Executive Summary

Q4 2024 was weak on headline metrics: revenues fell to $18.5M from $31.7M in Q3 and $34.5M in Q4 2023, driven by lower new issue & advisory revenue and negative principal transactions; fully diluted EPS was $(1.21) vs $1.31 in Q3 and $2.97 in Q4 2023 .
CCM’s full-year momentum remained intact despite the quarter: CEO highlighted CCM revenue of $38.9M in 2024 across nearly 50 clients, almost double 2023 ($21.9M), with IPO underwriting capability added .
Management maintained the quarterly dividend at $0.25 per share (payable April 9, 2025), signaling confidence in longer-term earnings despite quarterly volatility and SPAC-related marks .
Principal transactions and equity-method affiliate losses reflected continued pressure from post-de-SPAC equity valuations; management cautioned for ongoing volatility in principal portfolio results .
Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable, limiting beat/miss assessment; directional miss vs prior periods is clear, with the primary catalyst being fewer closings and negative marks in principal holdings .

What Went Well and What Went Wrong

What Went Well

CCM delivered $38.9M full-year 2024 revenue from nearly 50 clients, almost double 2023, and expanded into underwriting IPOs. “CCM…continued to grow market share…generated full year CCM revenue of $38.9 million…almost double…2023” .
Mortgage platform growth: “gestation repo book of $2.7 billion, up more than 30% from December 2023,” supporting confidence in future earnings potential .
Cost control: compensation and benefits fell $5.0M q/q and $3.4M y/y in Q4, aligning expense with lower revenue while headcount held at 113 vs 118 a year ago .

What Went Wrong

Sharp sequential and y/y revenue decline: new issue & advisory revenue dropped to $10.1M (down $12.4M q/q and $8.6M y/y) due to fewer closings and engagement timing; total revenues fell to $18.5M .
Principal transactions negative at $(2.5)M, reflecting mark-to-market declines in investment assets received as consideration and post-business combination SPAC equity weakness; equity method affiliates posted a $(0.7)M loss vs $17.2M income in Q4 2023 .
Bottom-line pressure: fully diluted EPS swung to $(1.21) vs $1.31 in Q3 and $2.97 in Q4 2023; adjusted pre-tax loss was $(7.7)M vs $7.7M in Q3 and $16.0M in Q4 2023, highlighting volatility in enterprise earnings tied to convertible NCI and principal portfolio marks .

Financial Results

Headline Performance vs Prior Periods and Estimates

Metric	Q4 2023	Q3 2024	Q4 2024	Consensus (Q4 2024)
Total Revenues ($USD Millions)	$34.464	$31.695	$18.541	N/A (S&P Global unavailable)
Net Income (Loss) Attributable to COHN ($USD Millions)	$4.548	$2.150	$(1.953)	N/A (S&P Global unavailable)
Fully Diluted EPS ($USD)	$2.97	$1.31	$(1.21)	N/A (S&P Global unavailable)
Adjusted Pre-Tax Income (Loss) ($USD Millions, Non-GAAP)	$15.993	$7.738	$(7.705)	N/A (S&P Global unavailable)
Fully Diluted Adjusted Pre-Tax per Share ($USD, Non-GAAP)	$2.88	$1.34	$(1.32)	N/A (S&P Global unavailable)

Note: Wall Street consensus from S&P Global was unavailable for Q4 2024; comparisons to estimates cannot be made. Values for estimates would be retrieved from S&P Global if available.

Segment Revenue Breakdown

Segment ($USD Millions)	Q4 2023	Q3 2024	Q4 2024
Net Trading	$7.809	$8.816	$8.947
Asset Management	$1.919	$2.147	$2.067
New Issue & Advisory	$18.722	$22.459	$10.075
Principal Transactions & Other	$6.014	$(1.727)	$(2.548)
Total Revenues	$34.464	$31.695	$18.541

KPIs and Balance Sheet

KPI	Q4 2023	Q3 2024	Q4 2024
Employees (#)	118	113	113
Total Equity ($USD Millions)	$91.8	$100.6	$90.3
Dividend per Share ($)	$0.25 (paid Dec 5, 2024)	$0.25 (declared Nov 4, 2024)	$0.25 (payable Apr 9, 2025)
AUM ($USD Billions)	—	~$2.4	~$2.3
Gestation Repo Book ($USD Billions)	—	—	$2.7

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per Share	Quarterly	$0.25 (Q3 2024)	$0.25 (Q4 2024; payable Apr 9, 2025)	Maintained
Revenues	Q1 2025+	None provided	None provided	—
Margins/OpEx/Tax	Q1 2025+	None provided	None provided	—

Management did not issue quantitative revenue, margin, OpEx, OI&E, tax rate, or segment guidance; dividend policy continues to be evaluated quarterly .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
CCM advisory & IPO underwriting	Q2: $6.4M advisory; lead bookrunner on two SPAC IPOs; team growth; pipeline optimistic . Q3: $21.4M advisory; lead bookrunner on one SPAC IPO; pipeline “robust” .	CCM full-year revenue $38.9M from ~50 clients; added IPO underwriting; Q4 new issue & advisory $10.1M with volatility tied to engagement number/timing .	Strong FY build; sequential Q4 softness due to fewer closings and timing.
SPAC market exposure & principal portfolio	Q2: principal transactions $(6.6)M; caution on mark-to-market; SPAC sponsor timing affects equity-method results . Q3: principal transactions $(1.7)M; similar drivers .	Principal transactions $(2.5)M; CFO noted continuing declines in post-business combination SPAC equities; ongoing volatility expected .	Continued headwind from de-SPAC equity marks.
Mortgage platform	Q2/Q3: Trading supported by mortgage group .	Gestation repo book reached $2.7B, up >30% y/y; positive growth vector .	Improving capacity and contribution.
Cost discipline	Q2: Comp down q/q . Q3: Comp up with revenue .	Comp down $5.0M q/q and $3.4M y/y; headcount stable at 113 .	Responsive expense alignment to revenue.
Balance sheet & financing	Q3: Restructured 2/3 of redeemable instrument to promissory note; repaid 1/3 in cash .	Interest expense detail: $1.5M total; reiteration of Q3 restructuring; debt $34.9M .	Financing costs stable; structure optimized.

Management Commentary

CEO: “CCM…continued to grow market share as an advisor and agent, expanding into underwriting initial public offerings…generated full year CCM revenue of $38.9 million from nearly 50 clients, almost double…2023” .
CEO: “Despite continued elevated mortgage rates…we were able to grow our mortgage business…gestation repo book of $2.7 billion, up more than 30% from December 2023…focused on…continued payment of our quarterly dividend” .
CFO: “Adjusted pretax loss was $7.7 million…New issue and advisory revenue was $10 million…volatile…timing of underlying transactions…Principal transactions…negative $2.5 million…post-business combination SPACs has continued to decline” .
CFO: “Compensation and benefits…$12.9 million…down from both prior quarters…Net interest expense…$1.5 million…we restructured two-thirds…into a promissory note and repaid one-third in cash” .

Q&A Highlights

The call did not include an extended Q&A session; operator noted no further questions, and the call concluded after prepared remarks .
Contact information for investor questions provided; management reiterated availability for follow-ups .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of analysis due to request limits; as a result, beat/miss vs consensus cannot be assessed for this quarter. We attempted to fetch “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” and estimate counts for Q4 2024 but S&P Global returned a daily limit error [GetEstimates].
Based on company results, directional narrative is a miss vs prior periods driven by fewer new issue & advisory closings and negative principal marks linked to de-SPAC equities; any analyst estimate recalibration would likely reflect more conservative assumptions for principal portfolio marks and advisory transaction timing .

Key Takeaways for Investors

Sequential and y/y deterioration in revenues and EPS as advisory closings slowed and principal marks remained negative; expect continued quarter-to-quarter volatility tied to transaction timing and SPAC-related equity valuations .
CCM’s underlying franchise strengthened in 2024 (revenue nearly doubled vs 2023 and IPO underwriting capability added), suggesting medium-term advisory earnings power once closings normalize; watch near-term pipeline conversion .
Mortgage platform scale-up (gestation repo at $2.7B, +30% y/y) offers a diversified revenue source amid investment banking cyclicality; monitor contribution to net trading .
Expense flexibility evident: compensation down materially q/q and y/y with steady headcount, aiding downside protection when revenues compress .
Dividend continuity at $0.25 signals confidence in longer-term earnings and capital position despite quarterly swings; however, board will reassess quarterly based on results and capital needs .
Balance sheet: total equity at $90.3M (vs $91.8M a year ago) and debt at ~$34.9M; financing structure improved with Q3 instrument restructuring; interest expense lines stable .
Trading stance: Near term, caution on principal portfolio exposure to de-SPAC equities; medium term, positive bias on CCM advisory normalization and mortgage platform growth as catalysts for re-rating .

Cohen & Co Inc. (COHN)·Q4 2024 Earnings Summary