Why Did RILY Shares Surge in Premarket? Firm Avoids Nasdaq Delisting

B. Riley Financial, Inc. (NASDAQ:RILY) shares are experiencing a dramatic surge in premarket trading on Tuesday, December 16, 2025, following the company’s successful filing of its long-delayed second-quarter financial report. The stock jumped over 28% to $4.79 in premarket trading as of 7:17 AM EST, building on Monday’s 16% after-hours rally. The filing arrived ahead of Nasdaq’s critical December 23 deadline, effectively removing the immediate threat of delisting that has loomed over the troubled financial services firm for months.

This development marks a significant turning point for B. Riley, which has been grappling with severe challenges stemming from failed investments, debt restructuring, and regulatory scrutiny following the bankruptcy of Franchise Group, one of its major portfolio companies.

Late Q2 Filing Reveals Sharp Return to Profitability

The delayed Q2 report revealed a remarkable turnaround for B. Riley Financial, with the company posting net income of $137.5 million for the quarter ended June 30, 2025, compared to a staggering net loss of $435.6 million in the same period of 2024. Income from continuing operations reached $71.7 million, reversing a loss of $449.2 million from the prior year.

Revenue advanced significantly to $225.3 million from $94.9 million in Q2 2024, driven partly by a negative $175.6 million loss on fair value adjustments on loans in the comparable period.

The company’s earnings were substantially boosted by large one-time items, including a $66.8 million gain tied to the sale of GlassRatner and $44.5 million from senior note exchanges. Operating adjusted EBITDA from continuing operations improved to $38.5 million from $31.2 million in the year-ago quarter.

The company reported non-GAAP earnings per share of $4.50, demonstrating strong operational performance despite the challenging circumstances surrounding the delayed filing.

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Timely Filing Removes Immediate Nasdaq Delisting Threat

B. Riley’s successful filing of the Q2 report before the December 23 deadline represents a critical step in maintaining its Nasdaq listing and restoring investor confidence. Chairman and Co-CEO Bryant Riley stated that while the Q3 report remains outstanding, the company is “well positioned to file” it by Nasdaq’s January 20, 2026 deadline, which would bring financial reporting fully current.

Nasdaq had previously granted the company extensions after a panel hearing, citing B. Riley’s demonstrated efforts to address reporting delinquencies and the appointment of a new chief financial officer whose compensation is partially tied to timely reporting.

The company has been navigating a prolonged period of uncertainty following the collapse of Franchise Group, which filed for bankruptcy in late 2024, leaving B. Riley with hundreds of millions of dollars in write-offs. Adding to the challenges, former Franchise Group CEO Brian Kahn recently pleaded guilty to defrauding hedge fund investors at Prophecy Asset Management of approximately $300 million, though B. Riley has maintained it had no knowledge of those fraudulent activities.

The firm faces an ongoing U.S. civil investigation related to Kahn, though the successful Q2 filing suggests the company is making progress in stabilizing its operations and rebuilding credibility with regulators and investors.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.