RILYZ · B. Riley Financial, Inc.

BRC Group Holdings, Inc. delivered a transformative Q1 2026 with net income of $211.3 million, reversing a $12.0 million loss from Q1 2025, primarily propelled by $134.9 million in Investment Gains compared to a $27.5 million loss last year. Total revenues surged 89% to $352.1 million, driven by Capital Markets segment revenues exploding to $172.1 million from $2.1 million, fueled by trading gains, advisory fees, and record capital raising activity including nearly $10 billion in debt and equity, a $230 million convertible, $1.3 billion follow-on, and $8.7 billion in ATMs. Operating Adjusted EBITDA turned positive at $34.6 million from a $5.6 million loss, reflecting core operational improvements excluding investment volatility. Wealth Management grew revenues 10% to $52.2 million with $16.0 million segment income, supported by $11.9 billion in client assets and carried interest appreciation. Communications segments showed resilience with combined $12.6 million income despite revenue decline from customer attrition, while Consumer Products narrowed losses through better distribution sales. Balance sheet strengthened significantly with total debt down $128.9 million to $1.30 billion and Net Debt halved to $372.4 million via investment appreciation and bond-for-equity exchanges; investments rose to $705.1 million, led by Babcock & Wilcox gains. Management highlighted B. Riley Securities' strongest quarter in five years, research expansion to 26 companies, and strategic merger of BRS with B. Riley Wealth to enhance client service and capital deployment. Chairman Bryant Riley emphasized the firm's 30-year focus on small- and mid-cap markets, principal investments, and recruiting, positioning for sustained execution amid an expanding pipeline. No forward guidance was provided, but optimism centers on non-correlated businesses, operational discipline, and the upcoming Institutional Investor Conference.