B. Riley shares jump after a surprise Q2 profit, debt moves, and a timely filing ease Nasdaq delisting risk, but an overdue Q3 report still looms.
Summary
- B. Riley filed its long-delayed Q2 2025 report ahead of Nasdaq’s December 23 deadline, temporarily removing the delisting threat and boosting premarket trading.
- The firm swung to $137.5m in net income from a $435.6m loss a year earlier, aided by asset sales, note exchanges, and stronger revenue.
- Despite the rebound, B. Riley still faces an overdue Q3 filing, fallout from Franchise Group’s bankruptcy, and an ongoing U.S. civil probe tied to a former partner.
B. Riley Financial shares surged in premarket trading on Tuesday, December 16, 2025, following the company’s filing of its long-delayed second-quarter financial report ahead of a critical Nasdaq deadline.
B. Riley goes for Nasdaq deadline
The financial services firm submitted the report before Nasdaq’s December 23 deadline, removing the immediate threat of delisting that had faced the company for months, according to company statements. B. Riley has been dealing with challenges stemming from failed investments, debt restructuring, and regulatory scrutiny following the bankruptcy of one of its major portfolio companies.
The delayed Q2 report showed net income of $137.5 million for the quarter ended June 30, 2025, compared to a net loss of $435.6 million in the same period of 2024. Income from continuing operations reached $71.7 million, reversing a loss of $449.2 million from the prior year.
Revenue increased to $225.3 million from $94.9 million in Q2 2024, driven partly by a negative $175.6 million loss on fair value adjustments on loans in the comparable period. The company’s earnings included one-time items, including a $66.8 million gain tied to the sale of GlassRatner and $44.5 million from senior note exchanges.
Operating adjusted EBITDA from continuing operations improved to $38.5 million from $31.2 million in the year-ago quarter. The company reported non-GAAP earnings per share of $4.50.
Chairman and Co-CEO Bryant Riley stated that while the Q3 report remains outstanding, the company is “well positioned to file” it by Nasdaq’s January 20, 2026 deadline, which would bring financial reporting fully current.
Nasdaq had previously granted the company extensions after a panel hearing, citing B. Riley’s efforts to address reporting delinquencies and the appointment of a new chief financial officer whose compensation is partially tied to timely reporting, according to regulatory filings.
The company has been navigating uncertainty following the collapse of Franchise Group, which filed for bankruptcy in late 2024, leaving B. Riley with hundreds of millions of dollars in write-offs. A former Franchise Group CEO recently pleaded guilty to defrauding hedge fund investors at Prophecy Asset Management of approximately $300 million, though B. Riley has stated it had no knowledge of those fraudulent activities.
The firm faces an ongoing U.S. civil investigation related to that individual, according to company disclosures.
