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B. Riley Financial Reports Preliminary Fourth Quarter and 2024 Year-End Results

B. Riley Financial, Inc. (NASDAQ: RILY) has provided an update on its preliminary results for the fourth quarter and full year of 2024, along with financial estimates and a business outlook for the first half of 2025. This diversified financial services company has conveyed significant changes in its financial landscape over the past year, which are expected to manifest in its 2025 operations.

Key Highlights

The anticipated net income available to common shareholders for the first half of 2025 is projected to be between $125.0 million and $145.0 million, translating to a diluted net income per share of approximately $4.08 to $4.74. As of June 30, 2025, the company estimates cash holdings of $268 million, total debt of $1.46 billion, and a net debt range between $809 million and $839 million.

Overview of Changes

B. Riley Financial has decisively reduced its total debt by around $600 million since September 30, 2024. Significant losses reported for the year ending December 2024 totaled approximately $772.3 million, representing a diluted net loss per share of $25.46. This decline was primarily attributed to substantial write-downs related to equity investments and other intangible assets.

Business Operations Update

In March 2025, the company executed a strategic carve-out of B. Riley Securities (BRS), aligning its capital and management structures to better serve client needs. This partnership has enabled BRS to facilitate timely funding for clients, particularly for artificial intelligence investments. Notable successes include:

• - Serving as lead book-runner for an AI infrastructure company's IPO.
• - Acting as a joint lead placement for financing a fabless semiconductor firm.
• - Capturing the role of sole bookrunner for significant equity transactions involving an Ethereum treasury company.
• - Contributing capital in a successful transaction to support a digital infrastructure firm.

Strategic Adjustments

The company has also realized approximately $187 million from the sale of its subsidiaries, which has positively impacted liquidity. The financial maneuvers to exchange bonds contributed to debt reductions of up to $126 million through July 2025.

After securing a $160 million senior facility with Oaktree Capital Management, B. Riley has strategically reduced it to $62.5 million, enhancing operational flexibility.

Leadership Statements

Bryant Riley, Chairman and Co-CEO, emphasized the company's aggressive measures taken to stabilize the balance sheet while ensuring continued investment in business operations. Regarding their financial service offerings, he stated, “We are focused on harnessing the cash flow from our telecom operations to support this growth,” highlighting the importance of their diversified portfolio.

Scott Yessner, the new Chief Financial Officer, acknowledged the team’s efforts amid external challenges and conveyed optimism about the upcoming audit documentation for fiscal year 2024.

Tom Kelleher, also Co-CEO, reiterated the ongoing strength in many operating sectors, indicating their adaptability in balancing operational objectives with recognizing investment opportunities across their ventures.

Preliminary Estimates

For the first six months of 2025, here is a summary of the financial outlook:

• - Net Income: Projected between $125 million and $145 million.
• - Revenue: Expected in the range of $405 million to $425 million.
• - Total Debt: Approximately $1.46 billion, with net debt ranging from $809 million to $839 million.
• - Cash Provisions: Estimated at $268 million, reinforcing the company's robust financial position.

In conclusion, B. Riley Financial's proactive strategies and adaptations reveal a resilient company navigating through financial challenges while preparing for growth and opportunities in the upcoming fiscal period. Investors and analysts alike will be observing the final audits and subsequent filings with great interest as they provide clarity on the company's ongoing recovery efforts in the volatile financial markets.