BRC Group Holdings (RILY) investor relations material

Executive summary

• Net income available to common shareholders for Q1 2026 ranged from $211.3 million to $222.2 million, marking a significant turnaround from prior-year losses, driven by strong trading gains, investment performance, and lower operating expenses.

• Total revenues for Q1 2026 were $352.1 million, up from $186 million year-over-year, fueled by trading gains, especially from Babcock & Wilcox stock appreciation.

• The company executed nearly $10 billion in client capital raises, its most active capital-raising quarter in five years.

• Strategic focus included strengthening the balance sheet, optimizing capital structure, and streamlining operations, including the planned merger of B. Riley Securities and B. Riley Wealth.

• Completed major debt exchanges and redemptions, reducing senior notes outstanding and strengthening the balance sheet.

Financial highlights

• Net income attributable to common shareholders was between $211 million and $222.2 million, compared to a net loss of up to $16.6 million in Q1 2025.

• Diluted EPS was $6.57, versus a loss per share of up to $0.50 in Q1 2025.

• Adjusted EBITDA reached $262.2 million, compared to a loss of $45.3 million in Q1 2025.

• Total operating expenses declined to $199.1 million from $247.5 million year-over-year, reflecting cost reductions from exited businesses and lower legal fees.

• Interest expense dropped to $19.8 million, down from $30 million year-over-year due to lower average borrowing balances.

Outlook and guidance

• Management expects continued debt reduction, operational normalization, and further cost savings as the company returns to a normal operating cadence.

• Sufficient liquidity is expected to meet all obligations over the next 12 months, with capital expenditures projected below $6.3 million.

• The company sees a deep and expanding opportunity set for capital markets activity and expects momentum to continue in upcoming quarters.