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BUSINESS SEGMENTS | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company reports segment information based on the various industries the Company operates and how the businesses are managed. These businesses are aggregated into operating segments in a manner that reflects how the Company views the business activities. The Company’s businesses are operated by separate local management and certain of the Company’s businesses are grouped together when they operate within a similar industry, comprising similarities in products and services, customers, and production processes, and when considered together, may be managed in accordance with one or more investment or operational strategies specific to those businesses. The Company’s six reportable segments reflect the way the Company is managed, and for which separate financial information is available and evaluated regularly by the Company’s CODM in deciding how to allocate resources and assess performance. The individuals comprising the role of CODM are the Company’s two Co-Chief Executive Officer’s and the Company’s Chief Financial Officer, who collectively use segment operating income or loss as a measure of a segment’s profit or loss. The segment information the CODM regularly receives does not include asset information and does not use segment asset information to assess performance or allocate resources. Accordingly, asset information is not provided by reportable segment. The measure of assets are reported on the consolidated balance sheets as total assets. Revenues by segment represent amounts earned on the various services offered within each reportable segment. Our significant operating expenses regularly provided to the CODM and used to assess segment performance and determine the deployment of capital are classified as employee compensation and benefits expense, professional services, occupancy-related costs, other selling, general and administrative expenses, restructuring charge, depreciation and amortization, and impairment of goodwill and intangible assets. Employee compensation and benefits expense consists of salaries, payroll taxes, benefits, incentive compensation payable as commissions and cash bonus awards, and share based compensation for equity awards. Occupancy-related costs consists of office rent, technology and communication costs, and other office expenses. Professional services expense consists of legal, accounting, audit and other consulting expenses. Restructuring charges include expenses related to reorganization and consolidation activities which includes, among other, reductions in workforce and facility closures. Depreciation and amortization expense consists of depreciation expense for property and equipment and amortization of intangible assets. The balance of our operating expenses (other selling, general and administrative expenses) includes costs for travel, marketing and business development, and other operating expenses. Comparable prior year information has been recast to reflect the additional disclosure of employee compensation and benefits by segment and other selling, general and administrative expenses by segment in conjunction with the adoption of ASU 2023-07 as described in Note 2(af) – Recent Accounting Standards, as well as to reflect discontinued operations presentation as described in Note 4 – Discontinued Operations and Assets Held for Sale. The following is a summary of certain financial data for each of the Company’s reportable segments:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Capital Markets segment: |  |  |  |  |
Revenues - Services and fees | $ | 192,499 |  |  | $ | 249,036 |  |  | $ | 292,933 |
Trading (loss) income | (60,285) |  |  | 16,845 |  |  | (151,816) |
Fair value adjustments on loans | (325,498) |  |  | 20,225 |  |  | (54,334) |
Interest income - loans | 54,141 |  |  | 123,244 |  |  | 157,669 |
Interest income - securities lending | 70,862 |  |  | 161,652 |  |  | 83,144 |
Total revenues | (68,281) |  |  | 571,002 |  |  | 327,596 |
Employee compensation and benefits | (123,520) |  |  | (154,514) |  |  | (176,253) |
Professional services | (4,012) |  |  | (18,967) |  |  | 59,807 |
Occupancy-related costs | (8,189) |  |  | (9,242) |  |  | (9,226) |
Other selling, general and administrative expenses | (42,823) |  |  | (42,270) |  |  | (45,333) |
Interest expense - Securities lending and loan participations sold | (66,128) |  |  | (145,435) |  |  | (66,495) |
Depreciation and amortization | (3,155) |  |  | (3,998) |  |  | (8,493) |
Impairment of tradenames | — |  |  | (1,733) |  |  | — |
Segment (loss) income | (316,108) |  |  | 194,843 |  |  | 81,603 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Wealth Management segment: |  |  |  |  |
Revenues - Services and fees | 197,468 |  |  | 193,487 |  |  | 230,735 |
Trading income | 3,278 |  |  | 4,758 |  |  | 3,522 |
Total revenues | 200,746 |  |  | 198,245 |  |  | 234,257 |
Employee compensation and benefits | (156,715) |  |  | (152,309) |  |  | (191,238) |
Professional services | (2,814) |  |  | (3,127) |  |  | (7,550) |
Occupancy-related costs | (11,464) |  |  | (13,935) |  |  | (16,797) |
Other selling, general and administrative expenses | (19,146) |  |  | (21,408) |  |  | (42,549) |
Restructuring charge | — |  |  | (61) |  |  | (4,955) |
Depreciation and amortization | (4,177) |  |  | (4,308) |  |  | (5,488) |
Segment income (loss) | 6,430 |  |  | 3,097 |  |  | (34,320) |
Financial Consulting segment: |  |  |  |  |
Revenues - Services and fees | 92,176 |  |  | 77,283 |  |  | 50,357 |
Employee compensation and benefits | (54,986) |  |  | (48,158) |  |  | (34,724) |
Professional services | (1,251) |  |  | (1,067) |  |  | (1,167) |
Occupancy-related costs | (3,641) |  |  | (3,227) |  |  | (2,646) |
Other selling, general and administrative expenses | (14,321) |  |  | (11,596) |  |  | (8,053) |
Depreciation and amortization | (379) |  |  | (318) |  |  | (201) |
Segment income | 17,598 |  |  | 12,917 |  |  | 3,566 |
Communications segment: |  |  |  |  |
Revenues - Services and fees | 289,435 |  |  | 330,952 |  |  | 228,129 |
Revenues - Sale of goods | 5,589 |  |  | 6,737 |  |  | 7,526 |
Total revenues | 295,024 |  |  | 337,689 |  |  | 235,655 |
Direct cost of services | (165,302) |  |  | (183,993) |  |  | (108,686) |
Cost of goods sold | (6,088) |  |  | (7,848) |  |  | (8,592) |
Employee compensation and benefits | (33,351) |  |  | (43,090) |  |  | (32,012) |
Professional services | (5,022) |  |  | (3,743) |  |  | (4,706) |
Occupancy-related costs | (9,919) |  |  | (11,629) |  |  | (8,962) |
Other selling, general and administrative expenses | (24,244) |  |  | (25,180) |  |  | (19,156) |
Depreciation and amortization | (21,548) |  |  | (25,941) |  |  | (19,165) |
Restructuring charge | (379) |  |  | (1,540) |  |  | (4,056) |
Segment income | 29,171 |  |  | 34,725 |  |  | 30,320 |
Consumer Products segment: |  |  |  |  |
Revenues - Sale of goods | 202,597 |  |  | 233,202 |  |  | 77,821 |
Cost of goods sold | (152,625) |  |  | (164,635) |  |  | (52,162) |
Employee compensation and benefits | (39,650) |  |  | (41,065) |  |  | (9,645) |
Professional services | (8,544) |  |  | (10,020) |  |  | (3,043) |
Occupancy-related costs | (6,518) |  |  | (6,606) |  |  | (1,512) |
Other selling, general and administrative expenses | (6,812) |  |  | (9,538) |  |  | (1,103) |
Depreciation and amortization | (7,991) |  |  | (9,918) |  |  | (2,168) |
Impairment of goodwill and other intangible assets | (31,681) |  |  | (68,600) |  |  | — |
Restructuring charge | (1,143) |  |  | (530) |  |  | — |
Segment (loss) income | (52,367) |  |  | (77,710) |  |  | 8,188 |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
E-Commerce segment: |  |  |  |  |
Revenues - Services and fees | 13,855 |  |  | — |  |  | — |
Revenues - Sale of goods | 10,646 |  |  | — |  |  | — |
Total revenues | 24,501 |  |  | — |  |  | — |
Direct cost of services | (6,449) |  |  | — |  |  | — |
Cost of goods sold | (6,959) |  |  | — |  |  | — |
Employee compensation and benefits | (10,732) |  |  | — |  |  | — |
Professional services | (3,681) |  |  | — |  |  | — |
Occupancy-related costs | (2,403) |  |  | — |  |  | — |
Other selling, general and administrative expenses | (7,025) |  |  | — |  |  | — |
Depreciation and amortization | (1,469) |  |  | — |  |  | — |
Impairment of goodwill and other intangible assets | (73,692) |  |  | — |  |  | — |
Segment loss | (87,909) |  |  | — |  |  | — |
Consolidated operating (loss) income from reportable segments | (403,185) |  |  | 167,872 |  |  | 89,357 |
All Other: |  |  |  |  |
Revenues - Services and fees | 89,449 |  |  | 47,992 |  |  | 13,797 |
Revenues - Sale of goods | 1,787 |  |  | 364 |  |  | — |
Total revenues | 91,236 |  |  | 48,356 |  |  | 13,797 |
Direct cost of services | (42,150) |  |  | (30,072) |  |  | (9,849) |
Cost of goods sold | (1,962) |  |  | (353) |  |  | — |
Employee compensation and benefits | (22,491) |  |  | (11,252) |  |  | (2,871) |
Professional services | (2,950) |  |  | (2,433) |  |  | (757) |
Occupancy-related costs | (10,085) |  |  | (3,723) |  |  | (334) |
Other selling, general and administrative expenses | (13,208) |  |  | (6,300) |  |  | (1,198) |
Depreciation and amortization | (5,989) |  |  | (3,971) |  |  | (1,438) |
Corporate: |  |  |  |  |
Revenues - Services and fees | 598 |  |  | — |  |  | — |
Employee compensation and benefits | (45,156) |  |  | (57,614) |  |  | (61,719) |
Professional services | (32,200) |  |  | (16,136) |  |  | (7,496) |
Occupancy-related costs | (8,036) |  |  | (7,659) |  |  | (6,368) |
Other selling, general and administrative expenses | 20,444 |  |  | 20,085 |  |  | 19,539 |
Depreciation and amortization | (604) |  |  | (749) |  |  | (801) |
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Operating (loss) income | (475,738) |  |  | 96,051 |  |  | 29,862 |
Interest income | 3,621 |  |  | 3,875 |  |  | 2,735 |
Dividend income | 4,462 |  |  | 12,747 |  |  | 7,851 |
Realized and unrealized losses on investments | (263,686) |  |  | (162,053) |  |  | (247,540) |
Change in fair value of financial instruments and other | 4,614 |  |  | (3,998) |  |  | 10,188 |
Gain on bargain purchase | — |  |  | 15,903 |  |  | — |
Income (loss) from equity method investments | 31 |  |  | (152) |  |  | 3,570 |
Loss on extinguishment of debt | (18,725) |  |  | (5,409) |  |  | — |
Interest expense: |  |  |  |  |
Capital Markets segment | (633) |  |  | (14,986) |  |  | (5,928) |
Communications segment | (9,288) |  |  | (11,573) |  |  | (5,099) |
Consumer Products segment | (4,261) |  |  | (7,924) |  |  | (1,318) |
E-Commerce segment | (1,056) |  |  | — |  |  | — |
Corporate and other | (118,070) |  |  | (121,757) |  |  | (128,658) |
Interest expense | (133,308) |  |  | (156,240) |  |  | (141,003) |
Loss from continuing operations before income taxes | (878,729) |  |  | (199,276) |  |  | (334,337) |
(Provision for) benefit from income taxes | (22,125) |  |  | 39,115 |  |  | 65,252 |
Loss from continuing operations | (900,854) |  |  | (160,161) |  |  | (269,085) |
Income from discontinued operations, net of income taxes | 125,915 |  |  | 54,530 |  |  | 112,491 |
Net loss | (774,939) |  |  | (105,631) |  |  | (156,594) |
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (10,665) |  |  | (5,721) |  |  | 3,235 |
Net loss attributable to B. Riley Financial, Inc. | (764,274) |  |  | (99,910) |  |  | (159,829) |
Preferred stock dividends | 8,060 |  |  | 8,057 |  |  | 8,008 |
Net loss available to common shareholders | $ | (772,334) |  |  | $ | (107,967) |  |  | $ | (167,837) |
The following table presents revenues by geographical area:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Revenues |  |  |  |  |
Services and fees |  |  |  |  |
North America | $ | 875,480 |  |  | $ | 898,750 |  |  | $ | 815,951 |
Trading loss (income) |  |  |  |  |
North America | (57,007) |  |  | 21,603 |  |  | (148,294) |
Fair value adjustments on loans |  |  |  |  |
North America | (325,498) |  |  | 20,225 |  |  | (54,334) |
Interest income - loans |  |  |  |  |
North America | 54,141 |  |  | 123,244 |  |  | 157,669 |
Interest income - securities lending |  |  |  |  |
North America | 70,862 |  |  | 161,652 |  |  | 83,144 |
Sale of goods |  |  |  |  |
North America | 118,676 |  |  | 126,297 |  |  | 51,899 |
Australia | 12,305 |  |  | 11,878 |  |  | 4,903 |
Europe, Middle East, and Africa | 55,517 |  |  | 65,596 |  |  | 18,485 |
Asia | 24,736 |  |  | 26,790 |  |  | 7,970 |
Latin America | 9,385 |  |  | 9,742 |  |  | 2,090 |
Total - Sale of goods | 220,619 |  |  | 240,303 |  |  | 85,347 |
Total Revenues |  |  |  |  |
North America | 736,654 |  |  | 1,351,771 |  |  | 906,035 |
Australia | 12,305 |  |  | 11,878 |  |  | 4,903 |
Europe, Middle East, and Africa | 55,517 |  |  | 65,596 |  |  | 18,485 |
Asia | 24,736 |  |  | 26,790 |  |  | 7,970 |
Latin America | 9,385 |  |  | 9,742 |  |  | 2,090 |
Total Revenues | $ | 838,597 |  |  | $ | 1,465,777 |  |  | $ | 939,483 |
The following table presents long-lived assets, which consist of property and equipment, net, by geographical area:
| December 31, 2024 |  | December 31, 2023
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 18,602 |  |  | $ | 24,594 |
Europe | 217 |  |  | 396 |
Asia Pacific | 81 |  |  | 133 |
Australia | 54 |  |  | 83 |
Total | $ | 18,954 |  |  | $ | 25,206 |
Segment assets are not reported to, or used by, the Company’s CODM to allocate resources to, or assess performance of, the segments and therefore, total segment assets have not been disclosed.

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- Definition The entire disclosure for reporting segments including data and tables. 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