en & pany (US:COHN)2025-11-04 13:08Financial Performance - Third Quarter 2025 revenue was $84.2 million, an increase from $59.9 million in the previous quarter and $31.7 million in the same quarter last year[6] - Net income attributable to Cohen & Company Inc. for Q3 2025 was $4.6 million, or $2.58 per diluted share, compared to $1.4 million, or $0.81 per diluted share in Q2 2025[6] - Adjusted pre-tax income for Q3 2025 was $16.4 million, or $2.71 per diluted share, up from $5.5 million, or $0.94 per diluted share in Q2 2025[6] - Total revenues for the three months ended September 30, 2025, were $84.213 million, a significant increase from $31.695 million in the same period last year, representing a growth of 165%[15] - Operating income for the three months ended September 30, 2025, was $21.760 million, compared to $7.222 million in the same quarter last year, reflecting a growth of 201%[15] - Net income attributable to Cohen & Company Inc. for the three months ended September 30, 2025, was $4.593 million, up from $2.150 million in the same period last year, an increase of 114%[15] - Basic earnings per share for the three months ended September 30, 2025, was $2.64, compared to $1.32 in the same quarter last year, representing a growth of 100%[15] - Adjusted pre-tax income for the three months ended September 30, 2025, was $16.375 million, compared to $7.738 million in the same quarter last year, an increase of 111%[16] - Fully diluted net income per share for the three months ended September 30, 2025, was $2.58, compared to $1.31 in the same period last year, reflecting a growth of 97%[16] Revenue Breakdown - New issue and advisory revenue reached $228.0 million in Q3 2025, a significant increase from $37.4 million in Q2 2025 and $21.4 million in Q3 2024[6] - Net trading revenue was $13.6 million in Q3 2025, up 26% from the previous quarter and up $4.7 million from the same quarter last year[5] - Net trading revenues reached $13.560 million, up from $8.816 million year-over-year, indicating a growth of 54%[15] - New issue and advisory revenues surged to $228.008 million, compared to $22.459 million in the prior year, marking an increase of 914%[15] Expenses and Liabilities - Compensation and benefits expense increased by $9.4 million from the prior quarter and $35.8 million from the prior year quarter, totaling $53.7 million in Q3 2025[9] - Total operating expenses increased to $62.453 million from $24.473 million year-over-year, a rise of 155%[15] - The company reported a net loss from equity method affiliates of $12.663 million for the three months ended September 30, 2025, compared to a loss of $683 thousand in the same period last year[15] - The loss from equity method affiliates was $12.7 million in Q3 2025, primarily due to mark-to-market losses on SPAC investments[9] Equity and Assets - Total equity as of September 30, 2025, was $101.1 million, an increase from $90.3 million as of December 31, 2024[9] - Total assets decreased to $773,854 million as of September 30, 2025, from $971,149 million on December 31, 2024, representing a decline of approximately 20.3%[19] - Total liabilities decreased to $672,800 million, down from $880,866 million, indicating a reduction of about 23.6%[19] - Total stockholders' equity increased to $47,840 million, compared to $41,728 million, reflecting an increase of approximately 14.5%[19] Cash Flow and Investments - Cash and cash equivalents rose significantly to $54,688 million from $19,590 million, marking an increase of approximately 178%[19] - Receivables under resale agreements decreased to $414,710 million from $668,259 million, a decline of about 38%[19] - Accrued compensation increased dramatically to $85,988 million from $17,770 million, representing an increase of approximately 384%[19] - The company reported a decrease in investments under fair value from $64,361 million to $35,262 million, a decline of about 45.2%[19] Future Outlook - The company expects to generate more than $50 million in revenue for Q4 2025 and over $220 million for the full year 2025[5] Adjusted Pre-Tax Income - Adjusted pre-tax income (loss) is presented as a useful measure of performance, excluding income tax expense and including net income attributable to convertible non-controlling interest[20] - The company emphasizes that adjusted pre-tax income (loss) should not be viewed as a substitute for net income prepared in accordance with GAAP[21] - The company continues to utilize adjusted pre-tax income (loss) to evaluate enterprise operations, indicating a focus on performance metrics beyond GAAP measures[21]