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C&

Cohen & Co Inc. (COHN)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue surged to $59.9M, up 109% q/q and 455% y/y, driven by $37.4M of new issue and advisory revenue from Cohen & Company Capital Markets (CCM) and a $9.5M swing in principal transactions to positive; diluted EPS was $0.81 versus $0.19 in Q1 and $(1.47) in Q2’24 .
  • Non-GAAP adjusted pre-tax income rose to $5.5M ($0.94/share) from $1.3M ($0.22) in Q1, reflecting operating leverage from CCM activity despite higher variable compensation; the Board declared a $0.25 dividend, unchanged .
  • Mix drivers: CCM delivered $37.4M across 25 clients; principal transactions swung to +$9.5M vs $(15.7)M in Q1, with non‑cash marks on consideration received by CCM improving to +$6.7M vs $(13.1)M in Q1 .
  • Near-term catalysts: closing of the ProCap BTC business combination for sponsored SPAC Columbus Circle Capital Corp I (retained 2.1M founder shares) targeted by year-end; launch of a SPAC-focused equity trading desk generated >$1.4M in its first quarter .

What Went Well and What Went Wrong

What Went Well

  • CCM momentum: “CCM generated $37.4 million in new issue and advisory revenue across 25 clients and is entering the second half of the year with strong momentum and a robust pipeline.” — CEO Lester Brafman .
  • Principal transactions inflected: Principal transactions and other revenue improved to +$9.5M from $(15.7)M in Q1; non‑cash consideration marks related to CCM were +$6.7M vs $(13.1)M in Q1 .
  • Strategic expansion: New SPAC-focused equity trading desk produced >$1.4M trading revenue in its first quarter, creating a complementary strategy to CCM .

What Went Wrong

  • Equity method drag: Loss from equity method affiliates of $(1.4)M, primarily due to the consolidated sponsor entity’s investment in Columbus Circle Capital Corp I (SPAC) .
  • Higher comp with revenue: Compensation and benefits rose to $44.3M (up $22.7M q/q), reflecting variable incentive comp tied to elevated revenue, tempering operating leverage .
  • Asset management headwinds continue: Asset management revenue was modest at $2.2M; two legacy Alesco CDO management contracts were sold (gain $0.8M), and the remaining three are being sold, implying eventual loss of that legacy revenue stream .

Financial Results

GAAP and Non-GAAP Summary

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$18.5 $28.7 $59.9
Net Income Attributable to COHN ($USD Millions)$(2.0) $0.33 $1.41
Diluted EPS ($)$(1.21) $0.19 $0.81
Adjusted Pre-Tax Income ($USD Millions)$(7.71) $1.25 $5.54
Adjusted Pre-Tax per Diluted Share ($)$(1.32) $0.22 $0.94

Revenue Composition

Revenue Line ($USD Millions)Q4 2024Q1 2025Q2 2025
Net Trading$8.95 $9.21 $10.76
Asset Management$2.07 $2.02 $2.17
New Issue & Advisory (CCM)$10.08 $33.24 $37.41
Principal Transactions & Other$(2.55) $(15.73) $9.54
Total Revenues$18.54 $28.74 $59.87

Additional P&L and Other Highlights

Metric ($USD Millions unless noted)Q4 2024Q1 2025Q2 2025
Operating Income (Loss)$(5.50) $0.11 $7.50
Net Interest Expense$(1.47) $(1.45) $(1.50)
Income (Loss) from Equity Method Affiliates$(0.66) $2.42 $(1.44)

KPIs

KPIQ4 2024Q1 2025Q2 2025
Employees (Period-End)113 117 118
Total Equity ($USD Millions)$90.3 $85.7 $92.5
AUM (Approx., $USD Billions)~$2.3 ~$2.3 ~$2.2
Quarterly Dividend per Share ($)$0.25 $0.25 $0.25

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQuarterly$0.25 (Q1) $0.25 (Q2) Maintained
ProCap BTC business combination (sponsor CCCM I)2025—Expected close by year-end 2025 New
Revenue/Margins/OpEx—No formal guidanceNo formal guidance—

Earnings Call Themes & Trends

Note: No Q2’25 earnings call transcript was available in the document set; current-period themes reflect the Q2 press release.

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
CCM pipeline and executionCCM revenue grew in 2024; $38.9M FY revenue; Q1’25 new issue & advisory $33.2M; strong performance .$37.4M Q2 new issue & advisory across 25 clients; “strong momentum and a robust pipeline” .Improving
SPAC ecosystem involvementOngoing SPAC activity; launched SPAC-focused equity trading desk in April; Q1 principal transactions negative from marks .SPAC desk generated >$1.4M revenue in its first quarter; retained 2.1M founder shares in ProCap BTC deal .Improving
Principal investments/marksQ4’24 principal transactions $(2.5)M; Q1’25 $(15.7)M; negative non-cash marks .Principal transactions +$9.5M; non‑cash CCM consideration marks +$6.7M .Improving
Variable compensationComp fell q/q in Q4’24; rose in Q1 with revenue .Comp up to $44.3M with revenue strength .Rising with revenue
AUM and legacy Alesco CDOs~$2.3B AUM; legacy CDOs persist .~$2.2B AUM; sold two Alesco CDO contracts (gain $0.8M); remaining three in process to sell .Rationalizing legacy

Management Commentary

  • “We are pleased with our second quarter results, which were driven by a strong performance from our full-service boutique investment banking operation, Cohen & Company Capital Markets (‘CCM’). During the quarter, CCM generated $37.4 million in new issue and advisory revenue across 25 clients and is entering the second half of the year with strong momentum and a robust pipeline.” — CEO Lester Brafman .
  • “Our sponsored SPAC, Columbus Circle Capital Corp I, entered into a business combination agreement with ProCap BTC… As sponsor, we retained 2.1 million founder shares… expected to occur by the end of the year.” — CEO Lester Brafman .
  • “We… launched our SPAC-focused equity trading desk. This new trading desk generated more than $1.4 million in trading revenue in its first quarter of operation… We remain confident in our future earnings potential and committed to creating long-term, sustained value… including through our quarterly dividend.” — CEO Lester Brafman .

Q&A Highlights

  • No Q2’25 earnings call transcript was available; the company held a call on July 31, 2025 (replay available for three days), but the transcript was not in the document set reviewed .
  • Q1’25 prepared remarks highlighted: (1) SPAC-focused equity trading desk launch to leverage CCM momentum, and (2) mark‑to‑market headwinds in principal investing that impacted principal transactions and equity method income .

Estimates Context

  • S&P Global consensus estimates for revenue and EPS were unavailable for COHN for Q4’24, Q1’25 and Q2’25; as a result, we cannot assess beat/miss versus consensus for these periods. Values retrieved from S&P Global.
MetricQ4 2024Q1 2025Q2 2025
Revenue Consensus MeanN/A*N/A*N/A*
Primary EPS Consensus MeanN/A*N/A*N/A*
Revenue – # of EstimatesN/A*N/A*N/A*
Primary EPS – # of EstimatesN/A*N/A*N/A*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • CCM is the core growth engine: $37.4M of Q2 new issue and advisory revenue and commentary on a robust pipeline suggest sustained activity into H2, a key driver of earnings trajectory .
  • Volatility from non-cash marks is material: principal transactions swung from $(15.7)M to +$9.5M q/q as non‑cash consideration marks improved; traders should anticipate continued P&L variability tied to SPAC-linked positions .
  • Variable comp will follow revenue: compensation rose sharply with higher revenue, partially diluting operating leverage; monitor expense scaling versus revenue mix in H2 .
  • Sponsored SPAC optionality: retained 2.1M founder shares and targeted ProCap BTC close by year-end could be a catalyst, but equity method results can be lumpy and directionally uncertain .
  • Balance sheet and capital return steady: total equity increased to $92.5M, and the $0.25 quarterly dividend was maintained, signaling confidence in cash generation and capital needs .
  • Strategic breadth expanding: SPAC-focused equity trading desk (> $1.4M revenue in its first quarter) adds a complementary revenue stream to CCM and could buffer transaction timing cyclicality .
  • Watch legacy runoff: sale of two Alesco CDO management contracts (gain $0.8M) and intent to sell remaining three imply a phased reduction of that legacy asset management revenue stream .

Appendix: Prior Quarter References and Additional Context

  • Q1’25 results: Revenue $28.7M; diluted EPS $0.19; adjusted pre-tax income $1.25M; CCM new issue & advisory $33.2M; principal transactions $(15.7)M; employees 117; dividend $0.25 .
  • Q4’24 results: Revenue $18.5M; diluted EPS $(1.21); adjusted pre-tax income $(7.71)M; principal transactions $(2.55)M; employees 113; dividend $0.25 .
  • Other relevant Q2-timed releases: Release date notice (7/28/25) confirms call schedule; broker-dealer rebranded to Cohen & Company Securities on 7/1/25, highlighting platform expansion; Columbus Circle Capital Corp I IPO (5/19/25) underscores SPAC ecosystem positioning .