Perella Weinberg Partners (PWP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached a record $272 million, up 64% year-over-year, driven by large transaction closings and strong M&A and capital solutions activity.

• Adjusted pre-tax income was $63 million, while GAAP pre-tax loss was $(81) million, reflecting a $130 million one-time equity-based compensation expense from vesting acceleration.

• Adjusted EPS was $0.43; GAAP diluted EPS was $(1.21) for Q2.

• Continued investment in talent, with three new advisory partners and nine new managing directors added year-to-date.

• Shares have risen over 80% since public listing, with more than $400 million returned to equity holders and a reduced share count.

Financial highlights

• First half 2024 revenues totaled $374 million, up 26% from the prior year period.

• Adjusted pre-tax income for the first half was $45 million; GAAP pre-tax loss was $(132) million.

• Adjusted EPS for the first half was $0.34; GAAP diluted EPS was $(1.96).

• Adjusted compensation ratio for the first half was 68%; adjusted non-compensation expense was $78 million, up 10% year-over-year.

• Ended Q2 with $185 million in cash and no debt.

Outlook and guidance

• Management expects continued strong activity in M&A and capital solutions, supported by improving market conditions and increased client engagement.

• Market tailwinds are present for the first time in over two years, with inflation receding and benchmark rates declining.

• Backlog of announced and pending deals remains at record levels and continues to build.

• No revenue guidance provided; management expects volatility and mean reversion but focuses on franchise strength and client engagement.