B. Riley Financial, Inc. Stock Price, News & Analysis

B. Riley Financial (NASDAQ: RILY) has received a delinquency notification from Nasdaq on May 21, 2025, for failing to comply with listing rules due to delayed filing of its Q1 2025 Form 10-Q. This follows a previous notification regarding the delayed 2024 annual report (10-K). The company must submit a compliance plan to Nasdaq by June 2, 2025, addressing both delinquent filings.

If Nasdaq accepts the plan, RILY could receive up to 180 calendar days from the initial delinquent filing's due date (until September 29, 2025) to regain compliance. The notification currently has no immediate effect on RILY's Nasdaq listing status.

B. Riley Financial (NASDAQ: RILY) has announced the appointment of Scott Yessner as its new Chief Financial Officer, effective June 3, 2025. Yessner, who has been serving as a strategic advisor for the past two months, will succeed Phillip Ahn, who is departing for another opportunity.

Yessner brings significant experience as a CFO, notably improving EBITDA by $40 million at CEMCO and achieving a $45 million EBITDA improvement at Universal Technical Institute, where the stock price increased 250%. His compensation package includes 100,000 restricted shares and 300,000 stock options exercisable at different price points ($7, $10, and $12.50), vesting over three years.

B. Riley Financial (NASDAQ: RILY) has announced a private bond exchange agreement with an institutional investor that will reduce its total outstanding debt by approximately $12 million. The agreement involves exchanging approximately $22 million in outstanding Senior Notes for $10 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028.

As part of the transaction, the company will issue warrants to purchase approximately 40,000 common shares at an exercise price of $10.00 per share, exercisable for seven years from the issuance date. This represents the company's second exchange as part of its ongoing efforts to strengthen its capital structure.

B. Riley Financial (NASDAQ: RILY) has received a delinquency notification from Nasdaq on April 3, 2025, for failing to comply with Listing Rule 5250(c)(1) due to delayed filing of its 2024 Full Year Report (Form 10-K).

The company must submit a compliance plan by June 2, 2025 (within 60 days). If accepted, Nasdaq may grant an extension until September 29, 2025 to regain compliance. While this notification does not immediately affect RILY's Nasdaq listing, the company has already released preliminary Q4 2024 financial results on March 3, 2025, and expects to file its Form 10-K before the plan submission deadline.

B. Riley Financial (NASDAQ: RILY) has announced a private bond exchange agreement that will reduce its total outstanding debt by approximately $35 million. The agreement involves an institutional investor exchanging approximately $123 million in Senior Notes for $88 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028.

The exchange includes approximately $86 million in 5.5% Senior Notes (NASDAQ: RILYK) due March 2026 and $37 million in 5.0% Senior Notes (NASDAQ: RILYG) due December 2026. As part of the agreement, the company will issue warrants to purchase about 351,000 common shares at an exercise price of $10.00 per share, exercisable for seven years from issuance.

B. Riley Financial (NASDAQ: RILY) has announced a strategic carve-out transaction involving its investment banking subsidiary, B. Riley Securities (BRS). Through a merger with Cascadia Investments, BRS will now operate independently with its own governance structure and trade on the OTC Pink market under 'BRLY'. B. Riley Financial retains approximately 89% ownership, with remaining shares held by BRS employees and certain Cascadia shareholders.

BRS, which will be debt-free and well-capitalized, will be led by Andy Moore and Jimmy Baker as Co-CEOs. Since 2017, BRS has led over 250 capital markets transactions, raised more than $115 billion in debt and equity, and advised on M&A and restructuring deals exceeding $33 billion in total value.

The tax-free separation aims to provide enhanced transparency for stakeholders and enable independent valuation of BRS as a pure-play investment bank focused on small cap and middle markets. BRS will maintain its own board of directors, with four members appointed by BRF, including two independent directors within 30 days.

B. Riley Financial (NASDAQ: RILY) has announced the completion of the sale of Atlantic Coast Recycling, for $70 million in cash proceeds. The transaction is expected to generate a gain of approximately $30 million in the first quarter. The company's Principal Investments team had initially invested about $39 million in the business, making it a profitable venture for B. Riley.

B. Riley Financial (NASDAQ: RILY) has released preliminary Q4 2024 financial estimates, projecting net income available to common shareholders between $48 million to $68 million, or $1.57 to $2.22 per diluted share. This includes approximately $236-247 million income from discontinued operations related to Great American businesses divesture.

The company reports a net loss from continuing operations of ($178) million to ($187) million, impacted by goodwill impairment charges of $73-79 million and $49 million in trading and investment losses. Operating adjusted EBITDA from continuing operations is estimated at $12-14 million.

As of December 31, 2024, B. Riley held $257 million in cash and restricted cash, with total debt of $1.78 billion. The company has reduced debt by over $700 million since January 2024 and retired its Nomura facility. The final audited results are due March 17, 2025.