Why BRC Group Stock Popped Today
Key Points
The company formerly known as B. Riley just reported an earnings beat.
Deeply unprofitable a year ago, now BRC Group is profitable.
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BRC Group (NASDAQ: RILY) stock soared 38.7% through 1:40 p.m. ET Thursday after reporting an exceptional quarter. (As the ticker suggests, "BRC Group" is the new name for the investment bank formerly known as "B. Riley Financial."
In its fiscal Q3 2025, BRC earned $2.91 per share, flipping positive after losing $9.39 per share in last year's Q3. Revenues for the quarter surged 58% to $277.9 million.
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BRC Group earnings
Co-CEO Bryant Riley said "B. Riley Securities had a very strong quarter across investment banking, advisory, and research and trading." Actually, though, only one of the company's four big business segments showed growth.
Capital markets revenue flipped from negative $24.7 million to $116.2 million. The 's Wealth Management, Communications, and Consumer Products divisions, on the other hand, all experienced revenue declines. So really, this is a story about the turnaround in capital markets.
Riley noted BRC assisted on "equity and debt capital raises totaling approximately $10.5 billion" in the quarter. Company CFO Scott Yessner noted that BRC is also now back in compliance with Nasdaq listing requirements, having completed and filed its three missing 10-Q forms "in 120 days."
Oh, and thanks to the Q3 numbers, BRC's now on course to report its first full-year profit in four years.
Is BRC stock a buy?
Does all this make the new and improved "BRC Group" a buy? With the financial data so new, that's hard to say -- but initial indications look good.
Even with today's surge in stock price, BRC's market capitalization is only $318 million. With trailing-12-month earnings now above $223 million, that gives the stock a P/E ratio of... just 1.4! If BRC can just keep earning like it has been, the stock looks ridiculously cheap.
Should you buy stock in Brc Group right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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