BRC Group's Core Operating Profit Reaches Highest Since Late 2023
Operating Adjusted EBITDA was $66.0 million in the second quarter as net income available to common shareholders was $18.5 million.
BRC Group Holdings, Inc. (RILY) reported Operating Adjusted EBITDA of $66.0 million for the three months ended June 30, 2026, which the company said was its highest core operating result since the third quarter of 2023.
That core measure rose from $34.6 million in the first quarter, even as headline results reversed the first-quarter investment-gain spike. Net income available to common shareholders was $18.5 million, or $0.45 a share, compared with $211.3 million in the first quarter. The year-ago second-quarter figure of $137.5 million had included substantial income from discontinued operations and a gain on a senior note exchange.
Total revenues were $239.1 million in the second quarter, up from $225.3 million a year earlier. Sequentially, that level sat below first-quarter total revenues of $352.1 million. Investment gains swung to a $0.2 million loss from $134.9 million of gains in the first quarter. Adjusted EBITDA was $61.3 million, down from $262.2 million in the first quarter. Operating revenues were $239.4 million.
Wealth Management was the operating inflection. Segment revenues were $58.0 million, up from $38.6 million a year earlier, and segment income swung to $17.5 million from a $1.3 million loss. The improvement was primarily due to high-margin structured financing and carried-interest activity. B. Riley Wealth had about $12.1 billion of client assets under management at June 30, 2026.
Capital Markets segment revenues were $53.7 million, with segment income of $13.1 million. Chairman and Co-Chief Executive Officer Bryant Riley said B. Riley Securities participated in transactions representing over $21 billion in total deal value and helped clients raise $8.5 billion in combined equity and debt capital, including $3.5 billion in equity issuance, which the company described as its highest level in over four years, and nearly $5.0 billion in debt issuance. The firm added five senior producers, including three alumni.
The Communications Business Group, combining Lingo, magicJack, Marconi Wireless and UOL, posted revenues of $57.6 million and income of $14.0 million. CBG income improved primarily due to cost-reduction initiatives that more than offset a revenue decline driven by expected customer attrition. Consumer Products revenues were $43.5 million and the segment loss narrowed to $5.7 million.
Net debt was $285.2 million at June 30, 2026, down from $372.4 million at March 31, 2026. Total debt was $1.28 billion. The reduction was primarily due to investment appreciation. Cash, cash equivalents and restricted cash totaled $155.6 million. Total investments increased to $804.5 million, including $723.7 million of securities and other investments owned.
The company updated its Operating Adjusted EBITDA calculation to exclude income and loss related to its equity investment in Great American Holdings, LLC, as well as the non-controlling interest associated with investment gains and losses attributable to B. Riley Securities Holdings, Inc. and its subsidiaries, applied consistently across comparable periods.
Riley said the company looks forward to carrying momentum into its Consumer TMT Conference on September 10 and its annual Convergence Conference in December.