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BRC Group Holdings, Inc. (Nasdaq: RILY) (the Company or BRCGH ), which changed its name from B. Riley Financial, Inc. effective January 1, 2026, is a diversified holding company offering a platform of businesses, including financial services (with complementary banking and wealth management businesses), telecom, retail, and investments in equity, debt and venture capital.
Operating margin is thin at 7.81%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue up 29.6% YoY with margins expanding 74.5pp. However, free cash flow softened 128%, worth monitoring whether this is timing or structural.
Free cash flow declined 128% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$71M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$1.13B
▲ +29.6% YoY
Net Income (TTM)
$531M
▲ +140.2% YoY
Op. Margin
25.58%
▲ +74.5pp YoY
ROIC
25.91%
▲ +164.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$27M
▼ -127.8% YoY
Op. Cash Flow (TTM)
-$22M
▼ -122.7% YoY
Net Debt
-$134M
Net Cash Position
Cash & Equiv.
$176M
5Y CAGR: +1.4%
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