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

B. Riley Financial (NASDAQ:RILY) announced its earnings results on Thursday. The asset manager reported ($6.04) earnings per share 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 company 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 Trading Down 1.0%

NASDAQ:RILY traded down $0.04 on Thursday, reaching $3.79. 954,666 shares of the company’s stock were exchanged, compared to its average volume of 912,582. The firm has a market capitalization of $152.36 million, a price-to-earnings ratio of 0.30 and a beta of 1.20. B. Riley Financial has a 52-week low of $3.50 and a 52-week high of $11.24. The company has a quick ratio of 3.95, a current ratio of 3.95 and a debt-to-equity ratio of 7.13. The business has a fifty day moving average of $5.34 and a 200-day moving average of $7.21.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in RILY. Renaissance Technologies LLC purchased a new stake in B. Riley Financial during the 1st quarter worth approximately $1,832,000. Bank of America Corp DE increased its stake in 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 worth $394,000 after buying an additional 51,918 shares during the period. Finally, State of Wyoming acquired a new stake in B. Riley Financial during the 1st quarter worth approximately $359,000. Institutional investors and hedge funds own 50.20% of the company’s stock.

Analysts Set New Price Targets

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

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.