Cohen & Company (COHN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $32.441M, down 61% YoY; net income attributable to common stockholders was $6.700M, up 46%, aided by a $6.397M tax benefit and principal investment gains.

• Adjusted pre-tax income was $648,000 despite $17.6M of mark-to-market losses on investment-banking instruments received for services.

• For 9M 2026, revenue declined 8% to $159.830M while net income attributable to common stockholders increased 86% to $11.766M.

• Long-term ambition is to build a platform generating more than $500M in revenue over 3–5 years.

• Capital Markets activity and the record $4.5B gestation repo book were operating bright spots.

Financial highlights

• Q3 revenue was $32.441M vs. $84.213M YoY; operating income was $2.630M vs. $21.760M, and net income was $6.288M vs. $8.789M.

• Net income attributable to common stockholders was $6.700M vs. $4.593M; basic EPS was $2.49 and diluted EPS was $0.12.

• Adjusted pre-tax income was $648,000, or $0.10 per diluted share, vs. $10.1M/$1.62 QoQ and $16.4M/$2.71 YoY.

• 9M revenue was $159.830M vs. $172.824M; net income was $17.660M vs. $14.355M, and attributable net income was $11.766M vs. $6.330M.

• Compensation and benefits expense was $21.1M, down $27.0M QoQ and $32.5M YoY, primarily reflecting revenue-linked variable compensation.

Outlook and guidance

• No 2027 guidance was issued; management expects growth beyond recent revenue levels, aims to enter 2027 with a strong pipeline, and noted that some transactions are closing more slowly.

• 45 underwritten SPACs carry backend fees, 13 with signed business combination agreements; placement-unit and warrant values may rise or fall as transactions progress.

• Management expects the SPAC IPO window to improve toward year-end or early 2027, potentially restarting a large backlog of transactions.

• Elroy Air’s proposed combination was expected to close in Q4 2026, subject to shareholder approval and customary conditions; it was described as a significant revenue event.

• Middle-market debt capital markets are expected to grow and contribute to 2027 revenue; asset management and gestation repo are also expected to remain contributors.