B. Riley Turns in Profit-Driven Q2 Filing, Averts Nasdaq Delisting for Now

B. Riley Financial Inc. Second-Quarter Report

B. Riley Financial Inc. has filed its overdue second-quarter report with the U.S. Securities and Exchange Commission, a critical step toward complying with Nasdaq listing requirements and avoiding delisting. The filing came ahead of a Dec. 23 deadline set by the exchange and showed the company turning a modest profit for the quarter compared to a loss a year earlier. The move signals progress but leaves the firm still behind on its third-quarter report, which must be submitted by Jan. 20.

The second-quarter 10-Q filing included net income of $137.5 million, driven by gains from the sale of GlassRatner and senior note exchanges according to financial data. Revenues for the quarter totaled $225.3 million, a significant increase from $94.9 million in the same period of 2024 according to financial data. Income from continuing operations reached $71.7 million, a sharp contrast to a $449.2 million loss in the prior year.

Chairman Bryant Riley expressed confidence that the firm would submit the third-quarter report by the Jan. 20 deadline, citing improvements in financial operations. A new chief financial officer, Scott Yessner, has been appointed with a bonus structure tied to on-time reporting, reflecting the firm's renewed focus on compliance according to company statements. These efforts were highlighted during a recent Nasdaq hearing, where the panel granted extensions for past filings in recognition of the firm's progress toward rectifying its reporting issues according to Nasdaq officials.

Background on the Delinquencies

B. Riley's financial reporting delays have been attributed to a combination of challenges, including soured investments, financial reporting flaws, and a U.S. civil investigation involving former business partner Brian Kahn according to financial reports. Kahn, former head of Franchise Group Inc., recently pleaded guilty to defrauding hedge fund investors at Prophecy Asset Management of approximately $300 million according to court records. Franchise Group was a significant investment for B. Riley, and its bankruptcy in late 2024 led to massive write-offs and disrupted the firm's ability to file timely reports according to financial analysis.

The firm's failure to meet SEC and Nasdaq reporting deadlines created uncertainty for investors and led to repeated threats of delisting from the exchange according to market analysis. The latest filing aligns with previous estimates, with income from continuing operations and adjusted EBITDA both showing improvement compared to the prior year according to financial reports. However, the firm's ongoing legal and financial challenges remain a concern for market observers.

What This Means for Investors

The submission of the second-quarter report brings clarity to B. Riley's financial position, but investors will need to wait for the third-quarter figures to fully assess the firm's recovery according to market analysis. The Nasdaq hearing earlier this year showed that the panel was willing to grant extensions if the company demonstrated a commitment to addressing its reporting issues according to Nasdaq officials. B. Riley's ability to meet future deadlines will likely determine whether it remains listed on the exchange.

For now, the filing is seen as a positive step toward stabilizing the firm's relationship with Nasdaq and restoring investor confidence. However, the firm's history of reporting delays and its exposure to high-risk investments continue to raise concerns about its long-term viability according to market observers. Analysts will be watching closely to see if the firm can maintain consistent reporting and whether it can navigate its ongoing legal and financial challenges without further setbacks.