B. Riley Financial, Inc. (NASDAQ: RILY) reported its second‑quarter 2025 financial results on December 15, 2025, delivering a turnaround that restored profitability after a year‑long period of losses. The company posted revenue of $225.3 million, up 138% from $94.9 million in Q2 2024, driven by a 45% increase in its core brokerage and advisory services and a 30% rise in loan servicing fees. The surge in revenue was offset by a one‑time $111.3 million gain from the sale of GlassRatner and a $44.5 million benefit from senior note exchanges, which together lifted net income to $137.5 million from a $435.6 million loss the previous year.
The adjusted earnings per share of $4.50 beat the consensus estimate of $4.26 by $0.24, a 5.6% lift. The beat was largely a result of the one‑time gains and disciplined cost management, which kept operating expenses from rising in line with revenue growth. Management noted that the company’s “significant changes to financial operations practices” were key to meeting the December 23 Nasdaq filing deadline, thereby averting immediate delisting risk.
B. Riley’s balance sheet improved markedly: total debt fell by $314 million to $1.46 billion, and the debt‑to‑equity ratio dropped from 3.2 to 2.8. The reduction in leverage, combined with the return to profitability, signals stronger financial resilience and positions the company to pursue strategic opportunities in the coming quarters. The company also confirmed it will file its Q3 2025 Form 10‑Q by the January 20, 2026 deadline, restoring full reporting compliance.
Management emphasized that the Q2 results were “well positioned to file the third quarter Form 10‑Q by the January 20, 2026 deadline established by Nasdaq, which will bring our financial reporting current.” The statement underscores the company’s focus on regulatory compliance and operational discipline as a foundation for future growth.
Analysts noted that the Q2 earnings beat was driven by the one‑time gains, but they also cautioned that the company must sustain organic revenue growth to maintain profitability. The market reaction was largely positive, reflecting relief that the Nasdaq delisting risk was eliminated and confidence that the company can now focus on core business expansion rather than crisis management.
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