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B Riley Financial
(NASDAQ:RILY)
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Rating:55Neutral
Price Target:
$7.50
▲(9.01% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by balance-sheet durability concerns (recent negative equity/high leverage signals) and volatile financial/cash-flow history, despite a near-term profitability rebound. Technicals are neutral and do not strongly reinforce a trend. Valuation is a clear positive (very low P/E), while the latest earnings call supports improving momentum but with notable reliance on investment valuation gains and remaining maturity risk.
Positive Factors
Diversified Business Model
A multi-line financial services model spreads revenue across advisory, trading, recurring AUM fees and principal investing. This diversity reduces single-segment cyclicality, supports cross-selling, and preserves multiple durable fee engines that can sustain revenue over a 2–6 month horizon despite market swings.
Negative Factors
Balance-Sheet Durability
Recent negative equity and historically high leverage indicate limited cushion against shocks and constrain strategic flexibility. Even with a TTM improvement, abrupt classification shifts create uncertainty about the stability of capital structure and creditors' tolerance over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Business Model
A multi-line financial services model spreads revenue across advisory, trading, recurring AUM fees and principal investing. This diversity reduces single-segment cyclicality, supports cross-selling, and preserves multiple durable fee engines that can sustain revenue over a 2–6 month horizon despite market swings.
Read all positive factors
B Riley Financial (RILY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$287.79M
Dividend YieldN/A
Average Volume (3M)808.13K
Price to Earnings (P/E)0.5
Beta (1Y)0.59
Revenue Growth60.15%
EPS GrowthN/A
CountryUS
Employees1,380
SectorFinancial
Sector Strength70
IndustryFinancial - Conglomerates
Share Statistics
EPS (TTM)5.68
Shares Outstanding40,194,695
10 Day Avg. Volume428,593
30 Day Avg. Volume808,134
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.83
Price to Sales (P/S)0.14
P/FCF Ratio-2.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
B Riley Financial Business Overview & Revenue Model
Company Description
B. Riley Financial, Inc., headquartered in Los Angeles, California, is a diversified financial services company established in 1973. Initially known as Great American Group, Inc., it adopted its current name in November 2014. Through its various s...
How the Company Makes Money
B. Riley Financial makes money primarily by charging fees and earning commissions and investment-related income across its financial services activities. Key revenue streams typically include: (1) Investment banking and advisory fees: fees earned ...
B Riley Financial Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call conveyed a predominantly positive quarter driven by substantial investment mark-to-market gains, a strong rebound in Capital Markets results, significant debt reduction and improved operating metrics (operating adjusted EBITDA up ~40% sequentially). Management highlighted momentum in capital raising, active balance sheet management, and operational normalization after prior remediation. However, meaningful caveats remain: a large portion of the year-over-year improvement stems from non-recurring investment valuation gains (notably Babcock & Wilcox), cash declined quarter-over-quarter, private equity realizations reduced certain holdings, and material debt maturities remain later in 2026. Management emphasized ongoing cost/operational optimization, recovery of client relationships after prior delinquency, and strategic actions (BRS minority buyout, platform synergies) that should support continued improvement.Positive Updates
Strong Quarterly Profitability and Adjusted EBITDA
Net income available to common shareholders of $211.3M and adjusted EBITDA of $262.2M for Q1 2026; adjusted EBITDA swung from a loss of $45M in Q1 2025 to $262.2M in Q1 2026.
Negative Updates
Revenue Driven by Non-Recurring/Volatile Investment Gains
A substantial portion of the YoY revenue increase is attributable to fair value appreciation and trading gains (notably Babcock & Wilcox), introducing earnings volatility and reliance on investment mark-ups rather than purely recurring operating revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Profitability and Adjusted EBITDA
Net income available to common shareholders of $211.3M and adjusted EBITDA of $262.2M for Q1 2026; adjusted EBITDA swung from a loss of $45M in Q1 2025 to $262.2M in Q1 2026.
Read all positive updates
Company Guidance
Management's guidance was that momentum should continue and the company will prioritize balance‑sheet strengthening and reinvesting operating cash flow into the core franchise while using capital actions to fund opportunities and retire debt; they reported Q1 results of net income available to common shareholders of $211.3M, adjusted EBITDA of $262.2M (operating adjusted EBITDA $34.6M, up ~40% sequentially), diluted EPS $6.57 and total revenues $352M (vs. $186M a year ago) driven by $161M higher trading gains and a $229M total Babcock & Wilcox valuation increase (27.4M shares at $14.69); liquidity/capital metrics include cash & equivalents of $178M (down from $229M), securities & other investments $640M (up $193M), loans receivable $24.9M, equity‑method investments $90.7M, total debt of ~$1.3B (down $129M in Q1) and net debt of $372M (down ~$255M YTD), with upcoming maturities of RILYN $167M (9/30) and RILYG $170M (12/31) plus $7M of subsidiary paydowns — actions to address these (buybacks, exchanges, asset sales) are expected to continue; they also highlighted strong commercial momentum (nearly $10B of capital raises in the quarter, $8.7B of new ATMs filed including $6B for IREN and $1B for SMR, 26 research initiations, Wealth AUM $11.9B with 190 RRs) and said merger synergies from combining B. Riley Securities and B. Riley Wealth and further OpEx savings (including lower audit/accounting fees) remain priorities, though synergies were not yet quantified.B Riley Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
51
Neutral
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.03B | 1.16B | 1.45B | 993.82M | 1.55B |
| Gross Profit | 443.51M | 669.84M | 716.43M | 913.22M | 748.03M | 1.42B |
| EBITDA | 510.13M | 357.47M | -700.02M | 6.57M | -153.37M | 733.09M |
| Net Income | 411.74M | 307.42M | -764.27M | -99.91M | -159.83M | 445.05M |
Balance Sheet | ||||||
| Total Assets | 1.97B | 1.71B | 1.78B | 6.08B | 6.11B | 5.85B |
| Cash, Cash Equivalents and Short-Term Investments | 154.11M | 226.60M | 154.88M | 222.69M | 268.62M | 278.93M |
| Total Debt | 0.00 | 1.47B | 1.84B | 2.45B | 2.55B | 2.10B |
| Total Liabilities | 1.77B | 1.83B | 2.24B | 5.72B | 5.43B | 4.80B |
| Stockholders Equity | 201.24M | -171.53M | -488.18M | 291.12M | 446.51M | 661.27M |
Cash Flow | ||||||
| Free Cash Flow | 44.10M | -71.03M | 255.60M | 16.79M | 2.73M | 50.22M |
| Operating Cash Flow | 48.51M | -59.71M | 263.55M | 24.50M | 6.65M | 50.89M |
| Investing Cash Flow | -321.67M | 311.48M | 440.53M | 301.17M | -32.29M | -956.53M |
| Financing Cash Flow | -26.83M | -279.37M | -671.95M | -365.92M | 17.64M | 1.08B |
B Riley Financial Technical Analysis
Positive
6.88
Price Trends
7.98
Negative
8.00
Negative
7.05
Positive
Market Momentum
-0.14
Negative
48.19
Neutral
77.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RILY, the sentiment is Positive. The current price of 6.88 is below the 20-day moving average (MA) of 7.06, below the 50-day MA of 7.98, and below the 200-day MA of 7.05, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 77.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RILY.
B Riley Financial Risk Analysis
B Riley Financial disclosed 74 risk factors in its most recent earnings report. B Riley Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
B Riley Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.24B | 14.50 | 5.02% | 12.39% | -11.06% | -53.49% | |
69 Neutral | $198.14M | 13.97 | 8.37% | 2.28% | 5.77% | 2.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $444.54M | 2.41 | 69.56% | ― | 25.29% | ― | |
59 Neutral | $256.79M | -8.21 | -8.75% | 0.91% | -9.20% | -302.27% | |
58 Neutral | $121.40M | 94.40 | 1.79% | 8.44% | 0.72% | -87.22% | |
55 Neutral | $287.79M | 0.48 | -262.67% | ― | 60.15% | ― |
* Financial Sector Average
RILY
B Riley Financial
7.18
1.93
36.76%
OVBC
Ohio Valley Banc
43.56
10.09
30.16%
TREE
Lendingtree
32.13
-22.03
-40.68%
INBK
First Internet Bancorp
29.21
7.52
34.70%
SAMG
SilverCrest Asset Management
10.21
-5.03
-33.00%
MSDL
Morgan Stanley Direct Lending Fund
15.43
-0.40
-2.51%
B Riley Financial Corporate Events
Executive/Board ChangesFinancial Disclosures
B Riley Financial Grants Early Incentive Compensation Release
Positive
Jul 2, 2026
On June 29, 2026, BRC Group Holdings, Inc.’s Compensation Committee approved a limited waiver to the employment agreement of Executive Bryant Riley, affecting the structure of his incentive compensation. Under the agreement, 20 percent of hi...
Business Operations and StrategyFinancial Disclosures
B Riley Highlights SpaceX-Linked Carried Interest After IPO
Positive
Jun 15, 2026
On June 15, 2026, BRC Group Holdings, Inc. detailed the indirect economic interest held by its wealth management subsidiaries in SpaceX via special purpose vehicles that facilitated about $233 million of client investments between 2018 and 2021. T...
Business Operations and StrategyPrivate Placements and Financing
B Riley Financial Expands Debt-for-Equity Exchanges to Deleverage
Neutral
Jun 9, 2026
B. Riley Financial has conducted privately negotiated debt-for-equity exchanges with institutional investor DBA Trading, LLC, issuing a total of 2,060,683 shares of common stock on May 14, 2026 and June 4, 2026. These exchanges, carried out under ...
Executive/Board ChangesShareholder Meetings
B Riley Shareholders Reaffirm Board, Executive Pay and Auditor
Positive
May 26, 2026
At the May 19, 2026 annual meeting of stockholders, BRC Group Holdings, Inc. shareholders re-elected all seven director nominees, including Bryant R. Riley and Thomas J. Kelleher, with comfortable majorities despite some opposition to certain inde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.