ARLINGTON, VA, November 6, 2025 - B. Riley Securities Holdings, Inc. ("B. Riley Securities," "BRS" or the "Company"), a leading middle market investment bank, today provided a business update and certain preliminary financial results for the three-month period ended September 30, 2025.
Financial Highlights
Management Commentary
"B. Riley Securities delivered a highly profitable third quarter, building on our second quarter momentum, with significant client engagement across both our investment banking and institutional brokerage businesses," said Jimmy Baker, Co-CEO and Head of Capital Markets. "Robust deal activity, including both equity and debt financings totaling approximately $10.5 billion in capital raised for clients, contributed to our strong performance this quarter, as well as disciplined use of our balance sheet in support of client objectives. Our research-led platform, strong balance sheet, and execution focus have continued to fuel success across our core franchise. While the market backdrop remains accommodating for accessing growth capital, we recognize that our markets can change quickly and have prioritized risk management accordingly while remaining focused on advising our clients through such an environment. In parallel, we have maintained a disciplined approach to recruiting new teammates, strategically expanding our team and adding talented professionals who strengthen our platform."
"Our recent Consumer & TMT and CLO & BDC Conferences generated strong issuer participation and related institutional interest, reinforcing our leadership position as a market connector," said Andy Moore, Chairman and Co-CEO. "Our mission remains providing platform for an expression of views across this community. Our upcoming Convergence Conference, which focuses on the impact of AI and blockchain on the energy complex, reflects an ongoing commitment to delivering relevant high-quality engagement for our partners."
Financial Highlights
For the three-month period ended September 30, 2025, preliminary unaudited financial results reflected total revenue of approximately $109.1 million and adjusted net revenue of approximately $75.7 million. Net income was approximately $41.8 million, while adjusted net income totaled approximately $18.9 million.
The adjusted results presented above, including Adjusted Net Revenue and Adjusted Net Income, are non-GAAP metrics that BRS believes offer a clearer view of the firm's underlying operating performance. A description of the adjustments made to arrive at non-GAAP figures is provided in the note regarding the use of non-GAAP financial measures in the Appendix of this press release.
Revenue and net income may vary from period to period based on
the number, size, and timing of completed transactions, among other factors.
Accordingly, these results may not be indicative of broader business momentum
or longer-term performance.
Operational & Strategic Update
- Debt-Free Balance Sheet: As of September 30, 2025, cash and securities totaled $145.9 million. BRS continues to operate with no outstanding debt.
- Executive Transition: As previously announced, the BRS Board of Directors has appointed Jimmy Baker CEO, effective January 1, 2026. Andy Moore will remain Chairman of the BRS Board of Directors.
- Capital Allocation: The BRS Board has approved the payment of a common stock dividend
of $0.40 per common share, approximately $7.4 million in the aggregate. While
this does not represent the establishment of a recurring dividend program, BRS
will continue to evaluate future returns of capital to shareholders in the
context of available excess capital, business growth prospects and client
capital needs.
About B. Riley Securities
BRS provides a full suite of investment banking and capital
markets services to corporations, financial sponsors, and institutional
investors across all industry verticals. Services include initial, secondary,
and follow-on offerings, debt and equity-linked solutions, institutional
private placements, merger and acquisition (M&A) advisory, corporate
restructuring, and liability management. Widely recognized for its thematic
proprietary equity research, clients benefit from BRS' extensive network,
industry expertise, and proven execution capabilities through its end-to-end
platform. For more information, visit www.brileysecurities.com and follow us on LinkedIn.
Note Regarding Use of Non-GAAP Financial Measures
Certain information set forth herein, including adjusted net
revenue and adjusted net income (loss), may be considered non-GAAP financial
measures. B. Riley Securities believes this information is useful to investors
because it provides a basis for measuring the operating performance of the
Company's business and its revenues and cash flow, (i) excluding in the case of
adjusted net revenue, trading gains (losses) and fair value adjustments on
loans on legacy investment positions (net of "regular way" fixed income trading
revenue), and including Securities Lending interest expense and (ii) excluding
in the case of adjusted net income, fair value adjustments, stock-based
compensation, trading gains (losses) and fair value adjustments on loans on
legacy investment positions (net of certain related non-controlling interest
and investment-related expense adjustments and "regular way" fixed income
trading revenue), and including the estimated related tax expense or benefit on
the aforementioned adjustments, that would normally be included in the most
directly comparable measures calculated and presented in accordance with
Generally Accepted Accounting Principles ("GAAP"). In addition, the Company's
management uses these non-GAAP financial measures along with the most directly
comparable GAAP financial measures in evaluating the Company's operating
performance, management compensation, capital resources, and cash flow. Non-GAAP
financial measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with GAAP, and
non-financial measures as reported by the Company may not be comparable to
similarly titled amounts reported by other companies.
B. RILEY SECURITIES HOLDINGS, INC.
Condensed Consolidated Balance Sheet as
of September 30, 2025
(Preliminary, Unaudited)
(in thousands)
|
B. Riley
Securities Holdings, Inc. |
||
|
Assets |
||
|
Cash and
cash equivalents |
$61,109 |
|
|
Receivables |
66,323 |
|
|
Securities
borrowed |
106,777 |
|
|
Securities
owned, at fair value |
84,776 |
|
|
Operating
lease right of use asset |
6,019 |
|
|
Goodwill
and intangibles |
161,035 |
|
|
Property
and equipment, net |
1,371 |
|
|
Prepaid
expenses and other assets |
2,782 |
|
|
Total assets |
$490,192 |
|
|
Liabilities |
||
|
Securities
loaned |
$89,165 |
|
|
Financial
instruments sold, not yet purchased, at fair value |
14,426 |
|
|
Accrued
compensation and benefits |
41,889 |
|
|
Accounts
payable and accrued expenses |
39,418 |
|
|
Operating
lease liabilities |
7,557 |
|
|
Total liabilities |
$192,455 |
|
|
Equity |
$297,737 |
|
|
Total liabilities & equity |
$490,192 |
B. RILEY SECURITIES HOLDINGS, INC.
Condensed Consolidated Statements of
Operations
Quarter Ended September
30, 2025
(Preliminary, Unaudited)
(in thousands)
|
Quarter Ended
September 30, 2025 |
||
|
Revenues |
||
|
Investment
banking |
$53,894 |
|
|
Institutional
brokerage |
51,611 |
|
|
Interest |
2,949 |
|
|
Other
income |
665 |
|
|
Total revenues |
$109,119 |
|
|
Expenses |
||
|
Compensation
and benefits |
$38,563 |
|
|
Interest |
1,998 |
|
|
Other
operating expenses |
13,436 |
|
|
Total
expenses |
53,997 |
|
|
Operating
net income (loss) |
55,122 |
|
|
Other
(income) expense |
30 |
|
|
Net income (loss) before income taxes and non-controlling interest |
55,092 |
|
|
Income tax
(benefit) expense |
13,275 |
|
|
Net income (loss) |
41,817 |
|
|
Net income
(loss) attributable to non-controlling interest |
51 |
|
|
Net income (loss) attributable to BRS
Holdings, Inc. |
$41,766 |
|
B. RILEY SECURITIES HOLDINGS, INC.
Reconciliation of GAAP to Adjusted Q3 2025 Financial Results
(Preliminary, Unaudited)
(in thousands)
|
Quarter Ended
September 30, 2025 |
||
|
Reconciliation of GAAP to adjusted
financials: |
||
|
GAAP revenue |
$109,119 |
|
|
Adjustments: |
||
|
Legacy positions losses (gains) |
(31,316) |
|
|
Committed equity facility gains (losses) |
(100) |
|
|
Total adjustments |
(31,416) |
|
|
Adjusted revenue |
77,703 |
|
|
Securities lending interest expense |
(1,998) |
|
|
Adjusted net revenue |
$75,705 |
|
|
Net income |
$41,766 |
|
|
Adjustments: |
||
|
Legacy positions losses (gains) |
(31,335) |
|
|
Transaction costs |
- |
|
|
Share based compensation |
1,193 |
|
|
Income tax-effect of above non-GAAP adjustments and
certain discrete tax items |
7,270 |
|
|
Adjusted net income |
$18,894 |
1) Legacy
investment positions held at BRS that are not, following the carve-out, part of
BRS' go-forward strategy.