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BUSINESS SEGMENTS | 6 Months Ended
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Jun. 30, 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 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:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Capital Markets segment: |  |  |  |  |  |  |
Revenues - Services and fees | $ | 39,095 |  |  | $ | 50,242 |  |  | $ | 64,300 |  |  | $ | 110,589 |
Trading gains (losses), net | 22,480 |  |  | (32,612) |  |  | 5,697 |  |  | (50,879) |
Fair value adjustment on loans | 800 |  |  | (175,582) |  |  | (7,296) |  |  | (187,783) |
Interest income - loans | 3,853 |  |  | 18,508 |  |  | 7,049 |  |  | 40,643 |
Interest income - securities lending | 2,124 |  |  | 24,798 |  |  | 2,964 |  |  | 62,607 |
Total revenues | 68,352 |  |  | (114,646) |  |  | 72,714 |  |  | (24,823) |
Employee compensation and benefits | (29,815) |  |  | (34,679) |  |  | (52,046) |  |  | (73,737) |
Professional services | (1,655) |  |  | (1,060) |  |  | (3,908) |  |  | (2,055) |
Occupancy-related costs | (1,699) |  |  | (1,988) |  |  | (3,791) |  |  | (4,040) |
Other selling, general and administrative expenses | (10,765) |  |  | (12,079) |  |  | (25,335) |  |  | (23,198) |
Interest expense - Securities lending and loan participations sold | (1,968) |  |  | (23,313) |  |  | (2,687) |  |  | (58,696) |
Depreciation and amortization | (692) |  |  | (745) |  |  | (1,383) |  |  | (1,516) |
Segment income (loss) | 21,758 |  |  | (188,510) |  |  | (16,436) |  |  | (188,065) |
Wealth Management segment: |  |  |  |  |  |  |
Revenues - Services and fees | 33,421 |  |  | 49,582 |  |  | 80,087 |  |  | 100,764 |
Trading gains (losses), net | 5,200 |  |  | 1,291 |  |  | 5,812 |  |  | 1,891 |
Total revenues | 38,621 |  |  | 50,873 |  |  | 85,899 |  |  | 102,655 |
Employee compensation and benefits | (29,499) |  |  | (39,303) |  |  | (63,169) |  |  | (79,723) |
Professional services | (582) |  |  | (472) |  |  | (991) |  |  | (944) |
Occupancy-related costs | (4,513) |  |  | (2,877) |  |  | (7,995) |  |  | (6,132) |
Other selling, general and administrative expenses | (4,935) |  |  | (5,505) |  |  | (11,922) |  |  | (10,406) |
Depreciation and amortization | (411) |  |  | (1,048) |  |  | (1,417) |  |  | (2,103) |
Segment (loss) income | (1,319) |  |  | 1,668 |  |  | 405 |  |  | 3,347 |
Communications segment: |  |  |  |  |  |  |
Revenues - Services and fees | 60,732 |  |  | 77,744 |  |  | 123,905 |  |  | 158,814 |
Revenues - Sale of goods | 1,471 |  |  | 1,465 |  |  | 2,772 |  |  | 2,761 |
Total revenues | 62,203 |  |  | 79,209 |  |  | 126,677 |  |  | 161,575 |
Direct cost of services | (29,574) |  |  | (46,274) |  |  | (62,198) |  |  | (95,093) |
Cost of goods sold | (1,717) |  |  | (1,614) |  |  | (3,234) |  |  | (2,973) |
Employee compensation and benefits | (6,956) |  |  | (8,708) |  |  | (14,100) |  |  | (17,839) |
Professional services | (638) |  |  | (1,636) |  |  | (1,587) |  |  | (2,601) |
Occupancy-related costs | (1,947) |  |  | (2,741) |  |  | (3,972) |  |  | (5,332) |
Other selling, general and administrative expenses | (5,595) |  |  | (6,468) |  |  | (11,344) |  |  | (11,699) |
Restructuring charge | — |  |  | — |  |  | — |  |  | (263) |
Depreciation and amortization | (4,793) |  |  | (5,925) |  |  | (9,583) |  |  | (11,882) |
Segment income | 10,983 |  |  | 5,843 |  |  | 20,659 |  |  | 13,893 |
Consumer Products segment: |  |  |  |  |  |  |
Revenues - Sale of goods | 43,284 |  |  | 51,424 |  |  | 85,387 |  |  | 102,946 |
Cost of goods sold | (33,031) |  |  | (35,984) |  |  | (64,660) |  |  | (72,864) |
Employee compensation and benefits | (9,158) |  |  | (9,973) |  |  | (19,061) |  |  | (20,416) |
Professional services | (800) |  |  | (2,223) |  |  | (1,975) |  |  | (4,016) |
Occupancy-related costs | (1,483) |  |  | (1,594) |  |  | (2,933) |  |  | (3,178) |
Other selling, general and administrative expenses | (1,228) |  |  | (1,328) |  |  | (2,403) |  |  | (3,033) |
Depreciation and amortization | (1,952) |  |  | (1,931) |  |  | (3,864) |  |  | (3,928) |
Restructuring charge | (36) |  |  | (20) |  |  | (36) |  |  | (546) |
Impairment of goodwill and tradenames | (1,500) |  |  | (27,681) |  |  | (1,500) |  |  | (27,681) |
Segment loss | (5,904) |  |  | (29,310) |  |  | (11,045) |  |  | (32,716) |
E-Commerce segment: |  |  |  |  |  |  |
Revenues - Services and fees | — |  |  | 2,731 |  |  | 3,469 |  |  | 2,731 |
Revenues - Sale of goods | — |  |  | 2,265 |  |  | 3,528 |  |  | 2,265 |
Total revenues | — |  |  | 4,996 |  |  | 6,997 |  |  | 4,996 |
Direct cost of services | — |  |  | (1,590) |  |  | (1,552) |  |  | (1,590) |
Cost of goods sold | — |  |  | (1,610) |  |  | (3,131) |  |  | (1,610) |
Employee compensation and benefits | — |  |  | (2,553) |  |  | (3,153) |  |  | (2,553) |
Professional services | — |  |  | (1,007) |  |  | (2,141) |  |  | (1,007) |
Occupancy-related costs | — |  |  | (1,036) |  |  | (642) |  |  | (1,036) |
Other selling, general and administrative expenses | — |  |  | (1,071) |  |  | (2,454) |  |  | (1,071) |
Depreciation and amortization | — |  |  | (370) |  |  | (38) |  |  | (370) |
Segment loss | — |  |  | (4,241) |  |  | (6,114) |  |  | (4,241) |
Consolidated operating income (loss) from reportable segments | 25,518 |  |  | (214,550) |  |  | (12,531) |  |  | (207,782) |
All Other: |  |  |  |  |  |  |
Revenues - Services and fees | 11,961 |  |  | 22,610 |  |  | 31,157 |  |  | 44,092 |
Revenues - Sale of goods | 318 |  |  | 419 |  |  | 841 |  |  | 1,034 |
Total revenues | 12,279 |  |  | 23,029 |  |  | 31,998 |  |  | 45,126 |
Direct cost of services | (3,642) |  |  | (10,815) |  |  | (12,166) |  |  | (21,666) |
Cost of goods sold | (365) |  |  | (550) |  |  | (821) |  |  | (1,138) |
Employee compensation and benefits | (4,073) |  |  | (5,454) |  |  | (9,320) |  |  | (11,508) |
Professional services | (573) |  |  | (821) |  |  | (1,230) |  |  | (1,418) |
Occupancy-related costs | (2,930) |  |  | (2,485) |  |  | (3,935) |  |  | (5,165) |
Other selling, general and administrative expenses | (650) |  |  | (2,954) |  |  | (6,732) |  |  | (5,838) |
Depreciation and amortization | (618) |  |  | (1,508) |  |  | (2,028) |  |  | (2,591) |
Corporate: |  |  |  |  |  |  |
Revenues - Services and fees | 563 |  |  | — |  |  | 1,693 |  |  | — |
Employee compensation and benefits | (9,642) |  |  | (11,096) |  |  | (20,280) |  |  | (24,548) |
Professional services | (7,408) |  |  | (5,286) |  |  | (18,047) |  |  | (16,572) |
Occupancy-related costs | (1,708) |  |  | (1,970) |  |  | (3,335) |  |  | (3,935) |
Other selling, general and administrative expenses | 4,530 |  |  | 2,032 |  |  | 6,690 |  |  | 8,739 |
Depreciation and amortization | (181) |  |  | (152) |  |  | (333) |  |  | (303) |
Restructuring charge | (285) |  |  | — |  |  | (285) |  |  | — |
Operating income (loss) | 10,815 |  |  | (232,580) |  |  | (50,662) |  |  | (248,599) |
Interest income | 492 |  |  | 797 |  |  | 1,978 |  |  | 1,460 |
Dividend income | 122 |  |  | 460 |  |  | 257 |  |  | 3,464 |
Realized and unrealized (losses) gains on investments | 10,216 |  |  | (155,241) |  |  | (4,284) |  |  | (190,165) |
Change in fair value of financial instruments and other | 11,884 |  |  | — |  |  | 12,806 |  |  | — |
Gain on sale and deconsolidation of businesses | 5,372 |  |  | — |  |  | 86,213 |  |  | 314 |
Gain on senior note exchange | 44,454 |  |  | — |  |  | 54,986 |  |  | — |
Income from equity investments | 25,603 |  |  | 10 |  |  | 25,051 |  |  | 6 |
(Loss) gain on extinguishment of debt | (10,266) |  |  | 120 |  |  | (20,693) |  |  | 120 |
Interest expense: |  |  |  |  |  |  |
Capital Markets segment | — |  |  | (156) |  |  | (49) |  |  | (312) |
Communications segment | (1,560) |  |  | (2,407) |  |  | (3,213) |  |  | (5,017) |
Consumer Products segment | (443) |  |  | (1,014) |  |  | (860) |  |  | (2,445) |
E-Commerce segment | — |  |  | (257) |  |  | (396) |  |  | (257) |
Corporate and other | (21,949) |  |  | (29,700) |  |  | (49,398) |  |  | (61,168) |
Interest expense | (23,952) |  |  | (33,534) |  |  | (53,916) |  |  | (69,199) |
Income (loss) from continuing operations before income taxes | 74,740 |  |  | (419,968) |  |  | 51,736 |  |  | (502,599) |
Provision for income taxes | (3,053) |  |  | (29,183) |  |  | (11) |  |  | (7,853) |
Income (loss) from continuing operations | 71,687 |  |  | (449,151) |  |  | 51,725 |  |  | (510,452) |
Income from discontinued operations, net of income taxes | 69,312 |  |  | 15,370 |  |  | 72,707 |  |  | 28,717 |
Net income (loss) | 140,999 |  |  | (433,781) |  |  | 124,432 |  |  | (481,735) |
Net income (loss) attributable to noncontrolling interests | 1,528 |  |  | (177) |  |  | (5,064) |  |  | 1,034 |
Net income (loss) attributable to B. Riley Financial, Inc. | 139,471 |  |  | (433,604) |  |  | 129,496 |  |  | (482,769) |
Preferred stock dividends | 2,015 |  |  | 2,015 |  |  | 4,030 |  |  | 4,030 |
Net income (loss) available to common shareholders | $ | 137,456 |  |  | $ | (435,619) |  |  | $ | 125,466 |  |  | $ | (486,799) |
The following table presents revenues by geographical area:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Services and fees |  |  |  |  |  |  |
North America | $ | 145,772 |  |  | $ | 202,909 |  |  | $ | 304,611 |  |  | $ | 416,990 |
Trading gains (losses), net |  |  |  |  |  |  |
North America | 27,680 |  |  | (31,321) |  |  | 11,509 |  |  | (48,988) |
Fair value adjustments on loans |  |  |  |  |  |  |
North America | 800 |  |  | (175,582) |  |  | (7,296) |  |  | (187,783) |
Interest income - loans |  |  |  |  |  |  |
North America | 3,853 |  |  | 18,508 |  |  | 7,049 |  |  | 40,643 |
Interest income - securities lending |  |  |  |  |  |  |
North America | 2,124 |  |  | 24,798 |  |  | 2,964 |  |  | 62,607 |
Sale of goods |  |  |  |  |  |  |
North America | 22,598 |  |  | 28,885 |  |  | 48,819 |  |  | 57,765 |
Australia | 2,563 |  |  | 3,837 |  |  | 4,682 |  |  | 6,461 |
Europe, Middle East, and Africa | 12,743 |  |  | 13,140 |  |  | 24,970 |  |  | 26,952 |
Asia | 5,327 |  |  | 6,780 |  |  | 10,277 |  |  | 13,134 |
Latin America | 1,842 |  |  | 2,931 |  |  | 3,780 |  |  | 4,694 |
Total - Sale of goods | 45,073 |  |  | 55,573 |  |  | 92,528 |  |  | 109,006 |
Total Revenues |  |  |  |  |  |  |
North America | 202,827 |  |  | 68,197 |  |  | 367,656 |  |  | 341,234 |
Australia | 2,563 |  |  | 3,837 |  |  | 4,682 |  |  | 6,461 |
Europe, Middle East, and Africa | 12,743 |  |  | 13,140 |  |  | 24,970 |  |  | 26,952 |
Asia | 5,327 |  |  | 6,780 |  |  | 10,277 |  |  | 13,134 |
Latin America | 1,842 |  |  | 2,931 |  |  | 3,780 |  |  | 4,694 |
Total Revenues | $ | 225,302 |  |  | $ | 94,885 |  |  | $ | 411,365 |  |  | $ | 392,475 |
The following table presents long-lived assets, which consists of property and equipment, net, by geographical area:
| June 30, 2025 |  | December 31, 2024
Long-lived Assets - Property and Equipment, net: |  |  |
North America | $ | 18,196 |  |  | $ | 18,327 |
Europe | 148 |  |  | 217 |
Asia Pacific | 58 |  |  | 81 |
Australia | 50 |  |  | 54 |
Total | $ | 18,452 |  |  | $ | 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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