B. Riley Financial projects H1 2025 net income up to $145 million

LOS ANGELES - B. Riley Financial, Inc. (NASDAQ:RILY), whose stock has surged over 32% in the past six months and currently trades at $6.01, expects net income available to common shareholders for the first half of 2025 to range between $125 million and $145 million, or $4.08 to $4.74 per diluted share, according to preliminary estimates released Wednesday. InvestingPro analysis shows the company has demonstrated strong momentum recently, with an 11% gain in the past week alone.

The diversified financial services firm reported significant debt reduction, with total debt estimated to have decreased by $600 million from September 30, 2024, to $1.46 billion as of June 30, 2025. Net debt is estimated to have decreased by $544 million to $574 million during the same period.

The company disclosed estimated cash and restricted cash of $268 million as of June 30, 2025, with securities and other investments valued between $231 million and $251 million.

For the first half of 2025, B. Riley expects revenue between $405 million and $425 million, with operating adjusted EBITDA from continuing operations projected at $20 million to $26 million.

The company also reported preliminary 2024 year-end results showing a net loss available to common shareholders of $772.3 million, or $25.46 per diluted share, primarily due to write-downs of $510 million related to equity investment in Freedom VCM Holdings LLC and loan receivable from Vintage Capital Management, along with impairment of goodwill and other intangible assets of $105.4 million.

"We have taken aggressive, decisive and necessary action over the last year to align our balance sheet while continuing to invest in our business and operations," said Bryant Riley, Chairman and Co-Chief Executive Officer, in the press release statement.

B. Riley realized approximately $187 million in cash proceeds from business sales, including GlassRatner and Atlantic Coast Recycling, and achieved approximately $126 million of debt reduction through five bond exchanges through July 2025.

The company amended its senior secured credit agreement with Oaktree Capital Management to provide increased flexibility, including a new investment basket enabling an incremental $100 million to facilitate transactions.

In other recent news, B. Riley Securities reported total revenue of $60.9 million and a GAAP net income of $12.5 million for its first full quarter as an independent entity. The company also reported adjusted net revenue of $51.5 million and adjusted net income of $8.6 million for the quarter ended June 30. Meanwhile, B. Riley Financial announced an amendment to its senior secured credit agreement with Oaktree Capital Management, reducing its outstanding balance to $62.5 million and gaining additional operational flexibility. This amendment includes a new $100 million investment basket and the ability to deploy up to $25 million in cash to reduce other indebtedness.

Additionally, B. Riley Financial entered into a privately negotiated exchange agreement, reducing its outstanding debt by approximately $15 million through a bond exchange. The company exchanged $28 million in Senior Notes for $13 million in newly issued notes due in 2028. In a significant transaction, B. Riley Financial sold its advisory services business, GlassRatner, to TorQuest Partners for $117.8 million, expecting to record a gain of approximately $66 million from the sale. This move marks B. Riley’s focus on its core businesses.

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