956.53M |
| Financing Cash Flow | -279.37M | -671.95M | -365.92M | 17.64M | 1.08B |
B Riley Financial Technical Analysis
Positive
8.09
Price Trends
7.31
Positive
6.43
Positive
5.90
Positive
Market Momentum
<0.01
Negative
54.96
Neutral
77.97
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 7.12, above the 50-day MA of 7.31, and above the 200-day MA of 5.90, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 77.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RILY.
B Riley Financial Risk Analysis
B Riley Financial disclosed 84 risk factors in its most recent earnings report. B Riley Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
B Riley Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.22B | 11.78 | 6.85% | 12.60% | 1.97% | -35.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $213.27M | 12.07 | 9.58% | 2.27% | 10.35% | 22.05% | |
61 Neutral | $154.50M | 27.23 | 7.70% | 5.42% | 4.18% | -9.53% | |
57 Neutral | $591.92M | 1.25 | 94.41% | ― | 37.01% | ― | |
56 Neutral | $264.34M | 0.46 | -96.03% | ― | -25.32% | 64.41% | |
48 Neutral | $199.22M | -5.18 | -9.44% | 1.07% | 2.49% | -248.43% |
* Financial Sector Average
RILY
B Riley Financial
7.52
4.37
138.73%
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52.40%
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42.72
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22.86
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SAMG
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13.10
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MSDL
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B Riley Financial Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
B Riley Financial Executes Debt-Reducing Bond-for-Equity Exchanges
Positive
Mar 12, 2026
BRC Group Holdings, Inc. said on March 12, 2026 that it had executed a series of Section 3(a)(9) bond-for-equity exchanges and cash repurchases with a long-time institutional investor, cancelling 1,343,551 units of senior notes in return for 4,201...
Business Operations and StrategyPrivate Placements and Financing
B Riley Financial Ends Guaranty, Easing Credit Exposure
Positive
Mar 4, 2026
On February 25, 2026, BRC Group Holdings, Inc. terminated its guaranty dated January 18, 2024 in favor of Axos Bank, which had backed obligations under the BW Axos Credit Agreement with Babcock Wilcox Enterprises, Inc. and related guarantors and ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
B Riley Recasts Financials Amid Ongoing Restructuring Efforts
Neutral
Feb 10, 2026
BRC Group Holdings, Inc., formerly B. Riley Financial, Inc., operates a diversified financial services platform spanning capital markets, wealth management, communications, consumer, and e-commerce segments. It serves a broad client base with inve...
Delistings and Listing ChangesRegulatory Filings and Compliance
B Riley Financial Regains Nasdaq Compliance Under Panel Monitor
Positive
Jan 29, 2026
On January 27, 2026, BRC Group Holdings, Inc. received confirmation from Nasdaq that it had regained compliance with the exchange’s Periodic Filing Rule 5250(c)(1), resolving a prior listing deficiency and stabilizing its status on the Nasda...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
B Riley Financial amends credit terms amid holding transition
Neutral
Jan 20, 2026
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, provid...
Business Operations and StrategyLegal Proceedings
B Riley Financial Faces Major Lawsuit Over Take-Private Deal
Negative
Jan 20, 2026
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 c...
Business Operations and StrategyRegulatory Filings and Compliance
B. Riley Financial Rebrands as BRC Group Holdings
Neutral
Jan 2, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.