Cohen & Company (COHN) investor relations material

Executive summary

• Revenue for the six months ended June 30, 2025, rose 202% year-over-year to $88.6M, driven by strong new issue and advisory revenue and improved principal transactions results.

• Second quarter 2025 revenue reached $59.9M, with net income attributable to shareholders of $1.4M ($0.81 per diluted share), reversing a loss from the prior year quarter.

• CCM generated $37.4M in new issue and advisory revenue across 25 clients, with a robust pipeline for the second half of the year.

• Launched a SPAC-focused equity trading desk, generating over $1.4M in its first quarter.

• Entered a business combination agreement with ProCap DTC/BTC, expected to close by year-end, with the combined entity to hold up to $1B in Bitcoin.

Financial highlights

• Adjusted pretax income was $5.5M, up from $1.3M in the prior quarter and an adjusted pretax loss of $8.6M in the prior year quarter.

• Net trading revenue reached $10.8M in Q2, up $1.5M sequentially and $2M year-over-year; for the six months, net trading revenue was $20.0M, up 7% year-over-year.

• New issue and advisory revenue jumped 129% to $70.7M for the six months, reflecting strong investment banking activity.

• Compensation and benefits expense was $44.3M in Q2, up from both prior quarters due to revenue fluctuations and variable incentive compensation.

• Operating expenses rose 107% to $81.0M for the six months, mainly due to higher compensation and benefits.

Outlook and guidance

• Entering the second half of the year with strong momentum and a robust pipeline in investment banking and SPAC activities.

• Asset management revenue is expected to decline in future quarters following the sale of CDO management contracts.

• Management expects margin pressures in fixed income brokerage and ongoing headwinds from interest rate and market volatility.

• The Board will continue to evaluate the dividend policy each quarter based on operating results and capital needs.