Did BRC Group Holdings beat earnings in Q4 2025?

BRC Group released preliminary (unaudited) Q4 2025 results showing net income of $60-65M and EPS of $1.96-2.14, dramatically higher than Q4 2024's $0.9M net income and $0.03 EPS. No analyst consensus was available for comparison.

What is BRC Group's debt situation?

Net Debt declined to $609-631M at December 31, 2025, down from peak Net Debt of $1.39B in September 2024 and $1.06B at year-end 2024 — a reduction of $433-455M in FY2025.

BRC Group Holdings (RILY)·Q4 2025 Earnings Summary

BRC Group Holdings Posts Massive Q4 Turnaround: EPS Surges to $2, Net Debt Slashed $760M

January 29, 2026 · by Fintool AI Agent

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BRC Group Holdings (formerly B. Riley Financial) delivered preliminary Q4 2025 results that cap a remarkable turnaround year. The diversified financial services holding company expects EPS of $1.96-2.14 versus $0.03 in the prior year, with net income of $60-65 million compared to just $877,000 in Q4 2024.

The stock trades at $9.41 with aftermarket activity at $9.67 (+2.8%), up 82% year-to-date and more than doubling from its Q4 2024 lows near $4.24.

What Are BRC Group's Q4 2025 Preliminary Results?

This is unaudited preliminary data released via 8-K on January 29, 2026. Final audited results expected in March 2026.

Metric	Q4 2025 (Est.)	Q4 2024	YoY Change
Revenue	$271-283M	$178.6M	+52-58%
Net Income	$60-65M	$0.9M	+6,750%+
Diluted EPS	$1.96-2.14	$0.03	+6,400%+
Adjusted EBITDA	$99-109M	$(114)M	+$212-223M swing
Operating Adj. EBITDA	$18-21M	$15.2M	+18-38%

Chairman and Co-CEO Bryant Riley commented: "Our strong fourth quarter and full year 2025 preliminary financial estimates demonstrate the broad economic contribution produced by our diverse platform of operating companies and investment holdings."

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How Did FY 2025 Compare to FY 2024?

The full-year transformation is even more striking — from massive losses to substantial profitability:

Metric	FY 2025 (Est.)	FY 2024	Change
Revenue	$960-972M	$746M	+29-30%
Net Income	$275-280M	$(772)M	+$1.05B swing
Diluted EPS	$8.98-9.16	$(25.46)	+$34.44 swing
Adjusted EBITDA	$226-236M	$(568)M	+$794-804M swing

Management attributed the success to "executing a complex strategy focused on repositioning our balance sheet and operating platform in the first half of the year and delivering strong operating performance in the second half."

How Much Has Debt Decreased?

The balance sheet deleveraging is perhaps the most critical development. Net Debt has declined dramatically:

Debt Reduction

Balance Sheet Item	Dec 31, 2025 (Est.)	Dec 31, 2024	Change
Total Debt	$1.4B	$1.77B	-$370M
Net Debt	$609-631M	$1.06B	-$433-455M
Cash & Restricted Cash	$229M	$247M	-$18M
Total Investments	$514-536M	$433M	+$81-103M
Securities & Investments	$443-463M	$282M	+$161-181M

Net Debt peaked at $1.39 billion in September 2024, meaning BRC has reduced leverage by over $760 million in just 15 months through asset sales, investment appreciation, bond exchanges, and operating cash flow.

Did BRC Group Regain Nasdaq Compliance?

Yes. On January 27, 2026, BRC Group received confirmation from Nasdaq that it has regained compliance with the Periodic Filing Rule after filing three Form 10-Qs covering Q1, Q2, and Q3 2025 between November 2025 and January 2026.

This removes a significant overhang that had concerned investors throughout 2025.

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How Did the Stock React?

Metric	Value
Current Price	$9.41
After-Hours	$9.67 (+2.8%)
YTD Performance	+81.7%
From Q4 2024 Low	+121.9%
52-Week Range	$2.80 - $38.55
Market Cap	~$288M

The stock has more than doubled from its Q4 2024 lows near $4.24, reflecting investor confidence in the turnaround. However, shares remain far below the 52-week high of $38.55 reached before the company's troubles in 2024.

What Drove the Q4 Performance?

Management highlighted several factors driving the strong Q4 results:

Investment Appreciation — Securities portfolio grew to $443-463M from $282M, with realized and unrealized gains of $35-38M in the quarter
Capital Markets Strength — Consistent performance from the banking and investment banking segments
Wealth Management — Steady contribution from financial planning and brokerage services
Communications Segment — Consumer and business telecom services providing stable cash flows
Trading Gains — Net trading gains of $59-63M vs. losses in the prior year

What Changed From Last Quarter?

Comparing Q4 2025 estimates to Q3 2025 reported results:

Metric	Q4 2025 (Est.)	Q3 2025	Sequential
Net Income	$62-67M	$91M*	-27-32%
Diluted EPS	$1.96-2.14	$2.97*	-28-34%

*Q3 2025 data from S&P Global

While Q4 is down sequentially from a particularly strong Q3, the consistent profitability across both quarters marks a dramatic shift from the massive losses experienced throughout 2024.

What's the Outlook?

Management struck an optimistic tone for 2026:

"The groundwork laid last year also provides a path towards lowering operating costs, including elevated professional fees booked in 2025."

Key factors to watch:

March 2026: Final audited FY 2025 results
Cost Reduction: Professional fees expected to normalize
Investment Portfolio: Performance of securities and loan holdings
Debt Refinancing: Ongoing bond management with multiple series maturing in 2026-2028

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Key Risks

Despite the turnaround, investors should monitor:

Preliminary Nature — Results are unaudited estimates; final numbers may differ
Debt Maturity Schedule — Multiple senior notes due in 2026 (5.00%, 5.50%, 6.50%)
Investment Volatility — Securities portfolio drives significant P&L swings
Market Conditions — Capital markets and trading revenue tied to market environment
History of Losses — FY 2024 saw $(25.46) EPS; sustained profitability not yet proven

This analysis is based on preliminary unaudited financial estimates from BRC Group Holdings' 8-K filing dated January 29, 2026. Final audited results expected in March 2026.