DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

3 Months Ended

Mar. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

Assets Held For Sale

Wealth Management

On October 31, 2024, the Company signed a definitive agreement to sell a portion of the Company’s (W-2) Wealth Management business to Stifel Financial Corp. (“Stifel”) for estimated net consideration based on the number of advisors that join Stifel at closing, among other things. Upon closing the transaction on April 4, 2025, the sale was completed for net cash consideration of $26,037, representing 36 financial advisors whose managed accounts represent approximately $4.0 billion, or 23.6%, of total assets under management as of the close of the transaction. A gain of $5,372 was recognized on April 4, 2025 in connection with the completion of the sale.

Atlantic Coast Recycling

On March 3, 2025, the Company, BR Financial Holdings, LLC (“BRFH”), B. Riley Environmental Holdings, LLC and other indirect subsidiaries of the Company which included Atlantic Coast Recycling, LLC and Atlantic Coast Recycling of Ocean County, LLC entered into the Membership Interest Purchase Agreement (“MIPA”), whereby the interests owned by BRFH and the minority holders were sold to a third party in accordance with the terms of the MIPA on March 3, 2025. The interests were sold to the third party on March 3, 2025 for a purchase price of $102,478, subject to certain adjustments and a holdback amount pending receipt of a certain third party consent, resulting in cash proceeds of $68,638 to the Company after adjustments for amounts allocated to noncontrolling interests, repayment of contingent consideration, transaction costs and other items directly attributable to the closing of the transaction. Of the $68,638 of cash proceeds received by the Company, approximately $22,610 was used to pay interest, fees, and principal on the Credit Facility entered into with Oaktree Capital Management L.P. (“Oaktree”) on February 26, 2025. A gain of $52,430 was recognized during the three months ended March 31, 2025 from this sale, which is included in the “Gain on sale and deconsolidation of businesses” line item in the accompanying unaudited condensed consolidated statements of operations.

Operating results from the sale of the Wealth Management business and Atlantic Coast Recycling businesses contributed to the operating incomes of the Wealth Management segment and Corporate and All Other category, respectively, for the three months ended March 31, 2025.

Discontinued Operations

The Company presents a disposition of a component, being an operating or reportable segment, business unit, subsidiary or asset group, that represents a strategic shift that has or will have a major effect on the Company’s operations and financial results as discontinued operations when the components meet the criteria to be classified as held for sale. The following operations have been presented as discontinued operations.

GlassRatner and Farber

On June 27, 2025, the Company signed an equity purchase agreement to sell all of the membership interests of GlassRatner and Farber from the Company’s Financial Consulting reportable segment. The aggregate cash consideration paid by the buyers for the interests of GlassRatner and shares of Farber was $117,800, which was based on a target closing working capital amount that was subject to adjustment within 180 days following the sale date. In connection with the sale, the Company entered into a transition services agreement with the buyer to provide certain services.

The major classes of assets and liabilities included in discontinued operations were as follows:


	March 31, 2026		December 31, 2025

Assets:
Prepaid expenses and other assets	$	2,221	$	2,221
Total assets	$	2,221	$	2,221

Liabilities:
Accrued expenses and other liabilities	$	830	$	830
Total liabilities	$	830	$	830

Revenues, expenses and income from discontinued operations for the three months ended March 31, 2025 were as follows:


	Three Months Ended
	March 31, 2025
Revenues:
Services and fees	$	21,110
Operating expenses:
Selling, general and administrative expenses	17,613
Operating income	3,497
Other income:
Interest income	3
Income from discontinued operations before income taxes	3,500
Provision for benefit from income taxes	(105)
Income from discontinued operations, net of income taxes	$	3,395

Cash flows from discontinued operations were as follows:


	Three Months Ended
	March 31, 2025
Net cash from discontinued operations provided by (used in):
Operating activities	$	925
Investing activities	—
Financing activities	(5,594)
Effect of foreign currency on cash	13
Net decrease in cash and cash equivalents	$	(4,656)

Supplemental disclosures from cash flows were as follows:


	Three Months Ended
	March 31, 2025
Interest paid - Continuing Operations	$	28,982
Interest paid - Discontinued Operations	—
Interest paid - Total	$	28,982
Taxes paid - Continuing Operations	$	932
Taxes paid - Discontinued Operations	—
Taxes paid - Total	$	932