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B. Riley Financial Inc. (RILY+7.14%) has submitted its 10-Q filing for the quarterly period ended June 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $148.4 million from $406.3 million in the same quarter the previous year. This decrease is primarily attributed to declines in fair value adjustments on loans and trading income.
Fair value adjustments on loans resulted in a loss of $175.6 million, compared to a gain of $9.2 million in the previous year, largely due to significant markdowns on loans to Vintage Capital Management and Freedom VCM.
Interest income from loans decreased to $18.5 million from $35.1 million, reflecting a reduction in loan receivable balances.
Interest income from securities lending also declined, totaling $24.8 million compared to $40.1 million in the previous year, due to a decrease in securities borrowed balances.
Revenues from services and fees increased by $17.7 million, driven by growth in the Capital Markets and Financial Consulting segments, while the Communications segment saw a decline.
Cost of goods sold increased to $46.7 million from $40.3 million, with the Auction and Liquidation segment contributing significantly to this rise.
Operating expenses totaled $368.6 million, up from $323.3 million, due to higher selling, general, and administrative expenses.
The company reported an operating loss of $220.3 million, compared to an operating income of $83.0 million in the previous year.
Net loss for the quarter was $433.8 million, down from a net income of $43.8 million in the previous year, with the decline attributed to significant fair value adjustments and trading losses.
The filing also details various strategic transactions, including the sale of a portion of its Wealth Management business and the deconsolidation of certain assets into a newly formed subsidiary.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the B. Riley Financial Inc. quarterly 10-Q report dated January 14, 2025. To report an error, please email earnings@qz.com.