Siebert(US:SIEB)2025-11-12 22:16Financial Performance - Total revenue for the three months ended September 30, 2025, was $26.85 million, a 19% increase compared to $22.56 million for the same period in 2024[20] - Net income available to common stockholders for the three months ended September 30, 2025, was $1.62 million, down 58% from $3.83 million in the same period last year[20] - Operating income for the nine months ended September 30, 2025, was $6.85 million, down 56% from $15.52 million in the same period of 2024[20] - As of September 30, 2025, Siebert Financial Corp. reported a net income of $5,566,000, compared to $11,568,000 for the same period in 2024, indicating a decrease of approximately 52.1%[24] - Total revenue for the nine months ended September 30, 2025, was $70,640,000, compared to $63,879,000 for the same period in 2024, reflecting an increase of 10.8%[93] - Total revenues from contracts with customers for the three months ended September 30, 2025, were $16,225,000, an increase from $12,761,000 in the same period of 2024, representing a growth of 27.5%[93] - The company reported total revenue outside the scope of Topic 606 for the nine months ended September 30, 2025, was $30,668,000, compared to $28,867,000 in 2024, marking an increase of 6.2%[93] Assets and Liabilities - Total assets increased to $607.46 million as of September 30, 2025, up from $519.67 million at December 31, 2024, representing a growth of 17%[18] - Total liabilities rose to $515.60 million as of September 30, 2025, up from $434.58 million at December 31, 2024, indicating a growth of 19%[19] - The company reported total stockholders' equity of $90.90 million as of September 30, 2025, an increase of 8% from $84.09 million at December 31, 2024[19] - Cash and cash equivalents decreased to $19.65 million as of September 30, 2025, from $32.63 million at December 31, 2024, a decline of 40%[18] - Securities borrowed increased significantly to $253.30 million as of September 30, 2025, compared to $139.04 million at December 31, 2024, marking an increase of 82%[18] - Total financial assets not measured at fair value amounted to $523,625,000, with cash and cash equivalents at $19,649,000[58] - Total financial liabilities not measured at fair value were $500,672,000 as of September 30, 2025[58] Expenses - Employee compensation and benefits expenses rose to $16.36 million for the three months ended September 30, 2025, compared to $11.89 million in the prior year, reflecting a 37% increase[20] - The company recognized self-insured employee health claims expenses of $83,000 for the three months ended September 30, 2025, compared to $229,000 in 2024, a decrease of 63.8%[130] - Share-based compensation expenses rose to $1,245,000 for the nine months ended September 30, 2025, compared to $460,000 in 2024, representing an increase of about 170.2%[24] - Total depreciation expense for property, office facilities, and equipment was $255,000 for the three months ended September 30, 2025, compared to $222,000 for the same period in 2024[60] - Operating lease costs for the three months ended September 30, 2025, were $290,000, an increase from $236,000 in the same period of 2024, representing a 22.9% increase[70] Investments and Acquisitions - The company made an investment of $2,000,000 in FusionIQ during the nine months ended September 30, 2025, as part of its strategic initiatives[24] - Siebert Financial Corp. acquired BMLG assets for $441,000, contributing to its growth strategy in the financial services sector[24] - The company acquired music masters and associated copyrights to expand its music business line, with the entire cost allocated to the recorded masters intangible asset[48] - The company completed the acquisition of the remaining 32% of RISE for $3.7 million, making it a wholly-owned subsidiary[154] Cash Flow and Capital - The company reported a net cash provided by operating activities of $9,840,000 for the nine months ended September 30, 2025, contrasting with a net cash used of $25,409,000 in the same period of 2024[24] - The company had cash and securities deposits of $187.3 million in special reserve accounts as of September 30, 2025, exceeding the deposit requirement of $170.6 million by $16.7 million[103] - The net capital infusion from Kakaopay in 2023 was approximately $14.8 million, enhancing regulatory capital[205] - As of September 30, 2025, the company's net capital was $65.5 million, exceeding the required net capital of $1.8 million by approximately $63.7 million[100] Tax and Compliance - The effective tax rate for the three months ended September 30, 2025, was 25.8%, differing from the federal statutory rate of 21% due to the utilization of deferred tax assets[95] - The provision for income taxes for the three months ended September 30, 2025, was $564,000, a decrease of $441,000 from the prior year due to a decrease in pre-tax earnings[185] - The company recorded an uncertain tax position of $1,354,000 related to various tax matters as of September 30, 2025[97] Market and Revenue Streams - New revenue stream from NIL negotiation services generated $362,000 in Q3 2025[163] - Total principal transactions and proprietary trading for the three months ended September 30, 2025, amounted to $4,606,000, an increase of $409,000 compared to $4,197,000 in 2024[89] - Stock borrow/stock loan revenue for the three months ended September 30, 2025, was $10,048,000, an increase of $4,264,000 from the prior year, driven by growth in stock locate services[175] Operational Overview - The company operates as a single reportable segment, providing comprehensive brokerage services including custody and clearance of retail accounts and securities lending[133] - The company has 13 branch offices across the U.S. and continues to focus on expanding its operations in Florida, New York, and California[29]