Perella Weinberg Partners (PWP) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenues reached $751 million, down 14% from 2024's record but still among the highest in firm history, with Q4 revenues at $219 million, including $18.5 million from early 2026 closings.

• Adjusted pre-tax income for 2025 was $82 million, with adjusted EPS at $0.68 for the year and $0.17 for Q4.

• The business remains asset-light, ending 2025 with $256 million in cash and no debt.

• Significant talent investment included 23 new senior bankers, 12 new partners, and 11 managing directors in 2025, plus the acquisition of Devon Park Advisors to expand secondaries advisory.

• Record revenues achieved in Europe and the Restructuring practice, with meaningful market share gains.

Financial highlights

• Adjusted compensation margin was 68% for 2025, up from 67% in 2024, with adjusted total compensation and benefits at $511.9 million.

• Adjusted non-compensation expense was $159 million, down 2% year-over-year and below projected growth.

• GAAP net income attributable for FY 2025 was $35.5 million, up from a loss of $64.7 million in 2024.

• Over $163 million was returned to equity holders in 2025 via dividends, RSU settlements, share repurchases, and unit exchanges.

• 6.5 million shares were retired during the year, with 67 million Class A shares and 22 million partnership units outstanding at year-end.

Outlook and guidance

• Optimism for 2026 driven by a record pipeline and strong backlog, with positive client sentiment across sectors and favorable conditions for M&A, financing, and capital solutions.

• Expectation of a further single-digit percentage decrease in non-compensation expenses for 2026.

• Restructuring business environment remains strong, with no slowdown anticipated and continued high activity in liability management.

• Recruiting expected to return to trend levels in 2026, with a strong pipeline of candidates.

• The platform is targeting an initial milestone of $1B+ in annual revenue, with expectations of scale benefits as this is approached.