B. Riley Financial Faces Nasdaq Compliance Challenges and Plans to Request Hearing

B. Riley Financial Faces Nasdaq Compliance Challenges

B. Riley Financial, Inc. (Nasdaq: RILY) recently encountered significant challenges regarding its compliance with Nasdaq listing rules. On October 1, 2025, the company received a Staff Determination Letter from Nasdaq's Listing Qualifications Staff, citing non-compliance with Listing Rule 5250(c)(1). This rule requires the timely filing of financial reports with the Securities and Exchange Commission (SEC). The company had previously been informed about compliance issues on multiple occasions throughout 2025.

The Staff Determination Letter specifically points out that B. Riley Financial has not yet submitted its Quarterly Reports on Form 10-Q for the periods ending March 31 and June 30 of 2025. Despite submitting its Form 10-K for the fiscal year ending December 31, 2024, on September 19, 2025, the company is focused on addressing these delays to ensure full compliance with Nasdaq's requirements.

According to the letter, Nasdaq’s staff reviewed B. Riley’s updated compliance plan but stated that they could not grant further exceptions beyond the deadline of September 29, 2025. Although this determination poses a risk, it does not lead to immediate suspension of trading or delisting of the company’s securities.

In a bid to address the situation, B. Riley Financial has the option to request a hearing before a Nasdaq Hearings Panel. This request must be submitted promptly to automatically delay any potential suspension of trading on their securities for at least 15 days while awaiting the hearing. Hearing requests typically take place approximately 30 to 45 days after submission. The company intends to make this request to maintain its listing and continue operations without disruption.

However, there exists uncertainty; there is no assurance that the Hearings Panel will lean favorably toward granting the company additional time for compliance. If the automatic stay on suspension lapses before a ruling is made, Nasdaq traditionally holds off on any action until the Panel reaches a verdict on the extension. The company plans to keep stakeholders informed as developments unfold, and to make further announcements following any decisions made by the Hearings Panel.

B. Riley Financial is a diversified financial services firm that aims to cater to the strategic, operational, and capital needs of its clients. Through its various subsidiaries, B. Riley offers comprehensive financial services across investment banking, brokerage, wealth management, and corporate restructuring, reflecting its commitment to creating tailored solutions for every business phase.

In light of recent events, the situation underscores the complexities financial institutions face in upholding regulatory compliance. Companies are continually reminded of the importance of adhering to filing schedules and maintaining open channels of communication with regulatory bodies to avoid disruptions that can potentially impact their market standing and investor confidence.

As the company navigates these challenges, its future actions and the responses from regulatory bodies will be critical to restoring and securing its compliance status and maintaining its commitment to stakeholder value. B. Riley's foresight in planning subsequent actions demonstrates a proactive approach, but the unfolding developments will significantly affect their operational trajectory in the coming months.