With U.S. stock futures trading lower this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:Wall Street expects Duluth Holdings Inc. (NASDAQ:DLTH) to report a quarterly loss of 46 cents per share on revenue of $118.50 million before the opening bell, according to data from Benzinga Pro. Duluth shares gained 5.4% to $3.30 in after-hours trading.B Riley Financial Inc. (NASDAQ:RILY) reported earnings of $4.50 per share for the second quarter, versus a year-ago loss of $1 ...

Core Viewpoint - B. Riley Financial Inc. has submitted its overdue Q2 report to the SEC, moving closer to meeting Nasdaq's listing requirements and avoiding delisting, with the stock rising over 40% in after-hours trading following the report submission [2][4]. Group 1: Financial Performance - The Q2 report indicates a turnaround from a loss in the previous year to a profit, with a net income of approximately $137.5 million, including gains from asset sales [2][4]. - The adjusted EBITDA for continuing operations rose significantly from $31.2 million to $38.5 million, while the profit from continuing operations was about $71.7 million compared to a loss of $449.2 million in the same quarter last year [4]. - The company has faced challenges in timely reporting, leading to Nasdaq's threats of delisting, but recent efforts have resulted in a temporary extension for overdue filings [4][5]. Group 2: Operational Challenges - B. Riley is currently dealing with significant investment losses and ongoing civil investigations related to its former key business partner, Brian Kahn, which have compounded its financial difficulties [3][5]. - The bankruptcy of Franchise Group, a critical long-term investment, has resulted in substantial write-downs for B. Riley, impacting its ability to submit timely reports [3][5]. - The company has been forced to delay debt repayments and has taken measures to improve its balance sheet, including asset disposals and reducing leverage [5][6]. Group 3: Market Position and Sentiment - B. Riley's stock has plummeted from approximately $60 at the beginning of 2022 to around $3.7, primarily due to exposure to Franchise Group and subsequent investigations by the SEC [6][7]. - The company has been labeled by some analysts as a potential delisting candidate, reflecting its struggles to maintain its status as a diversified financial services leader [5][6]. - The ongoing challenges have led to a suspension of preferred stock dividends and significant asset disposals, further suppressing market sentiment and valuation [7].

Financial Performance - Total revenues increased by $130.4 million to $225.3 million for the three months ended June 30, 2025, compared to $94.9 million for the same period in 2024, representing a growth of 137.4%[380] - The increase in revenues was primarily driven by a $176.4 million increase in fair value adjustments on loans, partially offset by a $57.1 million decrease in services and fees[380] - Operating income for the period was $10.8 million, a significant turnaround from an operating loss of $232.6 million in the same quarter of 2024[377] - Total revenues increased by 4.8% to $411.4 million for the six months ended June 30, 2025, compared to $392.5 million in 2024[419] - Net income attributable to B. Riley Financial, Inc. was $129.5 million for the six months ended June 30, 2025, compared to a loss of $482.8 million in 2024, reflecting a significant turnaround[419] Revenue Breakdown - Wealth Management segment total revenues decreased to $38.6 million in Q2 2025 from $50.9 million in Q2 2024, a decline of 24%[383] - The Capital Markets segment saw a revenue decrease of $46.3 million to $64.3 million, primarily due to declines in corporate finance and investment banking fees[424] - Communications segment revenues fell by $34.9 million to $123.9 million, largely due to a $34.3 million decrease in subscription revenue following the divestiture of the Lingo wholesale carrier business[426] - E-Commerce segment revenues increased by 27.0% to $3.5 million, driven by growth in the Nogin business[422] Investment and Securities - As of June 30, 2025, the total securities and other investments owned amounted to $242.4 million, a decrease from $282.3 million as of December 31, 2024[364] - The carrying value of public equity securities was $88.9 million as of June 30, 2025, down from $124.9 million at the end of 2024, reflecting a significant decline in value[364] - The company’s investment in private equity securities was valued at $97.9 million as of June 30, 2025, down from $107.6 million at the end of 2024, indicating a decrease in fair values and sales of certain private securities[368] - The carrying value of Babcock & Wilcox Enterprises, Inc. common stock decreased from $45.0 million as of December 31, 2024, to $26.4 million as of June 30, 2025, due to a decline in public share price[365] - The carrying value of Double Down Interactive Co., Ltd common stock decreased from $43.7 million to $34.5 million during the same period, primarily driven by sales of the securities[366] Expenses and Costs - Selling, general and administrative expenses decreased to $142.4 million in Q2 2025 from $178.0 million in Q2 2024, a reduction of 20%[397] - Cost of goods sold decreased to $35.1 million in Q2 2025 from $39.8 million in Q2 2024, a decline of 12%[396] - Direct cost of services decreased to $33.2 million in Q2 2025 from $58.7 million in Q2 2024, a reduction of 43%[395] - Total selling, general and administrative expenses decreased by $47.2 million to $309.8 million during the six months ended June 30, 2025, from $356.0 million in the prior year, a reduction of 13.2%[439] Debt and Financing - The company reported borrowings of $1.5 billion as of June 30, 2025, including $1.3 billion from senior notes with interest rates ranging from 5.00% to 8.00%[463] - A new $30.0 million revolving credit facility was established with FGI Worldwide LLC, maturing on August 20, 2028, to refinance existing obligations[370] - The Company completed private exchange transactions on July 11, 2025, exchanging Exchanged Notes for approximately $24.6 million in New Notes[462] - As of June 30, 2025, approximately 90% of the company's debt obligations bore interest at fixed rates, mitigating exposure to interest rate fluctuations[475] Cash Flow and Liquidity - Cash used in operating activities was $25.4 million for the six months ended June 30, 2025, a decrease of $272.2 million compared to the same period in 2024[469] - Cash provided by investing activities was $289.2 million for the six months ended June 30, 2025, compared to $6.7 million in 2024, primarily due to proceeds from business sales[471] - Cash used in financing activities was $252.4 million for the six months ended June 30, 2025, an increase of $8.9 million compared to the same period in 2024[472] - The company expects sufficient liquidity from cash, cash equivalents, and operating activities to meet working capital and capital expenditure requirements for at least the next 12 months[464] Name Change and Corporate Strategy - The company is changing its name to BRC Group Holdings, Inc. effective January 1, 2026, reflecting its diversified portfolio strategy[350] - The company's investment strategy aims to preserve capital while maximizing income from investments without significantly increasing risk[477] Tax and Dividends - Provision for income taxes decreased to $3.1 million for the three months ended June 30, 2025, from $29.2 million in 2024, with an effective tax rate of 4.1% compared to 6.9%[411] - Dividends on common stock were suspended in August 2024, with no cash dividends paid during the three months ended June 30, 2025[465] - As of June 30, 2025, dividends in arrears for Series A Preferred Stock were $3.2 million and for Series B Preferred Stock were $2.1 million[466][467]

Core Insights - B. Riley Financial, Inc. reported a net income of $137.5 million for the second quarter of 2025, aligning with previous estimates of $120 million to $140 million [1][5] - The company successfully filed its Quarterly Report on Form 10-Q ahead of Nasdaq's compliance deadline, reflecting significant improvements in financial operations [2] Financial Performance - Net income of $137.5 million includes gains of $66.8 million from the sale of GlassRatner and $44.5 million from senior note exchanges, a significant recovery from a net loss of $(435.6) million in the second quarter of 2024 [5] - Income from continuing operations was $71.7 million, compared to a loss of $(449.2) million in the same period last year [5] - Revenues increased to $225.3 million from $94.9 million year-over-year, primarily due to a prior loss on fair value adjustments on loans [5][16] - Operating adjusted EBITDA from continuing operations was $38.5 million, up from $31.2 million in the second quarter of 2024 [5][18] Debt and Cash Position - Total debt decreased to $1.46 billion from $1.77 billion as of December 31, 2024, with net debt at $824.8 million [5][19] - Cash, cash equivalents, and restricted cash amounted to $268.6 million, an increase from $247.3 million at the end of 2024 [5][19] Company Overview - B. Riley Financial, Inc. is transitioning its name to BRC Group Holdings, Inc. on January 1, 2026, and operates as a diversified holding company with interests in financial services, telecom, and retail [4] - The company provides customized financial solutions for small-cap and middle-market companies, including services in capital markets, wealth management, and telecom [4]

Core Points - B. Riley Financial (RILY) announced an expected Nasdaq delinquency notice due to non-compliance with listing rules regarding the timely filing of financial results [2] Group 1 - The company is facing a Nasdaq delinquency notice for failing to comply with the listing rule that mandates timely filing of periodic financial reports [2]

Core Insights - B. Riley Financial, Inc. has filed its Quarterly Report on Form 10-Q for the three-month period ended March 31, 2025, marking a significant step towards timely financial reporting and compliance with Nasdaq listing requirements [1][2] - The company is transitioning to a new auditor, BDO, and has enhanced its financial and accounting operations with external staff augmentation to ensure a seamless process [2] - B. Riley Financial is set to change its name to BRC Group Holdings, Inc. on January 1, 2026, reflecting its diversified portfolio that includes financial services, telecom, and retail [2][4] Company Overview - B. Riley Financial operates a diversified portfolio of companies, providing customized end-to-end solutions for small cap and middle market companies across various stages of the enterprise life cycle [2] - The company's banking business offers comprehensive services in capital markets, sales, trading, research, merchant banking, M&A, and restructuring [2] - Its wealth management division provides services such as brokerage, investment management, insurance, and tax preparation, while its telecom businesses offer a range of consumer and business services [2] Future Outlook - The company expects to maintain heightened staffing levels through the completion of the 2025 Form 10-K, indicating a commitment to improving its financial reporting processes [2] - B. Riley Financial aims to generate shareholder value through opportunistic investments both within and outside its core financial services platform [2]

Financial Performance - Total revenues decreased by $111.5 million to $186.1 million for the three months ended March 31, 2025, compared to $297.6 million for the same period in 2024, representing a decline of 37.5%[348]. - Revenues from services and fees fell by $55.2 million, with significant decreases in the Capital Markets segment by $35.1 million and the Communications segment by $17.9 million[348][349]. - The operating loss for the three months ended March 31, 2025, was $61.5 million, compared to an operating loss of $16.0 million for the same period in 2024[345]. - Net loss attributable to B. Riley Financial, Inc. was $9.975 million for the three months ended March 31, 2025, a decrease of 79.7% compared to a net loss of $49.2 million in the same period in 2024[345]. - The Capital Markets segment's revenues from services and fees decreased to $25.2 million, down 58.2% from $60.3 million in the prior year[350]. - Wealth Management segment revenues from services and fees decreased by $4.5 million to $46.7 million for the three months ended March 31, 2025, down from $51.2 million in the same period of 2024, primarily due to an $8.8 million decrease in wealth and asset management fees[351]. - Communications segment revenues from services and fees decreased by $17.9 million to $63.2 million for the three months ended March 31, 2025, primarily due to a $17.6 million decline in subscription revenue[352]. - E-Commerce segment revenues were $3.5 million during the three months ended March 31, 2025, consisting of commission fees from Nogin, acquired in the second quarter of 2024[353]. - The company generated a net loss of $10.0 million for the three months ended March 31, 2025, compared to a net loss of $49.2 million in the same period of 2024[381]. Investment and Asset Management - As of March 31, 2025, total securities and other investments owned amounted to $231.8 million, down from $282.3 million as of December 31, 2024, representing a decrease of approximately 17.9%[331]. - The carrying value of public equity securities decreased to $79.7 million as of March 31, 2025, from $124.9 million as of December 31, 2024, a decline of about 36.2%[331]. - The carrying value of private equity securities was $97.7 million as of March 31, 2025, down from $107.6 million as of December 31, 2024, reflecting a decrease of approximately 9.2%[335]. - Total assets under management (AUM) were approximately $18.4 billion as of March 31, 2025, down from $25.8 billion as of March 31, 2024, reflecting a significant decline in AUM[351]. - The Company maintains a diverse investment portfolio, including public and private equities, corporate bonds, and other fixed income securities[331]. Corporate Actions and Changes - The Company completed the sale of a portion of its Wealth Management business for net cash consideration of $26.0 million, which included 36 financial advisors managing approximately $4.0 billion, or 23.6%, of assets under management as of March 31, 2025[336]. - The aggregate cash consideration for the sale of GlassRatner and Farber was $117.8 million, subject to adjustment based on working capital within 180 days following the sale date[338]. - The Company announced a name change to BRC Group Holdings, Inc., effective January 1, 2026[341]. - The company completed the sale of Atlantic Coast Recycling for approximately $68.6 million and the financial consulting business for $117.8 million[386]. Debt and Financing - The Targus/FGI Credit Agreement provides a $30.0 million revolving loan facility, with a final maturity date of August 20, 2028[339]. - The Targus/FGI Credit Agreement includes covenants that limit the ability of FGI Loan Parties to incur additional indebtedness and engage in certain transactions[340]. - An additional subordinated loan of $5.0 million was extended to the Targus Borrower, increasing the total principal amount of such loan to $10.0 million[340]. - Interest expense from securities lending and loan participations sold decreased by $34.7 million to $0.7 million for the three months ended March 31, 2025, due to a reduction in loaned securities from $2.0 billion to $33.0 million[370]. - The company has approximately 86% of its debt obligations at fixed interest rates, mitigating exposure to interest rate fluctuations[402]. Cash Flow and Expenses - Cash provided by operating activities decreased to $0.2 million in Q1 2025 from $135.4 million in Q1 2024, a reduction of $135.2 million[395]. - Cash provided by investing activities increased to $59.2 million in Q1 2025 from $18.3 million in Q1 2024, an increase of $40.9 million[397]. - Cash used in financing activities decreased to $172.5 million in Q1 2025 from $190.9 million in Q1 2024, a reduction of $18.4 million[398]. - Selling, general and administrative expenses decreased by $11.6 million to $167.4 million for the three months ended March 31, 2025, from $178.9 million in the same period of 2024[363]. - Direct cost of services decreased by $17.0 million to $42.7 million during the three months ended March 31, 2025, primarily due to a $16.2 million decrease in the Communications segment[361]. - Cost of goods sold decreased by $2.1 million to $36.7 million for the three months ended March 31, 2025, primarily due to lower sales volume in the Consumer Products segment[362]. Tax and Other Income - The benefit from income taxes was $3.0 million for the three months ended March 31, 2025, compared to $21.3 million in 2024, with an effective tax rate of 13.2% versus 25.8%[376]. - Other income included interest income of $1.5 million and dividend income of $0.1 million for the three months ended March 31, 2025, compared to $0.7 million and $3.0 million, respectively, in 2024[371]. - Realized and unrealized losses on investments were $14.5 million for the three months ended March 31, 2025, an improvement from a loss of $34.9 million in the same period of 2024[372]. Preferred and Common Stock Dividends - Preferred stock dividends were $2.0 million for the three months ended March 31, 2025, with a temporary suspension announced for future dividends[380]. - Common stock dividends declared for Q1 2025 were $0.50 per share, consistent with the previous quarter[391]. - Series A Preferred Stock dividends are at a cumulative rate of 6.875%, with $2.0 million in arrears as of March 31, 2025[392]. - Series B Preferred Stock dividends are at a cumulative rate of 7.375%, with $1.3 million in arrears as of March 31, 2025[393].

Core Points - B. Riley Financial is facing significant challenges due to a scandal involving hedge fund investor Brian Kahn, who has been charged with criminal fraud [1][2] - Kahn's management buyout of Franchise Group, financed partly by $600 million in B. Riley debt, has been linked to substantial investor losses and the collapse of Prophecy Asset Management [2][4] - The Franchise Group filed for bankruptcy in November 2024, exacerbating B. Riley's financial troubles [6] Group 1 - Brian Kahn, who led a failed management buyout, has been charged with conspiracy to commit securities fraud, resulting in over $350 million in investor losses [2][4] - The criminal indictment against Kahn was linked to the collapse of Prophecy Asset Management, which had previously lost significant investor funds [3][4] - B. Riley Financial provided $600 million in debt for the management buyout and took a 31% stake in Franchise Group, which included brands like Vitamin Shoppe [5][6] Group 2 - The fallout from the hedge fund scandal and declining sales led to the bankruptcy of Franchise Group, impacting B. Riley's financial standing [6] - B. Riley has received SEC subpoenas regarding its dealings with Kahn and Franchise Group, indicating ongoing regulatory scrutiny [6]

Group 1 - B. Riley Financial's business model is hybrid, combining broker-dealer and investment banking services, which influences its solvency, reliability, and leverage [1] - The company is actively involved in the market, which may present unique investment opportunities [1] Group 2 - The analysis focuses on undercovered stocks, particularly in Brazil and Latin America, while also occasionally addressing global large caps [1]

Core Points - The company B. Riley Financial, Inc. will change its name to BRC Group Holdings, Inc. effective January 1, 2026, reflecting its evolution into a diverse portfolio of companies [1][2] - BRC Group Holdings will encompass various sectors including financial services, telecom, and retail, along with investments in equity, debt, and venture capital [1][4] - The Nasdaq ticker symbol will remain "RILY," and there will be no changes to the ticker symbols for its preferred shares and tradeable senior notes [3] Company Overview - BRC Group Holdings will continue to provide a range of services including capital markets, sales, trading, research, merchant banking, M&A, and restructuring, targeting small cap and middle market companies [4] - The wealth management division will offer services such as brokerage, investment management, insurance, and tax preparation [4] - The telecom segment will provide consumer and business services including traditional, mobile, and cloud phone services, internet and data, security, and email [4] - Retail operations will focus on home furnishings and mobile computing accessories [4] - The company aims to generate shareholder value through opportunistic investments both within and outside its core financial services platform [4]