Breaking Down B. Riley Financial, Inc. (RILY) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and seeking to understand the financial health of B. Riley Financial, Inc. (RILY)? Recent data paints a complex picture. While preliminary estimates for Q4 2024 show a net income available to common shareholders in the range of $48 million to $68 million, this includes a significant boost from discontinued operations. What does this mean for the true performance of their core business, especially considering the reported net loss from continuing operations ranging from $178 million to $187 million? With strategic shifts and asset sales in play, let's delve into the key insights that can help you make informed decisions.

B. Riley Financial, Inc. (RILY) Revenue Analysis

B. Riley Financial, Inc. (RILY) operates a diversified financial services platform. Understanding the sources of its revenue and how they have changed over time is crucial for investors. Here's a breakdown of key aspects of their revenue streams:

Primary Revenue Sources:

B. Riley Financial, Inc. generates revenue from a variety of sources, including:

• Investment Banking: Fees earned from providing underwriting, advisory, and restructuring services.
• Financial Consulting: Revenue from forensic accounting, litigation support, appraisal and valuation, and restructuring services.
• Principal Transactions: Gains and losses from the company's own trading and investment activities.
• Wealth Management: Fees generated from managing client assets and providing financial planning services.
• Auction and Liquidation Services: Commissions and fees earned from auctioning and liquidating assets.
• Communications: Revenue from providing telecommunications services and solutions.
• Brands: Revenue from licensing and retail operations of acquired brands.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and its ability to expand its business. While specific recent percentage increases/decreases fluctuate based on market conditions and strategic decisions, monitoring these trends is essential. For instance, a significant increase in investment banking revenue might indicate a strong market for IPOs and M&A activity, while a decline could signal economic headwinds.

Contribution of Different Business Segments to Overall Revenue:

The contribution of each business segment to B. Riley Financial, Inc.'s overall revenue can vary from year to year. Here's an example of how different segments might contribute:

These percentages are illustrative and highlight the importance of diversification in B. Riley Financial, Inc.'s revenue model. Changes in these contributions can signal shifts in the company's strategic focus or the impact of market trends on specific segments.

Analysis of Significant Changes in Revenue Streams:

Significant changes in B. Riley Financial, Inc.'s revenue streams often stem from strategic acquisitions, divestitures, or shifts in market demand. For example:

• An acquisition of a new financial consulting firm could boost the contribution of that segment.
• A decision to reduce exposure to principal transactions could decrease revenue from that source but potentially reduce risk.
• Increased demand for restructuring services during an economic downturn could drive revenue growth in the financial consulting segment.

Keeping an eye on these changes and understanding the underlying drivers is crucial for assessing the long-term financial health and prospects of B. Riley Financial, Inc.

To gain more insight into the values and objectives that guide B. Riley Financial, Inc., you can explore their Mission Statement, Vision, & Core Values of B. Riley Financial, Inc. (RILY).

B. Riley Financial, Inc. (RILY) Profitability Metrics

Analyzing B. Riley Financial, Inc. (RILY)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health. Trends in these margins over time can reveal the company’s ability to manage costs and generate profits. Comparing these profitability ratios with industry averages provides insights into B. Riley's competitive positioning and performance efficiency.

Here's a look at B. Riley Financial's profitability metrics:

• Gross Profit: Gross profit is the revenue a company retains after deducting the direct costs associated with producing its goods and services.
• Operating Profit: Operating profit is the profit earned from a company's normal business operations, before taking into account interest and taxes.
• Net Profit: Net profit is a company's profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

For the fiscal year 2024, investors and analysts will be closely watching these key figures to gauge B. Riley Financial's financial efficacy. Let's explore some historical data and ratios to provide context.

In 2023, B. Riley Financial reported a net loss of $254.6 million, or $8.51 per share, on total revenues of $1.3 billion. This contrasts with a net loss of $22.3 million, or $0.77 per share, on total revenues of $1.5 billion in the previous year. It’s important to note that 2022 included an after-tax loss of $68.4 million from the company’s equity investment in Franchise Group, Inc.

Here's a table summarizing B. Riley Financial's recent financial performance:

Additionally, B. Riley's strategic moves, such as the acquisition of 25% of its stock by Bryant Riley and investment funds managed by a B. Riley affiliate, have been noted as part of its broader financial strategy.

Analyzing operational efficiency involves examining cost management and gross margin trends. Effective cost management helps improve profitability, while gross margin trends indicate the company's ability to control production costs and pricing strategies. Investors often look at these trends to evaluate B. Riley Financial's ability to maintain and grow its profitability over time. You might also be interested in Breaking Down B. Riley Financial, Inc. (RILY) Financial Health: Key Insights for Investors.

B. Riley Financial, Inc. (RILY) Debt vs. Equity Structure

Understanding how B. Riley Financial, Inc. (RILY) manages its debt and equity is crucial for investors. This section breaks down the company's debt levels, debt-to-equity ratio, and recent financing activities to provide a clear picture of its financial strategy.

As of December 31, 2024, B. Riley held $257 million in cash and restricted cash, while its total debt stood at $1.78 billion. Notably, the company has reduced its debt by over $700 million since January 2024 and has retired its Nomura facility.

Here’s a closer look at the components of B. Riley's debt:

• Short-Term Debt & Capital Lease Obligation (September 2024): $13.68 million
• Long-Term Debt & Capital Lease Obligation (September 2024): $2,146.47 million

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. For B. Riley Financial, the debt-to-equity ratio as of September 2024 was -4.34. It's important to note that during the past 13 years, the highest the company’s debt-to-equity ratio has been was 9.99, and the lowest was -10.35, with a median of 2.12.

Recent activity shows B. Riley is actively managing its debt through various strategic and financing initiatives:

• In February 2025, B. Riley secured a new $160 million senior secured debt facility from Oaktree Capital Management. Approximately $118 million of this was used to retire the Nomura Senior Secured Credit Agreement.
• In March 2025, the company announced a private bond exchange agreement expected to reduce total outstanding debt by approximately $35 million. This involved exchanging approximately $123 million in Senior Notes for $88 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028.
• In April 2025, B. Riley announced another private bond exchange expected to reduce debt by approximately $12 million.

These actions reflect a proactive approach to managing liabilities and enhancing the company's financial flexibility. B. Riley intends to use funds from refinancing and asset sales to further reduce its debt. Specifically, the company aimed to reduce the debt outstanding under its Nomura Senior Secured Credit Agreement to approximately $125 million by the end of 2024. They also planned to use cash on hand and proceeds from other asset sales to repay all 2025 maturities.

Despite these efforts, B. Riley has faced challenges. In March 2025, the company reported a net loss from continuing operations of $178 million to $187 million, impacted by impairment charges and trading losses. B. Riley also received a delinquency notification from Nasdaq in April 2025 for failing to timely file its 2024 Full Year Report (Form 10-K).

Balancing debt and equity is an ongoing effort for B. Riley. While the company has taken steps to reduce its debt and address near-term liabilities, it continues to navigate a complex financial landscape. The company's strategy includes monetizing non-core assets and focusing on core businesses like B. Riley Securities, which saw a strong performance in December 2024.

Read more about B. Riley Financial, Inc. (RILY) Financial Health: Breaking Down B. Riley Financial, Inc. (RILY) Financial Health: Key Insights for Investors

B. Riley Financial, Inc. (RILY) Liquidity and Solvency

Assessing B. Riley Financial, Inc. (RILY)'s financial health involves a close examination of its liquidity and solvency, which reveals its ability to meet short-term and long-term obligations. Liquidity measures, such as current and quick ratios, provide insights into the company's capacity to cover its immediate liabilities with its most liquid assets.

For the fiscal year 2024, B. Riley Financial, Inc. (RILY) reported the following liquidity positions:

• The current ratio stood at 1.3x, indicating that the company's current assets are 1.3 times its current liabilities.
• The quick ratio, which excludes inventory from current assets, was 0.8x, suggesting a slightly more constrained immediate liquidity position.

Working capital trends offer a view of the company's operational efficiency and short-term financial health. Monitoring these trends helps in understanding whether B. Riley Financial, Inc. (RILY) is effectively managing its current assets and liabilities to support its operations.

An overview of B. Riley Financial, Inc. (RILY)'s cash flow statements for the fiscal year 2024 reveals the following trends:

• Operating cash flow: $45 million, reflecting the cash generated from its core business activities.
• Investing cash flow: -$25 million, indicating investments in assets for future growth.
• Financing cash flow: $10 million, showing the net effect of debt, equity, and dividends on the company's cash position.

A comprehensive look at these figures suggests that B. Riley Financial, Inc. (RILY) maintains a reasonable liquidity position. However, investors should remain vigilant about trends in working capital and cash flows to ensure the company's continued financial stability.

For more insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of B. Riley Financial, Inc. (RILY).

B. Riley Financial, Inc. (RILY) Valuation Analysis

Assessing whether B. Riley Financial, Inc. (RILY) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects using the latest available data.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a fundamental valuation metric that compares a company's stock price to its earnings per share. As of the end of the 2024 fiscal year, B. Riley Financial's P/E ratio needs to be compared against its historical P/E ratio and the industry average to determine if the stock is trading at a premium or discount. A high P/E ratio might suggest overvaluation, while a low P/E ratio could indicate undervaluation, relative to its peers.

Price-to-Book (P/B) Ratio: The P/B ratio measures the market's valuation of a company relative to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued because it means that the investor is paying less for each dollar of net asset value. To determine if B. Riley Financial is undervalued, its P/B ratio for 2024 should be compared to its historical values and those of its competitors.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess the overall value of a company compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It is particularly useful when comparing companies with different capital structures. The EV/EBITDA ratio for B. Riley Financial for the fiscal year 2024 needs to be analyzed in the context of industry benchmarks to evaluate potential overvaluation or undervaluation.

Stock Price Trends: Examining the stock price trends over the past 12 months (or longer) provides insights into market sentiment and investor confidence. Significant price appreciation might suggest that the stock is becoming overvalued, while a declining price could indicate undervaluation. For B. Riley Financial, analyzing the stock's performance throughout 2024 and early 2025 helps to gauge its current valuation relative to its past performance.

Dividend Yield and Payout Ratios: If B. Riley Financial pays dividends, the dividend yield (annual dividend per share divided by the stock price) and payout ratio (percentage of earnings paid out as dividends) are important valuation considerations. A high dividend yield might attract investors, potentially supporting the stock price. The dividend yield and payout ratio for 2024 should be compared to previous years and industry averages to assess the sustainability and attractiveness of the dividend.

Analyst Consensus: Analyst ratings and price targets reflect the collective opinion of financial experts regarding a stock's valuation. A consensus rating of 'buy' suggests that analysts believe the stock is undervalued, while a 'sell' rating indicates potential overvaluation. Keeping track of analyst opinions and price targets for B. Riley Financial provides an external validation of the company's valuation.

To make informed decisions, consider this information in the context of B. Riley Financial's Mission Statement, Vision, & Core Values of B. Riley Financial, Inc. (RILY).

B. Riley Financial, Inc. (RILY) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of B. Riley Financial, Inc. (RILY). These risks span across industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in the company's reports.

Here's an overview of key risks:

• Industry Competition: The financial services industry is intensely competitive. B. Riley faces competition from larger, more established firms, as well as from new entrants and fintech companies offering innovative financial solutions. Increased competition could pressure fees and reduce market share.
• Regulatory Changes: Financial services are heavily regulated, and changes in laws and regulations can significantly affect B. Riley's operations and profitability. This includes regulations related to capital requirements, lending practices, and investment activities.
• Market Conditions: Economic downturns, changes in interest rates, and market volatility can all impact B. Riley's financial performance. For example, a decrease in M&A activity would negatively affect their investment banking revenues.

Operational, financial, and strategic risks, as detailed in recent earnings reports and filings, include:

• Credit Risk: As a lender and investor, B. Riley faces credit risk from borrowers and counterparties who may default on their obligations. This risk is particularly relevant in challenging economic environments.
• Liquidity Risk: Maintaining sufficient liquidity to meet financial obligations is crucial. Market disruptions or unexpected cash demands could strain liquidity.
• Investment Risk: B. Riley's investment portfolio is subject to market fluctuations, which can impact earnings and capital.
• Strategic Risks: Strategic risks may involve unsuccessful acquisitions, failure to integrate acquired businesses, or inability to execute on strategic initiatives.

Mitigation strategies and plans employed by B. Riley Financial, Inc. (RILY) to address these risks typically include:

• Diversification: Diversifying revenue streams and business lines can reduce reliance on any single market or activity.
• Risk Management Policies: Implementing robust risk management policies and procedures to identify, assess, and mitigate potential risks.
• Capital Management: Maintaining adequate capital levels to absorb potential losses and support business activities.
• Compliance Programs: Ensuring compliance with all applicable laws and regulations through comprehensive compliance programs.

These strategies are designed to protect the company's financial health and ensure its long-term sustainability. Investors should monitor how effectively B. Riley manages these risks, as it directly impacts the company's performance and valuation.

More insights into B. Riley Financial, Inc. (RILY) financial health can be found at: Breaking Down B. Riley Financial, Inc. (RILY) Financial Health: Key Insights for Investors

B. Riley Financial, Inc. (RILY) Growth Opportunities

B. Riley Financial, Inc. (RILY) showcases potential for future growth through several key drivers. These encompass strategic acquisitions, market expansions, and various initiatives aimed at enhancing shareholder value. Understanding these elements is crucial for investors assessing the company's long-term prospects. For more insights, see: Breaking Down B. Riley Financial, Inc. (RILY) Financial Health: Key Insights for Investors

Analysis of key growth drivers:

• Acquisitions: B. Riley has historically grown through strategic acquisitions, expanding its service offerings and market presence.
• Market Expansion: Identifying and capitalizing on opportunities in new and existing markets is vital for sustained growth.
• Service Diversification: B. Riley operates across diverse segments, including investment banking, wealth management, and financial consulting. Diversification reduces risk and enhances growth potential.

Future revenue growth projections and earnings estimates are subject to market conditions and the successful execution of strategic initiatives. Investors should refer to the company's official statements and financial reports for the most accurate and up-to-date information.

Strategic initiatives and partnerships that may drive future growth:

• Strategic Partnerships: Collaborations with other firms can extend B. Riley's reach and service capabilities.
• Technological Investments: Embracing technological advancements enhances operational efficiency and service delivery.
• Shareholder Value Initiatives: Measures such as dividend payments and share repurchase programs can attract and retain investors. In 2023, B. Riley repurchased approximately $48.9 million of its common stock and paid out roughly $79.3 million in dividends.

B. Riley's competitive advantages that position the company for growth:

• Diversified Business Model: A wide array of services provides stability and multiple revenue streams.
• Experienced Management Team: Leadership plays a crucial role in guiding the company through various market conditions.
• Strong Brand Reputation: A well-established reputation enhances client trust and attracts new business.

To give a clearer picture, here is an overview of B. Riley Financial's financial performance:

These figures highlight the fluctuations in B. Riley's financial performance over the past three years, underscoring the importance of monitoring such trends for informed investment decisions.