**B. Riley Financial Reports Fiscal Year 2024 Results, Prioritizes Debt Reduction**
Los Angeles, CA – B. Riley Financial, Inc. (NASDAQ: RILY), a diversified financial services platform, today released its financial results for the fiscal year ended December 31, 2024. The company reported total revenues of $838.6 million, a 42.8% decrease compared to $1.47 billion in 2023. This decline was primarily attributed to a $345.7 million decrease in fair value adjustments on loans, a $90.8 million decrease in interest income from securities lending, and a $78.6 million swing to trading losses. Net loss attributable to B. Riley Financial, Inc. was $764.3 million, compared to a net loss of $99.9 million in the prior year. The company's strategic focus during 2024 and continuing into 2025 has been on reducing indebtedness, with total outstanding indebtedness decreasing from $2.4 billion at December 31, 2023, to $1.8 billion at December 31, 2024.
The company's six reportable business segments showed mixed performance. The Capital Markets segment experienced a decrease in service and fee revenues, while the Wealth Management and Financial Consulting segments saw increases. The Communications segment's revenues declined, and the E-Commerce segment contributed revenues from Nogin, Inc., acquired in May 2024. The Consumer Products segment also saw a decrease in revenues. B. Riley has been actively engaged in disposition and monetization transactions, including the Brands Transaction, the Great American Group transaction, the Atlantic Coast Recycling transaction, the sale of a portion of the Wealth Management business to Stifel Financial Corp., and the sale of GlassRatner and Farber.
Key operational developments included the sale of a portion of the Wealth Management business to Stifel Financial Corp. for $26.0 million in net cash consideration, representing 36 financial advisors and approximately $4.0 billion in AUM. B. Riley also entered into a new credit agreement with Oaktree Capital Management, L.P., providing a $125.0 million secured term loan credit facility and a $35.0 million secured delayed draw term loan credit facility. The proceeds were used to repay the existing indebtedness under the Nomura Credit agreement, for working capital, and to fund obligations relating to the liquidation of substantially all of the assets of JOANN, Inc. and its subsidiaries. The company also redeemed all of the issued and outstanding 6.375% Senior Notes due February 28, 2025.
B. Riley's results were significantly impacted by a $287.0 million non-cash markdown related to its investment in Freedom VCM Holdings, LLC, the indirect parent entity for Franchise Group. On November 3, 2024, FRG and certain affiliates, including Freedom VCM, filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. As a result, on November 4, 2024, B. Riley recorded an additional impairment with respect to the Freedom VCM Investment and the Vintage Loan Receivable. Additionally, on July 23, 2024, Conn's, Inc. and certain of its subsidiaries filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. The fair value adjustment on the Conn's loan receivable was $(71.7) million for the year ended December 31, 2024. The company also signed a Deed of Assignment for the Benefit of Creditors for Nogin, Inc., transferring all of its assets to an assignee for the benefit of Nogin's creditors. B. Riley anticipates that reduction of indebtedness, including potentially through additional asset disposition or monetization transactions, will remain a key priority for the foreseeable future.
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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