B. Riley Financial Sees Prelim. Q2 Net Loss $435M-$475M, Says 'Our second quarter results were negatively impacted by non-cash losses, the overwhelming majority of which relate to performance of our investment in Franchise Group, Inc. ("FRG") and our Vintage Capital loan receivable, which is primarily collateralized by equity interests in FRG'
Portfolio Pulse from Benzinga Newsdesk
B. Riley Financial (RILY) anticipates a preliminary Q2 net loss of $435M-$475M, primarily due to non-cash losses related to its investment in Franchise Group, Inc. (FRG) and a loan receivable from Vintage Capital, which is collateralized by equity interests in FRG.
August 12, 2024 | 11:10 am
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NEGATIVE IMPACT
Franchise Group, Inc. is indirectly implicated in B. Riley Financial's anticipated Q2 net loss due to its performance affecting B. Riley's investment and loan receivable.
FRG's performance has negatively impacted B. Riley Financial's investments, which could lead to a negative perception of FRG's financial health and affect its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
B. Riley Financial expects a significant Q2 net loss of $435M-$475M, driven by non-cash losses from its investment in Franchise Group, Inc. and a loan receivable from Vintage Capital.
The substantial net loss is primarily attributed to non-cash losses from investments, which could negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100