RILYZ · B. Riley Financial, Inc.

BRC Group Holdings, Inc. delivered a significant financial turnaround for the fourth quarter and full year 2025, driven by investment appreciation, strategic asset dispositions, and improved operating segment performance. Full year net income available to common shareholders was $299.4 million, or $9.80 per share, a substantial improvement from the net loss of $(772.3) million, or $(25.46) per share, reported in 2024. Total revenues for the year increased to $967.6 million from $746.4 million in the prior year, primarily attributed to investment appreciation. The Capital Markets segment was a key contributor, with full year segment income rising to $89.5 million from a loss of $(18.8) million in 2024, driven by higher trading gains and underwriting activities. The Communications Business Group also exceeded expectations, generating combined full year income of $47.4 million.

Operationally, the Company executed a comprehensive balance sheet transformation, reducing Total Debt by $346.6 million to $1.43 billion and Net Debt by $436.7 million to $627.0 million at December 31, 2025. This deleveraging was achieved through senior note exchanges, asset sales—including the sale of GlassRatner and Atlantic Coast Recycling—and investment appreciation. The Company also resolved significant operational distractions, successfully transitioning to a new CFO and independent auditor, and regaining compliance with Nasdaq’s Periodic Filing Rule in January 2026. Management expressed optimism for 2026, citing opportunities to expand client services, drive earnings, and further reduce debt.