EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Basic earnings per share is calculated by dividing (loss) income from continuing operations, (loss) income from discontinued operations, or net income (loss) by the weighted-average number of shares outstanding during the period. Diluted earnings per share is calculated by dividing (loss) income from continuing operations, (loss) income from discontinued operations, or net income (loss) by the weighted-average number of common shares outstanding, after giving effect to all dilutive potential common shares outstanding during the period. Remeasurements to the carrying value of the redeemable noncontrolling interests in equity of subsidiaries are not deemed to be a dividend. According to ASC 480 - Distinguishing Liabilities from Equity, there is no impact on earnings per share in the computation of basic and diluted earnings per share to common shareholders for changes in the carrying value of the redeemable noncontrolling interests in equity, when such changes in carrying value which in substance approximates fair value.

Potential common shares that were not included in the computation of diluted loss per share because the effect was antidilutive was 2,637,588 as of September 30, 2024. Securities that could potentially dilute basic net income per share in the future that were not included in the computation of diluted net income per share as the effect would be anti-dilutive were 1,169,913 and 1,718,209 during the three and nine months ended September 30, 2023, respectively, because to do so would have been anti-dilutive.

Basic and diluted earnings per share were calculated as follows:


	Three Months Ended September 30,
	2024						2023
	Continuing Operations		Discontinued Operations		Total		Continuing Operations		Discontinued Operations		Total
Net (loss) income	$	(148,852)	$	(138,746)	$	(287,598)	$	(100,049)	$	23,741	$	(76,308)
Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests	624		(3,825)		(3,201)		(3,192)		707		(2,485)
Net (loss) income attributable to B. Riley Financial, Inc.	(149,476)		(134,921)		(284,397)		(96,857)		23,034		(73,823)
Preferred stock dividends	2,015		—		2,015		2,015		—		2,015
Net (loss) income available to common shareholders	$	(151,491)	$	(134,921)	$	(286,412)	$	(98,872)	$	23,034	$	(75,838)

	Nine Months Ended September 30,
	2024						2023
	Continuing Operations		Discontinued Operations		Total		Continuing Operations		Discontinued Operations		Total
Net (loss) income	$	(645,506)	$	(123,827)	$	(769,333)	$	(48,510)	$	32,543	$	(15,967)
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests	(397)		(1,770)		(2,167)		(8,049)		2,369		(5,680)
Net (loss) income attributable to B. Riley Financial, Inc.	(645,109)		(122,057)		(767,166)		(40,461)		30,174		(10,287)
Preferred stock dividends	6,045		—		6,045		6,042		—		6,042
Net (loss) income available to common shareholders	$	(651,154)	$	(122,057)	$	(773,211)	$	(46,503)	$	30,174	$	(16,329)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Weighted average common shares outstanding:
Basic	30,499,931		29,961,068		30,281,324		28,933,546
Effect of dilutive potential common shares:
Restricted stock units and warrants	—		—		—		—
Diluted	30,499,931		29,961,068		30,281,324		28,933,546

Basic net (loss) income per common share:
Continuing operations	$	(4.97)	$	(3.30)	$	(21.50)	$	(1.61)
Discontinued operations	(4.42)		0.77		(4.03)		1.05
Basic (loss) income per common share	$	(9.39)	$	(2.53)	$	(25.53)	$	(0.56)
Diluted net (loss) income per common share:
Continuing operations	$	(4.97)	$	(3.30)	$	(21.50)	$	(1.61)
Discontinued operations	(4.42)		0.77		(4.03)		1.05
Diluted (loss) income per common share	$	(9.39)	$	(2.53)	$	(25.53)	$	(0.56)