Raymond James Boosted Fiscal Q1 Recruiting Budget By 22%

Core Insights - Raymond James Financial reported a 22% increase in recruiting and retention-related compensation in its fiscal first quarter ending December 31, 2025, as part of its strategy to attract financial advisors [1][5] - The firm successfully recruited advisors with approximately $13 billion in client assets and a trailing 12-month production of $96 million, marking a strong performance despite seasonal slowdowns [2] - The company achieved an annualized net new asset growth of 8%, totaling $31 billion, which is the second-best result in its history [2] Recruitment and Advisor Growth - The recruiting activity at Raymond James is described as robust and broad-based, with a recent tilt towards independent contractor channels [3] - As of the end of fiscal year 2025, the firm reached a record of 8,943 financial advisors, reflecting a 2% increase from the previous year [3] Competitive Landscape - Increased competition is noted in the financial advisory space, particularly from private equity-backed firms, but Raymond James emphasizes its long-term stability and ongoing investments in technology [4] - The firm recently introduced a proprietary artificial intelligence agent for advisors, named Rai, to enhance its service offerings [4] Financial Metrics - The recruiting and retention-related compensation for the first fiscal quarter was reported at $107 million, a 22% increase quarter-over-quarter [5] - The average compensation ratio for advisors was 65.4%, excluding acquisition-related expenses, with total compensation expenses amounting to $2.45 billion [6]