BRC Group Holdings, Inc. Reports First Quarter 2026 Financial Results

PR Newswire

LOS ANGELES, May 7, 2026

First Quarter 2026 Net Income Available to Common Shareholders of $211.3 Million;
First Quarter 2026 Adjusted EBITDA of $262.2 Million; Operating Adjusted EBITDA of $34.6 Million

LOS ANGELES, May 7, 2026 /PRNewswire/ --BRC Group Holdings, Inc. (Nasdaq: RILY) ("BRCGH" or the "Company"), a diversified holding company, today announced the filing of its Quarterly Report on Form 10-Q for the three month period ended March 31, 2026.

First Quarter 2026 Highlights

Bryant Riley, Chairman and Co-Chief Executive Officer of BRCGH, commented: "For the first quarter, we generated $211.3 million in net income and $34.6 million in Operating Adjusted EBITDA. We made progress on the balance sheet, retiring $129 million in debt while continuing to deliver for our clients. B. Riley Securities had its most active quarter for capital raising in five years, executing on nearly $10 billion in total debt and equity raised.

"Our team was active across the entire capital structure. During the quarter, we acted as joint lead bookrunner on a $230 million convert, participated in a $1.3 billion follow-on, led key M&A advisory and restructuring mandates and filed $8.7 billion in new ATMs. We also expanded our research footprint, initiating coverage on 26 companies in the first quarter.

"As we look ahead, our strategy is built on our 30-year heritage and an expanding opportunity set for our team. Over the last three decades, we have built this platform to serve as an active advisory partner and liquidity provider to companies in the historically underserved small- and mid-cap market. Our first-quarter also reflects the significant value generated by our principal investments. While the timing of these returns naturally varies, this merchant banking capability is a deliberate feature of our model designed to capture significant upside alongside our clients. The planned combination of our institutional banking and capital markets business and B. Riley Wealth aligns us to better serve this core client base and put proprietary capital to work to back our partners. Our focus has proven to be a major differentiator for recruiting, and we continue to add top-tier producers who recognize the value of our franchise.

"With a strengthened balance sheet, steady contributions of our non-correlated Communications and Consumer businesses, an expanding pipeline, and operational discipline, we remain focused on executing for our team, our clients, and our shareholders. We look forward to discussing with our clients and partners at our 26th Annual Institutional Investor Conference later this month."

BRC First Quarter 2026 and 2025 Financial Results Summary






Three Months Ended March 31,









(Dollars in thousands, except for share data)

2026


2025









Net income (loss) available to common shareholders

$       211,258


$        (11,990)









Basic income (loss) per common share

$            6.62


$           (0.39)



Diluted income (loss) per common share

$            6.57


$           (0.39)
















Three Months Ended March 31,









(Dollars in thousands)

2026


2025









Operating Revenues (1)

$       217,191


$        213,526



Investment Gains (Losses) (2)

134,869


(27,463)



      Total Revenues

$       352,060


$        186,063









Total Adjusted EBITDA (3)

$       262,151


$        (45,317)



Operating Adjusted EBITDA (4)

$         34,648


$          (5,610)








Segment Operations First Quarter 2026 and 2025 Financial Results Summary









Three Months Ended March 31,









(Dollars in thousands)

2026


2025



Segment Revenues






Capital Markets

$       172,111


$          2,100



Wealth Management

52,175


47,278



Lingo

40,790


41,553



magicJack

8,783


9,801



Marconi Wireless

7,537


9,487



UOL

2,821


3,633



Consumer Products

44,115


42,103



Segment Income (Loss)






Capital Markets

$       137,235


$        (35,743)



Wealth Management

15,984


1,724



Lingo

3,764


2,399



magicJack

4,251


4,616



Marconi Wireless

3,077


1,744



UOL

1,473


1,854



Consumer Products

(2,641)


(5,141)








First Quarter 2026 Earnings Call
Management will provide a detailed review of the Company's financial performance and operational highlights, followed by a question-and-answer session with analysts and investors.

Date: Thursday, May 7, 2026

Time: 4:30 p.m. ET (1:30 p.m. PT)

Register for the call at https://evercall.co/oacc/14524 or on the Company's website at ir.brcgh.com under Events and Presentations. An audio recording will be made available for replay until May 21, 2026.

About BRC Group Holdings, Inc.
BRC Group Holdings, Inc. (Nasdaq: RILY) is a diversified holding company, including financial services, communications, and retail, and investments in equity, debt and venture capital. 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. Our banking business offers comprehensive services in capital markets, sales, trading, research, merchant banking, M&A, and restructuring. Our wealth management business offers wealth management and financial planning services including brokerage, investment management, insurance, and tax preparation. Our communications businesses provide consumer and business services including traditional, mobile and cloud phone, internet and data, security, and email. Our retail businesses provide mobile computing accessories and home furnishings. BRCGH deploys its capital inside and outside its core financial services platform to generate shareholder value through opportunistic investments. For more information, please visit www.brcgh.com. 

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including Operating Revenue, Investment Gains (Losses), Adjusted EBITDA, Operating Adjusted EBITDA, Total Investments, and Net Debt, may be considered non-GAAP financial measures. BRC Group Holdings, Inc. believes this information is useful to investors because it provides a basis for measuring the Company's available capital resources, the operating performance of its business and its revenues and cash flow, (i) including in the case of Operating Revenue, services and fees, interest income – loans, interest income - securities lending, fixed income spread, trading gains attributable to variable rate transaction spread, and sales of goods. (ii) including in the case of Investment Gains (Losses), trading gains (losses), net and fair value adjustments on loans, less fixed income spread and trading gains attributable to variable rate transaction spread (iii) excluding in the case of Adjusted EBITDA, net interest expense, provisions for or benefit from income taxes, depreciation, amortization, restructuring charge, gain or loss on extinguishment of debt, gain on bargain purchase, gain on sale and deconsolidation of businesses, gain on senior note exchange, impairment of goodwill and tradenames, share-based compensation and transaction related and other costs, (iv) excluding in the case of Operating Adjusted EBITDA, the aforementioned adjustments for adjusted EBITDA as well as trading gains (losses), net, net of fixed income and variable rate transaction spread, fair value adjustments on loans, realized and unrealized gains (losses) on investments net of variable rate transaction spread, and gains (losses) on investments attributable to non-controlling interest, (v) including in the case of Total Investments, securities and other investments owned net of (a) securities sold not yet purchased, at fair value and (b) noncontrolling interest related to investments from continuing operations, loans receivable, at fair value net of loan participations sold, equity investments, and other investments reported in prepaid and other assets, (vi) including in the case of Net Debt, term loans, net, senior notes payable, net, revolving credit facility, and notes payable net of (a) cash and cash equivalents, (b) restricted cash, (c) due from clearing brokers net of due to clearing brokers, and (d) aforementioned included items of Total Investments, that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP"). In addition, the Company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance, management compensation, capital resources, and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.

Footnotes
See "Note Regarding Use of Non-GAAP Financial Measures" for further discussion of these non-GAAP terms. A reconciliation of Operating Revenues, Investment Gains (Losses), Adjusted EBITDA, Operating Adjusted EBITDA, Total Investments, and Net Debt to the comparable GAAP financial measures is included in the financial statements portion of this press release.

(1)

Operating Revenues is defined as the sum of (i) service and fees, (ii) interest income – loans, (iii) interest income - securities lending, (iv) fixed income spread, (v) trading gains attributable to variable rate transaction spread, and (vi) sales of goods.



(2)

Investment Gains (Losses) is defined as sum of (i) trading gains (losses), net and (ii) fair value adjustments on loans, less fixed income spread and trading gains attributable to variable rate transaction spread.



(3)

Adjusted EBITDA includes earnings from continuing operations before interest, taxes, depreciation, amortization, restructuring charge, share-based payments, gain or loss on extinguishment of debt, gain on bargain purchase, gain on sale and deconsolidation of businesses, gain on senior note exchange, impairment of goodwill and tradenames, and transaction related and other costs.



(4)

Operating Adjusted EBITDA is defined as Adjusted EBITDA excluding (i) trading gains (losses), net, net of fixed income and variable rate transaction spread, (ii) fair value adjustments on loans, (iii) realized and unrealized gains (losses) on investments net of variable rate transaction spread, and (iv) gains (losses) on investments attributable to non-controlling interest.



(5)

Net Debt is defined as the sum of (a) term loans, net, (b) senior notes payable, net, (c) revolving credit facility, and (d) notes payable, net of (i) cash and cash equivalents, (ii) restricted cash, (iii) due from clearing brokers net of due to clearing brokers, and (iv) Total Investments.



(6)

Total Investments is defined as the sum of (a) securities and other investments owned net of (i) securities sold not yet purchased, at fair value and (ii) noncontrolling interest related to investments from continuing operations, (b) loans receivable, at fair value net of loan participations sold, (c) equity investments, and (d) other investments reported in prepaid and other assets.

Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. Our forward-looking statements include, without limitation, statements regarding our expectations regarding our future business and expected revenue growth and the appreciation of our investment portfolio, our ability and intent to repurchase minority shares of BRS, the anticipated merger of BRS and BRW and the timing of the anticipated transactions. The proposed merger of BRS and BRW is subject to approval by FINRA and other applicable regulatory requirements, and there can be no assurance that such approval will be obtained, or that it will not be subject to conditions that materially affect the structuring or timing of the proposed merger. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today's date. The Company assumes no duty to update forward-looking statements, except as required by law. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's performance or achievements to be materially different from any expected future results, performance, or achievements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, failure to negotiate a purchase price for the minority shares of BRS, regulatory delays, general economic conditions and the risks described from time to time in the Company's periodic filings with the SEC, including, without limitation, the risks described in the Company's 2025 Annual Report on Form 10-K under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements.

BRC GROUP HOLDINGS, INC.

Condensed Consolidated Balance Sheets

(Dollars in thousands, except share and par value)






March 31,
2026


December 31,
2025


(Unaudited)



Assets




Assets:




Cash and cash equivalents

$         175,823


$         226,601

Restricted cash

2,199


2,676

Due from clearing brokers

43,437


51,000

Securities and other investments owned ($576,153 and $382,461 at fair value)

639,668


446,843

Securities borrowed

133,438


114,937

Accounts receivable, net of allowance for credit losses of $6,450 and $6,108

67,329


55,473

Loans receivable, at fair value ($953 and $2,835 from related parties)

24,927


26,303

Equity investments

90,692


90,433

Prepaid expenses and other assets

117,851


128,650

Operating lease right-of-use assets

33,532


32,109

Property and equipment, net

17,608


17,606

Goodwill

392,687


392,687

Other intangible assets, net

112,038


118,290

Deferred income taxes

763


763

Assets of discontinued operations

2,221


2,221

Total assets

$       1,854,213


$       1,706,592





Liabilities and Equity (Deficit)




Liabilities:




Accounts payable

$          37,721


$          41,463

Accrued expenses and other liabilities ($11,080 and $6,400 at fair value)

153,413


154,780

Deferred revenue

48,730


49,907

Deferred income taxes

4,089


4,109

Securities sold not yet purchased, at fair value

16,833


9,809

Securities loaned

115,642


97,321

Operating lease liabilities

41,752


40,902

Revolving credit facility

10,708


6,638

Term loans, net

116,673


119,297

Senior notes payable, net

1,171,490


1,301,798

Liabilities of discontinued operations

830


830

Total liabilities

1,717,881


1,826,854





Commitments and contingencies








BRC Group Holdings, Inc. stockholders' equity (deficit):




Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 4,563 shares issued and
outstanding and liquidation preference of $124,157 and $122,142

—


—

Common stock, $0.0001 par value; 100,000,000 shares authorized; 35,150,932 and
30,597,066 issued and outstanding

4


3

Additional paid-in capital

634,479


598,022

Accumulated deficit

(550,013)


(763,286)

Accumulated other comprehensive loss

(7,149)


(6,272)

Total BRC Group Holdings, Inc. stockholders' equity (deficit)

77,321


(171,533)

Noncontrolling interests

59,011


51,271

Total equity (deficit)

136,332


(120,262)

Total liabilities and equity (deficit)

$       1,854,213


$       1,706,592

BRC GROUP HOLDINGS, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in thousands, except share and per share data)






Three Months Ended
March 31,


2026


2025

Revenues:




Services and fees ($5,923 and $3,945 from related parties)

$    152,122


$    158,839

Trading gains (losses), net

145,061


(16,171)

Fair value adjustments on loans ($(26) and $(2,146) from related parties)

6,545


(8,096)

Interest income - loans ($— and $696 from related parties)

1,714


3,196

Interest income - securities lending

1,251


840

Sale of goods

45,367


47,455

Total revenues

352,060


186,063





Operating expenses:




Direct cost of services

31,702


42,700

Cost of goods sold

32,365


36,733

Selling, general and administrative expenses

134,348


167,388

Interest expense - Securities lending and loan participations sold

717


719

Total operating expenses

199,132


247,540

Operating income (loss)

152,928


(61,477)





Other income (expense):




Interest income

358


1,486

Dividend income

669


135

Realized and unrealized gains (losses) on investments

105,100


(14,500)

Change in fair value of financial instruments and other

(4,427)


922

Gain on sale and deconsolidation of businesses

—


80,841

Gain on senior note exchange

—


10,532

Income (loss) from equity investments

1,326


(552)

Gain (loss) on extinguishment of debt

2,890


(10,427)

Interest expense

(19,794)


(29,964)

Income (loss) from continuing operations before income taxes

239,050


(23,004)

(Provision for) benefit from income taxes

(16,891)


3,042

Income (loss) from continuing operations

222,159


(19,962)

Income from discontinued operations, net of income taxes

—


3,395

Net income (loss)

222,159


(16,567)

Net income (loss) attributable to noncontrolling interests

8,886


(6,592)

Net income (loss) attributable to BRC Group Holdings, Inc.

213,273


(9,975)

Preferred stock dividends

2,015


2,015

Net income (loss) available to common shareholders

$    211,258


$    (11,990)





Basic net income (loss) per common share:




Continuing operations

$        6.62


$       (0.50)

Discontinued operations

—


0.11

Basic income (loss) per common share

$        6.62


$       (0.39)

Diluted net income (loss) per common share:




Continuing operations

$        6.57


$       (0.50)

Discontinued operations

—


0.11

Diluted income (loss) per common share

$        6.57


$       (0.39)





Weighted average basic common shares outstanding

31,915,854


30,497,512

Weighted average diluted common shares outstanding

32,167,246


30,497,512

BRC GROUP HOLDINGS, INC.

Operating Revenues Reconciliation

(Unaudited)

(Dollars in thousands)






Three Months Ended
March 31,


2026


2025

Total revenues

$      352,060


$      186,063

Operating revenues adjustments:




Trading (gains) losses, net

(145,061)


16,171

Fair value adjustments on loans

(6,545)


8,096

Fixed income and trading gains attributable to variable rate transactions spread

16,737


3,196

Total operating revenue adjustments

(134,869)


27,463

Operating revenues

$      217,191


$      213,526

 

BRC GROUP HOLDINGS, INC

Adjusted EBITDA and Operating Adjusted EBITDA Reconciliations

(Unaudited)

(Dollars in thousands)






Three Months Ended
March 31,


2026


2025

Net income (loss) attributable to BRC Group Holdings, Inc.

$       213,273


$        (9,975)

Income from discontinued operations, net of income taxes

—


3,395

Net (income) loss attributable to noncontrolling interests

(8,886)


6,592

Income (loss) from continuing operations

222,159


(19,962)

EBITDA Adjustments:




Net (income) loss from continuing operations attributable to noncontrolling interests

(8,886)


6,592

Provision for (benefit from) income taxes

16,891


(3,042)

Interest expense

19,794


29,964

Interest income

(358)


(1,486)

Share based payments

2,440


3,346

Depreciation and amortization

7,589


9,997

Gain on sale and deconsolidation of businesses

—


(80,841)

Gain on senior note exchange

—


(10,532)

(Gain) loss on extinguishment of debt

(2,890)


10,427

Transactions related costs and other

5,412


10,220

Total EBITDA adjustments

39,992


(25,355)

Adjusted EBITDA

$       262,151


$       (45,317)





Operating EBITDA Adjustments:




Trading (gains) losses, net

$     (145,061)


$        16,171

Fair value adjustments on loans

(6,545)


8,096

Realized and unrealized (gains) losses on investments

(105,100)


14,500

Fixed income and variable rate transaction spread

17,814


3,196

Gains (losses) on investments attributable to non-controlling interest

11,389


(2,256)

Total Operating EBITDA Adjustments

(227,503)


39,707

Operating Adjusted EBITDA

$        34,648


$        (5,610)

BRC GROUP HOLDINGS, INC.

Total Investments and Net Debt Reconciliation

(Unaudited)

(Dollars in thousands)






March 31,
2026


December 31,
2025

Cash, cash equivalents, and restricted cash

$         178,022


$         229,277

Due from clearing brokers

43,437


51,000





Securities and other investments owned

639,668


446,843

Securities sold not yet purchased, at fair value

(16,833)


(9,809)

Loans receivable, at fair value

24,927


26,303

Equity investments

90,692


90,433

Noncontrolling interest

(33,393)


(33,305)

Total investments

705,061


520,465





Revolving credit facility

10,708


6,638

Term loans, net

116,673


119,297

Senior notes payable, net

1,171,490


1,301,798

 Total debt

1,298,871


1,427,733





Net debt

$         372,351


$         626,991

Contacts

Investors
mfrank@brcgh.com

Media
efogerty@brcgh.com

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SOURCE BRC Group Holdings, Inc.