Share count
31Mpeak FY2025
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RILYP, BRC Group Holdings Inc.
Capital Markets & Asset Management financial
Our core financial services platform provides small cap and middle market companies customized end-to-end solutions at every stage of the enterprise life cycle.
Riley Financial, Inc. effective January 1, 2026, is a diversified holding company offering a platform of businesses, including financial services (with complementary banking and wealth management businesses), telecom, retail, and investments in equity, debt and venture capital.
We refer to BRCGH as having a "platform" because of the unique composition of our financial services businesses and diversification of its operations.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
$789M
−20.0% YoY · 3% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $774M 5-yr avg $978M
Net margin 68.6% 5-yr avg −5.8%
Revenue $352M +89.2% vs yr-ago qtr
Operating margin 43.4% yr-ago −33.0%
Net income $222M yr-ago ($17M)
Net margin 63.1% yr-ago −8.9%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What moves the needle
- Assets under management and the fee rate on them. What decides it: net flows in or out, the market's move on the assets already there (the firm rises and falls with the indices it invests in), the drift toward cheaper passive products, and the operating leverage on a largely fixed cost base. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has been modest for a fee business (median 11%). It earns this on little capital, so return on equity has run near 10%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the assets stay (net flows, not last year's market) is what the flow disclosures and the 10-K settle, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
The record
Ten years of arithmetic, read across the cycle.
The record, 2016–2025
realized figures from each filing · older years to the left| 2016’16 | 2017’17 | 2018’18 | 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMMar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | |||||||||||
| $190M | $322M | $385M | $458M | $665M | $1.2B | $826M | $1.1B | $986M | $789M | $774M | RevenueRevenue |
| 25.6% | 9.0% | 11.8% | 36.3% | 41.5% | 43.6% | 3.6% | 8.6% | −50.5% | 9.6% | 37.5% | Operating marginOp. mgn |
| 11.3% | 3.6% | 4.2% | 17.8% | 30.8% | 37.7% | −19.4% | −9.0% | −77.5% | 39.0% | 68.6% | Net marginNet mgn |
| $22M | $12M | $16M | $82M | $205M | $445M | ($160M) | ($100M) | ($764M) | $307M | $531M | Net incomeNet inc. |
| 40% | 42% | 23% | 30% | 27% | 27% | — | — | — | -3% | 2% | Effective tax rateTax rate |
| Cash flow & returns | |||||||||||
| $80M | ($83M) | ($108M) | ($31M) | $56M | $50M | $3M | $17M | $256M | ($71M) | ($27M) | Owner earningsOwner earn. |
| 14% | 4% | 6% | 23% | 40% | 67% | -36% | -34% | — | — | 686% | Return on equityROE |
| 11% | −2% | −2% | 11% | 32% | 15% | −63% | −83% | — | — | 686% | Retained to equityRetained/eq |
| Balance sheet | |||||||||||
| $265M | $1.4B | $2.0B | $2.3B | $2.7B | $5.9B | $6.1B | $6.1B | $1.8B | $1.7B | $1.9B | Total assetsAssets |
| $112M | $133M | $179M | $104M | $104M | $279M | $269M | $223M | $147M | $227M | $176M | Cash & investmentsCash+inv |
| $149M | $266M | $258M | $361M | $513M | $661M | $447M | $291M | ($488M) | ($172M) | $77M | Shareholders’ equityEquity |
| Per share | |||||||||||
| 18.4M | 24.3M | 26.8M | 27.5M | 26.5M | 29.0M | 28.2M | 29.3M | 30.3M | 30.6M | 32.2M | Shares out (diluted)Shares |
| $10.35 | $13.26 | $14.37 | $16.65 | $25.10 | $40.66 | $29.29 | $37.96 | $32.50 | $25.82 | $24.06 | Revenue / shareRev/sh |
| $1.17 | $0.48 | $0.61 | $2.96 | $7.74 | $15.34 | $-5.67 | $-3.41 | $-25.19 | $10.06 | $16.50 | EPS (diluted)EPS |
| $4.33 | $-3.40 | $-4.02 | $-1.11 | $2.10 | $1.73 | $0.10 | $0.57 | $8.43 | $-2.32 | $-0.85 | Owner earnings / shareOE/sh |
| $0.29 | $0.69 | $0.85 | $1.49 | $1.46 | $11.97 | $4.24 | $4.82 | $1.11 | $0.00 | $0.00 | Dividends / shareDiv/sh |
| $8.12 | $10.95 | $9.64 | $13.10 | $19.34 | $22.80 | $15.84 | $9.95 | $-16.09 | $-5.61 | $2.40 | Book value / shareBVPS |
Per-share growththe realized rate an owner's share compounded
| 9-yr | 5-yr | |
|---|---|---|
| Revenue / share | +10.7%/yr | +0.6%/yr |
| EPS | +27.0%/yr | +5.4%/yr |
| Capital spending / share | +28.2%/yr | +36.9%/yr |
The record, charted
FY2016–2025Each measure over its full record; the current point and the worst year marked.
Revenue
$789Mlow FY2016
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 10-K/A · source on SEC EDGAR →
Material weakness in financial controls
“Controls and Procedures of this Annual Report, we have identified material weaknesses in our internal control over financial reporting.”
The figures below are only as sound as the controls that produced them. read the note →
Is it a good business?
- Operating margin 9.6%Modest fee marginOperating income $76M ÷ revenue $789MIndustry peers: median 33%
In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.
What this means
The heart of a asset manager: how much of each fee dollar survives the cost of running the business. Fees ride on assets under management, so the swing factors are net flows in or out and the market's move on the assets already there; the cost base is largely fixed, which lifts margins in a bull market and squeezes them in a bear one. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 39.0%WideNet income $307M ÷ revenue $789M
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Not enough dataIndustry peers: median 39%
What this means
Equity is zero or negative (often from buybacks), so the ratio would mislead.
Does AI threaten the moat?
Moderate contestabilityAI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.
In its own filing Named as a competitive risk
Its FY2025 10-K names artificial intelligence as a competitive threat.
“In addition, our competitors may be larger, more diversified, better funded, and have access to more advanced technology, including artificial intelligence ("AI").”
The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Mar 31, 2017Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$141M
- Cash & short-term investments$176M
- Receivables$67M
- Inventory$46M
Current liabilities$63M
- Debt due within a year$1M
- Accounts payable$38M
- Other current liabilities$24M
Current ratio2.24×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.52×stricter: inventory excluded
Cash ratio2.81×strictest: cash alone against what's due
Working capital$78Mthe cushion left after near-term bills
Debt due this year vs. cash$1M due · $176M cash
covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2017 balance sheet
Cash runway6.4 yrsthe business is consuming cash; this is how long the cash on hand lasts at that rate
Revenue, latest quarter vs. a year ago+89.2%the freshest read on whether the business is still growing
Deeper floors
Tangible book value($427M)equity stripped of goodwill & intangibles
Net current asset value($1.6B)Graham's net-net: current assets less all liabilities
Debt incl. operating leases$1.5B$69M of it operating leases
Deferred revenue$68Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Acquisitions & goodwill
from the balance sheet & the 10-year cash-flow recordGoodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.
Goodwill & intangibles$511M30% of all assets; the premium carried on the balance sheet for businesses acquired
Against book equity—goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital
Cash spent acquiring$493Mover 10 years buying other businesses, against $44M of capital spent building
$139M written down across 3 years (2023, 2024, 2025): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 28% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.
Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.
| Fiscal year | Chief executive | Pay, as filed | “Actually paid” | Owner earnings |
|---|---|---|---|---|
| 2023 | Bryant R. Riley and Thomas J. Kelleher | $5.6M | $4.9M | $17M |
| 2023 | Bryant R. Riley and Thomas J. Kelleher | $5.6M | $4.9M | $17M |
| 2024 | Bryant R. Riley and Thomas J. Kelleher | $2.2M | $499k | $256M |
| 2024 | Bryant R. Riley and Thomas J. Kelleher | $2.2M | $499k | $256M |
| 2025 | Bryant R. Riley and Thomas J. Kelleher | $16.1M | $16.1M | ($71M) |
| 2025 | Bryant R. Riley and Thomas J. Kelleher | $3.3M | $3.3M | ($71M) |
Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.
- Insider ownership27.8%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$14M
The slice of the business handed to employees in shares this year, 2% of revenue, equal to 18% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
Peers, Capital Markets & Asset Management
The same industry, side by side on fee margins. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Op. margin | Net margin | ROE |
|---|---|---|---|---|
| VCTRVictory Capital Holdings | $1.3B | 38.3% | 25.6% | 19% |
| APAMArtisan Partners | $1.2B | 35.1% | 21.8% | 74% |
| VRTSVirtus Investment Partners Inc. | $853M | 20.3% | 14.4% | 14% |
| RILYPBRC Group Holdings Inc. | $789M | 10.7% | 7.8% | 10% |
| HLNEHamilton Lane | $759M | 33.2% | 23.8% | 29% |
| AAMIAcadian Asset Management Inc. | $564M | 24.8% | 16.8% | 102% |
| GCMGGCM Grosvenor Inc. | $558M | 18.9% | 3.3% | 168% |
| CNSCohen & Steers | $556M | 38.3% | 28.4% | 39% |
| Group median | — | 29.0% | 19.3% | 34% |
The price
What a price has to assume.
What the price implies
reverse-DCFType today's close and see the owner-earnings growth you'd have to believe to justify it, beside what BRC Group Holdings Inc. has delivered.
BRC Group Holdings Inc.’s latest year shows negative owner earnings, below the record’s own through-cycle owner earnings. So the tool opens on the through-cycle base, the cash it would earn at rest; clear the toggle below to read the latest year exactly as reported.
$
Through the cycle, BRC Group Holdings Inc. earns about $7M on its 0.9% median owner-earnings margin. This year’s −9.0% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · ’21→’25+37%/yr
Owner-earnings growth, delivered—
Owner-earnings growth, delivered—
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Owner earnings ($27M) on 37M shares outstanding, per the 10-Q cover, as of 2026-05-05; net debt $1.4B. The base opens on the through-cycle figure (the latest year sits off the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "BRC Group Holdings Inc. (RILYP), the owner's record," https://ownerscorecard.com/c/RILYP, data as of 2026-07-09.
Manual order: ← RILYN its page in the Manual RILYT →
Industry order: ← RILYN the Capital Markets & Asset Management chapter RILYT →