Binah Capital Group, Inc.(BCG) - 2025 Q2 - Quarterly Results

Q2 2025 Financial & Operational Highlights Key Performance Indicators 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 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] - The company believes its differentiated business model and execution capabilities position it well for future growth and long-term value creation[2] Financial Statements Consolidated Statement of Operations 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 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 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] - Outstanding long-term debt, net of unamortized issuance costs, was $18.6 million[6] Non-GAAP Financial Measures EBITDA Reconciliation 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][16] Company Information and Disclosures About Binah Capital Group 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] - Binah utilizes a hybrid-friendly model to support RIAs in managing both commission-based and advisory practices[8] Forward-Looking Statements 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] - Key risks that could affect future results include regulatory compliance, advisor misconduct, investment performance, and brand reputation[11] - The company advises against placing undue reliance on these statements and does not intend to update them unless required by law[12]