B. Riley Celebrates Unexpected Q2 Profit as Nasdaq Filing Deadline is Met

B. Riley Financial witnessed a notable surge in its stock market position following the release of its delayed second-quarter financial results, addressing Nasdaq's listing concerns. However, the company still has an overdue third-quarter report to address.

Key Takeaways

B. Riley Financial's shares rose after a surprise net income of $137.5 million in its Q2 report.
The timely filing addressed the threat of Nasdaq delisting.
Revenue increased to $225.3 million, significantly higher than last year's figures.
The company has until January 20, 2026, to file its outstanding Q3 report.
Ongoing civil investigations relate to the bankruptcy of Franchise Group and fraudulent activities involving its former CEO.

B. Riley stock jumps after Q2 profit and timely Nasdaq filing

B. Riley Meets Nasdaq Deadline

On December 16, 2025, during premarket trading, B. Riley Financial's shares rose sharply after the firm submitted its long-awaited Q2 financial report ahead of Nasdaq's crucial December 23 deadline. This timely filing alleviated the threat of delisting that had loomed over the company for several months. The financial services provider has faced difficulties from unsuccessful investments, debt restructuring, and increased scrutiny from regulators following the bankruptcy of a key portfolio company.

The Q2 report demonstrated significant improvement, revealing a net income of $137.5 million for the quarter concluding on June 30, 2025, in contrast to a net loss of $435.6 million in the same quarter of 2024. Income from ongoing operations totaled $71.7 million, marking a recovery from a loss of $449.2 million recorded the previous year.

Revenue for the quarter rose to $225.3 million, up from $94.9 million in Q2 2024. This increase was partly influenced by a previous $175.6 million loss on fair value adjustments for loans during the same period. The earnings report included extraordinary items, such as a $66.8 million gain associated with the sale of GlassRatner and $44.5 million in benefits from senior note exchanges.

Adjusted operating EBITDA from continuing operations saw growth to $38.5 million, compared to $31.2 million in the previous year’s corresponding quarter. The company achieved non-GAAP earnings per share of $4.50.

Chairman and Co-CEO Bryant Riley emphasized that while the Q3 report is still pending, the firm is “well positioned to file” it before Nasdaq's January 20, 2026, deadline, which would ensure that financial reporting remains current.

Previously, Nasdaq had allowed the company extensions following a panel hearing, highlighting B. Riley’s proactive steps to correct reporting delays and the appointment of a new chief financial officer whose pay is linked to timely reporting based on regulatory filings.

B. Riley has navigated many uncertainties since the collapse of Franchise Group, which declared bankruptcy in late 2024, resulting in significant write-offs totaling hundreds of millions of dollars. A former CEO of Franchise Group recently admitted guilt in a fraud case involving hedge fund investors at Prophecy Asset Management amounting to about $300 million, although B. Riley asserts it had no awareness of these fraudulent actions. The firm is currently involved in a civil investigation in the United States concerning this individual, as indicated in company disclosures.