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

B. Riley Financial (NASDAQ:RILY) announced its quarterly earnings data on Thursday. The asset manager reported ($6.04) earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of $161.32 million during the quarter. B. Riley Financial had a net margin of 35.88% and a return on equity of 39,260.09%.

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

• BRC reported a $243 million third-quarter net loss, driven largely by mark-to-market declines in its investment portfolio, including roughly $227 million in pre-tax losses tied to Babcock & Wilcox and a $14.6 million GA Group impairment. Babcock & Wilcox still represented $160.3 million of investments at quarter-end.
• Despite the quarterly loss, nine-month Operating Adjusted EBITDA was $103.3 million, which management said was on plan, while operating expenses declined year over year. The communications business group also grew year-to-date income despite lower revenue.
• BRC completed the sale of its remaining GA Group interest for $62.3 million and reduced debt by $291.7 million year to date. Management said available cash, operating cash flow, asset proceeds, and expected receipts—including up to $50 million related to SpaceX shares and other funding—are expected to support the Sangoma acquisition and the $164 million senior-note redemption due in December.
• The pending Sangoma acquisition is expected to more than double communications revenue and add $35 million–$40 million of EBITDA, including synergies, according to management; the deal is targeted to close in January 2027. BRC also regained full ownership of B. Riley Securities and is combining infrastructure with its wealth business.
• Capital-markets activity and fees were pressured by volatile markets and lower underwriting, private-placement, and ATM activity; Targus also faced weaker consumer demand and lower laptop-peripheral sales. BRC ended September with $1.14 billion of total debt and has not yet specified its plan for substantial maturities due in 2028 and beyond.

B. Riley Financial Price Performance

B. Riley Financial stock traded down $0.11 during midday trading on Friday, reaching $3.68. 458,119 shares of the company were exchanged, compared to its average volume of 945,395. B. Riley Financial has a 1 year low of $3.50 and a 1 year high of $11.24. The company has a market capitalization of $148.06 million, a price-to-earnings ratio of 0.29 and a beta of 1.20. The firm’s 50-day simple moving average is $5.34 and its 200-day simple moving average is $7.21. The company has a debt-to-equity ratio of 7.13, a quick ratio of 3.95 and a current ratio of 3.95.

Analyst Upgrades and Downgrades

RILY has been the subject of several recent analyst reports. Wall Street Zen cut B. Riley Financial from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings cut shares of B. Riley Financial from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, October 8th. One research analyst has rated the stock with a Sell rating. According to MarketBeat.com, B. Riley Financial currently has an average rating of “Sell”.

Institutional Investors Weigh In On B. Riley Financial

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. State of Wyoming acquired a new position in shares of B. Riley Financial during the 1st quarter valued at about $359,000. Bank of America Corp DE grew its stake in shares of B. Riley Financial by 2,715.4% during the 1st quarter. Bank of America Corp DE now owns 53,830 shares of the asset manager’s stock valued at $394,000 after buying an additional 51,918 shares during the period. Finally, Renaissance Technologies LLC acquired a new position in B. Riley Financial in the first quarter valued at $1,832,000. Hedge funds and other institutional investors own 50.20% of the company’s stock.

B. Riley Financial Company Profile

B. Riley Financial, Inc is a diversified financial services company that provides investment banking, institutional brokerage, wealth management, asset appraisal, valuation, liquidation and restructuring services. Through its businesses, the company works with public and private companies, institutional investors, private equity firms, financial institutions and individual clients.

The company’s capital markets operations, including B. Riley Securities, offer investment banking, equity research, sales and trading, and related advisory services.