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Mar 31
B. Riley Q1 2025 Earnings Report
Reported a net loss amid lower revenue and continued pressure from loan and investment markdowns.
Key Takeaways
B. Riley posted a net loss in Q1 2025 as revenue dropped significantly due to steep declines in trading income, interest income, and loan valuation adjustments. Operating losses widened, but the firm recognized gains from business divestitures.
Revenue declined to $186.1M from $297.6M year-over-year, driven by sharp drops in trading and interest income.
Net loss attributable to B. Riley was $9.975M, with diluted EPS of -$0.39.
The company booked an $80.8M gain from sale and deconsolidation of businesses, partially offsetting broader losses.
Cash and cash equivalents stood at $138.3M, down from $146.9M at year-end 2024.
B. Riley
B. Riley
Forward Guidance
The company expects continued volatility from financial market conditions and loan portfolio performance but remains focused on asset monetization and capital structure optimization.
Positive Outlook
- Cash and equivalents remain sufficient at $138.3M
- Gain of $80.8M from business divestitures bolsters liquidity
- Debt restructuring through private exchanges completed post-Q1
- Term loan proceeds of $235.6M in Q1
- Noncontrolling interest capital additions in VIEs
Challenges Ahead
- Operating loss widened to $61.5M
- Interest income from loans and securities lending dropped substantially
- Impairments and fair value losses from investments impacted results
- Continued restructuring of underperforming assets required
- Significant preferred stock dividends ($2M) weigh on net results