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BUSINESS SEGMENTS (Tables) | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Schedule of segment reporting information, by segment | The following is a summary of certain financial data for each of the Company’s reportable segments:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Capital Markets segment: |  |  |  |  |  |  |
Revenues - Services and fees | $ | 50,242 |  |  | $ | 44,961 |  |  | $ | 110,589 |  |  | $ | 102,890 |
Trading (loss) income | (32,612) |  |  | 32,685 |  |  | (50,879) |  |  | 39,705 |
Fair value adjustments on loans | (175,582) |  |  | 9,207 |  |  | (187,783) |  |  | 52,483 |
Interest income - loans | 18,508 |  |  | 35,126 |  |  | 40,643 |  |  | 75,138 |
Interest income - securities lending | 24,798 |  |  | 40,073 |  |  | 62,607 |  |  | 77,247 |
Total revenues | (114,646) |  |  | 162,052 |  |  | (24,823) |  |  | 347,463 |
Selling, general and administrative expenses | (49,806) |  |  | (45,870) |  |  | (103,030) |  |  | (111,581) |
Impairment of tradenames | — |  |  | (1,733) |  |  | — |  |  | (1,733) |
Interest expense - Securities lending and loan participations sold | (23,313) |  |  | (35,780) |  |  | (58,696) |  |  | (68,204) |
Depreciation and amortization | (745) |  |  | (993) |  |  | (1,516) |  |  | (2,249) |
Segment (loss) income | (188,510) |  |  | 77,676 |  |  | (188,065) |  |  | 163,696 |
Wealth Management segment: |  |  |  |  |  |  |
Revenues - Services and fees | 49,582 |  |  | 47,243 |  |  | 100,764 |  |  | 95,785 |
Trading income | 1,291 |  |  | 473 |  |  | 1,891 |  |  | 1,745 |
Total revenues | 50,873 |  |  | 47,716 |  |  | 102,655 |  |  | 97,530 |
Selling, general and administrative expenses | (48,157) |  |  | (47,964) |  |  | (97,205) |  |  | (95,286) |
Restructuring charge | — |  |  | (28) |  |  | — |  |  | (61) |
Depreciation and amortization | (1,048) |  |  | (1,082) |  |  | (2,103) |  |  | (2,168) |
Segment income (loss) | 1,668 |  |  | (1,358) |  |  | 3,347 |  |  | 15 |
Auction and Liquidation segment: |  |  |  |  |  |  |
Revenues - Services and fees | 3,621 |  |  | 8,885 |  |  | 7,181 |  |  | 14,329 |
Revenues - Sale of goods | 8,364 |  |  | 1,676 |  |  | 10,584 |  |  | 1,892 |
Total revenues | 11,985 |  |  | 10,561 |  |  | 17,765 |  |  | 16,221 |
Direct cost of services | (2,872) |  |  | (3,453) |  |  | (4,328) |  |  | (6,581) |
Cost of goods sold | (6,960) |  |  | (618) |  |  | (7,748) |  |  | (670) |
Selling, general and administrative expenses | (1,861) |  |  | (2,302) |  |  | (3,369) |  |  | (4,582) |
Segment income | 292 |  |  | 4,188 |  |  | 2,320 |  |  | 4,388 |
Financial Consulting segment: |  |  |  |  |  |  |
Revenues - Services and fees | 36,533 |  |  | 31,212 |  |  | 71,618 |  |  | 56,222 |
Selling, general and administrative expenses | (28,584) |  |  | (22,791) |  |  | (57,444) |  |  | (43,940) |
Depreciation and amortization | (83) |  |  | (103) |  |  | (168) |  |  | (181) |
Segment income | 7,866 |  |  | 8,318 |  |  | 14,006 |  |  | 12,101 |
Communications segment: |  |  |  |  |  |  |
Revenues - Services and fees | 77,744 |  |  | 83,316 |  |  | 158,814 |  |  | 168,368 |
Revenues - Sale of goods | 1,465 |  |  | 1,640 |  |  | 2,761 |  |  | 3,507 |
Total revenues | 79,209 |  |  | 84,956 |  |  | 161,575 |  |  | 171,875 |
Direct cost of services | (46,274) |  |  | (46,085) |  |  | (95,093) |  |  | (90,818) |
Cost of goods sold | (1,614) |  |  | (2,046) |  |  | (2,973) |  |  | (4,214) |
Selling, general and administrative expenses | (19,553) |  |  | (20,241) |  |  | (37,471) |  |  | (42,785) |
Restructuring charge | — |  |  | (197) |  |  | (263) |  |  | (257) |
Depreciation and amortization | (5,925) |  |  | (6,405) |  |  | (11,882) |  |  | (13,036) |
Segment income | 5,843 |  |  | 9,982 |  |  | 13,893 |  |  | 20,765 |
Consumer Products segment: |  |  |  |  |  |  |
Revenues - Sale of goods | 51,424 |  |  | 55,071 |  |  | 102,946 |  |  | 120,765 |
Cost of goods sold | (35,984) |  |  | (37,653) |  |  | (72,864) |  |  | (83,059) |
Selling, general and administrative expenses | (15,118) |  |  | (16,482) |  |  | (30,643) |  |  | (35,776) |
Depreciation and amortization | (1,931) |  |  | (2,581) |  |  | (3,928) |  |  | (5,189) |
Restructuring charge | (20) |  |  | (403) |  |  | (546) |  |  | (403) |
Impairment of goodwill and tradenames | (27,681) |  |  | — |  |  | (27,681) |  |  | — |
Segment loss | (29,310) |  |  | (2,048) |  |  | (32,716) |  |  | (3,662) |
Consolidated operating (loss) income from reportable segments | (202,151) |  |  | 96,758 |  |  | (187,215) |  |  | 197,303 |
All Other: |  |  |  |  |  |  |
Revenues - Services and fees | 30,303 |  |  | 14,710 |  |  | 56,362 |  |  | 28,292 |
Revenues - Sale of goods | 2,684 |  |  | — |  |  | 3,299 |  |  | — |
Total revenues | 32,987 |  |  | 14,710 |  |  | 59,661 |  |  | 28,292 |
Direct cost of services | (12,405) |  |  | (6,403) |  |  | (23,256) |  |  | (12,939) |
Cost of goods sold | (2,160) |  |  | — |  |  | (2,748) |  |  | — |
Corporate and other expenses | (36,527) |  |  | (22,071) |  |  | (70,127) |  |  | (44,739) |
Interest income | 804 |  |  | 701 |  |  | 1,473 |  |  | 3,275 |
Dividend income | 9,209 |  |  | 9,555 |  |  | 21,024 |  |  | 22,759 |
Realized and unrealized (losses) gains on investments | (155,690) |  |  | 18,843 |  |  | (185,235) |  |  | (9,599) |
Change in fair value of financial instruments and other | (163) |  |  | 381 |  |  | 151 |  |  | 172 |
Income from equity investments | 10 |  |  | 143 |  |  | 6 |  |  | 133 |
Interest expense | (42,687) |  |  | (47,332) |  |  | (87,551) |  |  | (94,893) |
(Loss) income before income taxes | (408,773) |  |  | 65,285 |  |  | (473,817) |  |  | 89,764 |
Provision for income taxes | (25,008) |  |  | (21,504) |  |  | (7,918) |  |  | (29,423) |
Net (loss) income | (433,781) |  |  | 43,781 |  |  | (481,735) |  |  | 60,341 |
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | (177) |  |  | (2,600) |  |  | 1,034 |  |  | (3,195) |
Net (loss) income attributable to B. Riley Financial, Inc. | (433,604) |  |  | 46,381 |  |  | (482,769) |  |  | 63,536 |
Preferred stock dividends | 2,015 |  |  | 2,015 |  |  | 4,030 |  |  | 4,027 |
Net (loss) income available to common shareholders | $ | (435,619) |  |  | $ | 44,366 |  |  | $ | (486,799) |  |  | $ | 59,509 |
Schedule of revenues by geographical area | The following table presents revenues by geographical area:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Revenues |  |  |  |  |  |  |
Services and fees |  |  |  |  |  |  |
North America | $ | 247,256 |  |  | $ | 229,911 |  |  | $ | 503,986 |  |  | $ | 464,841 |
Europe | 769 |  |  | 416 |  |  | 1,342 |  |  | 1,045 |
Total Revenues - Services and fees | 248,025 |  |  | 230,327 |  |  | 505,328 |  |  | 465,886 |
Trading (loss) income |  |  |  |  |  |  |
North America | (31,321) |  |  | 33,158 |  |  | (48,988) |  |  | 41,450 |
Fair value adjustments on loans |  |  |  |  |  |  |
North America | (175,582) |  |  | 9,207 |  |  | (187,783) |  |  | 52,483 |
Interest income - loans |  |  |  |  |  |  |
North America | 18,508 |  |  | 35,126 |  |  | 40,643 |  |  | 75,138 |
Interest income - securities lending |  |  |  |  |  |  |
North America | 24,798 |  |  | 40,073 |  |  | 62,607 |  |  | 77,247 |
Sale of goods |  |  |  |  |  |  |
North America | 29,088 |  |  | 29,407 |  |  | 57,982 |  |  | 67,354 |
Australia | 3,837 |  |  | 3,171 |  |  | 6,461 |  |  | 6,630 |
Europe, Middle East, and Africa | 21,302 |  |  | 17,198 |  |  | 37,319 |  |  | 34,626 |
Asia | 6,780 |  |  | 6,316 |  |  | 13,134 |  |  | 12,540 |
Latin America | 2,930 |  |  | 2,295 |  |  | 4,694 |  |  | 5,014 |
Total Revenues - Sale of goods | 63,937 |  |  | 58,387 |  |  | 119,590 |  |  | 126,164 |
Total Revenues |  |  |  |  |  |  |
North America | 112,747 |  |  | 376,882 |  |  | 428,447 |  |  | 778,513 |
Australia | 3,837 |  |  | 3,171 |  |  | 6,461 |  |  | 6,630 |
Europe, Middle East, and Africa | 22,071 |  |  | 17,614 |  |  | 38,661 |  |  | 35,671 |
Asia | 6,780 |  |  | 6,316 |  |  | 13,134 |  |  | 12,540 |
Latin America | 2,930 |  |  | 2,295 |  |  | 4,694 |  |  | 5,014 |
Total Revenues | $ | 148,365 |  |  | $ | 406,278 |  |  | $ | 491,397 |  |  | $ | 838,368 |
Long-Lived Assets by Geographic Areas | The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
| June 30, 2024 |  | December 31, 2023
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 44,210 |  |  | $ | 24,594 |
Europe | 307 |  |  | 396 |
Asia Pacific | 105 |  |  | 133 |
Australia | 67 |  |  | 83 |
Total | $ | 44,689 |  |  | $ | 25,206 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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