B. Riley Securities Issues Financial Update After Significant Carve-Out Transaction

B. Riley Securities Provides Business and Financial Update Following Carve-Out Transaction

B. Riley Securities Holdings, Inc. (BRS) has recently provided a significant business and financial update following its carve-out from B. Riley Financial, Inc. (BRF). This announcement comes as the company prepares for future financial filings and listings on the OTC Markets. The leadership of BRS, including Chairman and Co-CEO Andy Moore, emphasized their commitment to transparency and strategic value creation for their stakeholders.

Moore stated, "We remain relentlessly focused on delivering for our clients. With our previously announced carve-out from BRF, we are able to provide greater financial transparency and a clearer view into the underlying strength of our business.” This shift not only aims to enhance the company’s visibility but also to capitalize on the current market conditions, with Moore stressing that volatility can create unique opportunities for strategic growth and expanded market share.

Co-CEO Jimmy Baker shared insights into the company’s accomplishments in 2024, highlighting BRS’s capacity to raise $16.5 billion in debt and equity for clients throughout the past year. Furthermore, he mentioned the expansion of services in critical areas such as Convertibles and Liability Management, reinforcing their advisory practice's alignment with client needs. He remarked, “We have also continued to invest in talent across Equity Research, Sales & Trading, and Investment Banking.” Baker acknowledged that while the benefits of the carve-out will take time to reflect in their financial outcomes, the focus remains on long-term value generation.

Financial Highlights

B. Riley Securities reported some noteworthy financial figures for 2024. On an adjusted basis, the company recorded total revenues of $217.7 million and an adjusted net income of $33.1 million for the year, despite facing a net loss of $14.5 million. These figures reflect adjustments related to contributions from Cascadia Investments Inc. and other subsidiaries that were accounted for as if the transactions happened at the beginning of the year. In January 2025, the company erased all outstanding debts amounting to $12.4 million, further fortifying its financial standing.

With a robust cash reserve of $68 million in cash and securities post-carve-out, BRS is positioned well for future financial operations, marking a significant shift in operational dynamics. The leadership team aims to convert intrinsic business strengths into sustainable growth and shareholder value, creating a lasting impact on the middle market landscape.

About B. Riley Securities

B. Riley Securities offers extensive investment banking and capital market services tailor-fitted for corporations, financial sponsors, and institutional investors across a variety of sectors. Their service offerings span initial public offerings, mergers and acquisitions advisory, and more, allowing them to maintain a competitive edge in the financial sector. The firm is widely acknowledged for its thematic proprietary equity research, bringing invaluable industry expertise and execution capabilities to its clientele.

In conclusion, B. Riley Securities is adapting to market fluctuations with strategic foresight, making significant recalibrations aimed at ensuring sustainable performance and growth. As their future directions unfold, stakeholders are given a clearer insight into the company’s evolving strategy. For more information on their services and updates, you can visit B. Riley Securities.