BRC Group Holdings, Inc. (RILY) received a letter from Nasdaq on January 27, 2026 confirming that the company has met the Periodic Filing Rule 5250(c)(1) and is no longer in violation. The notice also imposes a mandatory panel monitor for one year, requiring BRC to file all required reports on time or face a delisting determination.
The compliance letter follows a period in which BRC had missed several quarterly reports, a lapse that stemmed from internal control weaknesses identified in early 2024 and a transition to a new auditing firm in the fall of 2025. Chief Financial Officer Scott Yessner said the company “has brought our SEC periodic reporting current” and that the new audit partnership has accelerated the process of restoring filing discipline.
BRC’s recent financial performance provides context for the compliance effort. In the third quarter of 2025, the company posted a net income of $89.1 million, or $2.91 per share, compared with a net loss of $286.4 million, or –$9.39 per share, in the same quarter a year earlier. Revenue rose to $277.9 million from $175.4 million year‑over‑year, while adjusted EBITDA swung from a loss of $89.5 million in Q3 2024 to $112.2 million in Q3 2025. The turnaround reflects stronger demand in the company’s financial services and telecommunications segments and disciplined cost management.
On the same day BRC filed the compliance letter, it also announced a $735 million lawsuit against a law firm and individuals alleging fraud and breach of contract related to a 2023 transaction. The legal action adds complexity to the company’s capital structure and underscores the importance of maintaining robust governance and reporting practices.
The market reacted positively to the compliance announcement. Shares of BRC rose 1.5 % in pre‑market trading on January 28, 2026, and the stock had previously gained 38 % after the release of the third‑quarter 2025 results. The lift reflects investor relief that the delisting overhang has been removed and confidence in the company’s ability to sustain its recent profitability.
The one‑year panel monitor signals that Nasdaq will closely scrutinize BRC’s future filings. Failure to meet the filing requirements during this period could trigger a delisting determination without a chance to submit a compliance plan. The monitoring period therefore places a premium on continued reporting discipline and reinforces the company’s commitment to transparency and regulatory compliance.
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