Executive Summary

Q1 2022 revenue was $10.3M versus $18.9M in Q1 2021, with a net loss to common of $1.0M and diluted EPS of $(0.04); operating loss (pre‑tax) was $(1.37)M, driven by a $2.2M temporary unrealized loss on U.S. government securities and lower commissions/market activity .
Securities finance and advisory performed well; stock borrow/stock loan rose to $3.6M from $1.8M YoY, and Siebert recorded $0.17M equity method earnings from Tigress .
Management expects rising interest rates to benefit results beginning Q2 2022 and plans to launch correspondent clearing services in Q3 2022 under newly hired SVP of FinTech Development, Matthew Shatz .
No formal numerical guidance or earnings call transcript was provided; S&P Global consensus estimates were unavailable, limiting beat/miss analysis.

What Went Well and What Went Wrong

What Went Well

Securities finance strength: Stock borrow/stock loan revenue increased to $3.6M (+$1.7M YoY) on added counterparties and locate growth .
Advisory and “other income” growth: Advisory fees rose to $0.51M (+$0.15M YoY), and other income to $1.06M (+$0.67M YoY), reflecting consulting services to institutional partners .
Strategic initiatives and leadership: Approval to launch correspondent clearing services and appointment of FinTech veteran Matthew Shatz to lead technology and securities finance; “Correspondent clearing services is a natural extension… and will drive the next stage of growth” (Matthew Shatz) .

What Went Wrong

Market-driven revenue declines: Total revenue fell to $10.3M from $18.9M YoY, with lower commissions/fees, principal transactions, and market making amid volatile conditions .
Temporary unrealized loss on Treasuries: $(2.19)M unrealized loss on ~$100.5M U.S. government securities portfolio as mid‑term yields rose; management expects reversal over maturities (latest Jan 2024) .
Institutional prime brokerage headwinds: Termination of GSCO clearing led to customer transitions (impact noted in 2021), and referral/JonesTrading economics do not offset prior revenue level .

Financial Results

Metric	Q1 2021	Q1 2022
Revenue ($USD Millions)	$18.924	$10.344
Net Income (Loss) to Common ($USD Millions)	$2.275	$(0.973)
Diluted EPS ($USD)	$0.07	$(0.04)
Income (Loss) Before Taxes ($USD Millions)	$3.010	$(1.374)

Revenue breakdown by category:

Revenue Category ($USD Millions)	Q1 2021	Q1 2022
Commissions and Fees	$7.008	$2.340
Interest, Marketing & Distribution	$3.459	$2.362
Principal Transactions & Proprietary Trading	$4.248	$(0.267)
Market Making	$1.614	$0.764
Stock Borrow / Stock Loan	$1.847	$3.578
Advisory Fees	$0.356	$0.507
Other Income	$0.392	$1.060

KPIs and client metrics:

KPI	Dec 31, 2021	Mar 31, 2022
Retail Customer Net Worth ($USD Billions)	$16.8	$16.1
Institutional Customer Net Worth ($USD Billions)	$0.5	$0.2
Retail Customer Accounts (#)	115,380	116,369
Retail Margin Debit Balances ($USD Billions)	$0.5	$0.5
Retail Credit Balances ($USD Billions)	$0.8	$0.8
Retail Money Market Fund Value ($USD Billions)	$0.8	$0.7
Total Retail Trades (Quarter)	142,875 (Q1’21)	109,952 (Q1’22)

Guidance Changes

No formal numerical guidance provided in Q1 2022 materials. Management commented that rising interest rates should benefit results beginning Q2 2022 and that correspondent clearing services are anticipated to launch by Q3 2022 .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	N/A	No formal guidance; qualitative outlook positive on rates and correspondent clearing	Maintained (no numeric guidance)
Operating Expenses	FY/Quarter	N/A	Continued streamlining efforts noted qualitatively	Maintained (no numeric guidance)
Tax Rate	FY/Quarter	N/A	21% effective tax rate for Q1 2022 (reported result)	N/A (reported, not guidance)
Dividends	FY	N/A	No dividend guidance provided	N/A

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2022; themes below reflect press release/10‑Q commentary.

Topic	Q3 2021 (Prev‑2)	Q4 2021 (Prev‑1)	Q1 2022 (Current)	Trend
Interest Rate/Macro Impact	Lower rates pressured interest revenues	Execution strong overall despite rate pressure	Rising rates expected to benefit results beginning Q2 2022	Improving outlook on rates
Prime Brokerage (RISE)	GSCO clearing termination; impairment of customer relationships	Customers transitioned; JonesTrading agreement not offsetting prior revenue	RISE relaunched; capital intro via Hedge Connection/FUEL; continued rebuilding	Rebuild/new initiatives
Technology & Correspondent Clearing	InvestCloud platform deployment	NFS clearing amendment; business development credits	Correspondent clearing approved; SVP FinTech hired to lead launch	Expansion in clearing tech
Securities Finance	Record progress; SFG revenue growth	Continued strength into FY	Stock borrow/loan revenue +$1.7M YoY	Strong and growing
Treasury Portfolio	Not highlighted	Portfolio build noted; no FY unrealized loss disclosed	$(2.186)M unrealized loss on U.S. Treasuries; expected reversal by maturity	Temporary hit; expected reversal
Regulatory/Legal	FINRA/California matters resolved/ongoing legacy items	FINRA investigation ongoing (legacy StockCross)	No new Q1 developments disclosed	Stable/ongoing

Management Commentary

“While we had an operating loss this quarter, a substantial component of this loss was a temporary unrealized loss of $2.2 million on our U.S. government securities portfolio, which we anticipate to be reversed over the maturities of the securities… We will start to benefit from the rising interest rate environment in the second quarter of 2022” — Andrew Reich, CFO .
“Following the recent launch of RISE and our minority investment in Hedge Connection, we recently announced plans to launch new correspondent clearing services… These growth initiatives continue to diversify our business” — Gloria E. Gebbia .
“Correspondent clearing services is a natural extension… and will drive the next stage of growth” — Matthew Shatz, SVP FinTech Development .

Q&A Highlights

No earnings call/Q&A transcript was available for Q1 2022; no public Q&A themes to summarize (no transcript found in document catalog) [ListDocuments earnings-call-transcript returned none].

Estimates Context

Wall Street consensus estimates (S&P Global) for Q1 2022 EPS and revenue were unavailable due to data access limitations; therefore, we cannot assess beat/miss versus consensus.
Values retrieved from S&P Global would normally be cited; in this case, consensus data was unavailable.

Additional Context and Prior-Quarter Highlights

FY 2021 revenue was $67.5M (+23% YoY); Siebert acquired a Miami office building for RISE Prime operations (653 Collins Ave) financed via $4.0M mortgage and related-party notes .
RISE Financial acquired a 20% stake in Hedge Connection (Fintroz platform) and an option to purchase remaining interest; Lisa Vioni appointed President of RISE Prime – Capital Introductions .

Key Takeaways for Investors

Near‑term earnings headwind from the $2.2M unrealized loss on Treasuries appears temporary, with reversal expected over maturities; this, combined with a higher‑rate backdrop, should support NII and interest revenues from Q2 onward .
Core securities finance momentum offset part of the decline in commissions/market making; stock borrow/stock loan growth demonstrates resilience and counter‑cyclical strength .
Strategic expansion into correspondent clearing and capital introduction (Hedge Connection/FUEL) positions Siebert to diversify revenue beyond legacy market‑sensitive lines and rebuild institutional capabilities post‑GSCO transition .
Client asset metrics declined modestly with market conditions (retail/institutional net worth), but retail accounts grew, indicating ongoing client acquisition despite lower trading volumes .
No formal guidance or consensus comparison is available; investors should focus on Q2 interest rate tailwinds, execution on correspondent clearing launch (Q3 target), and continued securities finance growth .
Medium‑term thesis hinges on: (1) rate‑driven margin recovery, (2) successful correspondent clearing rollout and institutional rebuild, and (3) continued scaling of capital introduction and advisory revenue streams .

SIEBERT FINANCIAL CORP (SIEB)·Q1 2022 Earnings Summary