Cohen & Company (COHN) Q4 2024 earnings summary

Executive summary

• Q4 2024 net loss attributable to the company was $2 million ($1.21 per diluted share), compared to net income of $2.2 million in Q3 2024 and $4.5 million in Q4 2023.

• Full year 2024 net loss attributable to the company was $0.1 million, compared to a net loss of $5.1 million in 2023.

• CCM revenue for 2024 reached $38.9 million from nearly 50 clients, almost doubling 2023's $21.9 million.

• Mortgage business grew, with the gestation repo book up over 30% year-over-year to $2.7 billion, despite elevated mortgage rates and lower origination levels.

• Commitment to long-term value and continued quarterly dividend payments was reiterated.

Financial highlights

• Q4 2024 revenues were $18.5 million, down from $31.7 million in Q3 2024 and $34.5 million in Q4 2023.

• Adjusted pre-tax loss was $7.7 million for Q4 2024, versus adjusted pre-tax income of $7.7 million in Q3 2024 and $16 million in Q4 2023.

• Compensation and benefits expense for Q4 was $12.9 million, down $5 million sequentially and $3.4 million year-over-year.

• Interest expense for Q4 2024 was $1.5 million, with $1.2 million from trust preferred securities debt.

• Total equity at year-end was $90.3 million, down from $91.8 million at the end of 2023.

Segment performance

• CCM generated $61.6 million in new issue and advisory revenue in 2024, offset by $22.6 million in negative principal transactions revenue from investment asset losses.

• Net trading revenue for Q4 2024 was $8.9 million, flat sequentially and up $1.1 million year-over-year.

• Asset management revenue for Q4 2024 was $2.1 million, slightly down from Q3 and up $0.1 million year-over-year.

• New issue and advisory revenue for Q4 2024 was $10 million, down $12.4 million sequentially and $8.6 million year-over-year.

• Principal transactions and other revenue for Q4 2024 was negative $2.5 million, mainly due to mark-to-market losses and declining SPAC-related equity values.