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RILYN, BRC Group Holdings, Inc.
Our core financial services platform provides small cap and middle market companies customized end-to-end solutions at every stage of the enterprise life cycle.
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.
We refer to BRCGH as having a "platform" because of the unique composition of our financial services businesses and diversification of its operations.
The business
What it sells, where the money comes from, the kind of company it is.
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Assets under management and the fee rate on them. What decides it: net flows in or out, the market's move on the assets already there (the firm rises and falls with the indices it invests in), the drift toward cheaper passive products, and the operating leverage on a largely fixed cost base. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has been modest for a fee business (median 10%). It earns this on little capital, so return on equity has run near 10%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the assets stay (net flows, not last year's market) is what the flow disclosures and the 10-K settle, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMJun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $190M | $322M | $423M | $652M | $834M | $1.6B | $939M | $1.5B | $746M | $968M | $772M | RevenueRevenue |
| 25.6% | 9.0% | 10.7% | 25.6% | 33.1% | 33.1% | 3.2% | 6.6% | −66.7% | 7.8% | 41.1% | Operating marginOp. mgn |
| 11.3% | 3.6% | 3.9% | 12.5% | 24.6% | 28.6% | −17.0% | −6.8% | −102.4% | 31.8% | 53.4% | Net marginNet mgn |
| $47M | $20M | $21M | $117M | $279M | $615M | ($334M) | ($199M) | ($900M) | $230M | — | Pretax incomePretax |
| $22M | $12M | $16M | $82M | $205M | $445M | ($160M) | ($100M) | ($764M) | $307M | $412M | Net incomeNet inc. |
| 30% | 42% | 23% | 30% | 27% | 27% | — | — | — | -4% | 3% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| $80M | ($83M) | ($108M) | ($31M) | $56M | $50M | $3M | $17M | $256M | ($71M) | ($19M) | Owner earningsOwner earn. |
| ($34M) | ($18M) | ($154M) | ($438M) | $22M | ($957M) | ($32M) | $301M | $441M | $311M | — | Investing cash flowInv. cash |
| $40M | $134M | $285M | $389M | ($81M) | $1.1B | $18M | ($366M) | ($672M) | ($279M) | — | Financing cash flowFin. cash |
| ($1M) | $3M | ($860K) | $73K | $1M | ($382K) | ($933K) | $3M | ($9M) | $202K | — | Exchange-rate effectFX |
| $85M | $37M | $28M | ($76M) | $98K | $175M | ($9M) | ($37M) | $23M | ($27M) | — | Change in cashΔ cash |
| 14% | 4% | 6% | 23% | 40% | 67% | -36% | -34% | — | — | 290% | Return on equityROE |
| 11% | −2% | −2% | 11% | 32% | 15% | −63% | −83% | — | — | 290% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $265M | $1.4B | $2.0B | $2.3B | $2.7B | $5.9B | $6.1B | $6.1B | $1.8B | $1.7B | $2.0B | Total assetsAssets |
| $112M | $133M | $179M | $104M | $104M | $279M | $269M | $223M | $147M | $227M | $154M | Cash & investmentsCash+inv |
| — | — | — | $1.9B | $2.1B | $4.8B | $5.4B | $5.7B | $2.2B | $1.8B | — | Total liabilitiesTotal liab. |
| — | — | — | $30M | $26M | $44M | $59M | $68M | $32M | $51M | — | Noncontrolling interestsNCI |
| $149M | $266M | $258M | $361M | $513M | $661M | $447M | $291M | ($488M) | ($172M) | $142M | Shareholders’ equityEquity |
| Per share | |||||||||||
| 18.4M | 24.3M | 26.8M | 27.5M | 26.5M | 29.0M | 28.2M | 29.3M | 30.3M | 30.6M | 35.3M | Shares out (diluted)Shares |
| $10.35 | $13.26 | $15.80 | $23.69 | $31.47 | $53.60 | $33.33 | $50.09 | $24.60 | $31.67 | $21.85 | Revenue / shareRev/sh |
| $1.17 | $0.48 | $0.61 | $2.96 | $7.74 | $15.34 | $-5.67 | $-3.41 | $-25.19 | $10.06 | $11.66 | EPS (diluted)EPS |
| $4.33 | $-3.40 | $-4.02 | $-1.11 | $2.10 | $1.73 | $0.10 | $0.57 | $8.43 | $-2.32 | $-0.53 | Owner earnings / shareOE/sh |
| $0.29 | $0.69 | $0.85 | $1.49 | $1.46 | $11.97 | $4.24 | $4.82 | $1.11 | $0.00 | $0.00 | Dividends / shareDiv/sh |
| $8.12 | $10.95 | $9.64 | $13.10 | $19.34 | $22.80 | $15.84 | $9.95 | $-16.09 | $-5.61 | $4.03 | Book value / shareBVPS |
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +13.2%/yr | +0.1%/yr |
| EPS | +27.0%/yr | +5.4%/yr |
| Capital spending / share | +28.2%/yr | +36.9%/yr |
The year, in the company's words
the filing →Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.
- Revenue+29.6%
“Total revenues increased approximately $221.2 million to $967.6 million during the year ended December 31, 2025 from $746.4 million during the year ended December 31, 2024. The increase in revenues during the year ended December 31, 2025 was primarily due to increases in revenue from fair value adjustments on loans of $325.1 million and trading gains of $182.5 million, partially offset by decreases in revenues from services and fees of $149.5 million, interest income from securities lending of $63.9 million, interest income from loans …”
✓ figure matches the filed record
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
“Controls and Procedures of this Annual Report, we have identified material weaknesses in our internal control over financial reporting.”
The figures below are only as sound as the controls that produced them. read the note →
Is it a good business?
- Operating margin 7.8%Thin for a fee businessOperating income $76M ÷ revenue $968MIndustry peers: median 33%
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
The heart of a asset manager: how much of each fee dollar survives the cost of running the business. Fees ride on assets under management, so the swing factors are net flows in or out and the market's move on the assets already there; the cost base is largely fixed, which lifts margins in a bull market and squeezes them in a bear one. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 31.8%WideNet income $307M ÷ revenue $968M
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Not enough dataIndustry peers: median 39%
What this means
Equity is zero or negative (often from buybacks), so the ratio would mislead.
All figures as filed; the source filing is linked above.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
$139M written down across 3 years (2023, 2024, 2025): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 28% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.
Beside that spending sits $383K of cumulative amortization of acquired intangibles charged against earnings since fiscal 2010 (tagged in 3 of those years; 2 years untagged) — the purchase price of past deals, expensed over time.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and amortization summed across the company's full tagged history, write-downs across the 10-year record, from the company's own filings.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2023 | Bryant R. Riley and Thomas J. Kelleher | $5.6M | $4.9M | $17M |
| 2023 | Bryant R. Riley and Thomas J. Kelleher | $5.6M | $4.9M | $17M |
| 2024 | Bryant R. Riley and Thomas J. Kelleher | $2.2M | $499k | $256M |
| 2024 | Bryant R. Riley and Thomas J. Kelleher | $2.2M | $499k | $256M |
| 2025 | Bryant R. Riley and Thomas J. Kelleher | $16.1M | $16.1M | ($71M) |
| 2025 | Bryant R. Riley and Thomas J. Kelleher | $3.3M | $3.3M | ($71M) |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership27.8%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$14M
The slice of the business handed to employees in shares in fiscal 2025, 1.4% of revenue, equal to 18.5% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers
BRC Group Holdings, Inc. is listed here as a claim on a business rather than as the business itself — a preferred series, a bond or a warrant, filed under the same registrant as the common stock. A comparative table lines businesses up against one another, so there is none here. The business behind it is BRC Group Holdings Inc. (RILY), where the record, the scorecard and the peer bench are.
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what BRC Group Holdings, Inc. has delivered.
BRC Group Holdings, Inc.’s latest year shows negative owner earnings, below the record’s own through-cycle owner earnings. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
Through the cycle, BRC Group Holdings, Inc. earns about $7M on its 0.7% median owner-earnings margin. This year’s −7.3% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.
—
9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner earnings ($19M) on 40M shares outstanding, per the 10-Q cover, as of 2026-08-03; net debt $1.3B. The base opens on the through-cycle figure (the latest year sits off the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Manual order: ← RILYL its page in the Manual RILYP →
Industry order: ← RILYL the Capital Markets & Asset Management chapter RILYP →