Stifel Financial (SF) investor relations material

Executive summary

• Achieved record second quarter net revenue of $1.28B, up 6% year-over-year, with core EPS of $1.71 and return on tangible common equity at 21.7%.

• Added 82 financial advisors, including 36 from B. Riley, marking the strongest recruiting quarter in a decade.

• Completed acquisitions of Bryan Garnier and B. Riley, expanding European investment banking and adviser growth.

• Record client assets reached $516.5B, up 9% year-over-year; fee-based assets at $206.3B.

• Ranked #1 in Employee Advisor Satisfaction by JD Power for the third consecutive year.

Financial highlights

• Operating pretax margin was 20.3%; operating EPS rose 7% year-over-year to $1.71.

• Net interest income increased 8% year-over-year to $270M; commissions and principal transactions up 11%.

• Asset management revenues rose 6% year-over-year to $404M.

• Compensation ratio held at 58%, at the high end of guidance; non-compensation expenses increased 10.1%.

• Book value per share increased 5% year-over-year to $48.07; tangible book value per share up 4% to $33.30.

Outlook and guidance

• Full-year 2025 net revenue guidance raised to $5.25B–$5.75B; strong second half expected if conditions hold.

• Compensation ratio expected at 56–58%; non-compensation ratio at 19–21%.

• Net interest income guidance increased to $1.1B–$1.2B for 2025.

• Additional $1B in loan growth anticipated for 2025.

• Assessing impact of new U.S. tax legislation (OBBBA) effective for 2025.