B.Riley Stock Soars Nearly 40% - What’s Behind The Move?

• The company posted a net income available to common shareholders of $89.1 million, compared to a net loss of $286.4 million in the third quarter 2024.
• Its revenue also jumped to $277.9 million, compared to $175.4 million in the third quarter 2024.
• The company said strong financial performance in the third quarter was led by the Capital Markets segment. 

BRC Group Holdings, formerly known as B.Riley Financial, rallied in after-market hours on Wednesday after it announced its delayed quarterly results. 

The company filed financial reports for three quarters within 120 days, achieving NASDAQ compliance ahead of the deadline, it said in a regulatory filing. 

Q3 Results

The company posted a net income available to common shareholders of $89.1 million, compared to a net loss of $286.4 million in the third quarter 2024. The company said basic and diluted earnings per common share were $2.91 compared to a loss per share of $9.39 in the third quarter 2024.

Its revenue also jumped to $277.9 million, compared to $175.4 million in the third quarter 2024.
The company said strong financial performance in the third quarter was led by the Capital Markets segment with $65.4 million in services and fee revenues, the highest quarterly total since the fourth quarter of 2023.

“We are pleased with the third quarter financial results. B. Riley Securities had a very strong quarter across investment banking, advisory, and research and trading with equity and debt capital raises totaling approximately $10.5 billion while delivering product innovation,” Bryant Riley, Chairman and Co-Chief Executive Officer of BRC, said. 

“Our Communications segment produced strong cash flow, consistent with previous quarters. B. Riley Wealth enhanced products and services for clients, while reducing costs and integrating its back office,” he added. 

B.Riley Woes

BRC’s struggles to file timely earnings reports started after a turbulent period in 2024 when it grappled with soured investments, flaws in financial reporting and a U.S. civil investigation.

Franchise Group was a key investor of BRC and its bankruptcy in late 2024 left B. Riley burdened with write-offs of hundreds of millions of dollars and it was unable to file its annual and quarterly reports with US regulators on a timely basis.  

How Did Stocktwits Users React?

Retail sentiment around RILY trended in ‘extremely bullish’ territory amid ‘high’ message volume. 

One user predicted the stock could hit $15 on Thursday.

https://stocktwits.com/SelectiveTrader/message/641848445

Shares of RILY have jumped 53% over the past year. 
 

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