Core Insights - Boston Partners increased its stake in Perella Weinberg Partners by 19.6% during Q2, owning 586,419 shares valued at approximately $11.39 million [2] - Institutional investors and hedge funds currently own 41.07% of Perella Weinberg Partners' stock [3] Institutional Investment Activity - US Bancorp DE raised its stake by 5.8%, now holding 18,623 shares valued at $343,000 [3] - Ameritas Investment Partners Inc. increased its position by 20.9%, owning 6,225 shares worth $121,000 [3] - ProShare Advisors LLC lifted its position by 11.6%, now owning 12,502 shares valued at $243,000 [3] - MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings by 4.6%, owning 30,745 shares worth $566,000 [3] - Universal Beteiligungs und Servicegesellschaft mbH raised its stake by 3.7%, now holding 42,145 shares valued at $818,000 [3] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods reduced the target price from $21.00 to $19.00, maintaining a "market perform" rating [4] - Wall Street Zen downgraded the stock from "hold" to "sell" [4] - Weiss Ratings reiterated a "hold (c)" rating [4] - The consensus rating is "Hold" with a price target of $22.00 [4] Stock Performance - Perella Weinberg Partners' stock opened at $18.27, with a 52-week low of $14.12 and a high of $27.03 [5] - The company has a market cap of $1.62 billion, a P/E ratio of 27.68, and a beta of 1.63 [5] - The 50-day moving average price is $19.42, and the 200-day moving average price is $19.95 [5] Earnings Results - The company reported an EPS of $0.13, missing the consensus estimate of $0.14 by $0.01 [6] - Revenue for the quarter was $164.65 million, below the consensus estimate of $179.83 million [6] - The company had a negative return on equity of 21.55% and a net margin of 6.15% [6] Dividend Announcement - A quarterly dividend of $0.07 will be paid on December 15th, with a yield of 1.5% [7] - The dividend payout ratio is currently 42.42% [7] Company Overview - Perella Weinberg Partners is an independent investment banking firm providing strategic and financial advisory services [8][9]

Core Insights - Perella Weinberg Partners (PWP) reported Q3 CY2025 revenue of $164.6 million, falling 40.8% year-on-year and missing analyst expectations of $179.8 million by 8.4% [1][6] - The company's adjusted EPS was $0.13, which was 10.3% below the consensus estimate of $0.15 [1][6] - Management indicated that the revenue decline was primarily due to lower activity in traditional M&A, although there was growth in nontraditional areas such as liability management and capital raising [3][5] Revenue and Profit Performance - Revenue for Q3 CY2025 was $164.6 million, a 40.8% decline year-on-year, compared to analyst estimates of $179.8 million [6] - Adjusted EBITDA was $12.25 million, reflecting a 68.9% year-on-year decline with a margin of 7.4% [6] - Operating margin decreased to 5.4% from 12.9% in the same quarter last year [6] Strategic Focus and Future Outlook - Management is focused on converting a record pipeline of traditional M&A and new client engagements into deal activity [4] - The addition of 25 senior bankers, representing 18% of the partner base, is expected to drive incremental revenue in the coming year [4][7] - The acquisition of Devon Park is anticipated to enhance private capital capabilities and expand the firm's market reach [4][7] Nontraditional Services and Client Engagement - There was a noted shift towards nontraditional advisory services, including liability management and capital raising, which helped maintain client engagement during a muted M&A environment [7] - The number of active client engagements and overall deal pipeline reached all-time highs, indicating potential for future transaction revenue [7] Expense Management - The CFO highlighted ongoing expense discipline, with noncompensation expenses remaining flat quarter-over-quarter [8] - The focus for capital allocation is on strategic investments rather than share repurchases during this quarter [8]

Revenue Performance - Revenues for Q3 2025 were $164.6 million, a decrease of 41% compared to $278.2 million in Q3 2024, primarily due to reduced M&A activity and a significant fee event in the prior year[126]. - For the nine months ended September 30, 2025, revenues were $531.7 million, down 18% from $652.4 million in the same period of 2024, attributed to lower M&A activity and several significant fee events in the prior year[127]. Compensation and Benefits - Total compensation and benefits expenses for Q3 2025 were $116.3 million, a decrease of 42% from $202.3 million in Q3 2024, mainly due to lower bonus accruals[128]. - For the nine months ended September 30, 2025, total compensation and benefits expenses were $373.9 million, down 40% from $628.2 million in the same period of 2024, influenced by prior year vesting acceleration of awards[129]. Non-Compensation Expenses - Non-compensation expenses for Q3 2025 were $39.4 million, a decrease of 2% compared to $40.0 million in Q3 2024, primarily due to reduced bad debt expense[130]. - Non-compensation expenses for the nine months ended September 30, 2025, were $128.4 million, an increase of 3% from $124.1 million in the same period of 2024, driven by higher professional fees and increased technology costs[131]. Non-Operating Income and Tax - Non-operating income for Q3 2025 was $2.7 million, compared to $0.5 million in Q3 2024, reflecting interest income and a net gain from foreign exchange fluctuations[133]. - The effective tax rate for Q3 2025 was 26.1%, compared to 20.7% in Q3 2024, with a tax expense of $3.0 million[135]. - The company recognized a tax benefit of $13.9 million associated with the appreciation in share price during the nine months ended September 30, 2025, compared to $4.1 million in the prior year[137]. Client and Cash Position - Total advisory clients decreased to 56 in Q3 2025 from 97 in Q3 2024, a decline of 41%[126]. - As of September 30, 2025, the company had cash balances of $185.5 million, down from $331.6 million as of December 31, 2024[139]. - Accounts receivable, net of allowance for credit losses, were $40.7 million as of September 30, 2025, compared to $73.3 million as of December 31, 2024[140]. Net Income and Cash Flow - The company reported a net income of $34.2 million for the nine months ended September 30, 2025, a significant improvement from a net loss of $122.0 million in the same period of 2024[144]. - Total operating activities resulted in a net cash outflow of $61.2 million for the nine months ended September 30, 2025, primarily due to cash operating expense outflows[145]. - Investing activities generated a net cash inflow of $71.6 million, mainly from the maturation of investments in U.S. Treasury securities[146]. - Financing activities resulted in a net cash outflow of $162.6 million, primarily due to withholding tax payments and share repurchases[146]. Credit and Liabilities - The company has a Revolving Credit Facility with an available line of credit of $50.0 million, with no outstanding balance as of September 30, 2025[141]. - As of September 30, 2025, the company had $60.2 million remaining of the $200.0 million authorized for share repurchases[150]. - The company had an amount due of $86.1 million pursuant to the tax receivable agreement as of September 30, 2025[153]. - Operating lease liabilities amounted to $184.8 million as of September 30, 2025[154].

Core Insights - Perella Weinberg Partners reported disappointing third-quarter 2025 financial results, with shares falling 8% after the announcement [1][2] - Revenue for the quarter was $164.6 million, significantly lower than the $179.8 million forecasted by analysts, indicating a decline likely due to fewer completed M&A deals [2] - Adjusted earnings per share were $0.13, below the consensus estimate of $0.15, reflecting a challenging quarter for the firm [2] Market Reaction - The shares closed at $18.02, down 4.5% from the previous close, and have experienced volatility with 19 moves greater than 5% over the past year [3][4] - The market's reaction suggests that while the news is significant, it does not fundamentally alter the perception of the business [4] Year-to-Date Performance - Perella Weinberg's stock is down 23.5% since the beginning of the year and is trading 31.8% below its 52-week high of $26.41 from January 2025 [6]

Group 1 - Daniel Mellado is an economist with a Master's Degree in Statistics, experienced in analyzing agricultural commodities and managing trading and data analysis teams [1] - The trading team under his management invested in bonds, equities, and ETFs, showcasing a diverse investment strategy [1] - Mellado has transitioned to freelance work, focusing on developing and implementing algorithmic trading strategies [1] Group 2 - The analysis and valuation provided by Mellado will cover sectors including commodities, banking, technology, and pharmaceuticals [1] - Recommendations for buying and selling will be based on financial statements, regulations, and macroeconomic variables [1]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record highs compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with adjusted non-compensation expenses of $37 million for the quarter, down from last year [7] - The adjusted tax rate for the first nine months was 4%, with a potential adjusted tax rate of 32% excluding stock-based compensation benefits [7][8] Business Line Data and Key Metrics Changes - The number of active engagements and overall pipeline reached record levels, with the European business up over 50% from last year [4] - The company has made significant investments, adding 25 senior bankers across various sectors and regions, representing 18% of the total partner base [5] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity and a substantial exit backlog building for 2026 [5] Company Strategy and Development Direction - The company is focused on scaling its operations and expanding client coverage in strategically active industries for both corporates and private equity [6] - The acquisition of Devon Park is expected to significantly enhance the company's capabilities and revenue potential, providing new capital relationships and sponsor clients [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scaling strategy and anticipated significant revenue growth from recent investments [6] - The company is seeing steady activity in its liability management business, with expectations for continued growth in 2026 [25] Other Important Information - The company returned an additional $12 million to equity holders in the third quarter, with year-to-date returns exceeding $157 million [8] - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management noted that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected in the coming months [12][14] Question: Recruiting environment and contributions from new hires - Of the 25 senior bankers added, nine are already contributing to revenue, with expectations for the remaining hires to add value in 2026 [15][16] Question: Restructuring activity and client engagement levels - The company is experiencing steady activity in its liability management business, with expectations for it to be a higher contributing business this year compared to last [25] Question: Contribution from the Devon Park acquisition - The Devon Park business is expected to be a significant contributor to overall revenue, similar to other business groups within the company [26][28]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record highs compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with non-compensation expenses totaling $37 million for the quarter, down from last year [7] - The company returned an additional $12 million to equity holders in the third quarter, with year-to-date returns exceeding $157 million [8] Business Line Data and Key Metrics Changes - The European business saw an increase of over 50% from the previous year, with a record number of active engagements and overall pipeline [4] - The company added 25 senior bankers across sectors and regions, representing 18% of the total partner base, which is expected to drive future revenue growth [5] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity as sponsors seek creative solutions for liquidity [5] Company Strategy and Development Direction - The company is focused on scaling its operations and expanding client coverage in strategically active industries, believing that these investments will lead to significant revenue growth [6] - The acquisition of Devon Park is seen as a game changer, providing new capabilities and expanding the addressable market [5][17] Management's Comments on Operating Environment and Future Outlook - Management noted a steady pace of activity in the liability management business, with expectations for continued growth in 2026 [25] - The company is optimistic about the contributions from the Devon Park acquisition and expects it to significantly impact revenue once fully integrated [27][28] Other Important Information - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management indicated that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected in the coming months [12][14] Question: Recruiting environment and future expectations - Of the 25 senior bankers added, nine are already contributing, with expectations for further contributions in 2026 [15][16] Question: Restructuring activity and client engagement - The company is experiencing steady activity in its liability management business, with no systemic issues observed despite some high-profile bankruptcies [25] Question: Contribution from Devon Park acquisition - The Devon Park business is expected to be a significant contributor to overall revenue, similar to other business lines [26][27]

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record figures compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with adjusted non-compensation expenses of $37 million for the quarter, down from last year [8] - The adjusted tax rate for the first nine months was 4%, with a potential adjusted tax rate of 32% excluding stock-based compensation benefits [8][9] Business Line Data and Key Metrics Changes - The European business saw an increase of over 50% from the previous year, with a record number of active engagements and overall pipeline [4] - The company added 25 senior bankers across sectors and regions, representing 18% of the total partner base, which is expected to drive future revenue growth [5][6] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity and a substantial exit backlog building for 2026 [5] - The liability management and capital-raising businesses are showing good growth, contributing positively to the overall pipeline [14] Company Strategy and Development Direction - The company is focused on scaling its operations and has made significant investments to expand client coverage and capabilities in strategically active industries [6] - The acquisition of Devon Park is seen as a game changer, providing new capabilities and expanding the addressable market and revenue potential [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scaling strategy and the potential for significant revenue growth, particularly with the new capabilities from the Devon Park acquisition [6][19] - The company is optimistic about the setup for 2026, with expectations of continued growth in the liability management business despite some isolated issues in the credit markets [26][27] Other Important Information - The company returned an additional $12 million to equity holders in the third quarter, with a year-to-date total of over $157 million returned through various means [9] - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [9] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management noted that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected [13][14] Question: Recruiting environment and future contributions - Of the 25 senior bankers added, nine are already contributing to revenue, with expectations for the new hires to ramp up in 2026 [17][18] Question: Restructuring activity and client engagement - The company is experiencing steady activity in its liability management business, with expectations for it to be a higher contributing business this year compared to last [26][27] Question: Contribution from the Devon Park acquisition - Management expects the Devon Park business to be a significant contributor to overall revenue, similar to other groups within the company [28][30]

Financial Performance - Q3 2025 Revenue was $164.6 million, a decrease of 41% compared to $278.2 million in Q3 2024[41] - YTD 2025 Revenue reached $531.7 million, down 18% from $652.4 million in YTD 2024[41] - LTM Q3 2025 Revenue totaled $757 million, a 12% decrease year-over-year[27] - Q3 2025 Pre-Tax Income was $20 million, compared to $51.6 million in Q3 2024[27, 42] - YTD 2025 Pre-Tax Income was $53 million, compared to $96.7 million in YTD 2024[27, 42] - Q3 2025 Earnings per Share (EPS) was $0.13[27] Capital Management - The company had $186 million in cash with no debt as of September 30, 2025[27] - Approximately $690 million has been returned to equity holders[35] - 6.4 million shares equivalents were retired YTD 2025, at an average price of $21.66[36] Business Overview - The firm has 76 advisory partners globally[12, 18] - The firm has approximately 700 employees[12] - Partners and employees own > 30% of the firm[32]

Financial Overview - For Q3 2025, revenues were $164.6 million, a decrease of 41% from $278.2 million in Q3 2024, primarily due to fewer M&A closings [4][6] - For the nine months ended September 30, 2025, revenues totaled $531.7 million, down 18% from $652.4 million in the same period of 2024 [4][6] Expenses - Total GAAP compensation and benefits for Q3 2025 were $116.3 million, compared to $202.3 million in Q3 2024, reflecting lower bonus accruals due to decreased revenues [5][8] - For the nine months ended September 30, 2025, total GAAP compensation and benefits were $373.9 million, down from $628.2 million in the prior year, influenced by a one-time accelerated vesting in 2024 [10] - GAAP non-compensation expenses for Q3 2025 were $39.4 million, slightly down from $40.0 million in Q3 2024, driven by lower general and administrative expenses [9] Income and Earnings - Adjusted pre-tax income for Q3 2025 was $20 million, with GAAP pre-tax income at $12 million [6] - Adjusted EPS for Q3 2025 was $0.13, while GAAP diluted EPS was $0.08 [6] - For the nine months ended September 30, 2025, adjusted pre-tax income was $53 million, with GAAP pre-tax income at $30 million [6] Talent Investment - The company added 25 senior bankers and closed the acquisition of Devon Park Advisors, indicating a strategic investment in talent to enhance advisory capabilities [2] Capital Management - As of September 30, 2025, the company had $186 million in cash and no debt, with a strong balance sheet [6][15] - The company returned over $157 million to equity holders through share repurchases and dividends [16][17]