BRC Group Holdings, Inc.

BRC Group Holdings, Inc.

RILY·NASDAQ

$9.52

-2.8%
Financial ServicesFinancial - Conglomerates

B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal Investments–Communications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services. The Financial Consulting segment provides bankruptcy, forensic accounting, litigation support, operations management and real estate consulting, and valuation and appraisal services. The Principal Investments–Communications segment provides consumer Internet access through United Online under the NetZero and Juno brands; VoIP communication and related products, and subscription services through magicJack; and mobile phone services and devices through Marconi Wireless. The Brands segments provides licensing of a brand investment portfolio, including Catherine Malandrino, English Laundry, Joan Vass, Kensie Girl, Limited Too, and Nanette Lepore. It also offers advisory services; brokerage services; senior secured and second lien secured loans to middle market public and the private U.S. companies; and consulting services. The company was formerly known as Great American Group, Inc. and changed its name to B. Riley Financial, Inc. in November 2014. The company was founded in 1973 and is headquartered in Los Angeles, California.

At a Glance

Live Snapshot
Market Cap$353.48M
EPS7.6100
P/E Ratio1.25
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is compressed (P/E 1.3).

Valuation inputs: P/E 1.3, earnings yield +80.0%, momentum -2.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE -1.8%, ROIC +22.5%).

Profitability stack: net margin +29.8%, ROE -1.8%, ROIC +22.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +107.0%, momentum -2.8%, net margin +29.8%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

rily

BRC Group Holdings, Inc. Market vs Earnings Trajectory

RILY · NASDAQ

Loading price and EPS data...

BRC Group Holdings, Inc.

BRC Group Holdings, Inc. Fair Value Envelope

RILY · NASDAQ

Our analysis suggests that RILY has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $9.52, this represents a potential HIDDEN relative to our calculated worth for BRC Group Holdings, Inc..

Intrinsic Value
Current Price: $9.52
3Y-228.0%
5Y-3.0%
10Y+539.0%
3Y+4.0%
5Y+24.0%
10Y+442.0%
3Y-292.0%
5Y+50.0%
10Y+1328.0%
3Y-998.0%
5Y-204.0%
10Y-174.0%
3Y-2697.0%
5Y-228.0%
10Y-189.0%
3Y-72.0%
5Y-36.0%
10Y+545.0%
BRC Group Holdings, Inc.

BRC Group Holdings, Inc. Profit Bridge

RILY · NASDAQ
Revenue1.03B
Cost of Goods Sold (360.92M)
Gross Profit669.84M
Operating Expenses (519.15M)
Operating Income150.69M
Interest Expense (92.74M)
Other Income/Expense78.87M
Pretax Income229.56M
Income Tax (-9.88M)
Net Income307.42M
Net Income
307.42M

Profitability Analysis

Gross Margin

65.0%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

14.6%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

29.8%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

-4.3%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

64.98%
Gross Profit Margin
6%
3Y-14.0%
5Y-25.0%
10Y-8.0%
14.62%
Operating Profit Margin
-136%
3Y+387.0%
5Y-56.0%
10Y-43.0%
29.82%
Net Profit Margin
-145%
3Y-285.0%
5Y+21.0%
10Y+164.0%
-179.22%
Return on Equity
-214%
3Y+401.0%
5Y-548.0%
10Y-1343.0%
18.01%
Return on Assets
-142%
3Y-789.0%
5Y+134.0%
10Y+121.0%
22.53%
Return on Invested Capital
-171%
3Y+5239.0%
5Y+172.0%
10Y+24.0%
RILY

BRC Group Holdings, Inc. Cash Conversion Engine

RILY · NASDAQ
Net Income282.58M
Depreciation & Amortization335.00K
Stock-Based Compensation3.48M
Change in Working Capital-209.20M
Others-136.91M
Capital Expenditures-11.32M
Free Cash Flow-71.03M

Cash Flow Quality Analysis

FCF Conversion Rate

-25.1%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

-19.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

-127.8%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$209.20M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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BRC Group Holdings, Inc. Funding & Solvency Profile

RILY · NASDAQ
Cash & Cash Equivalents175.82M
Net Receivables67.33M
Inventory0.00
Other Current Assets0.00
Total Current Assets243 M
Property, Plant & Equipment92.89M
Goodwill & Intangible Assets504.73M
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets93 M
Total Assets
1.85B

Financial Health Analysis

Current Ratio

2.81x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

12.60x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

157 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

13% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

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BRC Group Holdings, Inc. Street Expectations Map

RILY · NASDAQ

No Target Data

No analyst price targets available for rily.

rily

BRC Group Holdings, Inc. Insider Positioning

RILY · NASDAQ

During the last 12 months, insiders have sold $857K worth of RILY shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

100.0K

856.69K

Net Activity

-857K

-$857K

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
FAN

Forman Alan N

Officer: Evp, General Counsel, Sec

100.0K shares•2 transactions

$857K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $857K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$857K

Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.

Insider Participation

High Selling

1 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

0.00%
Dividend Yield
3Y-100.0%
5Y-100.0%
10Y-
 

rily Dividend History

RILY
10Y CAGR +33%
Latest $0.5
Annual $3
5 year growth trend
Last Period: +0%