8-K: B. Riley Financial Appoints Scott Yessner as CFO, Announces B. Riley Securities Financial Update

B. Riley Financial names Scott Yessner as CFO, succeeding Phillip Ahn, while B. Riley Securities reports adjusted 2024 revenue of $217.7 million following its carve-out transaction.

Summary

• B. Riley Financial, Inc. announced the appointment of Scott Yessner as Executive Vice President and Chief Financial Officer, effective June 3, 2025.
• Yessner succeeds Phillip J. Ahn, who resigned on May 16, 2025.
• Yessner's employment agreement includes an initial annual base salary of $600,000 and eligibility for a discretionary annual performance bonus with a target of $1,000,000.
• He will also receive a $1,000,000 signing bonus, paid in installments upon timely filing of financial reports.
• Yessner will receive stock options to purchase 300,000 shares of B. Riley common stock at various exercise prices and 100,000 shares of common stock.
• B. Riley Securities reported adjusted total revenue of $217.7 million and adjusted net income of $33.1 million for 2024.
• In January 2025, B. Riley Securities repaid $12.4 million of outstanding debt and has $68 million in cash and securities.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The appointment of a new CFO and the financial update from B. Riley Securities contain both positive and negative elements. The company is debt free but had a net loss before adjustments.

Positives

• Scott Yessner's appointment brings significant experience and a track record of corporate transformations to B. Riley Financial.
• Yessner's previous roles include improving EBITDA at CEMCO by $40 million and overseeing a transformation at Universal Technical Institute that led to a 250% increase in the company's stock price.
• B. Riley Securities' carve-out from B. Riley Financial provides greater financial transparency.
• B. Riley Securities has a debt-free balance sheet with $68 million in cash and securities.
• B. Riley Securities raised $16.5 billion in debt and equity for clients in 2024.

Negatives

• B. Riley Securities reported a net loss of $14.5 million for 2024 before adjustments.
• Phillip Ahn's departure as CFO and COO may cause some disruption, although a seamless transition is expected.

Risks

• Macroeconomic uncertainty and volatility may continue to temper transactional activity for B. Riley Securities.
• The full impact of the carve-out and new team members at B. Riley Securities may take time to materialize in financial results.
• Failure to achieve the aggregate expense reduction of at least $7,500,000 by December 31, 2025, could impact bonus payments to the new CFO.

Future Outlook

B. Riley Securities is focused on long-term value creation and positioning itself for sustainable growth by investing in talent and expanding capabilities.

Management Comments

• Bryant Riley expressed excitement about Scott Yessner's appointment and confidence in his ability to help B. Riley evolve and deliver value.
• Scott Yessner stated he is excited to join B. Riley and partner with the leadership team to deliver value to clients and drive shareholder value.
• Andy Moore stated that B. Riley Securities remains relentlessly focused on delivering for its clients and is committed to providing stakeholders with increased visibility into its strategy.
• Jimmy Baker stated that B. Riley Securities is proud of how its team navigated a challenging 2024 and remains focused on long-term value creation.

Industry Context

The appointment of a new CFO with a track record of corporate transformations suggests B. Riley Financial is focused on optimizing its operations and driving shareholder value. B. Riley Securities' financial update provides insight into its performance following the carve-out, highlighting its position as a middle-market investment bank.

Comparison to Industry Standards

• Comparing B. Riley Securities' adjusted net revenue of $211.0 million to other middle-market investment banks like Raymond James or Stifel Financial, it indicates a competitive position within its segment.
• The adjusted net income of $33.1 million suggests profitability, but further analysis would be needed to assess its efficiency and return on equity compared to peers.
• The $16.5 billion in debt and equity raised for clients in 2024 demonstrates B. Riley Securities' active role in capital markets, but its market share and deal volume should be compared to industry benchmarks to gauge its performance.

Management Changes

Stakeholder Impact

• Shareholders may be impacted by the CFO transition and the financial performance of B. Riley Securities.
• Employees may be affected by the changes in leadership and the strategic direction of the company.
• Clients can expect continued service from B. Riley Financial and B. Riley Securities.

Next Steps

• Scott Yessner will assume the role of CFO on June 3, 2025.
• B. Riley Securities will continue to focus on long-term value creation and sustainable growth.
• B. Riley Securities anticipates future filings of financial statements and quotation on the OTC Markets.

Key Dates

Keywords

CFO, B. Riley Financial, Scott Yessner, Phillip Ahn, B. Riley Securities, Financial Results, Carve-Out, Investment Banking, Equity, Debt