Cohen & Company Reports First Quarter 2025 Financial Results

Core Viewpoint - Cohen & Company Inc. reported a net income of $0.3 million for Q1 2025, a significant recovery from a net loss of $2.0 million in the previous quarter, indicating improved financial performance and confidence in future growth [5][12]. Financial Performance - Total revenues for Q1 2025 were $28.7 million, up from $18.5 million in Q4 2024 and $18.6 million in Q1 2024 [5][12]. - Net trading revenue was $9.2 million, a slight increase from $8.9 million in the previous quarter but a decrease from $9.8 million in the same quarter last year [5][12]. - Asset management revenue decreased to $2.0 million from $2.1 million in Q4 2024 and $2.7 million in Q1 2024 [5][12]. - New issue and advisory revenue surged to $33.2 million, up from $10.1 million in Q4 2024 and $24.4 million in Q1 2024 [5][12]. - Principal transactions and other revenue was negative $15.7 million, worsening from negative $2.5 million in the previous quarter and negative $18.4 million in the same quarter last year [5][12]. Operating Expenses - Compensation and benefits expenses rose to $21.7 million, an increase of $8.7 million from the prior quarter and $6.8 million from the prior year quarter [5][12]. - Non-compensation operating expenses were $6.9 million, down from $11.1 million in the previous quarter but up from $7.1 million in the same quarter last year [5][12]. Income and Earnings Per Share - The fully diluted net income per share was $0.19 for Q1 2025, compared to a loss of $1.21 in Q4 2024 and a profit of $1.28 in Q1 2024 [5][12]. - Adjusted pre-tax income was $1.3 million, or $0.22 per diluted share, a recovery from a loss of $7.7 million in the previous quarter and a profit of $7.7 million in the same quarter last year [5][12]. Equity and Dividend Declaration - Total equity as of March 31, 2025, was $85.7 million, down from $90.3 million as of December 31, 2024 [12]. - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on June 2, 2025, to stockholders of record as of May 16, 2025 [12]. Strategic Initiatives - The CEO highlighted the strong performance of the investment banking operation, which generated $20.1 million in net revenue, and the launch of a new SPAC-focused equity trading desk to leverage growth opportunities [3][5].