BRC Group Holdings, Inc. Announces Strong Preliminary Financial Results for 2025

BRC Group Holdings, Inc., formerly known as B. Riley Financial, Inc., has released its unaudited preliminary financial estimates for the fourth quarter and full year ended December 31, 2025, showing a significant turnaround from the previous year. These results reflect the company’s improved financial performance across multiple business segments and demonstrate progress toward profitability and balance sheet strength.

Overview of Preliminary Financial Estimates

The company’s preliminary estimates for the fourth quarter of 2025 indicate that net income available to common shareholders is expected to be between $60.0 million and $65.4 million, a notable increase compared to the fourth quarter of 2024. In addition, adjusted EBITDA for the quarter is projected to be in the range of $98.9 million to $109.4 million, representing a clear improvement in operating profitability.

For the full year 2025, BRC Group anticipates preliminary net income ranging from $274.5 million to $279.9 million, a dramatic swing from the previous year’s loss. Full-year revenues are projected to be between $960.2 million and $971.7 million, reflecting growth in core business activities. Adjusted EBITDA for the full year is expected to range from $225.8 million to $236.3 million.

Fourth Quarter 2025 Financial Highlights

Revenue and Earnings Performance

Preliminary estimates show that fourth quarter 2025 revenues are expected to be between $271.0 million and $282.5 million, up significantly from the same period last year. The increase in revenue reflects improved performance from the company’s diversified operating segments including Capital Markets, Wealth Management, and Communications.

The company also estimates strong earnings per share (EPS) for the quarter, with basic and diluted EPS expected to range from , a substantial increase over the $0.03 EPS reported in the fourth quarter of 2024.

Balance Sheet and Debt Position

BRC Group’s preliminary results suggest that Net Debt is expected to be reduced significantly by year-end 2025, with estimates in the range of . This is a sizeable decrease from the peak net debt levels reported earlier and demonstrates the company’s focus on strengthening its balance sheet through operational improvements, asset sales, and strategic debt management.

Total debt is estimated to be approximately at year-end 2025, while the company continues to hold substantial investments and cash reserves. Cash, cash equivalents, and restricted cash are projected to be approximately $229 million, slightly down from the previous year’s balance.

Full Year 2025 Preliminary Results

Profitability Turnaround

The full year 2025 preliminary estimates highlight a significant turnaround for BRC Group. Net income available to common shareholders is expected to be between $274.5 million and $279.9 million, a stark contrast to the company’s net loss of $(772.3) million in 2024. This shift reflects a combination of increased revenues, strengthened operational performance, and reduced losses across key business units.

Adjusted EBITDA for the full year 2025 is likewise projected to be strongly positive, in the range of $225.8 million to $236.3 million, compared to a substantial adjusted EBITDA loss in the prior year. Operating adjusted EBITDA is also expected to show improvement, further emphasizing the company’s operational recovery.

Investment Growth and Earnings Per Share

BRC Group anticipates that total revenues for the full year will approach $971.7 million, driven by revenue growth across its diversified segments. Additionally, basic and diluted earnings per common share are estimated to be in a range that reflects meaningful improvement compared to 2024 results. These figures point to improved profitability on both a net income and per-share basis.

Strategic Initiatives and Nasdaq Compliance

As part of its broader strategic transformation, the company has also made progress in regulatory compliance. On January 27, 2026, BRC Group received a letter from Nasdaq confirming that it has regained compliance with the Periodic Filing Rule after filing three required Form 10-Q reports between November 2025 and January 2026. This milestone helps stabilize investor confidence and supports ongoing corporate governance efforts.

Leadership at BRC Group has noted that the company’s performance reflects the execution of complex strategies designed to reposition its balance sheet and operations. The organization plans to continue its focus on enhancing operating performance, reducing costs, and optimizing its platform for long-term growth. Final audited annual results for 2025 are expected to be released in March 2026.

Comments from Company Leadership

Bryant Riley, Chairman and Co-Chief Executive Officer of BRC Group Holdings, emphasized that the preliminary results “demonstrate the broad economic contribution produced by our diverse platform of operating companies and investment holdings.” According to Riley, the success in 2025 came from executing strategic initiatives that strengthened the company’s financial foundation and positioned it for future growth.

He also noted that the groundwork laid during the year should help BRC Group lower operating costs and enhance shareholder value in 2026 and beyond, further supporting the company’s pursuit of stable performance and sustainable results.

Market Context and Investor Reaction

The positive preliminary estimates have resonated with investors and market participants. BRC Group’s stock price has reflected sentiment around the improved financial performance and regulatory compliance, contributing to its market visibility. Analysts view the reported turnaround as an important step in the company’s long-term strategic evolution.

Despite facing challenges earlier in the year, including late filings and regulatory notices, the company’s ability to return to profitability and strengthen its financial position signals confidence among stakeholders and investors. Continued monitoring of the audited full-year results will be crucial for confirming the durability of the turnaround.

Conclusion: A Year of Transformation for BRC Group

The preliminary financial estimates released by BRC Group Holdings, Inc. for the fourth quarter and full year 2025 paint a picture of a company transitioning from significant losses to sustained profitability and growth. With improved revenues, reduced net debt, positive adjusted EBITDA, stronger regulatory compliance, and forward-looking leadership strategies, BRC Group appears well-positioned for future success. Final audited results expected in March will provide additional clarity on the company’s full financial performance for 2025.

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