RILY News & Events

BRC Group Holdings (RILY) provided supplemental information regarding its indirect economic interest in Space Exploration Technologies (SPCX), following SpaceX's initial public offering on June 12. The company discussed this interest in its latest filing on Form 10-Q for the quarterly period ended March 31, 2026 filed on May 7, 2026 and its most recent quarterly earnings call on May 7, 2026. Between 2018 and 2021, the company's wealth management business facilitated client investments in SpaceX through subsidiaries of the company that hold carried interest in certain special purpose vehicles. During this period, clients invested approximately $233M into the SPVs. The company's subsidiaries' carried interest represents a share of the returns generated on a portion of these investments. Based on SpaceX's closing price of $160.95 per share on June 12, 2026: Gross carried interest: The gross aggregate value of the company's subsidiaries' carried interest in the SPVs was approximately $84.2 million; and Net carried interest: The company's expected net proceeds in respect of such carried interest, after deduction of estimated expenses, period adjustments, and accrued payouts, were approximately $70.4 million. The value of the company's carried interest will fluctuate based upon SpaceX's share price. Each $5.00 change in SpaceX's share price would result in an estimated $2.3 million change in net carried interest. All amounts remain subject to customary IPO lock-up restrictions, which expire in stages through the remainder of the calendar year.

Reports Q1 revenue $217.19M vs. $213.5M last year. "For Q1, we generated $211.3M in net income and $34.6M in Operating Adjusted EBITDA. We made progress on the balance sheet, retiring $129M in debt while continuing to deliver for our clients. B. Riley Securities had its most active quarter for capital raising in five years, executing on nearly $10B in total debt and equity raised...Our Q1 also reflects the significant value generated by our principal investments. While the timing of these returns naturally varies, this merchant banking capability is a deliberate feature of our model designed to capture significant upside alongside our clients...With a strengthened balance sheet, steady contributions of our non-correlated Communications and Consumer businesses, an expanding pipeline, and operational discipline, we remain focused on executing for our team, our clients, and our shareholders."

Welcome to this week's installment of "The Short Interest Report" - The Fly's weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week, excluding holidays. As a basis of comparison for stocks discussed below, the S&P 500 index was up 1.4%, the Nasdaq Composite was up 1.9%, the Russell 2000 index was up 0.9%, the Russell 2000 Growth ETFwas up 1.1% and the Russell 2000 Value ETFwas up 0.6% in the five-day trading session range through May 1.SHORT INTEREST GAINERSOrtex-reported short interest on Vital Farmshad troughed just above 20% in the last week of March as the stock price finally found a floor after six months of heavy selling. Bears are re-emerging however, rebuilding their positions into strength after a bid in the stock price this week. In a five-day period covered, short interest as a percentage of free float rose over 5 percentage points to 37.1%, while days to cover on the name was up from 5.0 to 5.5. Shares gained about 7% in the period and added another 4% with Friday's rally, though the stock remains down 55% year-to-date.Ortex-reported short interest on Under Armourcollapsed from multi-year high of 35% in mid-January to as low as 21% entering the final week of March, remaining near that trough through the final week of April. This week, however, bearish positioning is on the rise while the stock price consolidates its April gains. In the 5-day period covered, short interest as a percentage of free float rose from 21.6% to 24.4%, and while the stock was down 1.4%, Under Armour shares have now bounced 16% from April 2 lows. The company reports its Q4 results on May 12.Ortex-reported short interest on BRC Grouptroughed below 19% last week, the lowest level in two and a half years, before a spike in the stock price after better-than-expected Q4 results on Wednesday spurred an increase in bearish activity. Short interest as a percentage of free float jumped from 19.2% to 22.6% while days-to-cover rose from 5.8 to 6.9. Shares of BRC Group were up about 12% in the five-day period covered through Thursday and gained another 4.5% on Friday, with the year-to-date tally on the stock now at 92%.SHORT INTEREST DECLINERSAs previewed last week, following a build-up in bearish positioning in Avis Budgetin conjunction with the extreme run-up in the stock price since the last week of March, the unwind in bullishness has also produced significant profit-taking among bears. Pentwater Capital, which held an outsized position in the name, disclosed that it has sold 4.3M shares in a Form 4 filing on Tuesday, crystallizing the sharp selloff seen in the stock price this week. In the five-day period covered, Ortex-reported short interest on the stock also fell sharply, going from 92.7% to 64.8%, with days-to-cover on the name also down a significant margin from 4.2 to 2.3. Shares of Avis Budget were off by about 21% in the period through Thursday but remain higher by 45% year-to-date.Ortex reported short interest in Shift4 Paymentshad tracked in a sideways range of 33%-38% since the first week of March, though with the stock price seemingly halting its 8-month long decline, bears are also reducing their exposure. This week short interest as a percentage of free float declined from 36.4% to 31.4% - the lowest level since the second week of February. Days to Cover and Shift4 also slipped from 7.2 to 6.3 even as trading volume on the name has diminished. The stock was still down 4.3% in the five-day period covered through Thursday but rallied 2% on Friday and has now bounced about 14% from its April 9th lows. The company is set to report its Q1 results on May 7.

Reports Q4 net income $42.08M vs. $2.15M last year. "2025 successfully demonstrated our platform's durability - a testament to our team's perseverance and clients valuing our proprietary product," said Andy Moore, CEO, B. Riley Securities. "Following the strategic initiatives announced by BRC Group Holdings to integrate our affiliated banking, capital markets, and B. Riley Wealth platforms, our mandate is clear: we are officially on offense, and I am energized to guide our next chapter." "As traditional middle-market funding sources retreat, this proposed integration creates one of the few platforms uniting investment banking, broad distribution, and balance sheet capabilities - uniquely positioning us to step into the void to solve our clients' critical capital mandates and capture market share. We approach the current market from a fortified position, having executed over 200 transactions representing $42B in debt and equity raised for clients during 2025, while serving as one of the few banks to lead both a $180M IPO and $170M follow-on last year," said Joe Nardini, President and Head of Investment Banking, B. Riley Securities. "While 2026 brings renewed volatility and shifting financing timelines, our model has historically thrived in dislocation. Looking beyond near-term headwinds, our expanding cross-platform capabilities and an improving IPO market provide a constructive backdrop to drive anticipated second-half revenue diversification."