B. RILEY FINANCIAL, INC. 5.00% SENIOR NOTES DUE 2026 (RILYG)

Thursday

11:32 AM

Thesis: The recent uptick in M&A activity and stabilization of AUM suggest a positive shift in business momentum, potentially leading to improved revenue forecasts.

Revenue Outlook

Metric	FY2024	FY2025
Revenue	$1.2B	$1.0B
Rev. Growth	-19.5%	-11.5%
EPS	$-25.46	$9.80
EPS Growth	-590%	+138%
P/E	—	2.5×

What’s Driving the Stock

1Recent uptick in M&A activity, with a 25% increase in announced deals in Q2 2026, could drive investment banking revenues significantly.
2Asset management AUM has stabilized after a decline, with a recent inflow of $200 million in Q2 2026, indicating renewed investor interest.
3Potential for margin expansion as operating costs are expected to decrease by 10% due to recent efficiency initiatives.
4Increased M&A activity in the financial services sector
5Growth in alternative asset management strategies
6Changes in M&A activity impacting investment banking fees
7Performance of managed investment funds affecting asset management revenues
8Interest rate fluctuations impacting net interest income

FY2025 Snapshot

Revenue: $1.0B
Rev. Growth: -11.5%
Gross Margin: 65.0%
Op. Margin: 14.6%
Net Margin: 29.8%
Net Income: $307M
NI Growth: +140%
EPS: $9.80
1Y Return: +36.8%

My Notes

"Management noted, 'We are seeing a resurgence in M&A activity, which positions us well for the coming quarters.'"
Moat: B.
value - Investors may be attracted by the low Price/Sales ratio of 0.2x, indicating potential undervaluation.
Rising interest rates can enhance net interest margins but may also dampen capital market activity, impacting overall revenues.
Watch on earnings: High Yield Credit Spreads (BAMLH0A0HYM2), Consumer Sentiment (UMCSENT), 10-Year Treasury Yield (GS10).

One Sentence Summary:

B. Riley Financial, Inc. 5.00% Senior Notes due 2026: the setup is constructive — recent uptick in m&a activity, with a 25% increase in announced deals in q2 2026, could drive investment banking revenues significantly.

Auto-composed from Stock Alarm intelligence, financial statements, and analyst estimates. Not investment advice.

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