B. Riley Financial (NASDAQ:RILY) Issues Quarterly Earnings Results

B. Riley Financial (NASDAQ:RILY) announced its quarterly earnings results on Thursday. The asset manager reported $6.57 EPS for the quarter, FiscalAI reports. The company had revenue of $217.19 million for the quarter. B. Riley Financial had a net margin of 46.81% and a negative return on equity of 195.48%.

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

• The company reported strong results with net income of $211.3 million and adjusted EBITDA of $262.2 million, while operating adjusted EBITDA increased ~40% sequentially to $34.6 million.
• Management meaningfully improved leverage, with net debt down to $372 million (≈$255 million reduction year-to-date) and total debt reduced by $129 million in the quarter, including redemption of the 5.5% senior notes due 2026.
• Capital markets momentum was emphasized—B. Riley Securities executed nearly $10 billion of client debt/equity raises, added $8.7 billion of new ATM capacity, and initiated coverage on 26 companies, supporting future deal flow and fee opportunity.
• A large portion of the quarter’s upside was driven by mark‑to‑market investment gains—primarily a ~$229 million valuation increase in Babcock & Wilcox and higher SpaceX carried interest—which may be nonrecurring and volatile.
• Near‑term funding risk remains with about $167 million and $170 million of senior notes maturing in 2026; management says it will use capital actions, operating cash and asset sales to address these obligations.

B. Riley Financial Price Performance

Shares of RILY stock traded down $0.51 during trading on Friday, reaching $8.18. The company had a trading volume of 1,215,239 shares, compared to its average volume of 806,407. The firm’s 50 day simple moving average is $7.39 and its two-hundred day simple moving average is $6.46. B. Riley Financial has a one year low of $2.79 and a one year high of $10.97. The company has a market capitalization of $287.53 million, a PE ratio of 0.49 and a beta of 1.17.

Hedge Funds Weigh In On B. Riley Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RILY. Soviero Asset Management LP acquired a new stake in shares of B. Riley Financial in the third quarter worth $2,211,000. Charles Schwab Investment Management Inc. grew its stake in 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 valued at $5,245,000 after buying an additional 224,858 shares during the last quarter. Allianz Asset Management GmbH bought a new position in B. Riley Financial in the 3rd quarter worth $1,087,000. Federated Hermes Inc. raised its holdings in 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 during the period. Finally, Jump Financial LLC acquired a new position in B. Riley Financial during the 4th quarter worth $694,000. Institutional investors and hedge funds own 50.20% of the company’s stock.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised shares of B. Riley Financial from a “hold” rating to a “buy” rating in a research note on Saturday, April 4th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, B. Riley Financial currently has an average rating of “Sell”.

B. Riley Financial Company Profile

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.