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

B. Riley Financial (NASDAQ:RILY) issued its quarterly earnings data on Thursday. The asset manager reported $0.45 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $239.36 million during the quarter. B. Riley Financial had a negative return on equity of 330.83% and a net margin of 46.81%.

Here are the key takeaways from B. Riley Financial’s conference call:

• B. Riley reported a strong second quarter, with $18.5 million of net income attributable to common shareholders, $66 million of operating adjusted EBITDA, and revenue up $14 million year over year to $239 million.
• Capital markets activity improved as institutional accounts reactivated, senior producers joined or returned to the firm, and ATM fees more than doubled sequentially. Management said the investment-banking pipeline is meaningfully stronger than a year ago, particularly in AI infrastructure, power, and BDC capital raising.
• Debt reduction lowered total debt by $497 million from December 2024 to $1.277 billion at June 30, while net debt declined to approximately $285 million. Management said it expects to address more than $300 million of senior-note maturities due in September and December using a combination of cash, investments, asset sales, and other capital actions.
• The company faces substantial near-term liquidity demands, including the 2026 note maturities and subsidiary-facility paydowns, and management declined to rule out exchanges or capital raises. Preferred dividends also remain unpaid, with executives saying capital will currently be directed toward higher-return uses instead of restoring cash dividends.
• Results remain exposed to volatile investment marks, particularly Babcock & Wilcox and carried interest tied to SpaceX funds; second-quarter trading gains fell year over year because of a lower Babcock & Wilcox fair value. Targus also continued to report an operating loss, including a $6 million segment loss in the quarter.

B. Riley Financial Price Performance

Shares of B. Riley Financial stock traded down $0.15 during trading on Thursday, hitting $7.26. 591,842 shares of the stock traded hands, compared to its average volume of 509,288. B. Riley Financial has a 52 week low of $3.64 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 10.30. The firm’s fifty day moving average is $7.91 and its 200-day moving average is $7.92. The stock has a market cap of $269.56 million, a price-to-earnings ratio of 0.43 and a beta of 1.23.

Institutional Trading of B. Riley Financial

Institutional investors have recently made changes to their positions in the stock. Soviero Asset Management LP acquired a new stake in shares of B. Riley Financial in the 3rd quarter valued at about $2,211,000. Renaissance Technologies LLC bought a new position in B. Riley Financial during the 1st quarter worth approximately $1,832,000. Charles Schwab Investment Management Inc. grew its position in shares of B. Riley Financial by 25.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,123,179 shares of the asset manager’s stock worth $5,245,000 after acquiring an additional 224,858 shares in the last quarter. Federated Hermes Inc. grew its position in shares of B. Riley Financial by 82.2% in the 4th quarter. Federated Hermes Inc. now owns 329,222 shares of the asset manager’s stock worth $1,537,000 after acquiring an additional 148,554 shares in the last quarter. Finally, Jump Financial LLC bought a new stake in shares of B. Riley Financial in the 4th quarter valued at approximately $694,000. Hedge funds and other institutional investors own 50.20% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have weighed in on RILY shares. Wall Street Zen downgraded shares of B. Riley Financial from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. Weiss Ratings restated a “sell (d+)” rating on shares of B. Riley Financial in a research report on Monday, June 15th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock has an average rating of “Sell”.

About B. Riley Financial

B. Riley Financial, Inc, headquartered in Los Angeles, California, is a diversified financial services company offering a broad range of advisory and investment solutions to individual, corporate and institutional clients. Since its founding in 1997 by Bryant E. Riley, the firm has expanded its capabilities across two primary segments: financial solutions and operations solutions. Its financial solutions segment provides investment banking services, equity research, merger and acquisition advisory, corporate finance, restructuring advisory and private capital solutions.

In addition to traditional investment banking, B.