B. Riley Financial (NASDAQ:RILY) Announces Quarterly Earnings Results

B. Riley Financial (NASDAQ:RILY) posted its earnings results on Thursday. The asset manager reported $6.57 earnings per share for the quarter, FiscalAI reports. The company had revenue of $217.19 million for the quarter. B. Riley Financial had a negative return on equity of 195.48% and a net margin of 46.81%.

Here are the key takeaways from B. Riley Financial’s conference call:

• The company reported strong results with net income of $211.3 million and adjusted EBITDA of $262.2 million, while operating adjusted EBITDA increased ~40% sequentially to $34.6 million.
• Management meaningfully improved leverage, with net debt down to $372 million (?$255 million reduction year-to-date) and total debt reduced by $129 million in the quarter, including redemption of the 5.5% senior notes due 2026.
• Capital markets momentum was emphasized—B. Riley Securities executed nearly $10 billion of client debt/equity raises, added $8.7 billion of new ATM capacity, and initiated coverage on 26 companies, supporting future deal flow and fee opportunity.
• A large portion of the quarter’s upside was driven by mark?to?market investment gains—primarily a ~$229 million valuation increase in Babcock & Wilcox and higher SpaceX carried interest—which may be nonrecurring and volatile.
• Near?term funding risk remains with about $167 million and $170 million of senior notes maturing in 2026; management says it will use capital actions, operating cash and asset sales to address these obligations.

B. Riley Financial Stock Performance

NASDAQ RILY traded down $0.51 during trading hours on Friday, hitting $8.18. 1,215,239 shares of the company’s stock were exchanged, compared to its average volume of 806,407. The business’s 50 day moving average is $7.39 and its 200-day moving average is $6.46. B. Riley Financial has a 12-month low of $2.79 and a 12-month high of $10.97. The firm has a market capitalization of $287.53 million, a P/E ratio of 0.49 and a beta of 1.17.

Hedge Funds Weigh In On B. Riley Financial

Several large investors have recently added to or reduced their stakes in the business. XTX Topco Ltd purchased a new position in B. Riley Financial during the fourth quarter worth about $221,000. CastleKnight Management LP purchased a new position in B. Riley Financial during the fourth quarter worth about $568,000. Boothbay Fund Management LLC purchased a new position in B. Riley Financial during the fourth quarter worth about $60,000. Bridgeway Capital Management LLC purchased a new position in shares of B. Riley Financial in the 4th quarter worth about $187,000. Finally, 683 Capital Management LLC purchased a new position in shares of B. Riley Financial in the 4th quarter worth about $374,000. 50.20% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Wall Street Zen raised B. Riley Financial from a “hold” rating to a “buy” rating in a report on Saturday, April 4th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

About B. Riley Financial

B. Riley Financial, Inc, headquartered in Los Angeles, California, is a diversified financial services company offering a broad range of advisory and investment solutions to individual, corporate and institutional clients. Since its founding in 1997 by Bryant E. Riley, the firm has expanded its capabilities across two primary segments: financial solutions and operations solutions. Its financial solutions segment provides investment banking services, equity research, merger and acquisition advisory, corporate finance, restructuring advisory and private capital solutions.

In addition to traditional investment banking, B.