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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2025
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 five reportable segments reflect the way the Company is managed, and for which separate financial information is available and evaluated regularly by the Company’s Chief Operating Decision Maker (“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 is reported on the unaudited condensed 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, professional services by segment, occupancy-related costs by segment, and other selling, general and administrative expenses by segment, as well as to reflect discontinued operations presentation as described in Note 3 - Discontinued Operations and Assets Held for Sale.
The following is a summary of certain financial data for each of the Company’s reportable segments:
Three Months Ended
March 31,
20252024
Capital Markets segment:
Revenues - Services and fees$25,205 $60,347 
Trading gains (losses), net(16,783)(18,267)
Fair value adjustment on loans(8,096)(12,201)
Interest income - loans3,196 22,135 
Interest income - securities lending840 37,809 
Total revenues4,362 89,823 
Employee compensation and benefits(22,231)(39,058)
Professional services(2,253)(995)
Occupancy-related costs(2,092)(2,052)
Other selling, general and administrative expenses(14,570)(11,119)
Interest expense - Securities lending and loan participations sold(719)(35,383)
Depreciation and amortization(691)(771)
Segment (loss) income(38,194)445 
Wealth Management segment:  
Revenues - Services and fees46,666 51,182 
Trading income612 600 
Total revenues47,278 51,782 
Employee compensation and benefits(33,670)(40,420)
Professional services(409)(472)
Occupancy-related costs(3,482)(3,255)
Other selling, general and administrative expenses(6,987)(4,901)
Depreciation and amortization(1,006)(1,055)
Segment income1,724 1,679 
Communications segment:  
Revenues - Services and fees63,173 81,070 
Revenues - Sale of goods1,301 1,296 
Total revenues64,474 82,366 
Direct cost of services(32,624)(48,819)
Cost of goods sold(1,517)(1,359)
Employee compensation and benefits(7,144)(9,131)
Professional services(949)(965)
Occupancy-related costs(2,025)(2,591)
Other selling, general and administrative expenses(5,749)(5,230)
Restructuring charge— (263)
Depreciation and amortization(4,790)(5,957)
Segment income9,676 8,051 
Consumer Products segment:  
Revenues - Sale of goods42,103 51,522 
Cost of goods sold(31,629)(36,880)
Employee compensation and benefits(9,903)(10,443)
Professional services(1,175)(1,793)
Occupancy-related costs(1,450)(1,584)
Other selling, general and administrative expenses(1,175)(1,705)
Depreciation and amortization(1,912)(1,997)
Restructuring charge— (526)
Segment loss(5,141)(3,406)
E-Commerce segment:
Revenues - Services and fees3,469 — 
Revenues - Sale of goods3,528 — 
Total revenues6,997 — 
Direct cost of services(1,552)— 
Cost of goods sold(3,131)— 
Employee compensation and benefits(3,153)— 
Professional services(2,141)— 
Occupancy-related costs(642)— 
Other selling, general and administrative expenses(2,454)— 
Depreciation and amortization(38)— 
Segment loss(6,114)— 
Consolidated operating (loss) income from reportable segments(38,049)6,769 
All Other:
Revenues - Services and fees19,196 21,482 
Revenues - Sale of goods523 615 
Total revenues19,719 22,097 
Direct cost of services(8,524)(10,851)
Cost of goods sold(456)(588)
Employee compensation and benefits(5,247)(6,054)
Professional services(657)(597)
Occupancy-related costs(1,005)(2,680)
Other selling, general and administrative expenses(6,082)(2,884)
Depreciation and amortization(1,410)(1,083)
Corporate:
Revenues - Services and fees1,130 — 
Employee compensation and benefits(10,638)(13,452)
Professional services(10,639)(11,286)
Occupancy-related costs(1,627)(1,965)
Other selling, general and administrative expenses2,160 6,706 
Depreciation and amortization(152)(151)
Operating loss(61,477)(16,019)
Interest income1,486 663 
Dividend income135 3,004 
Realized and unrealized losses on investments
(14,500)(34,924)
Change in fair value of financial instruments and other922 — 
Gain on sale and deconsolidation of businesses80,841 314 
Gain on senior note exchange10,532 — 
Loss from equity investments(552)(4)
Loss on extinguishment of debt(10,427)— 
Interest expense:
Capital Markets segment(49)(156)
Communications segment(1,653)(2,610)
Consumer Products segment(417)(1,431)
E-Commerce segment(396)— 
Corporate and other(27,449)(31,468)
Interest expense(29,964)(35,665)
Loss from continuing operations before income taxes(23,004)(82,631)
Benefit from income taxes3,042 21,330 
Loss from continuing operations(19,962)(61,301)
Income from discontinued operations, net of income taxes3,395 13,347 
Net loss(16,567)(47,954)
Net (loss) income attributable to noncontrolling interests(6,592)1,211 
Net loss attributable to B. Riley Financial, Inc.(9,975)(49,165)
Preferred stock dividends2,015 2,015 
Net loss available to common shareholders$(11,990)$(51,180)
The following table presents revenues by geographical area:
Three Months Ended
March 31,
20252024
Services and fees
North America$158,839 $214,081 
 
Trading gains (losses), net
North America(16,171)(17,667)
Fair value adjustments on loans
North America(8,096)(12,201)
Interest income - loans
North America3,196 22,135 
Interest income - securities lending
North America840 37,809 
Sale of goods
North America26,221 28,879 
Australia2,119 2,624 
Europe, Middle East, and Africa12,227 13,813 
Asia4,950 6,354 
Latin America1,938 1,763 
Total - Sale of goods47,455 53,433 
Total Revenues
North America164,829 273,036 
Australia2,119 2,624 
Europe, Middle East, and Africa12,227 13,813 
Asia4,950 6,354 
Latin America1,938 1,763 
Total Revenues$186,063 $297,590 
The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
March 31, 2025December 31, 2024
Long-lived Assets - Property and Equipment, net:
North America$17,668 $18,327 
Europe178 217 
Asia Pacific71 81 
Australia52 54 
Total$17,969 $18,679 
Segment assets are not reported to, or used by, the Company’s Chief Operating Decision Maker to allocate resources to, or assess performance of the segments and therefore, total segment assets have not been disclosed.