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

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

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 Stock Performance

B. Riley Financial stock traded down $0.14 during midday trading on Friday, hitting $3.65. 1,045,455 shares of the company’s stock were exchanged, compared to its average volume of 889,381. B. Riley Financial has a 12-month low of $3.50 and a 12-month high of $11.24. The company has a debt-to-equity ratio of 7.13, a quick ratio of 3.95 and a current ratio of 3.95. The stock has a market cap of $146.73 million, a price-to-earnings ratio of 0.97 and a beta of 1.20. The firm’s 50 day simple moving average is $5.27 and its 200 day simple moving average is $7.19.

Institutional Investors Weigh In On B. Riley Financial

A number of institutional investors and hedge funds have recently made changes to their positions in the business. State of Wyoming acquired a new stake in shares of B. Riley Financial during the first quarter worth about $359,000. Bank of America Corp DE increased its position in B. Riley Financial by 2,715.4% in the 1st 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. Finally, Renaissance Technologies LLC acquired a new position in B. Riley Financial in the 1st quarter valued at about $1,832,000. 50.20% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Wall Street Zen cut B. Riley Financial from a “hold” rating to a “sell” rating in a research report on Saturday. Weiss Ratings lowered B. Riley Financial from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, October 8th. One investment analyst has rated the stock with a Sell rating. According to MarketBeat.com, the company has a consensus rating of “Sell”.

About B. Riley Financial

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.