Canaccord Genuity Group (CF) investor relations material

Executive summary

• Fiscal 2026 revenue reached a record CAD 2.2 billion (up 24.9% year-over-year), with Q4 revenue at CAD 613 million (up 33%).

• Adjusted pre-tax net income for Q4 was CAD 89 million (up 176% year-over-year); full-year pre-tax net income was CAD 263 million (up 76%).

• Adjusted diluted EPS for Q4 was CAD 0.48 (up 300% year-over-year); full-year adjusted diluted EPS was CAD 1.26 (up 107%).

• Board approved a 17.6% increase to the quarterly common share dividend to CAD 0.10 per share.

• Ongoing assessment of strategic options for the UK wealth management business, with no fixed timeline for completion.

Financial highlights

• Capital markets division Q4 revenue increased 37% year-over-year, driven by investment banking and advisory strength in Canada and Australia.

• Wealth management division achieved its tenth consecutive quarter of revenue growth, with fiscal 2026 revenue at a record CAD 1.1 billion, up 24% year-over-year.

• Firm-wide non-compensation expense ratio improved to 25.3% year-over-year; compensation ratio for fiscal 2026 was 60.1%.

• Effective tax rate decreased to 25.9% from 29.5% year-over-year.

• Working capital at year-end was CAD 787 million; cash and cash equivalents reached CAD 2.04 billion.

Outlook and guidance

• Fiscal 2027 pre-tax operating margin expected to improve by low single digits, supported by strategic priorities and expense discipline.

• Strategic focus remains on growing global wealth management and capital markets advisory, with targeted investments in technology and talent.

• Advisory pipelines in Canada and the U.S. remain strong; corporate financing outlook constructive, especially in core sectors.

• Cautious optimism expressed due to geopolitical uncertainty and market volatility, particularly given significant exposure to the mining sector.

• Ongoing discussions regarding strategic options for the UK wealth management business, with continued value seen in this segment.