Core Insights - U.S. small-cap equities experienced modest gains in Q4 2025, supported by a positive macroeconomic backdrop and attractive valuations [1] - The Aristotle Small Cap Equity Fund (Class I-2) returned 1.96% in Q4 2025, slightly trailing the Russell 2000 Index's return of 2.19% [1] - Security selection positively impacted overall performance, while allocation effects detracted from it [1] Company Analysis: Perella Weinberg Partners (NASDAQ:PWP) - Perella Weinberg Partners is a boutique investment bank focusing on strategic hires to enhance deal capacity, anticipating an upturn in M&A activity [3] - The stock closed at $21.48 on February 13, 2026, with a one-month return of -1.65% and a 12-month decline of 9.86% [2] - The company has a market capitalization of $1.908 billion, with deal pipelines at near all-time highs, indicating potential for operational leverage and shareholder value generation [3] Hedge Fund Interest - Perella Weinberg Partners was held by 16 hedge fund portfolios at the end of Q3 2025, a decrease from 18 in the previous quarter [5] - While the company shows investment potential, certain AI stocks are considered to offer greater upside with less downside risk [5]

Core Insights - Perella Weinberg Partners (PWP) is a financial services firm specializing in advisory services, particularly in mergers and acquisitions and restructuring [1] - The company reported an earnings per share (EPS) of $0.14, which was below the estimated EPS of $0.17, while actual revenue reached $219.16 million, exceeding the estimated revenue of $183.21 million [2] Financial Performance - The price-to-earnings (P/E) ratio is approximately 31.07, indicating investor willingness to pay for earnings [3] - The price-to-sales ratio is about 2.83, reflecting strong revenue performance [3] - The enterprise value to sales ratio is also around 2.83, showing total valuation relative to sales [4] - The enterprise value to operating cash flow ratio is approximately 27.43, suggesting a high valuation relative to cash flow from operations [4] Financial Health - The debt-to-equity ratio is negative at -0.61, indicating more equity than debt [5] - The current ratio is approximately 4.84, demonstrating the company's ability to cover short-term liabilities with short-term assets [5] - Overall financial health indicators suggest a solid liquidity position and financial stability [6]

Core Insights - Perella Weinberg Partners reported full-year 2025 revenue of $751 million, marking a 14% decline from record 2024 results, yet it remains the third-highest revenue year in the firm's 20-year history [2] - The firm experienced a productive year in expanding M&A coverage, although results fell short of internal revenue goals due to several large transactions not completing as anticipated [3] - The firm achieved record revenues in Europe and in its Restructuring practice, gaining market share in a growing market [4] Business Performance - The firm advised on no transactions over $10 billion in 2025, contrasting with four such transactions in its record year, but is optimistic about 2026 with a recently announced $15 billion transaction [3] - The restructuring outlook for 2026 is positive, with active liability management engagements and proactive work rather than bankruptcy-driven activities [5] Talent and Growth - 2025 was a record year for recruiting and promoting senior bankers, with 23 new senior bankers added, and two partners were added early in 2026 to enhance healthcare services and U.S. software coverage [6]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenues of $751 million, a decrease of 14% from the record results of 2024, but still the third highest revenue year in its 20-year history [4] - Fourth quarter revenues were $219 million, which included $18.5 million related to closings that occurred within the first few days of 2026 [8][9] - The adjusted compensation margin for 2025 was 68%, up from 67% in 2024, reflecting strong discipline in managing compensation despite record talent investment [8] Business Line Data and Key Metrics Changes - The M&A business had a productive year in expanding coverage and expertise, although revenue ambitions were not fully met due to several large transactions not completing as hoped [4] - The Restructuring practice achieved record revenues, gaining market share in a growing market, particularly in Debtor-Side Mandates [5] - The Financing and Capital Solutions business is positioned well for future growth, supported by a strong pipeline and positive client sentiment [7] Market Data and Key Metrics Changes - In Europe, the company delivered record revenues, solidifying its position as a leading advisor in active regions [5] - The company noted that European market activity is expected to improve, driven by investments in industries such as defense and energy security [35] Company Strategy and Development Direction - The company is focused on building a differentiated platform that can perform across various market conditions, with a strong emphasis on client relationships and talent acquisition [4][7] - The firm aims to continue its growth trajectory by leveraging its strong pipeline and enhancing its service offerings, particularly in healthcare and software sectors [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong backlog and positive sentiment among clients, despite challenges faced in 2025 [4][14] - The geopolitical landscape is seen as creating opportunities rather than obstacles, with clients focusing on long-term strategies [37][38] Other Important Information - The company returned over $163 million to equity holders in 2025 through dividends, share repurchases, and unit exchanges, while maintaining a strong cash position of $256 million and no debt [9] - The firm added 23 new senior bankers in 2025, with a strong pipeline for future senior hires [6][7] Q&A Session Summary Question: Impact of large deals not completing in 2025 - Management acknowledged that several large transactions did not complete, impacting revenue, but expressed optimism for 2026 with a better starting point [11][13] Question: Performance of the Devon Park addition - The integration of Devon Park has been positive, with successful joint mandates and a strong pipeline for future business [15][16] Question: Outlook for restructuring revenues in 2026 - Management is optimistic about the restructuring business, expecting continued strong demand driven by proactive financial management among clients [25][26] Question: Recruiting outlook for 2026 - The company anticipates a return to a more normal hiring pace, with a strong pipeline of candidates but not as aggressive as in the previous year [27][29] Question: Drivers of record revenues in Europe - Management attributed the success in Europe to strategic investments and a strong team, with increasing activity levels expected in the region [33][35] Question: Capital return priorities - The company remains focused on organic investments as the top priority, while also managing share count and dividends [44][45] Question: Starting point for the compensation ratio in 2026 - The compensation ratio for Q1 2026 is expected to start at 67%, with flexibility needed in Q4 to assess final ratios [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenues of $751 million, a decrease of 14% from the record results of 2024, but still the third highest revenue year in its 20-year history [4] - Fourth quarter revenues were $219 million, which included $18.5 million related to closings that occurred within the first few days of 2026 [8][9] - The adjusted compensation margin for 2025 was 68%, up from 67% in 2024, reflecting strong discipline in managing compensation despite record talent investment [8] Business Line Data and Key Metrics Changes - The M&A business had a productive year in expanding coverage and expertise, although revenue ambitions were not fully met due to several large transactions not completing as hoped [4] - The Restructuring practice achieved record revenues, gaining market share in a growing market, particularly in Debtor-Side Mandates [5] - The Financing and Capital Solutions business is positioned well for future growth, supported by a strong pipeline and positive client sentiment [7] Market Data and Key Metrics Changes - In Europe, the company delivered record revenues, solidifying its position as a leading advisor in active regions [5] - The company noted that European market activity is expected to improve, with significant investments in sectors like defense and energy security [35] Company Strategy and Development Direction - The company is focused on building a differentiated platform that can perform across various market conditions, with a strong emphasis on client relationships and talent acquisition [4][7] - The firm aims to continue its growth trajectory by leveraging its strong pipeline and enhancing its service offerings, particularly in restructuring and financing [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong backlog and positive sentiment among clients, despite challenges faced in 2025 [4][14] - The geopolitical landscape is seen as creating opportunities rather than obstacles, with clients focusing on long-term strategies [37][38] Other Important Information - The company returned over $163 million to equity holders in 2025 through dividends, share repurchases, and unit exchanges, while maintaining a strong cash position of $256 million and no debt [9] - The firm added 23 new senior bankers in 2025, with continued momentum in talent acquisition into 2026 [6] Q&A Session Summary Question: Impact of large deals not completing in 2025 - Management acknowledged that several large transactions did not complete, impacting revenue, but expressed optimism for 2026 with a better starting point [11][13] Question: Performance of the Devon Park addition - The integration of Devon Park has been positive, with successful joint mandates and a strong pipeline, indicating relevance in client conversations [15][16] Question: Outlook for restructuring revenues in 2026 - Management is optimistic about the restructuring business, expecting continued strong demand driven by proactive financial management among clients [25][26] Question: Recruiting outlook for 2026 - The company anticipates a return to a more normal hiring pace, with a strong pipeline of candidates but not as aggressive as in the previous year [28][29] Question: Drivers of record revenues in Europe - Management attributed the success in Europe to strategic investments and a strong team, with increasing activity levels expected in the region [34][36] Question: Capital return priorities - The company remains focused on organic investments as the top priority, while also considering share buybacks and dividends as part of its capital management strategy [44][45] Question: Starting point for compensation ratio in 2026 - The compensation ratio for Q1 2026 is expected to start at 67%, with flexibility needed in Q4 to assess final adjustments [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenues of $751 million, a decrease of 14% from 2024's record results, but still the third highest revenue year in its 20-year history [4] - Fourth quarter revenues were $219 million, which included $18.5 million related to closings that occurred within the first few days of 2026 [7] - The adjusted compensation margin for 2025 was 68%, up from 67% in 2024, reflecting strong discipline in managing compensation despite record talent investment [7] Business Line Data and Key Metrics Changes - The M&A business had a productive year in expanding coverage and expertise, although revenue ambitions were not fully met due to several large transactions not completing as hoped [4] - The Restructuring practice achieved record revenues, gaining market share in a growing market, particularly in Debtor-Side Mandates [5] - The Financing and Capital Solutions business also performed well, with a strong pipeline and positive sentiment from clients [6] Market Data and Key Metrics Changes - In Europe, the company delivered record revenues, solidifying its position as a leading advisor in active regions [5] - The company noted a strong environment for its restructuring business, with no slowdown observed, particularly in liability management engagements [24] Company Strategy and Development Direction - The company is focused on building a differentiated platform that can perform across various market conditions, with a strong emphasis on client relationships and talent acquisition [4][6] - The firm is optimistic about growth opportunities in 2026, with a gross pipeline at record highs and a strong backlog [6] - The company aims to balance investments in talent with shareholder returns, maintaining a focus on profitability while strategically investing [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a better starting point with a $15 billion transaction already announced [12] - The geopolitical landscape is creating opportunities rather than obstacles, with clients seeing potential in various sectors [36] - The company is not currently seeing negative impacts from the midterm elections, indicating a stable outlook for client decision-making [35] Other Important Information - The company returned over $163 million to equity holders in 2025 through dividends, share repurchases, and unit exchanges, while retiring 6.5 million shares [8] - The firm ended the year with $256 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Impact of large deals not completing in 2025 - Management acknowledged that several large transactions did not complete, impacting results, but expressed optimism for 2026 with a better trend in large-scale M&A transactions [11][12] Question: Performance of the Devon Park addition - Management reported positive early results from the Devon Park integration, with successful joint mandates and a strong pipeline [14] Question: Outlook for restructuring revenues in 2026 - Management is optimistic about the restructuring business, expecting strong performance driven by proactive financial management among clients [24][25] Question: Recruiting outlook for the coming year - Management indicated that while 2025 was a record year for hiring, they expect a return to more normal hiring trends in 2026, with a strong pipeline of candidates [27][28] Question: Advisory revenue mix and capital return priorities - Management declined to segment advisory revenue by M&A versus non-M&A, emphasizing their problem-solving approach for clients [41] - Capital return priorities remain focused on organic investment, share count management, and dividends, with no changes anticipated [42][43]

INVESTOR PRESENTATION February 2026 Notices & Disclaimers Disclaimers This document is "as is" and is based, in part, on information obtained from other sources. Our use of such information does not imply that we have independently verified or necessarily agree with any of such information, and we have assumed and relied upon the accuracy and completeness of such information for purposes of this docum ent . Neither we nor any of our affiliates or agents, make any representation or warranty, express or impli ...

Financial Overview - Full Year - For the full year ended December 31, 2025, revenues were $750.9 million, a decrease of 14% from $878.0 million in 2024, primarily due to fewer M&A closings, partially offset by increased contributions from financing and capital solutions [4][6] - GAAP pre-tax income for 2025 was $52 million, with adjusted pre-tax income at $82 million [6] - The firm reported a GAAP diluted EPS of $0.47 and an adjusted EPS of $0.68 for the year [6] Financial Overview - Fourth Quarter - In the fourth quarter of 2025, revenues were $219.2 million, down 3% from $225.7 million in Q4 2024, attributed to a decrease in large restructuring fees [4][6] - GAAP pre-tax income for Q4 was $22 million, with adjusted pre-tax income at $29 million [6] - The GAAP diluted EPS for Q4 was $0.10, while the adjusted EPS was $0.17 [6] Talent Investment - The firm added twelve partners and eleven managing directors in 2025, with two partners added in 2026 year-to-date [6] - Strategic investments in talent over the last twelve months were the highest in the firm's history, positioning the company to capitalize on favorable M&A conditions [2] Capital Management - As of December 31, 2025, the firm had $256 million in cash and no debt, indicating a strong balance sheet [6][14] - The company returned $163 million to equity holders in 2025 through share repurchases and dividends, including a declared quarterly dividend of $0.07 per share [6][16]

Core Insights - Elon Musk is strategically blurring the lines between his companies, particularly SpaceX and XAI, to create a vertically integrated business model that leverages the strengths of each company [2][4][6] - The combined valuation of SpaceX and its associated ventures is projected to be lower than previously estimated, with a new valuation of $1.25 trillion compared to earlier expectations of $1.5 trillion [4] - Musk's approach to integrating AI capabilities into SpaceX is seen as a way to sustain growth in the AI sector, especially in light of significant investments from competitors like Google and OpenAI [6][7] Company Strategies - SpaceX is planning to launch a million satellites into low Earth orbit, which will serve as data centers and energy sources, enhancing its business model [2][9] - XAI is positioned as a digital AI company, while Tesla focuses on real-world AI applications, such as autonomous vehicles and robotics, maintaining a connection between the two [3] - The integration of XAI into SpaceX may allow for more sustainable operations without the need for an IPO, keeping the companies private and potentially allowing for better capital management [7][8] Market Dynamics - The competitive landscape for AI companies is intensifying, with major players like Google investing heavily in data centers and AI technologies [6] - Musk's strategy may involve delaying an IPO for XAI to maintain control and leverage SpaceX's cash flows for reinvestment [7][8] - The long-term vision includes establishing a robust infrastructure in space that could revolutionize energy generation and data processing capabilities [9]

Core Insights - Perella Weinberg Partners has appointed Daniel Avrutsky as a Partner to enhance its software and technology capabilities, focusing on strategic and financial advice in the software sector, particularly in human capital management, the future of work, and AI [1][3] Company Overview - Perella Weinberg Partners is a leading global independent advisory firm that provides strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [4] - The firm operates with approximately 700 employees and has offices in major cities including New York, London, Houston, Los Angeles, San Francisco, Paris, Chicago, Munich, Palm Beach, Denver, Calgary, and Greenwich [4] Industry Focus - The appointment of Daniel Avrutsky is aimed at strengthening the firm's position in the rapidly evolving enterprise software sector, particularly at the intersection of workforce technology and AI [3] - As AI continues to reshape organizational operations and competition, the insights provided by Avrutsky are expected to be crucial for clients navigating these transformative changes [3]