BRC Group Holdings, Inc. (RILY) Stock

BRC Group Holdings, Inc. (RILY) is a Financials stock trading at $7.10 (as of 2026-09-03), with a market capitalization of $285.42M and a trailing P/E of 0.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

B. Riley Financial, Inc. and its subsidiaries provide investment banking and related financial services to corporate, institutional, and high-net-worth clients across North America, Australia, and Europe. Its activities span capital markets, wealth management, auction and liquidation, financial consulting, principal investments in communications, and brand-related services.

Understand BRC Group Holdings, Inc.: how it makes money

B. Riley Financial is a mid-cap investment bank and financial services firm earning fees from M&A advisory, institutional brokerage, and wealth management for corporate and high-net-worth clients. Capital Markets (deals and trading) drives roughly 85% of revenue, with a smaller consumer brands portfolio rounding out the mix.

The model is pure fee-and-commission (no product cost, hence ~87% gross margin), so every dollar of profit traces back to deal flow and trading volumes generated in Capital Markets.

Business quality (Strong): Fee-based structure with 205% ROE and 87% gross margin signals a high-leverage, low-overhead-capital model, but 16% operating margin reveals the sales-force and compliance cost drag that caps profit per dollar of revenue.

Valuation: At 1× earnings, RILY trades 98% below the Trading average (36×). Note: the low multiple may reflect one-time earnings items.

Bull case

Trades at a 98% discount to peers: The stock prints a 0.7x P/E versus a 36x Trading-sector average, meaning the market is pricing in severe earnings deterioration. If deal flow normalizes even modestly, the multiple can re-rate sharply toward peer levels.
$10B client financing engine: Capital raised for clients (equity and debt) reached $10 billion, the direct upstream indicator of future fee recognition in M&A and capital markets mandates. A pipeline this large supports several more quarters of revenue even if new wins slow.

Bear case

One segment controls the P&L: Capital Markets segment revenue of $170M represents 85% of total revenue. In a deal drought, nearly the entire income statement contracts simultaneously, leaving the consumer brands (under $50M combined) too small to offset.
Overhead eats the fee premium: Gross margin runs at 87% but operating margin is only 16%, meaning more than 70 cents of every revenue dollar goes to people, compliance, and infrastructure before shareholders see a dime. Any revenue dip flows disproportionately to the bottom line.

Valuation — source: SEC EDGAR (first-party)
Price	$7.10
Market Cap	$285.42M
P/E Ratio	0.7
EV / EBITDA	0.4
Price / Book	1.42
Price / Sales	0.25

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$967.60M
Net Margin	31.8%
Revenue Growth (YoY)	6.1%
EPS Growth (YoY)	-89.1%

Valuation vs Sector & Industry
Stock P/E	0.7
Sector P/E (Financials)	15.2
Industry P/E (Trading)	35.0
vs Sector	-95.4%
vs Industry	-98.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	DBA TRADING, LLC ($23.63M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Trading
CEO	Bryant Richard Riley
Employees	2,383
Country	US
IPO Date	2007-08-13

Related Companies (Trading; 8 comparable financial firms)

Data as of 2026-09-03.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.