B Riley Financial AI Stock Analysis
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B Riley Financial (RILY) AI Stock Analysis
B Riley Financial
(NASDAQ:RILY)
The score is held down primarily by balance-sheet weakness (negative equity and high leverage risk) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by very low P/E valuation and a mixed-but-improving earnings-call outlook that emphasized debt reduction, liquidity actions, and planned EBITDA/cash-flow uplift from the Sangoma transaction.
B Riley Financial (RILY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $156.38M
- Dividend Yield
- ―
- Average Volume (3M)
- 709.56K
- Price to Earnings (P/E)
- 0.9
- Beta (1Y)
- 1.42
- Revenue Growth
- -0.11%
- EPS Growth
- -19.75%
- Country
- US
- Employees
- 1,380
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Financial - Conglomerates
B Riley Financial Business Overview & Revenue Model
Company Description
BRC Group Holdings is a diversified holding company that operates through several segments, including financial services, telecom, and retail. Its core financial services platform provides investment banking, brokerage, wealth management, asset manag...
B Riley Financial Earnings Call Summary
The call presented strong strategic execution, including debt reduction, the GA Group sale, progress toward the Sangoma acquisition, Communications income growth, lower operating expenses and continued investment in the platform. However, these positives were offset by a substantial third-quarter loss driven by Babcock & Wilcox mark-to-market losses, weaker Capital Markets activity, lower fee revenue, Targus challenges and continuing debt and professional-fee obligations. Overall, the positive strategic developments and operating improvements were balanced by significant reported financial volatility.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management said operating adjusted EBITDA is on plan for the year, the Communications Business Group continues to track ahead of budget for the full year, and Sangoma is targeted to close in January 2027, or early next year subject to customary closing conditions, adding $35 million to $40 million of EBITDA and bringing the company into $75 million to $80 million of additional cash flows in '27 and '28, including synergies. The company expects fourth-quarter excess professional fees to come down roughly about that same number, $2 million, and is ranging between $5 million and $10 million of expected savings from accounting and legal costs in 2027, with an 80% likelihood to get those down; management is hoping it can do better than that in that $5 million to $10 million range. Cash flow requirements include the $164 million redemption of the RILYG senior notes due December 31 and equity for the Sangoma transaction, supported by up to $50 million of additional cash flow from balance sheet fundings, including SpaceX shares.
B Riley Financial Financial Statement Overview
Summary
Income statement and cash flow show a rebound (TTM positive net margin and strong operating/free cash flow), but results are highly volatile with declining TTM revenue and sharp swings year-to-year. The biggest drag is balance-sheet stress: negative stockholders’ equity and historically elevated leverage reduce financial flexibility and raise equity-holder risk.
Income Statement
52NeutralBalance Sheet
22NegativeCash Flow
47Neutral| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.03B | 1.16B | 1.45B | 993.82M | 1.55B |
| Gross Profit | 622.81M | 669.84M | 716.43M | 913.22M | 748.03M | 1.42B |
| EBITDA | 287.04M | 357.47M | -700.02M | 6.57M | -153.37M | 733.09M |
| Net Income | 82.06M | 307.42M | -764.27M | -99.91M | -159.83M | 445.05M |
Balance Sheet | ||||||
| Total Assets | 1.57B | 1.71B | 1.78B | 6.08B | 6.11B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 144.07M | 226.60M | 154.88M | 222.69M | 268.62M | 278.93M |
| Total Debt | 1.18B | 1.47B | 1.84B | 2.45B | 2.55B | 2.10B |
| Total Liabilities | 1.62B | 1.83B | 2.24B | 5.72B | 5.43B | 4.80B |
| Stockholders Equity | -44.57M | -171.53M | -488.18M | 291.12M | 446.51M | 661.27M |
Cash Flow | ||||||
| Free Cash Flow | -133.63M | -71.03M | 255.60M | 16.79M | 2.73M | 50.22M |
| Operating Cash Flow | -128.72M | -59.71M | 263.55M | 24.50M | 6.65M | 50.89M |
| Investing Cash Flow | 389.45M | 311.48M | 440.53M | 301.17M | -32.29M | -956.53M |
| Financing Cash Flow | -18.20M | -279.37M | -671.95M | -365.92M | 17.64M | 1.08B |
B Riley Financial Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RILY, the sentiment is Negative. The current price of 3.89 is below the 20-day moving average (MA) of 4.09, below the 50-day MA of 5.08, and below the 200-day MA of 7.09, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RILY.
B Riley Financial Risk Analysis
B Riley Financial disclosed 75 risk factors in its most recent earnings report. B Riley Financial reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksB Riley Financial Peers Comparison
Overall Rating
TREE75Outperform
OVBC71Outperform
INBK66Neutral
MSDL63Neutral- RILY49Neutral
SAMG49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TREE | 75Outperform | $496.46M | 5.03 | 34.02% | ― | 23.11% | 603.54% |
| OVBC | 71Outperform | $226.88M | 16.08 | 8.46% | 1.98% | 8.40% | 2.21% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| INBK | 66Neutral | $223.49M | 14.93 | 4.17% | 0.93% | 7.39% | ― |
| MSDL | 63Neutral | $1.17B | 294.09 | 4.40% | 13.27% | -27.94% | -97.03% |
| RILY | 49Neutral | $147.13M | 0.89 | 9699.29% | ― | -0.11% | -19.75% |
| SAMG | 49Neutral | $131.95M | 93.47 | 1.98% | 7.62% | 1.17% | -83.06% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RILY | B. Riley Financial | 3.89 | -1.23 | -24.02% | |
| OVBC | Ohio Valley Banc | 49.38 | 14.41 | 41.21% | |
| TREE | Lendingtree Inc | 36.84 | -13.85 | -27.32% | |
| INBK | First Internet Bancorp | 25.68 | 7.62 | 42.18% | |
| SAMG | SilverCrest Asset Management | 11.02 | -1.99 | -15.32% | |
| MSDL | Morgan Stanley Direct Lending Fund | 13.94 | -0.84 | -5.66% |
B Riley Financial Corporate Events
B Riley Financial Completes Great American Sale and Debt Financing
NeutralOn November 3, 2026, BRF Finance Co. sold its remaining membership interests in Great American to affiliates of Oaktree Capital Management for $62.25 million in cash. Approximately $51.7 million of the proceeds was used to repay part of BR Financial...
B Riley Financial streamlines securities unit via merger
NeutralOn October 22, 2026, BRC Group Holdings completed a short-form merger in Delaware in which its indirect subsidiary BRSH Merger Sub LLC merged into B. Riley Securities Holdings, Inc., with BRSH surviving as a wholly owned entity. At the effective time...
B Riley Financial Announces Sangoma Technologies Acquisition Agreement
PositiveOn September 28, 2026, BRC Group Holdings agreed to acquire Sangoma Technologies Corporation, a Toronto-listed and Nasdaq-listed provider of cloud, hybrid and on‑premises communications solutions, valuing Sangoma at about $204 million. Sangoma, which...
B Riley Extends Co-CEO Bryant Riley Incentive Compensation
PositiveOn August 25, 2026, BRC Group Holdings, Inc.’s Compensation Committee approved an amendment to the employment agreement of Co-Chief Executive Officer Bryant R. Riley, extending his compensation through the company’s incentive program until the earlie...
B Riley Modifies Credit Agreement to Boost Financial Flexibility
PositiveOn August 7, 2026, BRC Group Holdings, Inc. and its subsidiary BR Financial Holdings, LLC amended their existing credit agreement with a lender group led by Oaktree Fund Administration, LLC, revising the borrowing base by removing certain assets whil...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 06, 2026