Perella Weinberg (PWP) Q4 2025 Earnings Transcript

Core Insights - The company reported full-year 2025 revenues of $751 million, a 14% decrease from 2024, but still the third-highest revenue year in its history, indicating resilience despite challenges [2] - Record revenues were achieved in Europe, solidifying the company's position as a leading advisor in active regions, particularly in restructuring, which also saw record revenues [1][27] - The company is optimistic about future growth, with a strong pipeline and positive sentiment among clients, particularly in the healthcare and software sectors [5][20] Financial Performance - Fourth-quarter revenues were $219 million, including $18.5 million from transactions that closed in early 2026 [7] - The adjusted compensation margin for 2025 was 68%, up from 67% in 2024, reflecting strong management of compensation despite record talent investments [7][8] - Non-compensation expenses decreased by 2% to $159 million, with expectations for further reductions in 2026 [8] Talent and Recruitment - The company added 23 new senior bankers in 2025, with a strong pipeline for future hires, indicating a focus on attracting top talent [5][24] - The recruitment environment is expected to normalize after a record year, with a continued emphasis on adding high-quality bankers [25] Market Outlook - The restructuring business is expected to remain strong, with no signs of slowdown, particularly in liability management engagements [21][22] - The company anticipates a positive environment for M&A transactions in 2026, with a record backlog and improved market conditions [11][20] Strategic Focus - The company is committed to managing its share count and returning capital to equity, having returned over $163 million in 2025 through dividends and share repurchases [8][9] - The focus remains on organic growth and strategic investments, with a balanced approach to capital deployment [36][37]