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B. Riley Financial, Inc. (RILY)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 update came via B. Riley Securities (subsidiary) 8‑K 2.02: strong profitability and deal activity with total revenue $109.1M, adjusted net revenue $75.7M, GAAP net income $41.8M, and adjusted net income $18.9M; debt-free with cash and securities of $145.9M, and a $0.40 per share dividend (~$7.4M) .
  • Consolidated RILY did not publish Q3 financials; the company received a Nasdaq Staff Determination Letter for delinquent Q1/Q2 2025 10‑Qs, and filed its Q1 2025 10‑Q on Nov 18, 2025 (revenues $186.1M; basic/diluted loss per share −$0.39) .
  • Sequentially, B. Riley Securities’ Q3 revenue and profit materially improved vs Q2 2025 ($60.9M revenue; adjusted net revenue $51.5M; GAAP net income $12.5M; adjusted net income $8.6M) on robust IB and brokerage activity .
  • Limited Wall Street consensus estimates were available; S&P Global data did not surface Q3 EPS/revenue consensus for RILY; comparisons to estimates are therefore not possible (see Estimates Context). Values retrieved from S&P Global.
  • Stock reaction: press coverage noted shares rose ~2% following the latest filings progress and “Q3 results” headlines; timing and characterization may reflect the late Q1 filing rather than a formal Q3 report .

What Went Well and What Went Wrong

What Went Well

  • B. Riley Securities delivered a “highly profitable” quarter with ~$109.1M total revenue and ~$41.8M GAAP net income; adjusted net revenue ~$75.7M and adjusted net income ~$18.9M .
  • Robust client engagement and deal flow: “equity and debt financings totaling approximately $10.5 billion in capital raised for clients,” cited by Co‑CEO Jimmy Baker .
  • Balance sheet discipline: debt-free at the subsidiary; cash and securities reached $145.9M, and the board approved a $0.40 per share dividend (~$7.4M) .

Management quotes:

  • “B. Riley Securities delivered a highly profitable third quarter… robust deal activity… contributed to our strong performance” — Jimmy Baker, Co‑CEO and Head of Capital Markets .
  • “Our upcoming Convergence Conference… focuses on the impact of AI and blockchain on the energy complex” — Andy Moore, Chairman and Co‑CEO .

What Went Wrong

  • Consolidated RILY Q3 results unavailable amid filing delays; Nasdaq Staff Determination Letter underscored noncompliance with Listing Rule 5250(c)(1) until filings are current .
  • Earlier (Q1 2025) Capital Markets services and fees dropped to $25.2M (from $60.3M YoY), with MD&A attributing decreased investment banking revenues partly to late SEC filings of the parent company .
  • Continued uncertainty around timing for remaining 2025 filings adds headline risk to the stock and complicates consensus coverage (see Estimates Context) .

Financial Results

Consolidated RILY (Q1 2025 reported; Q3 unavailable)

MetricQ1 2024Q1 2025
Revenues ($USD Millions)$297.6 $186.1
Net loss available to common ($USD Millions)$(51.2) $(12.0)
Basic & Diluted EPS ($USD)$(1.71) $(0.39)

Notes: The company filed Q1 2025 10‑Q on Nov 18, 2025; Q2 and Q3 consolidated financials were not filed as of this recap .

B. Riley Securities (Subsidiary) Sequential Comparison

MetricQ2 2025Q3 2025
Total Revenues ($USD Millions)$60.9 $109.1
Adjusted Net Revenue ($USD Millions)$51.5 $75.7
GAAP Net Income ($USD Millions)$12.5 $41.8
Adjusted Net Income ($USD Millions)$8.6 $18.9

B. Riley Securities Segment Detail

MetricQ2 2025Q3 2025
Investment Banking Revenue ($USD Millions)$32.3 $53.9
Institutional Brokerage Revenue ($USD Millions)$25.4 $51.6
Interest Revenue ($USD Millions)$2.3 $2.9
Other Income ($USD Millions)$0.9 $0.7
Total Revenues ($USD Millions)$60.9 $109.1
Compensation & Benefits ($USD Millions)$29.7 $38.6
Interest Expense ($USD Millions)$1.7 $2.0
Other Operating Expenses ($USD Millions)$12.6 $13.4
Total Expenses ($USD Millions)$44.0 $54.0

KPIs (B. Riley Securities)

KPIQ2 2025Q3 2025
Cash and Securities ($USD Millions)$94.5 $145.9
Debt OutstandingNone None
Dividend per Share ($USD)$0.22 (approx.; ~$4.1M aggregate) $0.40 (~$7.4M aggregate)
Client Capital Raised (IB + Debt)n/a~$10.5B

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend (B. Riley Securities)Q3 2025None indicated$0.40 per share (~$7.4M aggregate) Initiated
Revenue/Margins/OpEx/Tax Rate (Consolidated)Q3 2025n/an/aNo formal guidance provided

Earnings Call Themes & Trends

Note: No Q3 2025 earnings call transcript was available.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
AI/Technology InitiativesQ2: Supported clients’ crypto treasury implementation and AI adoption; >$8B raised for AI-driven investments; added talent across Digital Assets and TMT . Q1: Capital Markets revenue softness linked in part to late filings .Conference theme on AI and blockchain’s impact on energy; continued deal activity .Expanding thought leadership and transaction flow in AI/blockchain; operational recovery at subsidiary.
Capital Markets ActivityQ2: Sequential improvements in brokerage and IB; convertibles, ATM issuance, variable rate transactions .~$10.5B raised; strong IB and brokerage revenues .Strengthening momentum, mix broadening.
Macro/Market BackdropQ2: “Most indices reached new highs,” driving client activity .Management notes markets “can change quickly”; focus on risk management .Cautious optimism; emphasis on risk controls.
Governance/OrganizationQ2: Enhanced governance; board composition outlined .Executive transition: Jimmy Baker to CEO (effective Jan 1, 2026); Andy Moore remains Chairman .Leadership continuity, defined succession.
Regulatory/ListingQ1: MD&A attributes IB declines partly to late SEC filings; Q3 filings not available .Nasdaq Staff Determination Letter; company to seek hearing; Q1 10‑Q filed Nov 18 .Progress (Q1 filed) but ongoing compliance risk.

Management Commentary

  • “Robust deal activity, including both equity and debt financings totaling approximately $10.5 billion in capital raised for clients, contributed to our strong performance this quarter…” — Jimmy Baker, Co‑CEO and Head of Capital Markets .
  • “Our upcoming Convergence Conference… focuses on the impact of AI and blockchain on the energy complex…” — Andy Moore, Chairman and Co‑CEO .
  • “Our first quarter 2025 Form 10‑Q filing marks an important step towards timely financial reporting and compliance with Nasdaq listing requirements.” — Bryant Riley, Chairman and Co‑CEO .

Q&A Highlights

  • No Q3 2025 earnings call transcript was located; thus, there are no Q&A highlights or clarifications to report for the period [List: earnings-call-transcript returned none for 2025].

Estimates Context

  • S&P Global consensus for RILY’s Q3 2025 EPS and revenue was not available, likely reflecting delayed filings and lack of a formal consolidated Q3 release. Values retrieved from S&P Global.
  • Reference point: Q1 2025 actual revenues were $186.1M (reported); consensus history for Q2–Q3 was not surfaced by S&P in our query. Values retrieved from S&P Global.
  • Implication: With limited consensus, formal “beat/miss” framing is not possible for Q3.

Key Takeaways for Investors

  • Subsidiary performance is a bright spot: B. Riley Securities’ Q3 showed strong sequential growth in IB and brokerage, substantial profitability, and capital return via dividend, all while remaining debt-free .
  • Consolidated visibility remains constrained: RILY filed Q1 2025 on Nov 18, but Q2/Q3 filings were still pending during this recap; the Nasdaq Staff Determination Letter highlights listing compliance risk until timely filings resume .
  • Strategic narrative: AI/blockchain themes, strong conferences, and risk management indicate focus on durable engagement; leadership transition for the subsidiary is clearly defined for 2026 .
  • Trading/near-term: Headlines around filing progress can move the stock; press noted a ~2% move on recent updates, but investors should separate subsidiary performance from consolidated reporting gaps .
  • Positioning: Emphasize event-driven and IB momentum at B. Riley Securities, while monitoring cadence of RILY filings and any Panel outcomes; avoid binary exposure to listing risk by sizing appropriately .
  • Watch items: Timing of Q2/Q3 filings, any consolidated guidance, progress on debt reduction and capital structure (company-level), and the impact of the Jan 1, 2026 corporate name change on brand/IR clarity .
  • Estimate recalibration: With consensus coverage thin, expect sell-side to update models post-filings; near-term estimate volatility is likely until consolidated quarterly data normalizes (Values retrieved from S&P Global).