Perella Weinberg Partners (PWP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues were $155.3 million, down 43% year-over-year, with H1 2025 revenues at $367.1 million, reflecting a more diversified revenue base and the impact of lower M&A activity and absence of a large prior-year fee event.

• Net income attributable to shareholders was $2.7 million for Q2 2025, compared to a net loss of $66.0 million in Q2 2024, as compensation expenses dropped.

• The acquisition of Devon Park Advisors expands offerings in private funds advisory and GP-led secondaries, with closing expected in Q4 2025.

• Significant senior hiring, with 12 new partners and 9 new managing directors expected by year-end, and two new independent directors appointed.

• The company operates as a single advisory segment, serving a global client base across multiple sectors.

Financial highlights

• Q2 2025 revenue: $155.3 million (Q2 2024: $272.0 million); H1 2025 revenue: $367.1 million (H1 2024: $374.1 million).

• Adjusted pre-tax income for Q2 2025 was $12 million; adjusted EPS was $0.09, GAAP diluted EPS $0.04.

• Compensation and benefits expenses fell 65% year-over-year in Q2 2025, mainly due to the prior year’s vesting acceleration of equity awards.

• Non-compensation expenses decreased 13% year-over-year in Q2 2025, driven by lower litigation and bad debt expenses.

• Ended Q2 2025 with $145 million in cash and no debt; declared a $0.07 per share quarterly dividend.

Outlook and guidance

• Entered Q3 with robust client activity and improved market environment; management expects to meet operating needs with current liquidity and cash flow.

• Strategic investments in talent and the Devon Park Advisors acquisition are expected to broaden capabilities and revenue opportunities.

• No specific revenue guidance provided, but the business is targeting $1 billion+ in annual revenue and margin expansion.

• Modeling a mid-single-digit increase in non-compensation expenses for the full year, lower than previously indicated.

• Adjusted tax rate for the first half was 30%, expected to remain consistent for the year, excluding a $14.9 million RSU vesting benefit.