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EQUITY METHOD INVESTMENTS
 3 Months Ended
Mar. 31, 2026
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
Equity investments accounted for under the equity method of accounting consist of the following:
March 31, 2026December 31, 2025
Percentage OwnershipInvestment BalancePercentage OwnershipInvestment Balance
Investments accounted for under the equity method:
Great American Holdings, LLC38.4 %$83,671 38.4 %$83,349 
SW-B. Riley Retail Opportunity Fund
22.6 %7,021 22.6 %7,084 
Total equity method investments$90,692 $90,433 
Equity investments that are accounted for under the equity method of accounting are included in the “Equity investments” line item in the accompanying unaudited condensed consolidated balance sheets. The Company’s share of
earnings or losses from equity method investees is included in the “Income (loss) from equity investments” line item in the accompanying unaudited condensed consolidated statements of operations.
The summarized financial information with respect to the equity method investments noted below for purposes of disclosure are presented a quarter in arrears whereas balance sheet and income statement amounts as of and for the quarter ended December 31, 2025 correspond to amounts as of and for the quarter ended March 31, 2026.
Great American Holdings, LLC (“GA Holdings”)
On November 15, 2024, the Company completed the sale of a majority interest in GA Holdings to Oaktree (the “Great American Transaction”). Upon completion of the sale, the Company retained a minority ownership interest in the Class A common units of GA Holdings. GA Holdings operations include appraisal and valuation services, real estate, and retail, wholesale & industrial auction and liquidation services to help clients dispose of assets that include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property. GA Holdings has three classes of equity interests which include common interests, Class A preferred interests and Class B preferred interests. The Company accounts for its investment in GA Holdings under the equity method of accounting with a three-month lag.
Under the equity method of accounting, the Company records its proportionate share of earnings or losses; however, given the capital structure of GA Holdings the Company applies the Hypothetical Liquidation at Book Value (“HLBV”) method on a three-month lag to determine the allocation of profits and losses since the liquidation rights and priorities, as defined by the limited liability agreement of GA Holdings, differ from the Company’s underlying ownership interest. The HLBV method calculates the proceeds that would be attributable to each partner based on the liquidation provisions of the limited liability agreement as if GA Holdings was to be liquidated at book value as of the balance sheet date. Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions.
Based on the terms of the limited liability agreement, we recorded equity in the net income (loss) attributable to GA Holdings using the HLBV method of $323 and $(449) for the three months ended March 31, 2026 and 2025, respectively.
The following tables contain summarized financial information with respect to GA Holdings:
December 31, 2025December 31, 2024
Current assets$61,160 $34,922 
Noncurrent assets$271,240 $291,362 
Current liabilities$37,729 $34,735 
Noncurrent liabilities$5,270 $— 
Mezzanine equity - preferred units$279,097 $279,096 
Equity attributable to investee$10,304 $12,453 
Three Months EndedPeriod from November 15, 2024 to December 31, 2024
December 31, 2025
Revenue$54,841 $21,675 
Cost of revenue and expenses$51,401 $18,184 
Net income attributable to investee$3,440 $3,490 
GA Joann Retail Partnership, LLC
On February 27, 2025, the Company contributed capital and certain financial support in the form of cash and subordinated debt in exchange for a 47.4% minority ownership interest in Joann Retail. Joann Retail’s operations include the acquisition and liquidation of Joann Inc’s (and its subsidiaries) retail assets. Joann Retail has two classes of equity interest which include voting Class A and nonvoting Class B interests.
In accordance with the accounting for an equity method on a lag basis, the Company did not recognize any equity method earnings or losses for its investment in Joann Retail for the three months ended March 31, 2025 as the Company’s earnings or losses for the period are reflected in the cost of the investment and the initial measurement on February 27, 2025.
As of March 31, 2026, the Company’s investment in Joann Retail was zero as the Company had fully recovered its initial investment of $6,163 in Joann Retail during the second quarter of 2025. Prior to the recovery of the Company’s initial investment, the investment in Joann Retail was adjusted for the Company’s proportionate share of equity method income or losses and of cash distributions received. The Company received $930 in excess of the Company’s investment balance during the three months ended March 31, 2026, and the distributions received in excess of the investment balance are recognized as other income and included in the “Income (loss) from equity investments” line item in the accompanying unaudited condensed consolidated statements of operations.
The following tables contain summarized financial information with respect to Joann Retail:
December 31, 2025
Current assets$19,208 
Current liabilities$19,208 
Three Months Ended
December 31, 2025
Revenue$6,583 
Cost of revenue and expenses$1,721 
Net income attributable to investee$4,862 
SW-B. Riley Retail Opportunity Fund (“SW-B. Retail”)
After the consolidation of BRC Trust as discussed in Note 3 - Variable Interest Entities and Note 16 - Noncontrolling Interests, the Company’s ownership percentage in SW-B. Retail is 22.6%. During the three months ended March 31, 2026, the Company recorded equity method income (loss) of $74 and $(103) for the three months ended March 31, 2026 and March 31, 2025, respectively.