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

B. Riley Financial (NASDAQ:RILY) issued its quarterly earnings results on Thursday. The asset manager reported $0.45 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 NASDAQ RILY traded down $0.22 during trading on Friday, reaching $7.04. The company had a trading volume of 140,299 shares, compared to its average volume of 1,046,382. B. Riley Financial has a 52 week low of $3.64 and a 52 week high of $11.24. The business’s 50 day moving average price is $7.91 and its 200-day moving average price is $7.92. The stock has a market cap of $261.36 million, a PE ratio of 0.43 and a beta of 1.23. The company has a debt-to-equity ratio of 10.30, a quick ratio of 3.95 and a current ratio of 3.95.

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On B. Riley Financial

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of America Corp DE lifted its stake in shares of B. Riley Financial by 237.2% during the third quarter. Bank of America Corp DE now owns 6,963 shares of the asset manager’s stock valued at $42,000 after acquiring an additional 4,898 shares during the period. Boothbay Fund Management LLC bought a new stake in B. Riley Financial during the 4th quarter worth about $60,000. Cresset Asset Management LLC acquired a new position in B. Riley Financial during the 3rd quarter valued at about $79,000. Russell Investments Group Ltd. lifted its position in B. Riley Financial by 144.9% during the 2nd quarter. Russell Investments Group Ltd. now owns 14,504 shares of the asset manager’s stock valued at $43,000 after purchasing an additional 8,582 shares during the period. Finally, Jump Financial LLC bought a new position in shares of B. Riley Financial in the 2nd quarter valued at about $45,000. 50.20% of the stock is owned by institutional investors and hedge funds.

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.