Cohen & Company (COHN) Q3 2024 earnings summary

Executive summary

• Net income attributable to the company was $2.2 million ($1.31 per diluted share) for Q3 2024, reversing losses from both the prior quarter and prior year quarter.

• Total revenues reached $31.7 million, up 85% year-over-year and from $10.8 million in Q2 2024, driven by strong new issue/advisory and trading activity.

• CCM generated $21.4 million in advisory revenue and acted as lead bookrunner on a SPAC IPO, with a robust pipeline expected to sustain momentum.

• For the nine months ended September 30, 2024, net income attributable to the company was $1.8 million, reversing a $9.7 million loss in the prior year period.

• Board declared a quarterly dividend of $0.25 per share, payable December 5, 2024.

Financial highlights

• Q3 2024 total revenues: $31.7 million, up from $17.1 million in Q3 2023; net trading revenue: $8.8 million, flat sequentially and up $1.3 million year-over-year.

• Adjusted pre-tax income was $7.7 million ($1.34 per diluted share), compared to adjusted pre-tax losses in both the prior quarter and prior year quarter.

• Asset management revenue was $2.1 million, up $0.4 million year-over-year due to deferred performance fees.

• Principal transactions and other revenue was negative $1.7 million, reflecting ongoing unfavorable mark-to-market adjustments on SPAC-related investments.

• Compensation and benefits expense was $17.9 million, up from prior quarters due to variable incentive compensation.

Outlook and guidance

• Management expects consistent production from CCM through year-end, citing a robust pipeline.

• Anticipation of continued volatility in principal investment portfolio and operating results due to SPAC market exposure.

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

• No specific forward guidance provided, but focus remains on cost management and underserved asset classes.