[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

Core Insights - Binah Capital Group's subsidiary PKS Investments has been recognized as a finalist in two categories for the 2025 Wealth Management Industry Awards, highlighting its excellence in advisor transition solutions and leadership [1][2] Group 1: Company Achievements - PKS Investments has successfully supported thousands of advisor transitions, showcasing its ability to help firms navigate change with confidence and operational excellence [3] - The recognition of Katherine Flouton as Chief Executive of the Year reflects the leadership and innovative approach of PKS Investments in the wealth management industry [1][4] Group 2: Industry Context - The Wealth Management Industry Awards, now in its 11th year, honors outstanding achievements that support financial advisor success, emphasizing the importance of innovation in the industry [4][5] - A panel of industry judges will determine the winners, recognizing firms and individuals who bring meaningful innovations to the market [5] Group 3: Company Overview - Binah Capital Group operates as a financial services enterprise that empowers independent financial advisors through a hybrid-friendly model, providing essential resources and support [6] - Purshe Kaplan Sterling Investments (PKS) is noted for its client-first philosophy and operational precision, enabling advisors to grow their businesses effectively [7]

Core Insights - Binah Capital Group's subsidiary, PKS Investments, has been recognized as a finalist in two categories for the 2025 Wealth Management Industry Awards, highlighting its excellence in advisor transition solutions and the leadership of CEO Katherine Flouton [1][2][4] Group 1: Company Achievements - PKS Investments has successfully supported thousands of advisor transitions, showcasing its scalable process and high-touch service model [3] - The recognition received by PKS Investments reflects Binah Capital's commitment to empowering independent financial advisors with necessary leadership and infrastructure [4][2] Group 2: Industry Context - The Wealth Management Industry Awards, now in its 11th year, honors outstanding achievements in the financial advisory sector, focusing on innovation and support for financial advisors [5] - A panel of industry judges will determine the winners, emphasizing the importance of innovation in enhancing the daily operations of financial advisors [5] Group 3: Company Overview - Binah Capital Group operates as a national broker-dealer aggregator, providing a hybrid-friendly model that supports independent financial advisors in navigating complex financial landscapes [6] - PKS Investments is recognized for its client-first philosophy and operational precision, enabling advisors to grow their businesses confidently [7]

Core Insights - Binah Capital Group reported a strong financial performance for the first quarter of 2025, with total revenue increasing by 18% year-over-year to $49 million and assets under management rising by 3% to $26 billion [1][8]. - The company achieved a net income of $1 million, a significant improvement from a net loss of $1.6 million in the prior-year period [8]. - EBITDA increased to $2.2 million from a previous loss of $0 million, driven by higher revenue and lower operating expenses [2][8]. Financial Performance - Total revenue for the first quarter reached $49 million, marking an 18% increase compared to the same period last year [1][8]. - The company reported a gross profit of $8.6 million, up from $7.8 million in the prior-year period [8]. - Total operating expenses decreased to $7 million from $10 million in the prior-year period, primarily due to the absence of costs related to a business combination that occurred in the previous year [8]. Liquidity and Capital Structure - As of March 31, 2025, Binah Capital had cash and cash equivalents of $9 million and long-term debt of $25 million [5]. - The total assets of the company increased to $67.877 million from $66.677 million at the end of the previous year [15][16]. Strategic Developments - The company welcomed Bleakley Financial Group into its network, highlighting the strength of its open-architecture platform [3]. - Binah Capital expanded its executive leadership team with the appointment of Ryan Marcus as Chief Business Development and Engagement Officer [3].

Financial Performance - Total revenue increased 18% year-over-year to $49 million[1] - Net income for the quarter was $1 million, compared to a net loss of $(1.6) million in the prior-year period[6] - EBITDA increased to $2.2 million from $(0.0) million in the prior year, driven by higher revenue growth and lower expenses[7] - Gross profit rose to $8.6 million, up from $7.8 million in the prior-year period[6] - Total operating expenses decreased to $7 million from $10 million in the prior-year period[6] Assets and Management - Assets under management (AuM) grew 3% year-over-year to $26 billion[1] - Cash and cash equivalents stood at $9 million, with outstanding long-term debt of $25 million as of March 31, 2025[8] Strategic Initiatives - The company welcomed Bleakley Financial Group to its platform, enhancing its open-architecture model[3] - The company appointed Ryan Marcus as Chief Business Development and Engagement Officer to strengthen its leadership[3] - Binah Capital Group aims to navigate the dynamic macro environment and drive long-term shareholder value[3]

Financial Performance - For the three-month period ended March 31, 2025, the company reported net income of approximately $1.0 million and total revenue of approximately $48.9 million, compared to a net loss of $(1.6) million and total revenue of approximately $41.4 million for the same period in 2024, representing an 18.1% increase in total revenue [114][129]. - Gross profit for the three-month period ended March 31, 2025, was $8.6 million, an increase of 11% from $7.8 million for the same period in 2024 [118]. - EBITDA for the three-month period ended March 31, 2025, was $2.2 million, compared to $(0.0) million for the same period in 2024, indicating a significant improvement in operational earnings [121][129]. - Total expenses for the three-month period ended March 31, 2025, were $47.5 million, an increase of 11.3% from $42.9 million in 2024 [129]. - The net cash provided by operating activities increased by approximately $4.2 million or 134%, from a net cash used of $3.1 million in Q1 2024 to a net cash provided of $1.1 million in Q1 2025 [173]. Revenue Sources - Commission revenues increased by 19.6% to $41.1 million for the three-month period ended March 31, 2025, compared to $34.4 million in 2024 [129]. - Advisory fees rose by 21.7% to $6.9 million for the three-month period ended March 31, 2025, compared to $5.7 million in 2024 [129]. - Sales-based commission revenue increased by approximately $4.6 million or 29.5% for the three-month period ended March 31, 2025, compared to 2024 [134]. - Trailing commission revenue increased by approximately $2.1 million or 11.3% for the three-month period ended March 31, 2025, compared to 2024 [134]. - Total commission revenue for the three-month period ended March 31, 2025, was $41.1 million, representing a $6.7 million or 19.6% increase from 2024 [134]. Asset Management - Total advisory and brokerage assets served were $25.7 billion at March 31, 2025, an increase from $24.9 billion at March 31, 2024, with advisory assets growing by 12% to $2.5 billion [115][116]. - Brokerage assets as of March 31, 2025, were $23.2 billion, up from $22.7 billion in 2024 [135]. - Trail-eligible assets increased to $18.1 billion as of March 31, 2025, compared to $16.1 billion in 2024 [135]. - Advisory assets as of March 31, 2025, were $2.5 billion, up from $2.2 billion in 2024 [138]. - The company experienced net new advisory assets of $0.1 billion for the three-month period ended March 31, 2025, compared to $(0.1) billion for the same period in 2024, while net new brokerage assets were $(0.3) billion, an improvement from $(1.4) billion in 2024 [116][117]. Economic Environment - The U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first decline in GDP since the first quarter of 2022, while the unemployment rate remained stable at 4.2% [126][127]. - The company operates in a challenging macroeconomic environment, with the S&P 500 declining by 4.4% during the first quarter of 2025 due to various economic headwinds [127]. Tax and Financial Ratios - The effective income tax rate for the three-month period ended March 31, 2025, was approximately 23%, compared to (7)% for the same period in 2024 [151]. - The payout rate to financial advisors increased to 78.21% for the three-month period ended March 31, 2025, from 76.78% in 2024 [143]. - BMS has a fixed charge coverage ratio requirement of at least 1.20 to 1.00 starting from the fiscal quarter ending March 31, 2025 [159]. - The senior net leverage ratio must not exceed 3.00 to 1.00 for the fiscal quarter ending March 31, 2025, and must not exceed 2.75 to 1.00 thereafter [159]. Debt and Financing - Interest expense decreased by $0.5 million for the three-month period ended March 31, 2025, due to repayment and restructuring of debt obligations [148]. - The total contractual obligations as of March 31, 2025, amount to $29.5 million, including long-term debt obligations of $19.8 million [176]. - The Company issued 1,500,000 shares of Series A Redeemable Convertible Preferred Stock at $9.60 per share, raising an aggregate of $14.4 million [161]. - The Company entered into a Subscription Agreement for 150,000 shares of Series B Convertible Preferred Stock at $10.00 per share, totaling $1.5 million [165]. - The outstanding amount of promissory notes to affiliates as of March 31, 2025, is approximately $5.3 million, with a maturity date of May 15, 2027 [172]. - The Company reported a net cash used in financing activities of approximately $0.7 million for Q1 2025, compared to cash provided of approximately $1.7 million in Q1 2024 [175]. Risk Management - The company has $19.7 million of outstanding debt subject to floating interest rate risk as of March 31, 2025 [190]. - The company does not believe that short-term changes in interest rates will materially impact net income due to offsetting interest rate risks [190]. - Credit risk is limited as the company routinely assesses the financial strength of its counterparties and establishes allowances for uncollectible accounts [191]. - The company recognizes liabilities for contingencies when potential losses are probable and can be reasonably estimated [187]. - Market risk arises from operational risk events and fees based on the market value of advisory and brokerage assets [189]. Accounting Policies - Recent accounting pronouncements are discussed in the notes to the condensed consolidated financial statements [188]. - Intangible assets with definite lives are amortized over 5 to 10 years and reviewed for impairment when necessary [184]. - Recoverability of assets is measured by comparing carrying amounts to estimated undiscounted future cash flows [184]. - The company does not recognize liabilities for potential losses that are not probable or cannot be reasonably estimated [187]. - The company performs credit evaluation procedures and does not require collateral for financial instruments subject to credit risk [191].

Core Insights - Binah Capital Group has strengthened its position as a preferred partner for independent advisory firms by partnering with Bleakley Financial Group, which manages over $10 billion in assets under management (AUM) [1][2][3] Group 1: Partnership Details - The partnership allows Bleakley Financial Group to maintain its independence while benefiting from Binah Capital's scale, infrastructure, and advisor-first resources [2][3] - PKS Investments, a subsidiary of Binah Capital, provides operational efficiency, compliance expertise, and high-touch servicing tailored for dually licensed independent registered investment advisors (RIAs) [2][3] Group 2: Strategic Importance - The collaboration highlights Binah Capital's role as a strategic ally to RIAs, offering infrastructure and personalized support without compromising their independence [3] - Craig Gould, CEO of Binah Capital Group, emphasized the validation of Binah's open-architecture platform and the confidence that leading entrepreneurial firms have in Binah [3] 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 a complex financial landscape [4] - The company focuses on delivering value through partnerships, providing the necessary structure, flexibility, and innovative solutions for advisors to succeed in a competitive marketplace [4]

Core Insights - Binah Capital Group has appointed Ryan Marcus as the new Chief Business Development and Engagement Officer to enhance long-term business strategies and market presence [1][2][4] Company Overview - Binah Capital Group is a financial services enterprise that operates a network of firms aimed at empowering independent financial advisors, specializing in a hybrid-friendly model for broker-dealer aggregation [5] Leadership and Strategy - Ryan Marcus brings extensive experience in wealth management and a results-driven leadership style, previously holding senior roles at MarketCounsel [3][4] - His focus will be on developing a unified value proposition and driving sustainable growth across Binah Capital's broker-dealer network [2][4] Future Outlook - The hiring of Marcus is seen as a significant step for Binah Capital in investing in experienced talent to spearhead innovative growth strategies [4]