Financial advisory firm Perella Weinberg Partners (NASDAQ:PWP) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 40.8% year on year to $164.6 million. Its non-GAAP profit of $0.13 per share was 10.3% below analysts’ consensus estimates. Is now the time to buy PWP? Find out in our full research report (it’s free for active Edge members). Perella Weinberg (PWP) Q3 CY2025 Highlights: Revenue: $164.6 million vs analyst estimates of $179.8 million (40.8% year-on-year decline, 8 ...

Financial Data and Key Metrics Changes - The company reported third quarter revenues of $165 million and year-to-date revenues of $532 million, indicating strong underlying fundamentals despite not being record highs compared to the previous year [4] - The adjusted compensation margin remained at 67% of revenues, with adjusted non-compensation expenses of $37 million for the quarter, down from last year [7] - The adjusted tax rate for the first nine months was 4%, with a potential adjusted tax rate of 32% excluding stock-based compensation benefits [7][8] Business Line Data and Key Metrics Changes - The number of active engagements and overall pipeline reached record levels, with the European business up over 50% from last year [4] - The company has made significant investments, adding 25 senior bankers across various sectors and regions, representing 18% of the total partner base [5] Market Data and Key Metrics Changes - The secondary market is expected to exceed $200 billion this year, with private equity showing signs of increased activity and a substantial exit backlog building for 2026 [5] Company Strategy and Development Direction - The company is focused on scaling its operations and expanding client coverage in strategically active industries for both corporates and private equity [6] - The acquisition of Devon Park is expected to significantly enhance the company's capabilities and revenue potential, providing new capital relationships and sponsor clients [5][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the scaling strategy and anticipated significant revenue growth from recent investments [6] - The company is seeing steady activity in its liability management business, with expectations for continued growth in 2026 [25] Other Important Information - The company returned an additional $12 million to equity holders in the third quarter, with year-to-date returns exceeding $157 million [8] - The company closed the quarter with $186 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [8] Q&A Session Summary Question: Pipeline commentary and mix of activities - Management noted that the pipeline is currently more geared towards non-traditional M&A activities, but there is a significant increase in traditional M&A business expected in the coming months [12][14] Question: Recruiting environment and contributions from new hires - Of the 25 senior bankers added, nine are already contributing to revenue, with expectations for the remaining hires to add value in 2026 [15][16] Question: Restructuring activity and client engagement levels - The company is experiencing steady activity in its liability management business, with expectations for it to be a higher contributing business this year compared to last [25] Question: Contribution from the Devon Park acquisition - The Devon Park business is expected to be a significant contributor to overall revenue, similar to other business groups within the company [26][28]

Perella Weinberg Partners (NasdaqGS:PWP) Q3 2025 Earnings Call November 07, 2025 09:00 AM ET Company ParticipantsAndrew Bednar - CEOTaylor Reinhardt - Head of Communications and MarketingAlex Bond - VPAlex Gottschalk - CFOConference Call ParticipantsDevin Ryan - AnalystOperatorGood morning and welcome to the Perella Weinberg Third Quarter 2025 earnings conference call. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be open for your q ...