B. Riley Financial 2024 Q4 Earnings Strong Turnaround with 93.7% Net Loss Reduction

B. Riley Financial returned to profitability with a significant reduction in net losses for Q4 2024, beating expectations with a 93.7% decline in its net loss and reporting a modest EPS of $0.03. The company issued updated guidance reflecting a projected net income between $48 million and $68 million, primarily driven by discontinued operations, while acknowledging continued challenges from impairment charges and debt.

Revenue
The total revenue of B. Riley Financial decreased by 35.8% to $201.38 million in 2024 Q4, down from $313.83 million in 2023 Q4. The decline reflects broader market conditions and strategic asset divestitures.

Earnings/Net Income
B. Riley Financial returned to profitability with EPS of $0.03 in 2024 Q4, reversing from a loss of $3.06 per share in 2023 Q4 (100.9% positive change). Meanwhile, the company successfully narrowed its net loss to $-5.61 million in 2024 Q4, reducing losses by 93.7% compared to the $-89.66 million net loss reported in 2023 Q4. The company’s focus on monetizing non-core assets has yielded strong returns, resulting in a positive earnings turnaround despite ongoing challenges from continuing operations.

Price Action
The stock price of B. Riley Financial has dropped 6.12% during the latest trading day, has jumped 8.52% during the most recent full trading week, and has jumped 8.09% month-to-date.

Post-Earnings Price Action Review
The CEO of B. Riley Financial highlighted a mix of strategic advancements and financial challenges, emphasizing the company's focus on core operations and debt management. Noting the impact of asset sales, including the $70 million sale of Atlantic Coast Recycling and the $26 million wealth management business deal, the CEO underscored these moves as critical to strengthening liquidity and reducing debt. However, the CEO acknowledged significant losses from continuing operations, driven by impairment charges and trading losses, while expressing cautious optimism about the company's direction through its joint venture with Oaktree and the $160 million credit facility. The tone reflected a commitment to navigating debt challenges while prioritizing long-term stability and growth through strategic monetization of non-core assets.

Guidance
B. Riley Financial expects net income available to common shareholders to range between $48 million and $68 million, supported by discontinued operations income of $236 million to $247 million. Diluted net income per share is projected at $1.57 to $2.22, with a net loss from continuing operations between $178 million and $187 million, largely due to impairment charges. Operating adjusted EBITDA from continuing operations is forecast at $12 million to $14 million. The company also noted $257 million in cash and equivalents at year-end 2024, amid $1.78 billion in total debt, with a focus on core business growth and debt restructuring.

Additional News
On July 18, 2025, a report indicated that B. Riley Financial is increasingly likely to file for bankruptcy in the near term, according to undisclosed sources. Although no official statement has been released, this news has raised concerns among investors and analysts. The firm is currently navigating significant debt challenges and has been restructuring through asset sales. Recent transactions, such as the sale of Atlantic Coast Recycling and the wealth management business, are part of broader efforts to improve liquidity. While management remains optimistic about long-term growth, the potential for bankruptcy filing suggests ongoing operational and financial uncertainty. The situation will likely intensify scrutiny on B. Riley Financial’s ability to manage its obligations and maintain stability.