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Jun 30, 2023
B. Riley Q2 2023 Earnings Report
B. Riley's Q2 2023 results were released, highlighting solid performance despite capital market challenges and reaffirming Q3 2023 guidance.
Key Takeaways
B. Riley Financial reported its Q2 2023 results, showing solid performance despite a challenging capital markets period. The company reaffirmed its Q3 2023 guidance for operating adjusted EBITDA of at least $105 million. Increased revenues were primarily driven by investment gains, recent acquisitions, and increased revenues from retail liquidation, financial consulting and appraisal, in addition to an increase in interest income from loans and securities lending.
The company reaffirmed its guidance for operating adjusted EBITDA of at least $105 million for the third quarter of 2023.
Investment gains were $42.4 million for the quarter.
Cash and investments totaled $1.92 billion, including cash and cash equivalents of $108 million.
The company expanded its consumer and TMT industry vertical coverage through the addition of multiple senior investment bankers and strategic hires in its equity research division.
B. Riley
B. Riley
Forward Guidance
B. Riley reaffirmed its guidance for operating adjusted EBITDA of at least $105 million for the third quarter of 2023.
Positive Outlook
- Meaningful increase of client activity across capital markets
- Strong retail liquidation activity
- Increased consulting engagements
- Increase appraisal activity
- Overall business is at a near-term inflection
Challenges Ahead
- Challenging capital markets period
- Nominal contribution from investment banking
- Market dynamics have created a favorable environment for recruiting talent
- Need to continue to invest in people and platform to meet growing client demand
- Exposure to risks described in the company's periodic filings with the SEC