**B. Riley Financial, Inc. Reports 2025 Financial Results, Prioritizes Debt Reduction**
BRC Group Holdings, Inc., formerly B. Riley Financial, Inc., reported total revenues of $967.6 million for the fiscal year ended December 31, 2025, a 29.6% increase compared to $746.4 million in the prior year. This growth was primarily driven by a $182.5 million increase in trading gains, which reached $125.5 million, and a $325.1 million increase in fair value adjustments on loans. However, this was partially offset by a $149.5 million decrease in service and fee revenues, a $63.9 million decrease in interest income from securities lending, a $43.6 million decrease in interest income from loans, and a $29.5 million decrease in revenue from the sale of goods. The company's net income attributable to BRC Group Holdings, Inc. was $307.4 million, a significant turnaround from a net loss of $764.3 million in 2024.
The company's operating expenses decreased by 28.3% to $892.0 million, compared to $1.24 billion in the previous year. This reduction was mainly due to lower direct costs of services, cost of goods sold, and selling, general, and administrative expenses. Impairment of goodwill and tradenames also saw a substantial decrease, falling from $105.4 million in 2024 to $1.5 million in 2025. The company's strategic focus on reducing indebtedness led to a decrease in total outstanding debt from $1.8 billion at the end of 2024 to $1.4 billion at the end of 2025, achieved through operating cash flow and strategic asset dispositions.
Throughout 2025, BRC Group Holdings executed several disposition and monetization transactions, including the sale of its Atlantic Coast Recycling business for $68.6 million, a portion of its Wealth Management business to Stifel for $26.0 million, and GlassRatner Advisory & Capital Group, LLC and B. Riley Farber Advisory Inc. for $117.8 million. These transactions, along with open market purchases of its existing publicly-traded senior debt and bond exchanges, were aimed at creating additional liquidity and facilitating debt repayment. The company operates in seven reportable segments: Capital Markets, Wealth Management, Lingo, magicJack, Marconi Wireless, UOL, and Consumer Products.
Looking ahead, BRC Group Holdings anticipates that the reduction of indebtedness will remain a key priority. The company plans to continue evaluating additional asset disposition and monetization transactions to further strengthen its financial position. As of December 31, 2025, the company had approximately 1,380 active employees and more than 172 affiliated professionals.
About B. Riley Financial, Inc.
B. Riley Financial, Inc. is a diversified financial services platform offering investment banking, brokerage, wealth and asset management, direct lending, and advisory services. Serving public and private companies, investors, financial institutions, and individuals, it operates through multiple subsidiaries across capital markets, financial consulting, communications, consumer products, and e-commerce. The company combines tailored financial solutions with strategic investments to enhance operational performance and maximize returns.
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