Siebert(US:SIEB)2025-05-13 20:35Financial 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]