Stifel posts record revenue in Q3 despite slower recruiting

Core Insights - Stifel Financial achieved record client assets and revenue in Q3, with net revenue increasing nearly 10% year over year to $907 million, primarily driven by a 13% rise in asset management revenue to $431 million [1][2] - The firm reported record client assets of $544 billion, reflecting a 10% year-over-year increase, with fee-based client assets growing 15% to $219 billion [2] - Despite improved revenue, total expenses rose 7.5% year over year to $565 million, mainly due to a 9.5% increase in compensation expenses to $442 million, while non-compensation operating expenses decreased by 1.8% [3] Advisor Recruitment - Advisor recruitment slowed in Q3, with 33 new advisors added compared to 134 in the first half of the year, resulting in total trailing 12-month production of $18.9 million [4] - The firm remains committed to ongoing recruitment efforts, with a focus on attracting advisors seeking a supportive culture [5][6] Market Outlook - The CEO expressed cautious optimism about the broader market, acknowledging the cyclical nature of markets and emphasizing the importance of disciplined balance and perspective [6][7]