Total Revenue

+5.7% (from $3,638M to $3,845M)

Revenue growth was driven by diversified business performance across segments. Building on the prior quarter’s momentum, increased asset management fees, stronger client activity, and incremental improvement in other revenue streams elevated total revenue despite modest headwinds in some service fees. "

Private Client Group revenue

+7.2% (from $2,341M to $2,510M)

The PCG segment benefited from solid fee-based asset growth and higher administrative fees. Strong client asset inflows and market appreciation boosted the fee-based accounts compared to the previous period, further supported by increased brokerage activities and interest income. " "

Capital Markets revenue

+31% (from $321M to $420M)

A robust uptick in investment banking and M&A advisory performance drove the 31% YoY jump. The previous period’s lower base combined with a favorable market environment, strategic investments, and larger transaction fees helped capitalize on increased market activity, leading to significant revenue acceleration. " "

Asset Management revenue

+14.7% (from $252M to $289M)

Growth was mainly fueled by increased asset management and related administrative fees. Attractive market conditions, higher net asset flows, and growth in fee-based assets under management contributed to a notable revenue boost compared to Q2 2024’s figures, reflecting strong underlying client and market performance. " "

Non-Compensation Expenses

FY 2025

$2.1 billion "

$2.1 billion " "

no change

Asset Management and Related Administrative Fees

FY 2025

no prior guidance

Expected to be relatively flat in Q3 2025 compared to Q2 2025 "

no prior guidance

Net Interest Income (NII) and RJBDP Fees

FY 2025

no prior guidance

Expected to remain relatively unchanged in Q3 2025 compared to Q2 2025 " "

no prior guidance

Loan Growth

FY 2025

no prior guidance

Securities-based loans expected to continue growing; corporate loan growth expected tepid "

no prior guidance

Effective Tax Rate

FY 2025

Approximately 24%–25% "

Approximately 25% "

no change

Capital Deployment

FY 2025

no prior guidance

Plans to continue repurchasing shares, likely exceeding the $250 million repurchased in Q2 2025 "

no prior guidance

Adviser Recruitment and Retention Dynamics

In Q3 2024, the focus was on strong recruitment activity, record adviser numbers, and robust retention attributed to advanced technology, client-first values, and multi-affiliation options. " " " In Q1 2025, emphasis was placed on a healthy pipeline, high adviser satisfaction, and growing team sizes with notable recruitment metrics. " " " "

In Q2 2025, the company reiterated strong recruiting momentum and stability in adviser retention, highlighted by external recognition (#1 in the J.D. Power survey) and a clear opportunity from market volatility. " " " " "

Consistent positive sentiment with a continued focus on building a robust pipeline and stable retention, even amid external market challenges.

Capital Management and Tier 1 Leverage Optimization

In Q3 2024, the focus was on maintaining a 10% target with a reported ratio of 12.7% and a disciplined approach including share repurchases. " " In Q1 2025, the conversation noted a Tier 1 leverage ratio of 13%, well above target, with an emphasis on organic growth, acquisitions, and a cautious approach to buybacks. " " " "

In Q2 2025, the reported Tier 1 leverage ratio increased slightly to 13.3% while the company planned to significantly increase its share buybacks and pursue both organic and acquisition-based growth. " " " "

Steady strategic focus on optimizing capital despite a slight elevation in leverage ratio, with an increased emphasis on buybacks and growth investments.

Loan Growth and Credit Quality Performance

Q3 2024 highlighted robust securities-based loan (SBL) growth with a record $45.1 billion in bank loans and solid credit quality metrics, while Q1 2025 continued to emphasize SBL growth, cautious outlook on C&I loans, and lower provisions for credit losses. " " " " "

In Q2 2025, record loans reached $48.3 billion driven by SBL expansion, while overall credit quality remained solid despite tepid corporate loan demand and potential future adjustments in credit loss provisions. " " " " "

Positive and steady outlook on loan growth, particularly in SBL, with consistent credit quality, tempered by ongoing caution in corporate lending segments.

Macroeconomic Volatility and Market Conditions

Q3 2024 discussions acknowledged persistent economic uncertainty with moderate optimism due to a gradual recovery in capital markets and fixed income challenges, while Q1 2025 noted mixed signals – with improved sentiment in some segments (such as securities-based loan demand) but continued challenges in C&I lending and fixed income. " " " "

Q2 2025 reflected heightened market uncertainty and volatility, negatively impacting client sentiment and delaying investment banking closings, with additional concerns relating to tariff-induced economic disruptions. " " " "

Deterioration in sentiment compared to previous periods; while earlier periods maintained cautious optimism in parts, Q2 2025 shows increased market skepticism and more pronounced external challenges.

Investment Banking and M&A Pipeline Opportunities

In Q3 2024, investment banking revenues were steady with a healthy M&A pipeline despite subdued M&A closings, and Q1 2025 reported record M&A performance with near-record fees and a strong pipeline, though acknowledging the lumpy nature of the business. " " " " "

In Q2 2025, despite a sequential decline in investment banking revenue and challenges in closing deals due to market volatility, the overall pipeline remained active with continued pursuit of opportunistic M&A. " " " " "

Mixed trends: while underlying pipeline strength persists, short-term performance is volatile due to external market conditions, contrasting the record performance seen in Q1 2025.

Expense Growth and Margin Pressure Concerns

Q3 2024 reported moderate expense growth (6% increase in non-compensation expenses) with strong margins around 20%, while Q1 2025 noted roughly 10% growth in non-compensation expenses driven by strategic investments, yet achieving strong pretax margins above 21%. " " " " "

In Q2 2025, non-compensation expenses increased modestly (2% sequentially) while margins held steady around 19.7% to 20.3%, with disciplined expense management amid targeted long-term investments. " " " " "

Stable operational performance: consistent expense management with maintained margins, reflecting a balanced approach to growth investments despite some upward cost pressures.

Regulatory Scrutiny and Cash Management Risks

In Q3 2024, detailed discussions addressed regulatory scrutiny regarding cash disclosures and adviser compensation practices, ensuring transparency and no conflicts of interest. " " " Q1 2025 did not include specific mention of these topics.

Q2 2025 did not offer any specific commentary on regulatory scrutiny or cash management risks beyond brief forward-looking statements, indicating less emphasis compared to Q3 2024. " "

Reduced emphasis: While previously elaborated in Q3 2024, these topics received minimal attention in Q2 2025, suggesting a shift in focus away from regulatory issues and cash management risk discussions.