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B Riley Financial (RILY) AI Stock Analysis
B Riley Financial
(NASDAQ:RILY)
The overall score of 63 reflects a company with a significantly improved financial foundation and positive strategic developments, offset by very weak technical market sentiment. The primary strength is the dramatically deleveraged balance sheet and an extremely low P/E ratio, suggesting deep value. However, the stock is under severe technical pressure, trading below all major moving averages with deeply oversold momentum indicators, which is the most significant risk factor. Positive corporate events, including an acquisition and enhanced financial flexibility, provide a moderate uplift.
B Riley Financial (RILY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $163.21M
- Dividend Yield
- ―
- Average Volume (3M)
- 688.41K
- Price to Earnings (P/E)
- 0.3
- Beta (1Y)
- 1.24
- Revenue Growth
- 49.44%
- EPS Growth
- ―
- 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 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.
Q1-2026 Updates
Positive Updates
Negative 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
Financial performance is mixed. The balance sheet has improved dramatically with zero debt and positive equity, reducing risk. Profitability is strong on a TTM basis, but revenue is declining and earnings are volatile. Cash flow is positive but modest relative to net income.
Income Statement
60NeutralBalance Sheet
75PositiveCash Flow
60Neutral| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.31B | 1.03B | 1.16B | 1.45B | 993.82M | 1.55B |
| Gross Profit | 984.40M | 669.84M | 716.43M | 913.22M | 748.03M | 1.42B |
| EBITDA | 552.56M | 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 | 1.32B | 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 | 142.17M | -171.53M | -488.18M | 291.12M | 446.51M | 661.27M |
Cash Flow | ||||||
| Free Cash Flow | 322.94M | -71.03M | 255.60M | 16.79M | 2.73M | 50.22M |
| Operating Cash Flow | 327.35M | -59.71M | 263.55M | 24.50M | 6.65M | 50.89M |
| Investing Cash Flow | -320.25M | 311.48M | 440.53M | 301.17M | -32.29M | -956.53M |
| Financing Cash Flow | -117.52M | -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 4.06 is below the 20-day moving average (MA) of 4.56, below the 50-day MA of 5.61, and below the 200-day MA of 7.32, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 39.23 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
1 New RiskB Riley Financial Peers Comparison
Overall Rating
TREE76Outperform
OVBC71Outperform
MSDL65Neutral- RILY63Neutral
INBK62Neutral
SAMG49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TREE | 76Outperform | $392.27M | 2.12 | 69.56% | ― | 25.29% | ― |
| OVBC | 71Outperform | $227.16M | 15.71 | 8.46% | 2.03% | 8.40% | 2.21% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| MSDL | 65Neutral | $1.17B | 20.18 | 3.48% | 13.34% | -14.75% | -64.13% |
| RILY | 63Neutral | $163.21M | 0.30 | -775.03% | ― | 49.44% | ― |
| INBK | 62Neutral | $225.41M | 15.01 | 4.17% | 0.93% | 7.39% | ― |
| SAMG | 49Neutral | $133.51M | 94.83 | 5.90% | 7.51% | 1.17% | -83.06% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RILY | B. Riley Financial | 4.06 | -0.71 | -14.88% | |
| OVBC | Ohio Valley Banc | 48.22 | 13.70 | 39.69% | |
| TREE | Lendingtree Inc | 27.94 | -37.80 | -57.50% | |
| INBK | First Internet Bancorp | 25.81 | 7.62 | 41.90% | |
| SAMG | SilverCrest Asset Management | 11.18 | -2.10 | -15.83% | |
| MSDL | Morgan Stanley Direct Lending Fund | 13.87 | -1.23 | -8.12% |
B Riley Financial Corporate Events
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,...
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 unti...
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: Oct 01, 2026