olivLaw · US equity research
BRC Group Holdings, Inc. RILY
Investment Advice · SIC 6282 · Vertical: Investment Advice (SIC 6282)
BRC Group Holdings is a diversified holding company combining investment banking for small and mid-cap companies, wealth management, telecom, consumer products and investments. Its most important current theme is debt reduction: the company cut total outstanding indebtedness from about 1.8 billion USD at the end of 2024 to 1.4 billion USD at the end of 2025, and total debt stood at 1.28 billion USD on June 30, 2026.
At the close of 04 Nov 2026, BRC Group Holdings, Inc. (RILY) stock was 3.83 USD (+1.86% on the day), with market capitalisation 154.0 m USD, P/E 0.3 on diluted EPS of 12.77 USD over the last 12 months, dividend yield 26.11%, beta 1.64, 52-week range 3.72–10.68 USD. Latest reported quarter (Q2 2026): revenue of 239.1 m USD (+6.1% YoY), net income of 20.5 m USD (−85.3% YoY), diluted EPS 0.45 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 30.1
- weak (30–45)
- Bollinger (20, 2)
- 3.51 – 5.27
- in the lower half of the band · %B 0.18 · band width 40.0%
- SMA 50 / 200
- 5.41 / 7.24
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.43 / -0.44
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −21.5% | −1.1% | −20.4 pp | — |
| 3 months | −48.3% | −0.5% | −47.9 pp | — |
| 6 months | −57.2% | +4.4% | −61.6 pp | — |
| Year to date | −18.0% | +12.3% | −30.3 pp | — |
| 1 year | −13.9% | +13.5% | −27.5 pp | −2.5% |
| 3 years | −90.8% | +76.4% | −167.2 pp | +31.2% |
| 5 years | −95.3% | +63.7% | −159.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 175.4 m | 178.6 m | 186.1 m | 225.3 m | 277.9 m | 278.4 m | 352.1 m | 239.1 m |
| Cost of revenue | 40.3 m | 48.7 m | 36.7 m | 35.1 m | 35.0 m | 38.5 m | 32.4 m | 31.4 m |
| SG&A | 161.1 m | 171.4 m | 167.4 m | 142.4 m | 143.9 m | 146.1 m | 134.3 m | 133.4 m |
| Operating income | -82.2 m | -166.8 m | -61.5 m | 10.8 m | 65.4 m | 60.8 m | 152.9 m | 38.2 m |
| Depreciation & amortisation | 11.2 m ≈ | 11.3 m | 10.1 m | 8.7 m ≈ | 8.4 m ≈ | 7.9 m | 7.6 m | 7.5 m ≈ |
| Interest expense | 33.0 m | 31.1 m | 30.0 m | 24.0 m | 18.8 m | 20.1 m | 19.8 m | 18.0 m |
| Pre-tax income | -140.7 m | -257.1 m | -23.0 m | 74.7 m | 98.6 m | 79.2 m | 239.1 m | 27.5 m |
| Income tax | 10.0 m | 4.2 m | -3.0 m | 3.1 m | 1.2 m | -11.1 m | 16.9 m | 6.0 m |
| Net income | -284.4 m | 2.9 m | -10.0 m | 139.5 m | 91.1 m | 86.8 m | 213.3 m | 20.5 m |
| Diluted EPS | -9.39 | 0.09 ≈ | -0.39 | 4.50 | 2.91 | 2.84 ≈ | 6.57 | 0.45 |
| Operating cash flow | 19.5 m ≈ | -2.7 m | 184.0 k | -25.6 m ≈ | -60.6 m ≈ | 26.2 m | 38.1 m | -18.2 m ≈ |
| Dividends paid | 0 ≈ | 104.0 k | 0 | 0 ≈ | 0 ≈ | 0 | — | — |
| Share repurchases | 0 ≈ | 0 | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 26-quarter history (min 0.4, median 11.6, max 195.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | ⚠ 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 423.0 m | 652.1 m | 834.2 m | 1.6 bn | 939.5 m | 1.5 bn | 746.4 m | 967.6 m |
| Revenue YoY | +31.3% | +54.2% | +27.9% | +86.4% | — | +56.0% | −49.1% | +29.6% |
| Net income | 16.3 m | 81.6 m | 205.1 m | 445.1 m | -159.8 m | -99.9 m | -764.3 m | 307.4 m |
| Net income YoY | +41.0% | +400.8% | +151.4% | +116.9% | — | unavailable | unavailable | unavailable |
| Diluted EPS | 0.58 | 2.95 | 7.56 | 15.09 | -5.95 | -3.69 | -25.46 | 9.80 |
| Diluted EPS YoY | +20.8% | +408.6% | +156.3% | +99.6% | — | unavailable | unavailable | unavailable |
| net % | 3.9% | 12.5% | 24.6% | 28.6% | -17.0% | -6.8% | -102.4% | 31.8% |
| Free cash flow | -107.6 m | -30.7 m | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
The series breaks before 2022: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 226.6 m USD
- Financial debt
- 1.4 bn USD
- Net debt
- 1.2 bn USD
- Equity
- -120.3 m USD
- Total assets
- 1.7 bn USD
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- unavailable
- ROA
- 17.6%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 834.2 m | 1.6 bn | 939.5 m | 1.5 bn | 746.4 m | 967.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Cost of revenue | — | 27.0 m | 60.8 m | 172.8 m | 167.6 m | 145.4 m | SEC (XBRL)· 31 Mar 2026verified |
| Gross profit | — | 1.5 bn ≈ | 878.7 m ≈ | 1.3 bn ≈ | 578.8 m ≈ | 822.2 m ≈ | SEC (XBRL)· 31 Mar 2026derived |
| SG&A | 428.5 m | 906.2 m | 654.8 m | 764.9 m | 689.4 m | 599.7 m | SEC (XBRL)· 31 Mar 2026verified |
| Operating income | 276.3 m | 514.5 m | 29.9 m | 96.1 m | -497.5 m | 75.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Depreciation & amortisation | 19.4 m | 25.9 m | 40.0 m | 49.6 m | 45.4 m | 35.2 m | SEC (XBRL)· 31 Mar 2026verified |
| EBITDA | 295.6 m ≈ | 540.4 m ≈ | 69.8 m ≈ | 145.7 m ≈ | -452.1 m ≈ | 110.8 m ≈ | SEC (XBRL)· 31 Mar 2026derived |
| Interest expense | 65.2 m | 92.5 m | 141.0 m | 156.2 m | 133.3 m | 92.7 m | SEC (XBRL)· 31 Mar 2026verified |
| Pre-tax income | 279.5 m | 614.8 m | -334.3 m | -199.3 m | -900.4 m | 229.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Income tax | 75.4 m | 164.0 m | -65.3 m | -39.1 m | 22.0 m | -9.9 m | SEC (XBRL)· 31 Mar 2026verified |
| Net income | 205.1 m | 445.1 m | -159.8 m | -99.9 m | -764.3 m | 307.4 m | SEC (XBRL)· 31 Mar 2026verified |
| Diluted EPS | 7.56 | 15.09 | -5.95 | -3.69 | -25.46 | 9.80 | SEC (XBRL)· 31 Mar 2026verified |
| Weighted average diluted shares | 26.5 m | 29.0 m | 28.2 m | 29.3 m | 30.3 m | 30.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Dividend per share | 1.33 | 12.50 | 4.00 | 4.00 | 1.00 | — | SEC (XBRL)· 19 Sept 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 103.6 m | 278.9 m | 268.6 m | 222.7 m | 146.9 m | 226.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Receivables | 40.8 m | 49.7 m | 149.1 m | 82.0 m | 68.7 m | 55.5 m | SEC (XBRL)· 31 Mar 2026verified |
| Inventories | — | 4.0 m | 101.7 m | 93.7 m | 63.0 m | 48.0 m | SEC (XBRL)· 31 Mar 2026verified |
| Property, plant & equipment, net | 11.7 m | 12.9 m | 27.1 m | 25.2 m | 18.7 m | 17.6 m | SEC (XBRL)· 31 Mar 2026verified |
| Goodwill | 227.0 m | 250.6 m | 506.9 m | 437.0 m | 392.7 m | 392.7 m | SEC (XBRL)· 31 Mar 2026verified |
| Intangibles (excl. goodwill) | 190.7 m | 207.7 m | 374.1 m | 198.2 m | 146.4 m | 118.3 m | SEC (XBRL)· 31 Mar 2026verified |
| Total assets | 2.7 bn | 5.9 bn | 6.1 bn | 6.1 bn | 1.8 bn | 1.7 bn | SEC (XBRL)· 31 Mar 2026verified |
| Accounts payable | 2.7 m | 6.3 m | 81.4 m | 44.0 m | 51.2 m | 41.5 m | SEC (XBRL)· 31 Mar 2026verified |
| Long-term debt | — | — | — | — | 1.5 bn | 1.4 bn | SEC (XBRL)· 31 Mar 2026verified |
| Total liabilities | 2.1 bn | 4.8 bn | 5.4 bn | 5.7 bn | 2.2 bn | 1.8 bn | SEC (XBRL)· 31 Mar 2026verified |
| Equity | 539.0 m | 705.2 m | 505.9 m | 359.6 m | -456.0 m | -120.3 m | SEC (XBRL)· 31 Mar 2026verified |
| Shares outstanding at year end | — | — | — | — | 30.5 m | 30.6 m | SEC (XBRL)· 14 Jan 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 57.7 m | 50.9 m | 6.7 m | 24.5 m | 263.6 m | -59.7 m | SEC (XBRL)· 31 Mar 2026verified |
| Investing cash flow | 21.8 m | -956.5 m | -32.3 m | 301.2 m | 440.5 m | 311.5 m | SEC (XBRL)· 31 Mar 2026verified |
| Financing cash flow | -80.7 m | 1.1 bn | 17.6 m | -365.9 m | -671.9 m | -279.4 m | SEC (XBRL)· 31 Mar 2026verified |
| Dividends paid | 38.8 m | 347.1 m | 119.5 m | 141.1 m | 33.7 m | 0 | SEC (XBRL)· 31 Mar 2026verified |
| Share repurchases | 48.2 m | 2.7 m | 6.5 m | 69.5 m | 0 | — | SEC (XBRL)· 19 Sept 2025verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 37.5% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 154.0 m USD
Key indicators
Coverage and freshness
Score by group
38% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 13.14 – 382.69 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E218.05 – 382.69 (Mid 279.53)29 companies used · median multiple 21.9x · quartiles 17.1x – 30.0xAAMI, ABX, AMG, AMP, APAM, APO, ARES, BEN, BVC, BX, CG, EVR, FHI, GCMG, GROW, HLI, HNNA, KKR, LAZ, MORN, NOAH, PAX, PJT, RPC, TROW, VALU, VCTR, VRTS, WHG
- Dividend discount (DDM)13.14 – 17.67 (Mid 15.07)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 35.9% | 92 (vs peers) | 17% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 1.0% | 8 (on a fixed band) | 22% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.1x | 41 (on a fixed band) | 17% |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 0.3x | 97 (vs peers) | 28% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 17% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial41/100 · 1/3 factors with a value
- Growth· partial8/100 · 1/2 factors with a value
- Quality· partial92/100 · 1/3 factors with a value
- Returns· partial0/100 · 1/2 factors with a value
- Valuation· partial97/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BRC Group Holdings, Inc. (RILY). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 967.6 m USD in 2025; YoY growth 29.6%; net margin 35.9%.
The estimated value range is 115.60–200.18 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 147.30 USD, the price of 3.83 USD leaves a potential of 3,746.0% (value / price − 1) and a margin of safety of 97.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 37.5% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 35.9%
- P/E (TTM): 0.3x
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: 1.0%
- Shareholder yield (distributions): 0.0%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Current ratio, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Investment Advice (SIC 6282) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BXBlackstone Inc. | 94.3 bn | 28.1 | 40.5% | 21.8% | +9.2% | −14% / +12% |
| KKRKkr & Co. Inc. | 91.0 bn | 28.9 | 10.6% | 14.8% | −11.0% | −17% / +34% |
| APOApollo Global Management, Inc. | 72.5 bn | 43.8 | 9.3% | 5.2% | +22.7% | −7% / +33% |
| AMPAmeriprise Financial, Inc. | 45.8 bn | 11.9 | 72.0% | 20.7% | +5.5% | +16% / +49% |
| TROWPrice T Rowe Group Inc | 24.0 bn | 11.3 | 19.7% | 28.4% | +3.1% | +10% / +12% |
| BENFranklin Resources Inc | 17.2 bn | 22.8 | 6.8% | 8.7% | +3.5% | +50% / +37% |
| CGCarlyle Group Inc. | 15.2 bn | 44.6 | 5.2% | 10.1% | −11.9% | −22% / +25% |
| ARESAres Management Corporation | 14.1 bn | 22.2 | 15.3% | 12.0% | +28.9% | −13% / +22% |
| IVZInvesco Ltd. | 12.9 bn | — | -0.6% | -1.2% | +5.1% | +20% / +106% |
| AMGAffiliated Managers Group, Inc. | 9.4 bn | 17.8 | 18.9% | 26.9% | +1.6% | +36% / +169% |
| MORNMorningstar, Inc. | 9.1 bn | 21.4 | 35.1% | 17.0% | +7.5% | +14% / −14% |
| VCTRVictory Capital Holdings, Inc. | 7.4 bn | 20.6 | 19.0% | 29.6% | +46.2% | +91% / +274% |
| MAASMAASE Inc. | 4.9 bn | — | -7.2% | -102.1% | −75.2% | +182% / −95% |
| LAZLazard, Inc. | 4.5 bn | 24.4 | 20.6% | 5.5% | +1.5% | −19% / +36% |
| PJTPJT Partners Inc. | 3.9 bn | 19.7 | 83.2% | 10.6% | +14.8% | −6% / +76% |
| APAMArtisan Partners Asset Management Inc. | 3.3 bn | 9.3 | 73.1% | 24.5% | +7.6% | −2% / +7% |
| AAMIAcadian Asset Management Inc. | 3.3 bn | 32.4 | — | 15.2% | +11.5% | +104% / +425% |
| NOAHNoah Holdings Ltd | 2.4 bn | 30.7 | 5.8% | 21.4% | +4.8% | −31% / −45% |
| ABXAbacus Global Management, Inc. | 885.0 m | 32.5 | 6.6% | 10.5% | +110.2% | +37% / +31% |
| VRTSVirtus Investment Partners, Inc. | 853.6 m | 7.4 | 12.6% | 14.0% | −6.0% | −19% / −34% |
| GCMGGCM Grosvenor Inc. | 550.6 m | 30.0 | 682.1% | 7.8% | +8.5% | +19% / +61% |
| VALUValue Line, Inc. | 416.6 m | 21.0 | 18.7% | 60.3% | −4.7% | +20% / +6% |
| WHGWestwood Holdings Group, Inc. | 182.5 m | 21.9 | 6.4% | 7.8% | +3.2% | +14% / +75% |
| RILYBRC Group Holdings, Inc. | 154.0 m | 0.3 | — | 35.9% | +29.6% | −14% / −91% |
| BVCBitVentures Limited | 138.6 m | 39.8 | 28.9% | 687.6% | unavailable | +1,203% / −76% |
1- and 3-year price returns: for RILY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1.75 Total return -54% · Per year -54% | 3.10 Total return -19% · Per year -19% | 4.68 Total return 22% · Per year 22% |
| 3 years | 1.58 Total return -59% · Per year -26% | 3.16 Total return -17% · Per year -6% | 5.26 Total return 37% · Per year 11% |
| 5 years | 1.43 Total return -63% · Per year -18% | 3.23 Total return -16% · Per year -3% | 5.91 Total return 54% · Per year 9% |
- Exit P/E± 0.79
- Net margin± 0.55
- Annual revenue growth± 0.47
- Annual dilution± 0.05
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
BRC Group Holdings is a diversified holding company combining investment banking for small and mid-cap companies, wealth management, telecom, consumer products and investments. Its most important current theme is debt reduction: the company cut total outstanding indebtedness from about 1.8 billion USD at the end of 2024 to 1.4 billion USD at the end of 2025 1, and total debt stood at 1.28 billion USD on June 30, 2026 3.
SWOT
Strengths
- A diversified platform combining investment banking, wealth management and consumer operations, which can soften volatility in any single line of business 1.
- Strong recent results in capital markets, with higher underwriting activity and the recruitment of senior bankers 3.
- Significant reduction in total debt and net debt during 2026, which strengthens the balance sheet 3.
Weaknesses
- Revenues and results are volatile and hard to forecast, and some gains come from investments with uncertain valuations 13.
- Non-standard measures such as Operating Adjusted EBITDA were changed, which makes direct comparison harder 3.
- Telecom divisions are losing customers and their revenues are falling, especially in legacy internet services 13.
Opportunities
- If the capital markets stay active, investment banking could benefit from new issuance, especially in sectors such as energy and data centers 3.
- Growth in wealth management assets under management could bring more stable recurring revenue 23.
- Cost reductions in communications could improve margins if they are sustained 3.
Threats
- Volatile financial markets can reduce transaction volumes and commission and spread income 1.
- The regulatory framework changes constantly, and capital requirements could raise costs or limit activity 1.
- Proceedings tied to the former Freedom VCM investment and the relationship with its former CEO could affect reputation and results 1.
Risks
- Revenue volatilityhigh
Investment banking revenues depend on transactions that are completed at uncertain times, which makes quarterly results hard to anticipate 1.
- Investigations and litigationhigh
The company has received SEC subpoenas, and developments in these proceedings related to the former Freedom VCM investment could affect its reputation 1.
- Indebtednessmedium
The level of debt and restrictions in credit agreements could limit financial flexibility, even though reduction has progressed 1.
- Investment valuationmedium
The securities and investment portfolio could suffer write-downs if valuations fall or issuers weaken 1.
- Internal controllow
Weaknesses in internal control over financial reporting could affect investor confidence and compliance costs 1.
Investment thesis
What would need to be true (bull case)
- If debt reduction continues and investment banking stays near recent levels, the company could show a lasting improvement in profitability 13.
- Diversification across financial services, wealth management and consumer operations could reduce dependence on a single economic cycle 1.
- Growth in assets under management and wealth management revenues could provide more predictable income over time 23.
What would break the thesis
- Recent results depend heavily on investment gains, which are hard to repeat and could disappear if markets weaken 13.
- Telecom and consumer product businesses have declining or flat revenues, which could limit overall growth 3.
- Investigations and reputational risks linked to the company's past could generate unexpected costs or client losses 1.
What to watch
- Trend in net debt of 285.2 million USD and total debt of 1.28 billion USDQ3 2026
- Whether Capital Markets revenues hold up without extraordinary investment gainsQ3 2026
- Revenue trend of the communications group and the effect of cost reductionsQ4 2026
- Annual results and any further asset sales or monetization transactionsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
BRC Group Holdings, Inc. (Nasdaq: RILY), formerly B. Riley Financial, changed its name effective January 1, 2026 1. It presents itself as a diversified platform: a core of financial services (investment banking, sales and trading, research, wealth management), complemented by telecom businesses, consumer and retail products, and investments in equity, debt and venture capital 1. The stated aim is to invest in or acquire companies or assets with attractive risk-adjusted returns and improve their operations to raise free cash flow 1. The company is headquartered in Los Angeles and had more than 1,552 affiliated professionals 1.
Over the past years a significant part of the strategy has been asset sales, mainly between late 2024 and June 2025, including consumer brands, Great American Group, recycling operations, part of the wealth business and GlassRatner and Farber 1. These transactions supported debt reduction, which the company describes as a key priority for the foreseeable future, possibly including further sales or monetizations 1.
Results for the second quarter of 2026 showed net income of 18.5 million USD and Operating Adjusted EBITDA of 66.0 million USD, described by management as its highest core operating result since the third quarter of 2023 3. However, the company changed how this non-GAAP measure is calculated by excluding its Great American Holdings equity investment, which makes comparisons with earlier periods harder 3.
Segments
Communications and Consumer Products
The communications group comprises Lingo, magicJack, Marconi Wireless and UOL, and the consumer products division (Targus) sells laptop and tablet accessories 1. Combined communications revenues were 57.6 million USD in the second quarter of 2026, down from 62.2 million USD, due to expected customer attrition, while profit rose on cost reductions 3. Consumer Products revenues reached 43.5 million USD 3.
Market context
The company operates in quite different markets: investment banking for small and mid-cap companies, wealth management, telephone and internet services for individuals and businesses, and IT accessories 1. Investment banking depends heavily on the volume of equity and debt issuance, and the company reported helping clients raise 8.5 billion USD in combined equity and debt capital in the second quarter of 2026 3.
Telecom businesses face highly competitive markets where customers can switch providers easily, and legacy dial-up and DSL access continues to decline 1. If cost reductions and investment banking demand hold, results could remain solid, although investment income is volatile 1.
Trends
- Debt reductiontailwind
Total debt fell from 1.8 billion USD to 1.4 billion USD during 2025 and stood at 1.28 billion USD at June 30, 2026 13. If the reduction continues, pressure on cash flow could ease.
- Recovering capital marketstailwind
Growth in equity and debt issuance, including in sectors such as data center and energy infrastructure, has supported investment banking activity 3. If the market stays active, segment revenues could keep growing.
- Volatile investment gainsmixed
Revenues and profit depend on gains from the investment portfolio, which can be volatile and hard to forecast 13. Without such gains, results could look quite different.
- Decline of legacy internet servicesheadwind
Customers are moving from dial-up and DSL to faster connections offered by competitors, which reduces UOL revenues 1. If this continues, the business could become a smaller part of the group.
Competitive position
The company faces intense competition in every business line. In investment banking and wealth management it competes with other investment banks, brokerage firms, bank holding companies and financial advisory firms, and larger, better-capitalized rivals may have an edge 1.
In telecom and internet, competition comes from broadband providers, cable operators, mobile and satellite services, while in consumer products it comes from original equipment makers and other brands selling through similar retailers 1. Pricing pressure may make it harder to win new clients 1.
- Investment banks and brokerage firms
Direct competitors in underwriting, merger advisory and institutional trading, cited generically in the annual report 1.
- Specialized firms and investment banking boutiques
Smaller firms serving the same target industries as the group, according to the competition section of the report 1.
- Broadband providers and cable operators
Competitors for the telephone and internet services in the communications division 1.
- Accessory makers and private-label brands
Competitors of the Targus division, which sells through similar retailer and wholesaler arrangements 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- eGain (EGAN): B. Riley and Roth Capital Both Cut Targets as AI Growth Struggles to Offset Legacy DeclinesYahoo Finance — News · 19 Sept 2026 · EN
- B. Riley keeps WhiteFiber at Buy, $38 target as North Carolina financing nearsYahoo Finance — News · 10 Sept 2026 · EN
- Why B. Riley Just Issued a $23 Price Target on Infleqtion StockYahoo Finance — News · 08 Sept 2026 · EN
The latest news item in our archive is from 19 Sept 2026; the newest SEC filing is from 28 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report28 Oct 2026Departure or appointment of officers · Other events · Financial statements and exhibits
- Current report01 Oct 2026Material agreement · Acquisition or disposition of assets · Regulation FD disclosure · Financial statements and exhibits
- Current report28 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report13 Aug 2026Material agreement · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report02 Jul 2026Departure or appointment of officers
- Current report15 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Current report09 Jun 2026Item 3.02
- Current report26 May 2026Shareholder vote
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / BRC Group Holdings, Inc. · 31 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / BRC Group Holdings, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / BRC Group Holdings, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.