BRC Group Holdings (RILY) investor relations material

Executive summary

• Net income available to common shareholders for Q2 2026 was $18.5 million, with year-to-date net income up 83% to $229.8 million; operating adjusted EBITDA for Q2 was $66 million, marking the best core operating quarter in nearly three years.

• Revenues for Q2 2026 increased to $239.1 million, with year-to-date revenues up 44% to $591.2 million, driven by strong trading gains, higher service and fees revenue, and realized/unrealized investment gains.

• Net debt reduced by $341.7 million to $285.2 million as of June 30, 2026, reflecting investment appreciation and debt reduction efforts.

• Added five senior producers and reactivated several key institutional accounts, strengthening client relationships and franchise.

• Participated in transactions totaling $21 billion in aggregate deal value, with $8.5 billion in equity and debt issuances and $12 billion in new ATM filings.

Financial highlights

• Q2 2026 revenues were $239.1 million (up 6.1% YoY); year-to-date revenues $591.2 million (up 44% YoY); service and fee revenue rose, driven by investment banking, brokerage, and carried interest management fees.

• Trading gains for Q2 2026 were $12.9 million, down from $27.7 million in Q2 2025; six months trading gains were $157.9 million (up from $11.5 million in 2025).

• Adjusted EBITDA for Q2 2026 was $61.3 million; year-to-date Adjusted EBITDA surged to $323.4 million from $14.7 million in the prior year.

• Total operating expenses declined $13.6 million in Q2 and $62 million in the first half, mainly from lower SG&A and cost of goods sold.

• Cash, cash equivalents, and restricted cash totaled $155.6 million at quarter-end.

Outlook and guidance

• Management expects continued strong performance, citing a substantial pipeline of actionable opportunities, improved market positioning, and sufficient liquidity to meet obligations over the next 12 months.

• Capital markets backlog and opportunities are stronger than a year ago, with optimism for higher quarter-over-quarter results if market conditions remain steady.

• Communications business group expected to finish 2026 ahead of budget, driven by operational efficiencies.

• Capital expenditures for the next 12 months are projected at $6.3 million.