B Riley Financial (RILY) investor relations material

Audit and financial reporting status

• 2024 annual audit is in late stages, with 10-K filings expected shortly; 1Q and 2Q 10-Qs are documented and ready for auditor review after 10-K submission.

• Audit delays were caused by complex divestitures, transition service agreements, and auditor transition, leading to significant documentation requirements.

• A national accounting advisory firm was hired to augment staff and support technical accounting and internal controls, aiming to normalize future filings.

• Third quarter filings are expected to return to a normal schedule.

Strategic realignment and business operations

• Focus has shifted to financial services and capital markets, supported by strong cash flows from telecom and consumer products.

• The carve-out of B. Riley Securities (BRS) in March 2025 exceeded expectations, with BRS showing operational autonomy, capital strength, and new talent additions.

• Sale of GA Group to Oaktree funds provided strategic benefits, cash for debt reduction, and access to larger liquidation deals.

• Divestitures included GlassRatner, Atlantic Coast Recycling, and W2 Wealth Management, generating significant cash proceeds.

Financial performance and capital structure

• Net debt reduced to $839M as of June 30, 2025, through investment and asset sales, amended credit facility, and bond exchanges.

• Cash balance at June 30, 2025, exceeds $260M, with additional operational flexibility from amended Oaktree facility.

• Five bond exchanges since March 2025 reduced outstanding debt by $126M; February 2025 senior notes fully redeemed.

• Estimated first half 2025 net income available to common shareholders is $125M–$145M, driven by gains on asset sales and bond retirements.

• Investment portfolio estimated at $320M–$355M, down due to debt paydowns and investment sales.