Canaccord Genuity Group (CF) investor relations material

Executive summary

• Revenue reached CAD 616 million ($616.1 million), up 37% year-over-year and 16% sequentially, marking the second highest quarterly revenue on record, with balanced contributions from Wealth Management and Capital Markets divisions.

• Pre-tax net income doubled year-over-year to CAD 81 million ($80.5 million), with adjusted diluted EPS of CAD 0.36 ($0.36), up 112% year-over-year, reflecting strong revenue growth and cost efficiency.

• Strategic acquisitions, including Wilsons Advisory in Australia and CRC-IB, expanded scale and sector reach, particularly in Australia and the UK.

• Employee ownership increased, aligning interests and fostering a partnership culture.

• Strong investment banking activity, especially in Australia, and record gold prices drove results.

Financial highlights

• Q3/26 revenue rose 36.5% year-over-year to $616.1M; YTD revenue up 21.9% to $1.6B.

• Capital Markets revenue rose 43% year-over-year to CAD 301 million ($300.8 million), driven by a 170% increase in investment banking revenue and robust mining sector activity.

• Wealth Management revenue increased 30% year-over-year to CAD 304 million ($304.3 million), with a 32% rise in commissions and fees and a 154% jump in investment banking revenue.

• Client assets reached a record CAD 145 billion ($144.8 billion), up 26% year-over-year, with new records in all geographies.

• Non-compensation expenses fell 3.2% year-over-year to CAD 152 million, representing 25% of revenue; trading, settlement, and technology costs decreased by 5% year-over-year.

Outlook and guidance

• Expectation of some moderation from Q3 revenue levels, but broadly supportive market conditions anticipated.

• Positioned for outperformance as interest rate environment improves and M&A activity rebounds.

• CRC-IB acquisition expected to boost advisory contributions, especially in the Energy Transition sector.

• Sustained growth in client assets projected, supported by positive net flows.

• Management notes ongoing assessment of options for the UK wealth management business amid media speculation, with no assurance of a transaction.