Net income collapsed to $20.5M in 2026Q2 from a $213.3M spike in 2026Q1, with a persistently negative net interest margin of -0.7% and provisions of $58.7M consuming a large share of operating income.
BRC Group Holdings, Inc. (RILY) annual income statement — 19-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Net Interest Income | -47.22M | -89.03M | -129.69M | -152.37M | -138.27M | -92.23M | -64.69M | -48.63M | -32.07M | -7.96M | -1.68M | -817K | -1.25M | -2.64M | -2.41M | -4.41M | -3.15M | -11.24M | -3.9M | 0 |
| NII Growth % | 197.75% | 31.35% | 14.88% | -10.2% | -49.92% | -42.58% | -33.02% | -51.64% | -302.75% | -374.49% | -105.39% | 34.64% | 52.67% | -9.54% | 45.32% | -40.19% | 72.02% | -187.86% | - | - |
| Net Interest Margin % | -3.01% | -5.22% | -7.27% | -2.51% | -2.26% | -1.58% | -2.43% | -2.1% | -1.64% | -0.57% | -0.63% | -0.62% | -0.9% | -3.58% | -2.99% | -5.77% | -4.35% | -14.29% | -6.99% | 0% |
| Interest Income | 10.88M | 3.71M | 3.62M | 3.88M | 2.73M | 229K | 564K | 1.58M | 1.33M | 420K | 318K | 17K | 12K | 26K | 201K | 476K | 522K | 32K | 158K | 0 |
| Interest Expense | 58.96M | 92.74M | 133.31M | 156.24M | 141M | 92.45M | 65.25M | 50.2M | 33.39M | 8.38M | 2M | 834K | 1.26M | 2.67M | 2.61M | 4.88M | 3.67M | 11.27M | 4.06M | 0 |
| Loan Loss Provision | 185.35M | 268.19M | 314.36M | 376.1M | 104.78M | 41.52M | 50.11M | 48.34M | 25.2M | 44.69M | 53.62M | 31.29M | 36.28M | 32.98M | 34.05M | 18.25M | 18.42M | 18.89M | 21.27M | 0 |
| Non-Interest Income | 1.03B | 1.03B | 1.16B | 1.44B | 991.08M | 1.55B | 833.65M | 650.53M | 421.67M | 321.76M | 190.03M | 112.51M | 77.1M | 76.11M | 83.73M | 63.05M | 41.62M | 83.39M | 53.01M | 0 |
| Non-Interest Income % | 104.82% | 109.49% | 112.58% | 111.82% | 116.21% | 106.31% | 108.41% | 108.08% | 108.23% | 102.54% | 100.89% | 100.73% | 101.65% | 103.59% | 102.96% | 107.52% | 108.17% | 115.58% | 107.95% | - |
| Total Net Revenue | 979.57M | 938.03M | 1.03B | 1.29B | 852.81M | 1.46B | 768.97M | 601.91M | 389.6M | 313.79M | 188.35M | 111.69M | 75.85M | 73.47M | 81.32M | 58.64M | 38.48M | 72.15M | 49.11M | 0 |
| Revenue Growth % | 10.37% | -9% | -20.05% | 51.18% | -41.68% | 90.16% | 27.76% | 54.49% | 24.16% | 66.6% | 68.64% | 47.24% | 3.25% | -9.66% | 38.68% | 52.4% | -46.67% | 46.92% | - | - |
| Non-Interest Expense | 521.06M | 519.15M | 1.19B | 817.16M | 718.17M | 906.2M | 442.59M | 386.92M | 319.01M | 240.26M | 86.01M | 58.32M | 47M | 36.38M | 39.83M | 32.95M | 31.41M | 35.74M | 21.7M | 396.81K |
| Efficiency Ratio | 53.19% | 55.35% | 115.66% | 63.38% | 84.21% | 61.97% | 57.56% | 64.28% | 81.88% | 76.57% | 45.67% | 52.22% | 61.96% | 49.52% | 48.98% | 56.18% | 81.64% | 49.54% | 44.18% | - |
| Operating Income | 272.29M | 150.69M | -475.74M | 96.05M | 29.86M | 514.53M | 276.26M | 166.65M | 45.38M | 28.84M | 48.73M | 22.08M | -7.43M | 4.1M | 7.44M | 7.44M | -11.36M | 17.52M | 6.14M | -396.81K |
| Operating Margin % | 27.8% | 16.06% | -46.15% | 7.45% | 3.5% | 35.19% | 35.93% | 27.69% | 11.65% | 9.19% | 25.87% | 19.77% | -9.8% | 5.58% | 9.15% | 12.69% | -29.52% | 24.28% | 12.51% | - |
| Operating Income Growth % | - | 131.67% | -595.3% | 221.65% | -94.2% | 86.25% | 65.77% | 267.2% | 57.34% | -40.8% | 120.65% | 397.16% | -281.33% | -44.93% | 0.01% | 165.5% | -164.84% | 185.22% | 1647.86% | - |
| Pretax Income | 76.48M | 229.56M | -878.73M | -199.28M | -334.34M | 614.76M | 279.46M | 116.59M | 21.3M | 20.45M | 47.05M | 21.27M | -8.68M | 1.28M | 6.28M | 2.66M | -16.14M | 5.43M | 2.33M | -6.62M |
| Pretax Margin % | 7.81% | 24.47% | -85.25% | -15.46% | -39.2% | 42.04% | 36.34% | 19.37% | 5.47% | 6.52% | 24.98% | 19.04% | -11.44% | 1.74% | 7.72% | 4.54% | -41.96% | 7.53% | 4.75% | - |
| Income Tax | 35.81M | -9.88M | 22.13M | -39.12M | -65.25M | 163.96M | 75.44M | 34.64M | 4.9M | 8.51M | 14.32M | 7.69M | -2.89M | 704K | 1.94M | 2.06M | -5.11M | -11.66M | 0 | 2.91M |
| Effective Tax Rate % | 46.82% | -4.31% | -2.52% | 19.63% | 19.52% | 26.67% | 27% | 29.71% | 23.02% | 41.62% | 30.44% | 36.15% | 33.25% | 55% | 30.85% | 77.39% | 31.63% | -214.65% | 0% | -43.9% |
| Net Income | 79.66M | 307.42M | -764.27M | -99.91M | -159.83M | 445.05M | 205.15M | 81.61M | 15.51M | 11.56M | 21.53M | 11.8M | -5.8M | 1.06M | 3.52M | 602K | -11.04M | 16.96M | 263K | 3.71M |
| Net Margin % | 8.13% | 32.77% | -74.14% | -7.75% | -18.74% | 30.44% | 26.68% | 13.56% | 3.98% | 3.68% | 11.43% | 10.57% | -7.65% | 1.44% | 4.33% | 1.03% | -28.69% | 23.5% | 0.54% | - |
| Net Income Growth % | -64.36% | 140.22% | -664.96% | 37.49% | -135.91% | 116.94% | 151.37% | 426.22% | 34.21% | -46.32% | 82.35% | 303.5% | -648.3% | -69.95% | 484.88% | 105.45% | -165.1% | 6347.15% | -92.91% | - |
| Net Income (Continuing) | 334.06M | 239.44M | -900.85M | -160.16M | -269.08M | 450.8M | 204.02M | 81.95M | 16.4M | 11.94M | 32.73M | 13.58M | -5.79M | 576K | 4.34M | 602K | -11.04M | 17.1M | 2.33M | 3.71M |
| EPS (Diluted) | - | 9.80 | -25.46 | -3.69 | -5.95 | 15.09 | 7.56 | 2.96 | 0.58 | 0.48 | 1.17 | 0.73 | -0.60 | 0.71 | 2.38 | 0.41 | -7.86 | 12.15 | 0.17 | 3.18 |
| EPS Growth % | 50.17% | 138.49% | -589.97% | 37.98% | -139.43% | 99.6% | 155.41% | 410.34% | 20.83% | -58.97% | 60.27% | 221.67% | -184.51% | -70.17% | 480.49% | 105.22% | -164.69% | 7047.06% | -94.65% | - |
| EPS (Basic) | - | 9.80 | -25.46 | -3.69 | -5.95 | 15.99 | 7.83 | 3.09 | 0.60 | 0.50 | 1.19 | 0.73 | -0.60 | 0.74 | 2.46 | 0.42 | -7.86 | 19.07 | 0.17 | 3.18 |
| Diluted Shares Outstanding | 0 | 30.56M | 30.34M | 29.27M | 28.19M | 29.01M | 26.51M | 27.53M | 26.77M | 24.29M | 18.39M | 16.27M | 9.61M | 1.5M | 1.48M | 1.47M | 1.4M | 1.4M | 1.57M | 1.17M |
Quick answers to the most common questions about buying RILY stock.
For fiscal year 2025, BRC Group Holdings, Inc. (RILY) reported total revenue of $938.0M.
BRC Group Holdings, Inc. (RILY) is profitable, generating $307.4M in net income for the fiscal year ending 2025 with a net profit margin of 32.8%.
BRC Group Holdings, Inc. (RILY) reported an operating income of $150.7M, resulting in an operating profit margin of 16.1%. This margin reflects the operational efficiency of the business before interest and taxes.
BRC Group Holdings, Inc. (RILY) generated $669.8M in gross profit for the year, representing a gross profit margin of 71.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Non-interest income dependence and volatile earnings
Metrics are mathematically derived from official filings.
Negative Net Interest Income Persists
Based on the reported figures, RILY's net interest income remained negative at -$13.9M in 2026Q2, improving from -$35.0M in 2024Q1 but still signaling a structural funding or lending spread deficit relative to total operations.
The reported NII has been negative across all ten quarters, suggesting interest expense has consistently exceeded interest income rather than reflecting a conventional lending franchise. The narrowing deficit since 2024 may indicate improving funding costs or a shrinking interest-bearing liability base, though the data does not isolate which driver dominates. Investors should monitor whether this trend reflects deliberate balance sheet repositioning or a persistent structural feature of the business model.
Net Interest Margin Remains Negative
As reported in the income statement, RILY's net interest margin stood at -0.7% in 2026Q2 versus -1.7% in 2024Q4, pointing to a sustained negative spread that is not characteristic of a deposit-funded bank.
A negative NIM across the full window suggests the company's earnings are not driven by traditional spread income, which complicates comparison with depository peers. The gradual improvement from -1.7% toward -0.7% may reflect a narrowing of funding costs or changes in asset mix, but the data alone cannot confirm the cause. This warrants further investigation into the composition of interest-earning assets and liabilities before drawing conclusions about core earnings power.
Fee-Dominated Revenue Concentration
Based on RILY's reported figures, non-interest income represented 98.3% of total revenue in 2026Q2 and 99.3% in 2026Q1, indicating the company's revenue base is almost entirely fee-driven rather than interest-driven.
Such extreme fee concentration implies earnings quality is tied to transaction volumes, asset realizations, or investment-related gains, which can be highly volatile across quarters. The sharp swing in 2026Q1 non-interest income to $447.3M followed by $242.8M in 2026Q2 illustrates this sensitivity. Investors should assess how recurring versus episodic these fee streams are, since the data does not decompose their sources.
Provision Expense Remains Elevated
Per the reported income statement, RILY recorded provision expense of $58.7M in 2026Q2 and $60.2M in 2026Q1, levels that remain material relative to quarterly operating income of $57.7M in 2026Q2.
Provisions consuming a large share of quarterly operating income suggest credit or valuation-related reserve needs remain significant, though the data does not specify whether these relate to loans or other asset classes. The provision trajectory from $98.2M in 2024Q1 to current levels indicates some moderation but no clear resolution. Investors should monitor reserve adequacy and the drivers of these charges, as the figures alone cannot distinguish cyclical from structural pressure.
2026Q1 Earnings Spike Distorts Trend
Based on reported figures, RILY's operating income surged to $253.6M and net income to $213.3M in 2026Q1, a level that sharply contrasts with the near-breakeven and loss-making quarters preceding it and the $20.5M net income in 2026Q2.
The 2026Q1 spike is far outside the company's recent range and, given fee income dominance, likely reflects a large non-recurring or mark-to-market gain rather than sustainable run-rate earnings. Its subsequent reversal in 2026Q2 suggests the headline earnings trajectory is highly unrepresentative of underlying profitability. Analysts should normalize earnings before using any single quarter as a valuation anchor.
Earnings Quality Undermined by Volatility
Based on reported figures, RILY's EPS swung from -$14.35 in 2024Q2 to $6.98 in 2026Q1 and $0.67 in 2026Q2, a pattern that challenges any argument that current earnings reflect durable profitability.
The extreme dispersion in per-share results, combined with negative NII and near-total fee reliance, suggests the reported profitability may be heavily influenced by irregular items rather than recurring operations. Peer context shows traditional advisory-oriented firms such as HLI and MC maintain consistent operating margins, which highlights how atypical RILY's earnings profile appears. Investors should treat reported profitability with caution until the drivers of volatility are clearly identified.