Perella Weinberg Partners(US:PWP)2025-11-07 21:37Revenue 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].