Cohen & Company (COHN) Q1 2025 earnings summary

Executive summary

• Revenue rose 55% year-over-year to $28.7 million, driven by strong new issue and advisory gains from CCM, despite a 6% decline in net trading and a 26% drop in asset management fees.

• Net income attributable to shareholders was $0.3 million ($0.19 per diluted share), reversing a prior quarter loss but down from $2 million in the prior year quarter, mainly due to lower equity method income and higher compensation expenses.

• Operating expenses increased 31% year-over-year, primarily from a 46% rise in compensation and benefits, reflecting higher incentive compensation and increased headcount.

• CCM generated $20.1 million in net revenue, and a new SPAC-focused equity trading desk was launched in April to build on this momentum.

• The company sold its 33.4% interest in Vellar GP, recording a $0.8 million loss, and entered into an agreement to sell CDO management contracts for up to $3.5 million.

Financial highlights

• Total revenues were $28.7 million, up 55% year-over-year; net trading revenue was $9.2 million, up $0.3 million sequentially but down $0.6 million year-over-year; asset management revenue was $2.0 million, slightly down sequentially and $0.7 million lower year-over-year.

• New issue and advisory revenue reached $33.2 million, up $23.2 million from the prior quarter and $8.9 million year-over-year, all from CCM.

• Principal transactions and other revenue totaled negative $15.7 million, mainly from SPAC-related mark-to-market losses.

• Adjusted pre-tax income was $1.3 million, up from a $7.7 million adjusted pre-tax loss in the prior quarter, but down from $7.7 million in the prior year quarter.

• Cash and cash equivalents were $14.0 million as of March 31, 2025, down from $19.6 million at year-end 2024.

Segment performance

• CCM's new issue and advisory revenue was largely driven by SPAC M&A and SPAC IPO transactions, totaling $33.2 million in Q1 2025.

• Principal transactions revenue was negative $13.1 million in Q1 2025, reflecting mark-to-market losses on financial instruments received as consideration.

• Asset Management segment managed $2.28 billion in assets as of March 31, 2025, primarily in fixed income and SPAC-related assets.

• Principal Investing segment experienced continued mark-to-market losses, with principal transactions and other revenue negative $15.7 million.

• Income from equity method affiliates was $2.4 million, down from $29.0 million in Q1 2024 due to fewer SPAC business combinations.