Download the Complete Report Here By Brandon Hornback Binah Capital Group, Inc. (NASDAQ: BCG) delivered a top-down beat, led by strong asset under management (AUM) growth, clearing the way for further expansion. The company posted an impressive 9.5% increase in revenue to $46.2 million, led by strengthened commissions, increased advisory fees, and higher interest income. Considerable growth in both trailing commissions and advisory fees helped offset some dampened sales-driven business results. AUM incre ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders before the market opens [1] Premarket Gainers - Cidara Therapeutics, Inc. (CDTX) is up 91% at $203.18 - Binah Capital Group, Inc. (BCG) is up 45% at $2.07 - Invivyd, Inc. (IVVD) is up 42% at $2.52 - Omeros Corporation (OMER) is up 15% at $7.25 - The Oncology Institute, Inc. (TOI) is up 12% at $3.47 - AlphaVest Acquisition Corp (ATMV) is up 11% at $7.99 - ARB IOT Group Limited (ARBB) is up 7% at $7.31 - Hyperion DeFi, Inc. (HYPD) is up 6% at $5.27 - TruGolf Holdings, Inc. (TRUG) is up 6% at $2.02 - Boqii Holding Limited (BQ) is up 5% at $2.24 [3] Premarket Losers - TSS, Inc. (TSSI) is down 40% at $9.12 - StubHub Holdings, Inc. (STUB) is down 20% at $15.02 - ESS Tech, Inc. (GWH) is down 20% at $3.38 - Red Cat Holdings, Inc. (RCAT) is down 17% at $6.38 - WhiteFiber, Inc. (WYFI) is down 15% at $16.81 - New Era Energy & Digital, Inc. (NUAI) is down 13% at $3.66 - NET Power Inc. (NPWR) is down 11% at $2.62 - Korro Bio, Inc. (KRRO) is down 9% at $5.90 - Anavex Life Sciences Corp. (AVXL) is down 8% at $5.20 - Interactive Strength Inc. (TRNR) is down 5% at $2.47 [4]

Group 1: RLX Technology Inc - RLX Technology Inc reported quarterly earnings of 3 cents per share on sales of $158.600 million [1] - Shares of RLX Technology rose 6% to $2.47 in pre-market trading following the earnings report [1] Group 2: Other Stocks in Pre-Market Trading - Cidara Therapeutics, Inc. surged 92% to $203.50 after a Schedule 13D Amendment revealed beneficial ownership of 3.37 million shares [4] - Binah Capital Group, Inc. gained 52.2% to $2.17 after posting stronger-than-expected third-quarter results [4] - Expion360 Inc. rose 42.4% to $1.81 following its third-quarter results [4] - Aspire Biopharma Holdings, Inc. surged 31.2% to $0.1380 in pre-market trading [4] - Invivyd, Inc. gained 28.8% to $2.28 after reporting better-than-expected third-quarter financial results [4] - Milestone Scientific Inc. surged 26.3% to $0.4801 after reporting better-than-expected third-quarter sales [4] - Lazydays Holdings, Inc. gained 23.3% to $1.85 after a previous surge [4] - Omeros Corp gained 12.5% to $7.08 following a narrower-than-expected quarterly loss [4] - Nouveau Monde Graphite Inc rose 10% to $3.25 after a decline the previous day [4] Group 3: Declining Stocks in Pre-Market Trading - TSS Inc tumbled 40.2% to $9.10 after reporting a year-over-year decrease in third-quarter results [4] - enVVeno Medical Corp declined 35.8% to $0.42 after an unfavorable FDA appeal decision [4] - Nuvve Holding Corp fell 29.3% to $0.34 after announcing third-quarter results [4] - ESS Tech Inc shares dipped 24.2% to $3.22 after reporting weak quarterly sales [4] - Direct Digital Holdings Inc fell 18.8% to $0.23 after a significant gain the previous day [4] - StubHub Holdings Inc fell 18.8% to $15.28 after worse-than-expected third-quarter EPS results [4] - Mangoceuticals Inc dipped 17.7% to $0.98 after a decline the previous day [4] - Red Cat Holdings Inc dipped 15.1% to $6.57 after worse-than-expected financial results and a lowered FY25 sales guidance [4] - WhiteFiber Inc fell 13.4% to $17.21 after reporting worse-than-expected financial results [4] - Sobr Safe Inc fell 12.4% to $2.21 after a decline the previous day [4]

- Grew Total Revenue 10% Year-over-Year to $137.0 Million - - Assets Under Management (“AuM”) Increased 11% Year-over-Year to $30.0 Billion - - Net Income of $2.1 Million - - Increased EBITDA[*] to $5.8 Million from $1.0 Million in the Prior Year - NEW YORK, Nov. 13, 2025 (GLOBE NEWSWIRE) -- Binah Capital Group, Inc. (“Binah”, “Binah Capital” or the “Company”) (NASDAQ: BCG; BCGWW), a leading financial services enterprise that owns and operates a network of industry-leading firms empowering independent finan ...

Financial Performance - Total revenue increased by 10% year-over-year to $137.0 million for the first nine months of 2025[1] - Net income for the first three quarters of 2025 was $2.1 million, compared to a net loss of $3.5 million in the same period in 2024[6] - In the third quarter of 2025, total revenue grew by 9.5% to $46.2 million[6] - The company achieved GAAP profitability with a net income of $1.8 million in the third quarter of 2025, compared to a net loss of $1.2 million in the prior year[6] - For the three months ended September 30, 2025, net income was $1.8 million, compared to a net loss of $1.2 million in the same period of 2024[20] - For the nine months ended September 30, 2025, net income improved to $2.1 million from a net loss of $3.5 million in 2024[20] EBITDA and Profitability - EBITDA rose to $5.8 million for the first nine months of 2025, up from $1.0 million in the prior year[7] - EBITDA for the three months ended September 30, 2025, was $2.9 million, significantly up from $0.4 million in the same period of 2024[20] - EBITDA for the nine months ended September 30, 2025, reached $5.8 million, compared to $0.9 million in the same period of 2024[20] Expenses and Costs - Total operating expenses decreased to $23.5 million from $26.0 million in the prior-year period[6] - Interest expense decreased to $0.5 million for the three months ended September 30, 2025, down from $0.8 million in 2024[20] - Share-based compensation was $0.2 million for the three months ended September 30, 2025, while there was no expense recorded in the same period of 2024[20] - Provision for income taxes for the three months ended September 30, 2025, was $0.2 million, compared to $0.5 million in 2024[20] - Depreciation and amortization for the three months ended September 30, 2025, was $0.2 million, slightly down from $0.3 million in 2024[20] Assets and Liabilities - Assets Under Management (AuM) grew by 11% year-over-year to $30.0 billion as of September 30, 2025[6] - Cash and cash equivalents stood at $8.3 million, with outstanding long-term debt of $18.2 million as of September 30, 2025[8] Outlook and Confidence - The company remains confident in its growth opportunities amid a dynamic macro environment[3]

Financial Performance - For the three months ended September 30, 2025, the company reported a net income of approximately $1.8 million, compared to a net loss of $(1.2) million for the same period in 2024, representing a significant turnaround [136]. - Total revenue for the three months ended September 30, 2025, was approximately $46.2 million, an increase of 9.5% from $42.2 million in the same period in 2024 [148]. - Gross profit for the three months ended September 30, 2025, was $9.0 million, reflecting a 7.5% increase from $8.4 million in the same period in 2024 [141]. - EBITDA for the three months ended September 30, 2025, was $2.9 million, compared to $0.4 million for the same period in 2024, showing substantial improvement [148]. - Net income for the three months ended September 30, 2025, was $1,760,000, a significant increase of 253.1% from a loss of $1,150,000 in 2024, and for the nine months, net income was $2,141,000 compared to a loss of $3,467,000 in 2024 [154]. - Total revenues for the three months ended September 30, 2025, increased by 9.5% to $46,198,000 compared to $42,197,000 in 2024, and for the nine months, revenues rose by 9.9% to $136,632,000 from $124,295,000 [154]. Asset Management - Total advisory and brokerage assets served were $29.9 billion at September 30, 2025, up from $27.0 billion at September 30, 2024, indicating a growth of 10.7% [137]. - Advisory assets increased by 16% to $2.9 billion at September 30, 2025, compared to $2.5 billion at September 30, 2024 [138]. - Brokerage assets as of September 30, 2025, were $27.0 billion, up from $24.5 billion in 2024, reflecting a market impact of $2.1 billion for the three months [162]. - Trail-eligible assets increased to $18.5 billion as of September 30, 2025, from $17.0 billion in 2024 [161]. Revenue Sources - Commission revenue for the three months ended September 30, 2025, was $37,370,000, a 7.4% increase from $34,780,000 in 2024, while for the nine months, it rose by 9.4% to $112,506,000 from $102,836,000 [161]. - Advisory fees increased by 18.6% to $7,407,000 for the three months ended September 30, 2025, and by 14.8% to $20,948,000 for the nine months compared to the same periods in 2024 [165]. Expenses and Costs - Total expenses for the three months ended September 30, 2025, increased by 3.4% to $44,248,000 from $42,810,000 in 2024, while for the nine months, expenses rose by 5.4% to $133,785,000 from $126,872,000 [154]. - Employee compensation and benefits rose by 18.8% to $4,679,000 for the three months ended September 30, 2025, and by 27.0% to $13,956,000 for the nine months compared to 2024 [154]. - Professional fees decreased by approximately $0.6 million for the three-month period and $4.3 million for the nine-month period ended September 30, 2025, due to non-recurring transaction costs from the Business Combination in 2024 [176]. - Technology fees increased by $0.2 million and $1.0 million for the three and nine-month periods ended September 30, 2025, respectively, compared to 2024 [177]. Economic Environment - The U.S. economy grew by approximately 3% in the third quarter of 2025, with an unemployment rate of 4.3%, up from 4.1% in the previous quarter [150]. - The Federal Reserve cut interest rates by 0.25% during the third quarter of 2025, impacting short-term interest rates and market conditions [151]. - The S&P 500 increased by 8.1% in the third quarter of 2025, contributing to a year-to-date performance of approximately 14.8% [151]. Cash Flow and Financing - Net cash provided by operating activities increased to $2.0 million for the nine-month period ended September 30, 2025, compared to a net cash used of $2.4 million in the same period of 2024, representing an increase of approximately $4.5 million or 185% [205]. - Net cash used in investing activities was $0.1 million for the nine-month period ended September 30, 2025, compared to $0.02 million in the same period of 2024 [206]. - Net cash used in financing activities was approximately $2.1 million for the nine-month period ended September 30, 2025, compared to cash provided of approximately $2.1 million in the same period of 2024 [207]. Debt and Obligations - As of September 30, 2025, the outstanding balance on the Term Loan was $18.2 million, down from $19.6 million as of December 31, 2024 [185]. - Long-term debt obligations totaled $18.8 million, with $10.2 million due in 3-5 years [209]. - The estimated fair value of reporting units was approximately 270% greater than their carrying value as of December 31, 2024, indicating no impairment was necessary [216]. - The company believes credit risk exposure is limited due to routine assessments of the financial strength of counterparties [225].

Core Insights - Binah Capital Group's subsidiary, PKS Investments, has been recognized as one of Albany's Best Places to Work for the second consecutive year, highlighting its strong employee satisfaction and workplace culture [1][3]. Group 1: Recognition and Awards - The Best Places to Work program, now in its 22nd year, evaluates companies based on employee feedback regarding organizational culture, leadership, and overall satisfaction [2]. - PKS Investments was recognized alongside various employers from diverse industries, reinforcing its reputation within the Albany community and the financial services sector [3]. Group 2: Company Culture and Leadership - Craig Goud, CEO of Binah Capital Group, emphasized that the company's culture is its greatest asset, contributing to an empowering and inspiring work environment [4]. - The recognition of PKS Investments underscores its strategic importance within Binah's platform and its role in the hybrid-friendly wealth management space [4]. Group 3: Company Overview - Binah Capital Group operates a network of firms that empower independent financial advisors, specializing in a hybrid-friendly model that supports RIAs in navigating the financial landscape [5]. - The company focuses on delivering value through partnerships and providing resources to help advisors manage commission-based businesses effectively [5].

[Q2 2025 Financial & Operational Highlights](index=1&type=section&id=Q2%202025%20Financial%20%26%20Operational%20Highlights) [Key Performance Indicators](index=1&type=section&id=Key%20Performance%20Indicators) For the second quarter of 2025, Binah Capital Group reported a 2% year-over-year revenue increase to $42 million and an 11% growth in Assets Under Management (AuM) to $28 billion. While the GAAP net loss remained stable at $0.7 million, EBITDA, a non-GAAP measure, increased to $1.0 million from $0.6 million in the prior-year period Q2 2025 Key Metrics (Year-over-Year) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $42 million | ~$41.2 million | +2% | | Assets Under Management (AuM) | $28 billion | ~$25.2 billion | +11% | | Gross Profit | $8.8 million | $7.3 million | +21% | | GAAP Net Loss | $0.7 million | $0.7 million | Comparable | | EBITDA (Non-GAAP) | $1.0 million | $0.6 million | +67% | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO, Craig Gould, expressed satisfaction with the quarter's strong performance, attributing the growth in revenue and EBITDA to the company's advisor-centric platform and disciplined execution of its strategy. He conveyed confidence in the company's position to capture future growth opportunities and create long-term shareholder value - Management credits the sustained momentum and growth in **revenue** and **EBITDA** to their advisor-centric business model and effective strategic execution[2](index=2&type=chunk) - The company believes its differentiated business model and execution capabilities position it well for **future growth** and **long-term value creation**[2](index=2&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) [Consolidated Statement of Operations](index=5&type=section&id=Consolidated%20Statement%20of%20Operations) For Q2 2025, total revenues grew 2% YoY to $41.5 million, driven by increases in commissions and advisory fees. Total expenses remained relatively flat, resulting in a stable net loss of $0.7 million, or ($0.04) per share, comparable to the prior-year period. For the six-month period, the company swung to a net income of $0.4 million from a net loss of $2.3 million in the prior year, primarily due to lower professional fees and interest expenses Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$41,497** | **$40,648** | **$90,431** | **$82,095** | | Commissions | $33,998 | $33,663 | $75,137 | $68,057 | | Advisory fees | $6,627 | $6,320 | $13,542 | $12,004 | | **Total Expenses** | **$42,058** | **$41,171** | **$89,537** | **$84,062** | | **Net Income (Loss)** | **($654)** | **($736)** | **$378** | **($2,319)** | | EPS (basic and diluted) | ($0.04) | ($0.04) | $0.02 | ($0.18) | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total assets increased slightly to $67.8 million from $66.7 million at year-end 2024. Total liabilities also grew to $51.4 million from $50.5 million, primarily due to an increase in accounts payable and accrued expenses. Total stockholders' equity and mezzanine equity saw a modest increase to $16.4 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $8,170 | $8,486 | | **Total Assets** | **$67,791** | **$66,677** | | Notes payable, net | $18,620 | $19,561 | | **Total Liabilities** | **$51,404** | **$50,499** | | **Total Stockholders' Equity and Mezzanine Equity** | **$16,387** | **$16,178** | [Liquidity and Capital](index=2&type=section&id=Liquidity%20and%20Capital) The company reported $8.2 million in cash and cash equivalents and $18.6 million in outstanding long-term debt (net of unamortized issuance costs) as of the end of the second quarter of 2025 - As of June 30, 2025, the company held **$8.2 million** in cash and cash equivalents[6](index=6&type=chunk) - Outstanding long-term debt, net of unamortized issuance costs, was **$18.6 million**[6](index=6&type=chunk) [Non-GAAP Financial Measures](index=1&type=section&id=Non-GAAP%20Financial%20Measures) [EBITDA Reconciliation](index=6&type=section&id=EBITDA%20Reconciliation) The company uses EBITDA, a non-GAAP measure defined as net income adjusted for interest, taxes, depreciation, and amortization, to evaluate earnings from operations. For Q2 2025, EBITDA increased to $1.0 million from $0.6 million in Q2 2024. This was derived from a net loss of $0.7 million, adjusted for items including interest expense ($0.5M), share-based compensation ($0.8M), taxes ($0.1M), and D&A ($0.2M) Reconciliation of Net Income to EBITDA (in millions) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | ($0.7) | ($0.7) | $0.4 | ($2.3) | | Interest expense | $0.5 | $0.8 | $1.1 | $1.9 | | Share-based compensation | $0.8 | - | $0.8 | - | | Provision for income taxes | $0.1 | $0.2 | $0.5 | $0.4 | | Depreciation and amortization | $0.2 | $0.3 | $0.4 | $0.6 | | **EBITDA** | **$1.0** | **$0.6** | **$3.2** | **$0.5** | - EBITDA is presented as management believes it is a **useful metric** for understanding the company's earnings from operations, though it is not a GAAP measure and has limitations[9](index=9&type=chunk)[16](index=16&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) [About Binah Capital Group](index=2&type=section&id=About%20Binah%20Capital%20Group) Binah Capital Group is a financial services enterprise that operates a network of firms to empower independent financial advisors. It functions as a national broker-dealer aggregator with an innovative hybrid-friendly model, providing Registered Investment Advisors (RIAs) with resources and a platform to manage both commission-based and advisory business - The company's business model is a **national broker-dealer aggregator** focused on empowering independent financial advisors[8](index=8&type=chunk) - Binah utilizes a **hybrid-friendly model** to support RIAs in managing both commission-based and advisory practices[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard "safe harbor" language, cautioning investors that the press release includes forward-looking statements regarding the company's financial outlook and strategic initiatives. These statements are subject to numerous risks and uncertainties, such as regulatory compliance, advisor misconduct, investment performance, and market conditions, which could cause actual results to differ materially - The report includes **forward-looking statements** subject to a **'safe harbor' provision**, which are based on assumptions and subject to uncertainties[10](index=10&type=chunk) - Key risks that could affect future results include **regulatory compliance, advisor misconduct, investment performance, and brand reputation**[11](index=11&type=chunk) - The company advises against placing **undue reliance** on these statements and does not intend to update them unless required by law[12](index=12&type=chunk)

Core Insights - Binah Capital Group reported a 2% year-over-year increase in total revenue, reaching $42 million for the quarter ended June 30, 2025 [1][8] - The company's assets under management (AuM) grew by 11% year-over-year to $28 billion [1][8] - Binah experienced a net loss of $0.7 million, which is comparable to the prior year [1][8] - EBITDA increased to $1.0 million from $0.6 million in the prior year [1][8] Financial Performance - Total revenue for the second quarter increased by 2% year-over-year to $42 million [1][8] - Gross profit rose by 21% to $8.8 million, compared to $7.3 million in the prior-year period [8] - Total operating expenses remained consistent at $42 million compared to the prior-year period [8] - The company had cash and cash equivalents of $8.2 million and long-term debt of $18.6 million as of June 30, 2025 [5] Management Commentary - The CEO of Binah Capital expressed satisfaction with the company's performance, highlighting the advisor-centric platform and disciplined execution of strategy [2] - The management believes that their differentiated business model positions them well to capture future growth opportunities and create long-term shareholder value [2] Company Overview - Binah Capital Group operates a network of firms that empower independent financial advisors, specializing in brokerage, advisory, and insurance solutions [7] - The company aims to provide innovative solutions and resources to support advisors in navigating the complex financial landscape [7]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the first half of 2025 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Binah Capital Group, Inc. as of June 30, 2025, and for the three and six-month periods then ended [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets increased slightly to **$67.8 million** from **$66.7 million** at year-end 2024, driven by higher receivables Condensed Consolidated Statements of Financial Condition (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$67,791** | **$66,677** | | Cash, cash equivalents and restricted cash | $8,170 | $8,486 | | Goodwill | $39,839 | $39,839 | | **Total Liabilities** | **$51,404** | **$50,499** | | Notes payable, net | $18,620 | $19,561 | | **Total Stockholders' Equity and Mezzanine Equity** | **$16,387** | **$16,178** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, the company reported net income of **$0.38 million**, a significant improvement from a net loss of **$2.32 million** in the same period of 2024 Financial Performance Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$41,497** | **$40,648** | **$90,431** | **$82,095** | | Commissions | $33,998 | $33,663 | $75,137 | $68,057 | | Advisory fees | $6,627 | $6,320 | $13,542 | $12,004 | | **Total Expenses** | **$42,058** | **$41,171** | **$89,537** | **$84,062** | | **Net Income (Loss)** | **$(654)** | **$(736)** | **$378** | **$(2,319)** | | Net Income (Loss) per share | $(0.04) | $(0.04) | $0.02 | $(0.18) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$1.1 million**, a reversal from **$2.1 million** used in the prior year period, mainly due to improved net income Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided By (Used In) Operating Activities | $1,117 | $(2,113) | | Net Cash Used In Investing Activities | $(8) | $(18) | | Net Cash (Used In) Provided By Financing Activities | $(1,425) | $1,535 | | **Net Change in Cash, Cash Equivalents and Restricted Cash** | **$(316)** | **$(596)** | | Cash, Cash Equivalents and Restricted Cash - End of Period | $8,170 | $7,025 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical context to the financial statements, detailing accounting policies, revenue streams, debt, and legal contingencies - On March 15, 2024, the company consummated a reverse recapitalization transaction with Kingswood Acquisition Corp (KWAC), resulting in the current public company structure[30](index=30&type=chunk)[31](index=31&type=chunk) - For accounting purposes, this was treated as **BMS acquiring KWAC**[30](index=30&type=chunk)[31](index=31&type=chunk) Revenue from Contracts with Customers by Product (Six Months Ended June 30, in thousands) | Product | 2025 | 2024 | | :--- | :--- | :--- | | Variable annuities and other insurance commissions | $50,653 | $50,070 | | Mutual fund commissions | $11,535 | $9,908 | | Securities commissions | $6,017 | $5,588 | | Alternative investments | $6,932 | $2,491 | | Advisory fees | $13,542 | $12,004 | | **Total** | **$88,679** | **$80,061** | - The company entered into a **$20.3 million** term loan facility with Byline Bank on December 23, 2024[88](index=88&type=chunk) - As of June 30, 2025, the outstanding balance was **$18.6 million**, net of unamortized costs[88](index=88&type=chunk) - As of June 30, 2025, the company has accrued **$0.7 million** for litigation contingencies, net of **$1.0 million** of expected insurance proceeds[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the second quarter and first half of 2025, highlighting revenue growth, expense trends, and liquidity [Financial Highlights and Asset Trends](index=27&type=section&id=Financial%20Highlights%20and%20Asset%20Trends) For the six months ended June 30, 2025, the company achieved net income of **$0.4 million** on **$90.4 million** in revenue, with total assets growing to **$27.8 billion** Key Financial Highlights (in millions) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Total Revenue | $90.4 | $82.1 | | Net Income (Loss) | $0.4 | $(2.3) | Asset Trends (in billions) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Advisory and Brokerage Assets | $27.8 | $25.1 | | Advisory Assets | $2.7 | $2.3 | | Brokerage Assets | $25.1 | $22.8 | | Total Net New Assets (Six Months) | $(1.1) | $(2.1) | [Key Performance Metrics and Non-GAAP Financial Measures](index=28&type=section&id=Key%20Performance%20Metrics%20and%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Gross Profit and EBITDA to evaluate performance, showing significant growth for the six months ended June 30, 2025 Non-GAAP Financial Metrics (in millions) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $8.8 | $7.3 | $17.4 | $15.1 | | EBITDA | $1.0 | $0.6 | $3.2 | $0.5 | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For the first six months of 2025, total revenues increased **10.2%** to **$90.4 million**, driven by commissions and advisory fees, while expenses grew slower - For the six months ended June 30, 2025, sales-based commission revenue increased by **11.6%** to **$35.3 million**, largely due to higher sales of alternative investment products[165](index=165&type=chunk)[166](index=166&type=chunk) - Trailing-based commission revenue for the six-month period grew **9.4%** to **$39.9 million**, benefiting from positive market volatility and increased trail-based assets[165](index=165&type=chunk)[166](index=166&type=chunk) - Employee compensation and benefits increased by **$2.2 million** (**31.6%**) for the six-month period, mainly due to additional personnel costs and non-cash compensation awards associated with being a public company[179](index=179&type=chunk) - Professional fees decreased by **$3.7 million** (**74.7%**) for the six-month period, as the prior year included significant non-recurring transaction costs related to the Business Combination[181](index=181&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are dividends and fees from subsidiaries, supplemented by a credit facility, with positive cash flow from operations - The company has a term loan with Byline Bank with an outstanding balance of **$18.6 million** (net) as of June 30, 2025, maturing in December 2029[189](index=189&type=chunk) - In H1 2025, the company entered into a **$10 million** notional interest rate swap to hedge a portion of its variable-rate debt, fixing the rate at **3.98%** plus a **4.00%** margin[192](index=192&type=chunk) Contractual Obligations as of June 30, 2025 (in thousands) | Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | | :--- | :--- | :--- | :--- | :--- | | Long-term debt obligations | $19,285 | $1,015 | $8,120 | $10,150 | | Promissory notes - affiliates | $5,313 | $0 | $5,313 | $0 | | Operating lease obligations | $4,405 | $777 | $2,228 | $1,400 | | **Total** | **$29,003** | **$1,792** | **$15,661** | **$11,550** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risk through asset-based fees and interest rate risk on floating-rate debt, partially offset by interest-sharing revenue - The company's fees are sensitive to market fluctuations as they are based on the market value of advisory and brokerage assets[225](index=225&type=chunk) - As of June 30, 2025, **$8.6 million** of the company's outstanding debt was subject to floating interest rates[226](index=226&type=chunk) - Management believes the impact of short-term rate changes is not material due to offsetting interest-sharing revenue[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Based on an evaluation as of June 30, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[230](index=230&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, other information, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings but is subject to various claims arising in the ordinary course of business - The company is not party to any pending material legal proceedings but is subject to various claims and actions arising in the ordinary course of business[233](index=233&type=chunk)[234](index=234&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[235](index=235&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) On August 7, 2025, the company amended employment agreements for CEO and CFO, changing equity compensation to restricted stock units - On August 7, 2025, the employment agreements for CEO Craig Gould and CFO David Shane were amended to issue restricted stock units instead of stock options for equity compensation[240](index=240&type=chunk)[241](index=241&type=chunk) - The amendments also allow the 2025 annual bonus for the CEO and CFO to be paid in either cash or vested company shares, as determined by the Board or Compensation Committee[240](index=240&type=chunk)[241](index=241&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including equity agreements and executive certifications