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

B. Riley Financial (RILY) reported its fiscal 2025 Q1 earnings on Nov 18th, 2025, with total revenue declining 37.5% to $186.06 million from $297.59 million in 2024 Q1. The company narrowed its net loss to $16.57 million, a 65.5% reduction from $47.95 million in the prior year, reflecting cost management and operational adjustments despite the significant revenue decline.

Revenue

Capital Markets contributed $4.36 million, while Wealth Management generated $47.28 million. Communications led with $64.47 million, and Consumer Products added $42.10 million. E-Commerce reported $7 million, and other segments accounted for $20.85 million, bringing the total revenue to $186.06 million.

Earnings/Net Income

B. Riley Financial narrowed losses to $0.39 per share in 2025 Q1 from a loss of $1.71 per share in 2024 Q1 (77.2% improvement). The company successfully reduced its net loss to $-16.57 million, down from $-47.95 million, with the notable improvement in EPS and net loss indicating a positive shift in the company’s profitability trajectory.

Price Action

The stock price of B. Riley Financial edged up 2.02% during the latest trading day but tumbled 11.58% during the most recent full trading week, ending 0.80% higher month-to-date.

Post-Earnings Price Action Review

The strategy of buying B. Riley Financial (RILY) shares after its revenue drop quarter-over-quarter on the financial report released date and holding for 30 days shows poor performance over the past three years. The cumulative return is -39.8%, significantly underperforming the S&P 500’s 31.4% return over the same period. This indicates a challenging risk-return profile for this strategy. Significant underperformance stems from RILY’s financial struggles and regulatory issues, which exposed investors to high volatility. Additionally, the inability to generate positive returns despite efforts to comply with SEC and Nasdaq requirements highlights a lack of resilience in the face of ongoing challenges. In conclusion, this strategy has failed to capitalize on potential rebounds and has been negatively impacted by the company’s financial issues and regulatory delays, leading to substantial underperformance compared to a passive market strategy.

CEO Commentary

Chairman and Co-CEO Bryant Riley emphasized the importance of the Q1 2025 Form 10-Q filing in restoring timely financial reporting and compliance with Nasdaq requirements. He noted the seamless transition to new auditor BDO and expressed confidence in maintaining heightened staffing through the completion of the 2025 Form 10-K.

Guidance

The company expects to maintain its focus on cost management and operational efficiency as it continues to address regulatory compliance. No specific quantitative targets were provided, but management reiterated commitment to improving financial performance.

Additional News

Recent developments include B. Riley Financial’s corporate name change to BRC Group Holdings, Inc., effective January 1, 2026, reflecting its diversified portfolio across financial services, telecom, and retail. The company also received a Nasdaq delinquency notice for delayed filings but is pursuing a hearing to seek continued listing. Additionally, B. Riley reduced debt by $18 million via a private bond exchange, marking its fifth such transaction in four months to enhance liquidity.