B. Riley Financial 2025 Q1 Earnings 65.5% Net Loss Reduction

B. Riley Financial (RILY) reported a 37.5% revenue decline to $186.06 million in Q1 2025, while narrowing its net loss to $16.57 million (-$0.39 EPS), a 65.5% improvement from $47.95 million (-$1.71 EPS) in Q1 2024. The stock edged up 2.02% on the report, though post-earnings strategies underperformed.

Revenue

Total revenue fell 37.5% to $186.06 million in Q1 2025, driven by a sharp decline in the Capital Markets segment, which generated $4.36 million compared to $78.5 million a year earlier. Communications revenue remained resilient at $64.47 million, while Wealth Management contributed $47.28 million. The Consumer Products segment reported $42.10 million, and E-Commerce revenue totaled $7 million. All Other segments combined for $20.85 million, reflecting a diversified but uneven performance across business lines.

Earnings/Net Income

The company’s earnings per share showed a marked improvement, narrowing its loss per share to $0.39 from $1.71 year-over-year. Net losses also contracted by 65.5%, indicating progress in cost management despite a challenging revenue environment.

Post-Earnings Price Action Review

The strategy of buying RILY shares after its Q1 revenue drop and holding for 30 days underperformed significantly, with a cumulative return of -26.2% over three years. This contrasts sharply with the S&P 500’s 31.6% return during the same period. The revenue decline likely triggered short-term volatility, but the 30-day holding period failed to capture longer-term recovery signals. The underperformance highlights risks of relying on single-event triggers without additional context or a defined exit strategy, underscoring the need for diversified, long-term investment frameworks.

CEO Commentary

Chairman and Co-CEO Bryant Riley emphasized progress in financial reporting compliance, noting the seamless transition to new auditor BDO. “Our first quarter 2025 Form 10-Q filing marks an important step toward timely reporting and Nasdaq compliance,” he stated. Riley acknowledged challenges from delayed SEC filings and restructuring efforts but expressed confidence in maintaining heightened staffing through the 2025 Form 10-K completion.

Guidance

The company expects to maintain its focus on financial reporting accuracy and operational efficiency, with no explicit forward-looking revenue or EPS targets provided in the Q1 report. Management reiterated commitments to deleveraging and strategic divestitures to strengthen liquidity.

Additional News

B. Riley Financial announced its name change to BRC Group Holdings, Inc., effective January 1, 2026, reflecting a strategic rebranding. The firm also appointed BDO USA as its 2025 audit firm, aiming to restore timely reporting. Additionally, the company executed a $18 million debt reduction via a private bond exchange, further strengthening its balance sheet. These moves follow recent restructuring actions, including the sale of its wealth management unit and partnerships with Oaktree Capital.

Revenue Segment Breakdown

Earnings/Net Income

Post-Earnings Price Action Review