Cohen & Company (COHN) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, rose 202% year-over-year to $88.6M, driven by a surge in new issue and advisory revenue and improved principal transactions results.

• Second quarter 2025 revenue reached $59.9 million, with net income attributable to shareholders at $1.4 million ($0.81 per diluted share), reversing a loss from the same quarter last year.

• Strong performance was driven by boutique investment banking, particularly through CCM, with $37.4 million in new issuing advisory revenue across 25 clients and a robust pipeline for the second half of the year.

• Launched a SPAC-focused equity trading desk, generating $1.4 million in its first quarter, expected to complement CCM's strategy.

• Sponsored SPAC, Columbus Circle Capital Corp I, entered a business combination with ProCap BTC, expected to close by year-end, with up to $1 billion in Bitcoin to be held on the balance sheet.

Financial highlights

• Net income attributable to shareholders was $1.4 million ($0.81 per diluted share) for Q2, and $1.7 million for the six months, up from a net loss in the prior year period.

• Adjusted pre-tax income was $5.5 million for Q2, or $0.94 per diluted share, compared to a loss of $8.6 million in the prior year quarter.

• New issue and advisory revenue jumped 129% to $70.7M for the six months, with $37.4 million in Q2, driven by SPAC M&A and IPO transactions.

• Net trading revenue reached $10.8 million in Q2, up $1.5 million sequentially and $2 million year-over-year; for the six months, net trading revenue was $20.0M.

• Principal transactions and other revenue totaled $9.5 million in Q2, mainly from $6.7 million in gains on principal investments.

Outlook and guidance

• Entering the second half of the year with strong momentum and a robust deal pipeline, especially in capital markets and SPAC activities.

• Asset management revenue is expected to decline in future quarters following the sale of CDO management contracts.

• Management expects continued volatility in new issue and advisory revenue and margin pressures in fixed income brokerage.

• The Board will continue to evaluate the dividend policy each quarter based on operating results and capital needs.