Core Insights - Siebert Financial Corp. has announced a strategic partnership with FusionIQ to enhance its digital offerings and streamline investment workflows for its clients [1][2][3] - The partnership aims to provide modular digital solutions, including hybrid advice, self-directed investing, and multi-custodian integration, aligning with Siebert's strategy to prioritize technology investment [2][3] - The collaboration is seen as a pivotal step in positioning Siebert as a digital-first partner for the next generation of investors, emphasizing the importance of personalized, tech-driven experiences [3] Company Overview - Siebert Financial Corp. is a diversified financial services company and has been a member of the NYSE since 1967, known for its historical significance in promoting gender equality in finance [4] - The company operates through various subsidiaries, offering a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [5]

Core Viewpoint - Siebert Financial Corp. has received SEC approval for its shelf registration statement, allowing the company to raise up to $100 million through various securities sales, enhancing its financial flexibility and strategic initiatives [1][2]. Group 1: Financial Strategy - The proceeds from the registration will be utilized for strategic initiatives, including potential acquisitions, purchasing digital assets like Bitcoin, Ethereum, and Solana, and advancing technology across service lines, particularly in AI [2][3]. - The CEO emphasized that this registration is a foundational step towards scaling the company's technology strategy, enabling decisive action in key areas such as AI and digital assets [3]. Group 2: Company Background - Siebert Financial Corp. is a diversified financial services company, a member of the NYSE since 1967, and was founded by Muriel Siebert, the first woman to own a seat on the NYSE [4]. - The company operates through various subsidiaries, providing a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [5].

Core Insights - Gebbia Media, a subsidiary of Siebert Financial Corp., has acquired Big Machine Rock, enhancing its position in the music and media industries with a focus on an artist-first platform [1][4] - The acquisition aims to empower artists through investment in robust catalogs and cross-platform expansion, aligning with Gebbia Media's mission [2][3] - Big Machine Rock's roster includes notable artists such as Daughtry and Sammy Hagar, and the label will continue to prioritize artist development and immersive storytelling under Gebbia Media's leadership [3][7] Company Strategy - The acquisition is part of Siebert's strategy to innovate at the intersection of finance and culture, providing resources and stability to enhance long-term growth and cultural impact [4][9] - Gebbia Media is focused on developing and promoting music and sports talent, as well as creating branded content and advertising strategies across various media platforms [8][9] - The company aims to redefine audience engagement by merging compelling content with financial infrastructure, unlocking new monetization opportunities [9] Leadership and Operations - Scott Borchetta, founder of Big Machine Label Group, will oversee operations and join Siebert Financial's advisory board, bringing significant experience in guiding top-selling artists [6] - The all-female team at Big Machine Rock has achieved multiple No. 1 singles and Platinum-certified records, showcasing the label's innovative approach and strong artist base [2][3] - Artists signed to Big Machine Rock will benefit from expanded resources and promotional capabilities, enhancing their global reach [7]

Core Points - Siebert Financial Corp. has been included in the 2025 Preliminary Russell U.S. Indexes reconstitution, effective after U.S. market closing on May 23, 2025, with the new indexes taking effect after market close on June 27, 2025 [1] - The inclusion in the Russell Index is seen as a recognition of Siebert's strategic progress and innovation aimed at building lasting value for the next generation of investors [2] - As of June 2024, approximately $10.6 trillion in assets are benchmarked against the Russell U.S. Indexes, which are maintained by FTSE Russell, a leading global index provider [2] Company Overview - Siebert Financial Corp. is a diversified financial services company and has been a member of the NYSE since 1967, when Muriel Siebert became the first woman to own a seat on the NYSE [3] - The company operates through various subsidiaries, providing a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, insurance offerings, and corporate stock plan administration [4] - Siebert has a history of valuing its clients, shareholders, and employees for over 55 years [4] Industry Context - FTSE Russell is a global leader in index provision, calculating thousands of indexes that measure and benchmark markets and asset classes in over 70 countries, covering 98% of the investable market globally [5] - Approximately $18.1 trillion is benchmarked to FTSE Russell indexes, which are widely used by institutional and retail investors for performance benchmarking and investment product creation [5]

Financial Performance - Total revenue for Q1 2025 was $28.92 million, a 41.5% increase from $20.46 million in Q1 2024[17] - Net income available to common stockholders for Q1 2025 was $8.66 million, compared to $3.69 million in Q1 2024, representing a 134.5% increase[17] - Operating income for Q1 2025 was $10.50 million, up from $5.10 million in Q1 2024, indicating a 105.5% increase[17] - Basic and diluted net income per share for Q1 2025 was $0.22, compared to $0.09 in Q1 2024, reflecting a 144.4% increase[17] - Net income for the three months ended March 31, 2025, was $8,661,000, compared to $3,687,000 for the same period in 2024, representing a significant increase of 134%[20] - The total revenue for the three months ended March 31, 2025, was $28.9 million, an increase of 41.5% compared to $20.5 million for the same period in 2024[83] - Net income for the three months ended March 31, 2025, was $8,661,000, compared to $3,687,000 for the same period in 2024, representing a 134% increase[103] - Basic earnings per share increased to $0.22 for the three months ended March 31, 2025, up from $0.09 in 2024, reflecting a 144% growth[103] Assets and Liabilities - Total current assets increased to $504.89 million as of March 31, 2025, from $491.54 million as of December 31, 2024, reflecting a growth of 2.7%[16] - Total liabilities rose to $439.92 million as of March 31, 2025, compared to $434.58 million as of December 31, 2024, marking an increase of 1.0%[16] - Cash and cash equivalents decreased to $25.71 million as of March 31, 2025, from $32.63 million as of December 31, 2024, a decline of 21.3%[16] - As of March 31, 2025, total receivables from and deposits with broker-dealers and clearing organizations increased to $10,370,000, up from $8,147,000 as of December 31, 2024, representing a growth of approximately 27.3%[45] - Total payables to broker-dealers and clearing organizations rose to $1,291,000 as of March 31, 2025, compared to $444,000 as of December 31, 2024, indicating a significant increase of approximately 190.3%[45] - The company held U.S. government securities valued at $61,640,000 as of March 31, 2025, down from $88,844,000 as of December 31, 2024, reflecting a decrease of approximately 30.6%[52] - As of March 31, 2025, total financial assets not measured at fair value amounted to $434,035,000, compared to $403,363,000 as of December 31, 2024, reflecting an increase of approximately 7.6%[55] - The total financial liabilities not measured at fair value were $429,214,000 as of March 31, 2025, slightly up from $424,454,000 as of December 31, 2024, indicating a growth of about 1.8%[55] Cash Flow and Operating Activities - Net cash used in operating activities was $(34,461,000) for Q1 2025, an improvement from $(46,966,000) in Q1 2024[20] - Cash and cash equivalents, and cash segregated for regulatory purposes at the end of the period totaled $132,792,000, up from $120,589,000 at the end of Q1 2024[20] - The company reported a decrease in payables to customers, which amounted to $(20,207,000) in Q1 2025, compared to $(41,438,000) in Q1 2024[20] - Cash used in operating activities for Q1 2025 decreased by $12.5 million compared to the prior year, primarily driven by changes in securities loaned and borrowed[191] Employee Compensation and Expenses - Employee compensation and benefits expenses rose to $11.92 million in Q1 2025, up from $10.38 million in Q1 2024, an increase of 14.8%[17] - The company incurred approximately $4.1 million in costs for technology vendors related to its Retail Platform as of March 31, 2025[115] - The company recognized stock-based compensation expense of $554,000 for the three months ended March 31, 2025, compared to $85,000 in 2024, indicating a significant increase in compensation costs[125] - Other general and administrative expenses for Q1 2025 were $1,509,000, an increase of $480,000 (46.5%) from the prior year, primarily due to fees related to expansion into new businesses[166] - Data processing expenses for Q1 2025 were $949,000, up $198,000 (26.3%) from the prior year, driven by increased market activities[166] - Professional fees for Q1 2025 were $1,359,000, an increase of $322,000 (31.1%) from the prior year, mainly due to the establishment of the investment advisory committee[167] - Depreciation and amortization expenses for Q1 2025 were $415,000, an increase of $160,000 (62.5%) from the prior year, attributed to the expansion of technology infrastructure[168] Investments and Securities - The company recorded an unrealized gain of approximately $9.2 million related to the Investment in Equity Security for the three months ended March 31, 2025[54] - The market value of the Investment in Equity Security declined significantly post-March 31, 2025, with a closing share price of $25.24 on May 7, 2025, compared to $83.51 per share as of March 31, 2025[54] - The company’s total securities owned at fair value amounted to $29,364,000 as of March 31, 2025, compared to $21,385,000 as of December 31, 2024, indicating an increase of approximately 37.3%[50] - The company’s stock borrow/stock loan increased by 18% to $4.8 million compared to the prior-year quarter, indicating growth in securities lending[146] Regulatory and Compliance - The company did not adopt any new accounting standards during the three months ended March 31, 2025[44] - The company expects considerable changes to its income tax footnote due to the upcoming ASU 2023-09 effective for annual periods beginning after December 15, 2024[42] - The provision for income taxes for Q1 2025 was $1,835,000, an increase of $420,000 (29.8%) from the prior year, due to higher pre-tax earnings[170] - The FASB issued ASU 2023-09, effective for annual periods beginning after December 15, 2024, aimed at enhancing income tax disclosures, with expected significant changes to the income tax footnote[199] - ASU 2024-03, effective for annual periods beginning after December 15, 2025, will require greater disaggregation of expense categories, anticipated to necessitate significant changes to expense disclosures[200] Legal and Risk Management - The company is involved in various legal proceedings, but it believes the ultimate resolution will not have a material adverse impact on its financial position[213] - There were no material losses for unsettled customer transactions in the last five years, indicating effective risk management in customer account activities[207] - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[210] - No changes in internal control over financial reporting materially affected the company during the most recently completed fiscal quarter[211]

Core Insights - Siebert Financial Corp. has appointed Fredrick Scuteri as Chief Operating Officer of its broker-dealer subsidiary, Muriel Siebert & Co., LLC, to enhance operational functions and modernize trading infrastructure as the firm scales its brokerage services [1][4]. Group 1: Leadership and Experience - Fredrick Scuteri brings nearly 30 years of experience in institutional trading, asset management, and broker-dealer operations, previously serving as COO of DriveWealth Institutional and holding significant roles at AQR Capital Management [2][6]. - Scuteri is a FINRA-registered Financial Operations Principal with degrees in Finance and an MBA, along with recent certifications in Generative AI and Advanced Prompt Engineering [6]. Group 2: Strategic Focus - Scuteri aims to streamline workflows, increase transparency, and integrate automation and AI into operations to future-proof the business while maintaining a commitment to client service and regulatory excellence [4][5]. - Under Scuteri's leadership, Siebert plans to expand operational capabilities and invest in infrastructure to support growth across both institutional and retail channels [4][5]. Group 3: Company Background - Siebert Financial Corp. is a diversified financial services company and has been a member of the NYSE since 1967, known for its legacy of resilience and reinvention [7][8]. - The company operates through various subsidiaries, providing a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [8].

Core Insights - Siebert Financial Corp has appointed Stefano Marrone as Chief Marketing Officer to enhance its marketing strategy across all divisions, focusing on financial literacy and media production [1][4][5] Group 1: Leadership and Strategy - Marrone previously led a successful rebranding initiative for Siebert Financial in 2024, which included a modernized website that significantly improved brand growth and client engagement [3] - His extensive experience includes collaborations with major financial institutions like J.P. Morgan and tech companies such as Google and Meta, showcasing his capability in strategic marketing [3][4] - The CEO of Siebert Financial, John J Gebbia, expressed confidence in Marrone's vision to engage younger investors, which is crucial for maintaining a competitive edge in the market [4][5] Group 2: Marketing Focus - Marrone's role will emphasize creative campaigns, AI-driven marketing, and brand development, aiming to create innovative content solutions that enhance financial literacy and client engagement [4][5] - The integration of media production and financial education through Gebbia Media is highlighted as a unique advantage for Siebert Financial, allowing for dynamic content creation [5][6] Group 3: Commitment to Inclusivity - Siebert.Valor's mission to support veterans and military families will remain a priority, with Marrone tasked to ensure effective messaging and educational resources for these audiences [5][6] - The focus on making financial education accessible and engaging for all age groups aligns with the company's broader commitment to inclusivity [5][6] Group 4: Company Background - Siebert Financial Corp has been a diversified financial services company since 1967, known for its commitment to clients, shareholders, and employees [8][9] - The company operates through various subsidiaries, providing a comprehensive range of financial services, including brokerage, investment advisory, and media production [9][10]

Strategic Initiatives - Siebert Financial Corp. acquired a media and entertainment company as part of its strategic initiatives to diversify and create synergies between its enterprises[17]. - MSCO received approval in May 2022 to expand its clearing services in the U.S., enhancing its core competencies and diversifying its business[22]. - The Company established an Investment Banking and Capital Markets division in Q1 2025, focusing on middle-market clients and hiring experienced professionals for this initiative[41]. - A new advisory committee was established in 2024, including prominent leaders from various industries to provide strategic guidance for growth[51]. - The Company is undertaking a strategic rebranding initiative to enhance its digital presence and offer innovative financial management solutions tailored to diverse clients[53]. - The company is considering strategic acquisitions as part of its growth strategy, which may involve risks related to costs and regulatory approvals[107]. Technology and Innovation - Siebert AdvisorNXT utilizes proprietary robo-advisory technology based on Modern Portfolio Theory to provide automated wealth management solutions[42]. - The Company is developing an enhanced equity management solution to capture new market opportunities amid industry consolidation[31]. - Significant investments in technology include the development of a mobile trading application and upgrades to operational infrastructure[47]. - The company plans to enhance existing products and develop new technologies to meet the evolving needs of clients[106]. - The company is focused on expanding into new markets and demographics through ongoing technology investments[165]. - The company utilizes the NIST Cybersecurity Framework to manage cybersecurity risks and enhance its security posture[139]. Regulatory Compliance - The company is registered as a broker-dealer in 50 states, the District of Columbia, and Puerto Rico, complying with extensive federal and state regulations[55]. - The Dodd-Frank Act has led to significant changes in regulatory expectations, particularly in compliance, risk management, and corporate governance[57]. - Regulation Best Interest requires broker-dealers to act in the best interest of retail customers, impacting the company's sales practices and compliance costs[58][59]. - The company must comply with numerous laws protecting consumer financial information, including the Gramm-Leach-Bliley Act and the California Consumer Protection Act[73]. - The company is subject to extensive government regulation, including compliance with SEC, FINRA, and other regulatory bodies, which could impact operational costs and business conduct[84]. - Regulatory changes may lead to increased costs and limitations on business operations, potentially affecting profitability and capital returns to stockholders[79][82]. Financial Performance - In 2024, earnings per share were $0.33, compared to $0.21 in 2023, reflecting a significant increase[158]. - Net revenues for 2024 were $83.9 million, up from $71.5 million in 2023, indicating a growth of approximately 17%[158]. - Net income rose to $13.3 million in 2024, compared to $7.8 million in 2023, representing an increase of about 70%[158]. - Retail customer net worth increased by 13% to $18.0 billion compared to 2023[162]. - Revenue related to stock borrow/stock loan increased by 19% to $19.2 million compared to 2023[162]. - Revenue from commissions and fees rose by 32% to $9.6 million compared to 2023[162]. Risk Management - The company faces significant competition from various brokerage firms, including zero commission firms, which impacts its market position[54]. - The company faces risks from customer credit defaults, which could lead to significant credit losses[113]. - The brokerage industry is experiencing intense competition, with price wars and lower commission rates impacting revenue[130]. - Economic slowdowns and market volatility could adversely affect Siebert's revenues and operating results[129]. - Interest rate changes are critical to profitability, with lower rates potentially compressing net interest margins[127]. - The company identified risks related to cybersecurity breaches, which could lead to significant remediation costs, legal liabilities, and reputational damage[96]. Operational Insights - The company has 10 branch offices across the U.S. and serves clients globally, with a focus on providing exceptional personal service[19]. - The company reported a material weakness in internal controls over financial reporting, specifically in IT controls and user access, which was remediated by December 31, 2024[105]. - The company relies heavily on information processing and communication systems, and any significant failure could disrupt operations and affect customer obligations[89]. - The company faces risks from third-party platforms for data technology, which are critical for operations and may pose security risks[90]. - The company is subject to net capital requirements that could limit its operational capabilities and growth strategies[88]. Capital and Investments - The company has purchased an additional $50 million in account protection above SIPC coverage, which provides up to $500,000 protection per customer[61]. - The company is subject to minimum net capital requirements under the SEC Uniform Net Capital Rule, ensuring sufficient liquid resources to meet financial obligations[70][71]. - The net capital infusion from Kakaopay was approximately $14.8 million, enhancing the company's regulatory capital[191]. - The company entered into a $20 million revolving credit facility with East West Bank to support strategic initiatives[193]. - Total liabilities decreased to $434,576,000 in 2024, down by $296,515,000 or 40.5% from the previous year[187]. Employee and Culture - As of March 11, 2025, the company had 146 employees, focusing on attracting and retaining skilled professionals across various specialties[75]. - The company emphasizes a culture of service and offers competitive compensation and benefits to attract and retain talent[76]. - Employee compensation and benefits for 2024 were $43,999,000, up by $12,063,000 or 37.9% compared to the prior year[175].

Core Viewpoint - General (Ret.) Laura J. Richardson has joined the Advisory Board of Siebert Financial Corp, enhancing the company's commitment to providing financial services for veterans, military personnel, and underserved communities [1][5]. Company Overview - Siebert Financial Corp is a diversified financial services company that has been a member of the NYSE since 1967, founded by Muriel Siebert, the first woman to own a seat on the NYSE [6][7]. - The company operates through various subsidiaries, offering a full range of brokerage and financial advisory services, including securities brokerage, investment advisory, and insurance offerings [7]. Leadership and Strategic Direction - General Richardson's extensive military background and leadership experience are expected to significantly benefit Siebert, aligning with the company's mission to deliver innovative financial solutions [2][5]. - CEO John J. Gebbia emphasized that Richardson's national security and diplomacy experience will help expand services in military and veteran affairs, international markets, and women's financial initiatives [2][5]. Commitment to Military and Veteran Community - Kaj Larsen, Head of Military Investment at Siebert, highlighted that Richardson's appointment is a strong statement of the company's commitment to serving veterans and active-duty personnel, addressing their unique financial needs [5]. - General Richardson expressed her intention to work with Siebert to enhance financial opportunities for veterans, women, and those seeking financial independence [4]. Advisory Board Composition - General Richardson joins a prestigious Advisory Board that includes notable figures from finance, sports, and entertainment, such as international recording artist Akon and NFL Pro Brandon Marshall [4].

Core Viewpoint - Siebert Financial Corp. has launched Siebert Investment Banking to cater to middle-market clients often overlooked by larger financial institutions, led by experienced professionals Kimberly Boulmetis and Ajay Asija [1][3]. Group 1: Company Expansion - Siebert Investment Banking will focus on tailored solutions for underserved companies in financial services, including FinTech, depository, and specialty finance, with plans to expand into blockchain and digital assets [2]. - The new division will leverage Siebert's extensive retail distribution network in addition to existing institutional channels, aiming to provide certainty of execution in equity and debt financings [2]. Group 2: Leadership and Expertise - Ajay Asija brings over 25 years of investment banking experience, having advised on over $90 billion in transactions at firms like Lehman Brothers and J.P. Morgan, and recently served as CFO of BM Technologies [4]. - Kimberly Boulmetis, with over 25 years in debt capital markets, previously led U.S. Financial Institutions for the DCM Group at MUFG, focusing on innovative strategic and financing solutions for financial institutions [5][6]. Group 3: Strategic Vision - CEO John J. Gebbia Sr. highlighted that investment banking is a natural extension of Siebert's commitment to providing best-in-class financial solutions, with Asija and Boulmetis' expertise crucial for developing a strong platform [3]. - Boulmetis expressed excitement about joining Siebert, emphasizing the firm's commitment to enhancing client value through its current platform and future developments [7].