Executive Summary

Q4 2024 headline results were driven by discontinued operations, producing diluted EPS of $1.57–$2.22, while continuing operations posted a large loss of ($178)–($187) million due to impairments and investment/trading losses .
Operating Adjusted EBITDA from continuing operations fell to $12–$14 million, reflecting unusual legal/transaction/restructuring expenses; Adjusted EBITDA was negative at ($49.5)–($47.5) million .
Balance sheet actions improved liquidity: total debt declined to $1.78B; net debt fell to ~$991M (down $221M vs Q3), and the 6.375% notes due 2025 were fully redeemed on Feb 28, 2025; a new $160M Oaktree facility retired the Nomura loan and funded JOANN liquidation participation .
Management called Q4 a “demarcation line,” emphasized pivot back to core businesses and stated “we do believe the worst is behind us,” ending the take-private proposal and highlighting catalysts from GA Group’s JOANN liquidation and selective asset sales (e.g., Atlantic Coast Recycling) .

What Went Well and What Went Wrong

What Went Well

Debt reduction and liability management: reduced net debt to ~$991M (down $221M QoQ), retired the Nomura facility via a $160M Oaktree loan, and redeemed 2025 notes; management cited >$700M debt reduction since Jan 2024 .
Strategic monetization: divested majority interest in GA Group (retained 44% stake), enabled winning the JOANN liquidation (~$2B inventory) and targeted short-duration investment returns; announced sale of Atlantic Coast Recycling for ~$70M with an expected ~$30M gain in Q1 2025 .
Management tone and focus: “demarcation line” from principal losses, pivot to core businesses (B. Riley Securities strong December; Wealth stable; Advisory record year), and withdrawal of take-private proposal to let shareholders participate in recovery .

What Went Wrong

Continuing ops loss and non-GAAP headwinds: Q4 continuing ops loss of ($178)–($187)M, with impairment charges of $73–$79M and $49M of trading/investment losses; Adjusted EBITDA was negative .
Elevated unusual expenses: legal, transaction and restructuring fees weighed on results; management expects these to decline through 2025, but near-term earnings quality remains pressured .
Estimates context unavailable: Wall Street consensus (S&P Global) could not be retrieved, limiting formal beat/miss assessment; prior quarters also saw filing delays and 12b-25 notices, though Q3 10-Q was later filed to regain compliance .

Financial Results

Note: Q4 figures are preliminary, unaudited ranges.

Metric (USD)	Q2 2024	Q3 2024	Q4 2024
Diluted EPS ($)	($14.00)–($15.00)	Not disclosed (12b-25; no detailed metrics)	$1.57–$2.22
Net income (loss) ($mm)	($435)–($475)	Not disclosed (12b-25; no detailed metrics)	$48–$68 (available to common shareholders)
Loss from continuing operations ($mm)	Not disclosed	Not disclosed	($178)–($187)
Adjusted EBITDA ($mm)	($315.2)–($355.2)	Not disclosed	($49.5)–($47.5)
Operating Adjusted EBITDA ($mm)	$50–$55	Not disclosed	$12–$14
Cash & equivalents ($mm)	$237	Not disclosed	$257 (incl. $101M restricted)
Total debt ($mm)	~$2,160	Not disclosed	~$1,780
Net debt (total debt net of cash/investments) ($mm)	Not disclosed	~$1,212 (computed: Q4 $991 + $221 decline vs Q3)	~$991

Segment/KPIs (Q4-focused):

B. Riley Securities: “strong December,” management targets team growth and highlighted historical operating EBITDA capability ($72–$84M referenced at 2023 Investor Day) .
GA Group (JV): B. Riley holds ~~44% stake; JOANN liquidation engagement (~~$2B inventory) expected over ~12 weeks; B. Riley invested ~$30–$35M through JV lending/investment .
Wealth Management: post-Stifel transaction plan retains ~170 independent advisers, 81 W-2 advisers, ~90 tax professionals; AUM near ~$15B; business remained profitable .
Advisory Services (GlassRatner): record year in 2024 across bankruptcy/turnaround, forensic, litigation support, and due diligence .
Weighted avg diluted shares: ~30.5M .

Guidance Changes

No formal quantitative guidance ranges were issued for revenue, margins, OpEx, OI&E, or tax rate. Management indicated unusual costs should decline through 2025 and reiterated focus on core businesses.

Metric	Period	Previous Guidance	Current Guidance	Change
Common dividend	From Q2 2024 onward	Paid historically	Suspended to prioritize deleveraging	Lowered
Filing cadence	FY 2024 10-K deadline	N/A	10-K due Mar 17, 2025; may file 12b-25 for 15-day extension if needed	Clarified
Listing rule compliance	Q3 2024 filing status	Delinquent	Q3 10-Q filed; expects to regain compliance with Nasdaq Rule 5250(c)(1)	Improved

Earnings Call Themes & Trends

Topic	Q2 2024 Mentions	Q3 2024 Mentions	Q4 2024 Current Period	Trend
Debt reduction & liquidity	Outside target leverage; suspend dividend; total debt ~$2.16B	Late filing notice (12b-25) ; later filed Q3 10-Q and aims to regain compliance	Net debt down to ~$991M; retired Nomura via $160M Oaktree facility; redeemed 2025 notes	Improving
Asset monetization	Review Great American; FRG/Vintage markdowns; impairments	Filing updates only	Sold majority of GA businesses (retain 44%); JOANN liquidation (~$2B inventory); Atlantic Coast Recycling sale ~$70M and expected ~$30M gain in Q1’25	Accelerating
Regulatory/legal	SEC subpoenas related to Brian Kahn; cooperating	Late filings and compliance plan	Compliance regained post Q3 10-Q; 10-K timing outlined	Progressing
Core operating focus	Emphasis on Securities, Wealth, Advisory; market activity improving	N/A	“Demarcation line” pivot back to core; BRS strong December; Advisory record year; Wealth profitable	Positive
Strategic structure	N/A	N/A	Post-period carve-out: BRS independently quoted (OTC: BRLY), BRF retains ~89%	Unlocking transparency/value

Management Commentary

“This quarter reflects a demarcation line from managing the losses in our principal investments to moving forward with our core businesses as the primary focus.” — Bryant Riley, Chairman & Co-CEO .
“We do believe the worst is behind us and remain confident in the future based on the underlying strength of our core businesses, including B. Riley Securities.” .
“We established a joint venture with Oaktree… sold a majority stake… received approximately $203 million in cash plus ownership interest amounting to approximately 44%… [and] successfully bid… to manage the liquidation of all 800-plus JOANN stores… approximately $2 billion in retail inventory.” .
“Just this afternoon, we announced the sale and close of Atlantic Coast Recycling for approximately $70 million in cash proceeds… expect to record a gain of about $30 million in the first quarter.” .
“I no longer propose to take B. Riley Financial private… I determined it was not the best course of action given other priorities.” .

Q&A Highlights

Liquidity and balance sheet strategy: Management will continue selective monetizations (e.g., Atlantic Coast Recycling) while investing in core operations; focus on aligning maturities of “baby bonds” .
Debt repurchase constraints: Under the senior facility, B. Riley currently cannot buy back bonds in the open market .
Wealth Management scale post-transaction: AUM moved from ~$24B pre-transaction to ~$15B currently; mix retains independent/W-2 advisers and tax professionals, with profitable operations .
Sum-of-the-parts inquiry: Management avoided specific valuation/multiples but emphasized building EBITDA across steady Communications, record Advisory, and recovering BRS; reiterated pivot to operating focus .

Estimates Context

S&P Global consensus estimates (EPS and revenue) for Q4 2024 were unavailable at time of analysis due to data access limitations; therefore, formal beat/miss versus Wall Street consensus cannot be assessed at this time [GetEstimates error].
Investors should note that Q4 diluted EPS was positive solely due to discontinued operations ($236–$247M), while continuing operations posted a significant loss, which would likely impact forward estimate revisions once audited results are filed .

Key Takeaways for Investors

Headline EPS strength in Q4 stemmed from discontinued ops; continuing ops remain pressured by impairments and investment/trading losses—watch for normalization as unusual expenses decline in 2025 .
Balance sheet actions are material: new $160M Oaktree facility, 2025 notes redeemed, and net debt down ~$221M QoQ to ~$991M—supports liquidity and strategic flexibility .
GA Group JV and JOANN liquidation opportunity are near-term catalysts; selective asset sales (e.g., Atlantic Coast Recycling) add cash and potential gains .
Wealth Management resized and profitable with ~$15B AUM; B. Riley Securities reported strong December and plans team growth—key operating engines for recovery .
Filing cadence improving (Q3 10-Q filed; 10-K timeline outlined) and take-private proposal withdrawn—reduces overhang and clarifies strategic direction .
Without S&P Global consensus data, traders should focus on qualitative catalysts (debt reduction, monetizations, BRS/Advisory trajectory) and upcoming audited filings for clearer estimate recalibration .
Near-term trading: stock likely reacts to incremental monetizations (JOANN progress, additional asset sales) and any updates on baby bond maturities; medium-term thesis depends on sustained operating EBITDA recovery in core businesses .

Additional Data Details (Q4 Reconciliation Highlights)

Impairment of goodwill/tradenames: $73–$79M; interest expense: ~$30.6M; loss on extinguishment of loans: ~$12.2M; realized/unrealized investment losses: ~$42.5M; trading loss: ~$6.8M; fair value adjustments on loans: ~$7.5M .
Weighted average diluted shares: ~30.5M .
Cash breakdown: $156M cash & equivalents plus $101M restricted (reserved for 2025 note redemption, now completed) .

Bold surprises:

Positive diluted EPS despite large continuing ops loss due to $236–$247M in discontinued operations .
Rapid liability management: full redemption of 2025 notes and retirement of Nomura facility within days of preliminary results .

B. Riley Financial, Inc. (RILY)·Q4 2024 Earnings Summary