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

B. Riley Financial (NASDAQ:RILY) posted its quarterly earnings results on Thursday. The asset manager reported $0.45 earnings per share for the quarter, FiscalAI reports. The company had revenue of $239.36 million during the quarter. B. Riley Financial had a negative return on equity of 629.79% and a net margin of 35.88%.

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

• B. Riley reported a strong second quarter, with $18.5 million of net income attributable to common shareholders, $66 million of operating adjusted EBITDA, and revenue up $14 million year over year to $239 million.
• Capital markets activity improved as institutional accounts reactivated, senior producers joined or returned to the firm, and ATM fees more than doubled sequentially. Management said the investment-banking pipeline is meaningfully stronger than a year ago, particularly in AI infrastructure, power, and BDC capital raising.
• Debt reduction lowered total debt by $497 million from December 2024 to $1.277 billion at June 30, while net debt declined to approximately $285 million. Management said it expects to address more than $300 million of senior-note maturities due in September and December using a combination of cash, investments, asset sales, and other capital actions.
• The company faces substantial near-term liquidity demands, including the 2026 note maturities and subsidiary-facility paydowns, and management declined to rule out exchanges or capital raises. Preferred dividends also remain unpaid, with executives saying capital will currently be directed toward higher-return uses instead of restoring cash dividends.
• Results remain exposed to volatile investment marks, particularly Babcock & Wilcox and carried interest tied to SpaceX funds; second-quarter trading gains fell year over year because of a lower Babcock & Wilcox fair value. Targus also continued to report an operating loss, including a $6 million segment loss in the quarter.

B. Riley Financial Stock Performance

Shares of NASDAQ RILY traded down $0.08 during trading hours on Friday, hitting $7.18. 989,429 shares of the stock were exchanged, compared to its average volume of 512,021. B. Riley Financial has a one year low of $3.64 and a one year high of $11.24. The company’s 50 day moving average is $7.86 and its 200 day moving average is $7.91. The company has a debt-to-equity ratio of 10.30, a current ratio of 3.95 and a quick ratio of 3.95. The firm has a market capitalization of $266.59 million, a P/E ratio of 0.57 and a beta of 1.23.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Bank of America Corp DE boosted its holdings in B. Riley Financial by 2,715.4% during the first quarter. Bank of America Corp DE now owns 53,830 shares of the asset manager’s stock valued at $394,000 after acquiring an additional 51,918 shares during the period. Renaissance Technologies LLC bought a new position in shares of B. Riley Financial in the first quarter worth about $1,832,000. State of Wyoming acquired a new position in shares of B. Riley Financial during the 1st quarter worth about $359,000. XTX Topco Ltd bought a new stake in B. Riley Financial during the 4th quarter valued at approximately $221,000. Finally, CastleKnight Management LP bought a new stake in B. Riley Financial during the 4th quarter valued at approximately $568,000. Institutional investors and hedge funds own 50.20% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on RILY shares. Weiss Ratings restated a “sell (d+)” rating on shares of B. Riley Financial in a report on Monday, June 15th. Wall Street Zen downgraded shares of B. Riley Financial from a “buy” rating to a “hold” rating in a report on Saturday. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, B. Riley Financial 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.