Stifel Financial (SF) Q3 2025 earnings summary

Executive summary

• Achieved record net revenues of $1.43 billion for Q3 2025, up 16.7% year-over-year, with net income available to common shareholders of $202.1 million, a 35.4% increase from Q3 2024, and non-GAAP net income of $214.4 million, or $1.95 per diluted share.

• Record client assets reached $544.0 billion, up 10% year-over-year, with 33 financial advisors recruited during the quarter and expansion of the venture banking team.

• Revenue growth was driven by higher investment banking, transactional, asset management, and net interest income.

• Fee-based businesses now account for 62% of total revenue, up from 26% in 2011, increasing earnings stability and margins.

• Acquisitions included B. Riley Financial’s wealth management business and Bryan Garnier, expanding presence in wealth management and European investment banking.

Financial highlights

• Net revenue for Q3 2025 was $1.43 billion, a 16.7% increase year-over-year; net income available to common shareholders was $202.1 million, up 35.4% year-over-year.

• Diluted EPS was $1.84 (GAAP), up 37.3% year-over-year, and $1.95 (Non-GAAP), up 30% year-over-year.

• Pre-tax margin improved to 21.2% (non-GAAP), with annualized ROTCE at 24.3%.

• Compensation ratio remained stable at 58.8% (GAAP) and 58.0% (non-GAAP).

• Book value per share increased 5% year-over-year to $49.74; tangible book value per share increased 4% to $34.99.

Outlook and guidance

• Management remains optimistic for year-end, citing record investment banking pipelines, client assets, and momentum in the integrated wealth and banking platform.

• Fourth quarter net interest income forecasted at $270–$280 million.

• Anticipate a full-year effective tax rate of 20–22%, with Q4 rate of 12–14% due to stock-based compensation benefits.

• The impact of the One Big Beautiful Bill Act (OBBBA) tax legislation is under assessment.

• Anticipates potential earnings impact from further Federal Reserve rate cuts and market volatility.