BRC Group Holdings, Inc. (RILY) is having quite the comeback story. Shares rocketed higher Thursday as investors continued to digest the company's Wednesday after-hours earnings report, which showed the kind of year-over-year improvement that makes turnaround enthusiasts very happy.

From Loss to Profit in One Year

The numbers tell a dramatic story. BRC posted earnings per share of $2.91 for the third quarter, a striking reversal from the $9.39 loss it reported in the same period last year. Revenue climbed to $277.87 million, up sharply from $175.36 million a year earlier.

The star performer was BRC's Capital Markets segment, which brought in $65.4 million in services and fee revenue. That's the highest quarterly total since Q4 2023, and the segment generated $60.7 million in income. The company also saw improvements in its Wealth segment and steady results from Communications, suggesting the turnaround isn't just one-dimensional.

Adjusted EBITDA swung dramatically positive to $112.2 million, compared with negative $89.5 million in the prior year. Operating adjusted EBITDA jumped to $58.0 million from $12.0 million a year ago.

Debt Down, Compliance Up

Here's something that should please credit investors: BRC reported total debt of $1.44 billion at quarter-end with net debt of $702.9 million. Compare that to $1.77 billion in total debt and $1.06 billion in net debt at the end of 2024. That's over $350 million in net debt reduction.

But perhaps equally important for shareholders, BRC announced it filed its Form 10-Q for the third quarter and completed filing its first three quarterly reports for 2025 within 120 days. Translation: the company is now current with its SEC periodic reporting and has achieved Nasdaq compliance well ahead of the January 20, 2026 deadline. When you've been behind on regulatory filings, catching up matters.

Chairman and Co-CEO Bryant Riley highlighted the company's transformation efforts throughout 2025, saying they've strengthened positioning for 2026. CFO Scott Yessner emphasized that completing the required quarterly reports means BRC now meets Nasdaq continued listing standards.

Technical Signals Flash Warning

The stock's momentum is undeniable from a technical perspective. BRC is trading 94.1% above its 20-day simple moving average and 102.7% above its 100-day SMA, showing strength across both short-term and longer-term timeframes. Over the past year, shares have climbed 60.43%.

But here's where things get interesting. The RSI stands at 70.18, which puts the stock in overbought territory and suggests a potential pullback could be brewing. The MACD remains above its signal line, reinforcing bullish momentum, but the combination creates what technical analysts call mixed signals: strong momentum with potential overextension.

In other words, the stock is performing well, but it might be getting ahead of itself.

Momentum Score Tells the Story

BRC's momentum score comes in at 90.56 out of 100, marking it as bullish and outperforming the broader market. The strong momentum setup is impressive, but traders should watch for signs of overextension given the overbought readings.

At last check, BRC shares were trading 36.80% higher at $10.36. Not a bad day for a turnaround story that's finally getting some positive attention.